Fidelity Bank posts GH₵1.21bn profit before tax in 2024 -

Fidelity Bank Ghana, the country’s largest privately-owned indigenous bank, has reported a strong financial performance in 2024, defying challenging macroeconomic conditions to post significant growth in income, assets, and profitability.

At its recently held Annual General Meeting, the bank announced that its operating income surged by 15% to GH₵2.34 billion, up from GH₵2.03 billion in 2023.

Profit before tax climbed to GH₵1.21 billion, a four per cent increase, despite what the Board described as a “difficult operating environment” marked by high inflation, tight liquidity, and regulatory pressures.

Deposit growth, asset expansion drive performance

Fidelity Bank’s total assets increased by 28% to GH₵22.11 billion in 2024, a performance largely driven by strong deposit mobilisation efforts.

Customer deposits rose sharply by 40%, reaching GH₵17.65 billion—highlighting increased customer confidence in the bank’s financial strength and services.

The bank maintained a cautious approach to credit extension, recording GH₵3.14 billion in loans and advances, consistent with what it described as a “measured and disciplined growth strategy” aimed at safeguarding portfolio quality amid macroeconomic volatility.

Investment securities rose modestly by 3% to GH₵7.90 billion. Fidelity Bank also kept its Non-Performing Loan (NPL) ratio under 10%, well below the industry average, reflecting the bank’s prudent risk management strategy.

Shareholder funds grew by an impressive 44% to GH₵2.07 billion, while the capital adequacy ratio improved significantly to 19.55%, up from 14.38% in 2023—even without reliance on regulatory reliefs.

As a result of this strong performance, shareholders approved an ordinary dividend of GH₵8 per share for the 2024 financial year.

Navigating economic pressures
Board Chairman James Reynolds Baiden praised the bank’s resilience in the face of economic headwinds, including persistently high inflation, sharp currency depreciation, liquidity constraints, and a volatile regulatory environment.

Baiden also acknowledged the impact of a 37% haircut on Ghana’s Eurobond holdings and income losses resulting from increased cash reserve requirements mandated by the central bank.

“Our ability to navigate these challenges underscores the strength of our balance sheet and risk management framework,” he said. “It also demonstrates our strategic focus on sustainable growth and sound governance.”

Strategic priorities: Risk, digital, and ESG

The bank is doubling down on operational efficiency, digital innovation, and environmental, social, and governance (ESG) integration.

“We are prioritizing risk management and embedding ESG considerations across our operations,” Mr. Baiden stated.

He noted significant automation efforts, a reduction in manual processes, and strengthened internal controls as part of the bank’s digital transformation strategy.

He also highlighted enhanced data capabilities that have enabled more agile decision-making and sharper strategic execution.

The bank deepened its partnerships with fintech companies, especially to improve access to financial services in underserved and informal sectors.

It also upgraded its lending framework for retail and SME customers, with an emphasis on cash-flow-based credit decisions.

Green finance, creative economy get boost
In line with its commitment to green finance, Fidelity Bank plans to scale up its flagship sustainability initiatives.

These include the Green Tech Innovation Challenge, and the launch of Orange Inspire, a new fund targeting Ghana’s creative economy.

Orange Inspire is designed to provide financing, incubation, and enterprise development support to players in creative arts, media, and digital entrepreneurship.

Awards underscore sector leadership

Fidelity Bank’s 2024 success has been recognised both locally and internationally.

The bank was named Best SME Bank by the World Economic Magazine and Global Business and Finance Magazine Awards.

It also picked up awards for Best ESG Bank at the Ghana Accountancy & Finance Awards, and Best Bank for Sustainable Development from Global Banking & Finance Review.

“These recognitions affirm our leadership in sustainability, innovation, and inclusive finance,” said Mr. Baiden.

“We remain fully committed to our purpose of making financial services accessible, responsible, and impactful for all Ghanaians.”

As Fidelity Bank turns its attention to 2025, its management says the focus will remain on digital leadership, resilient performance, customer-centric growth, and supporting national development goals.