Fidelity Bank records 204% liquidity ratio; grows assets value to GHS 14.7bn
Fidelity Bank for the first quarter of 2022 posted strong liquidity ratio of 204%, up from the 128% recorded in the same period last year.
On a year-on-year basis, the bank grew its liquidity ratio by 76%.
This is significant for the bank given that liquidity ratio forms one of the four indicators of how financially sound a bank is.
With a liquidity ratio of 204%, this implies that Fidelity Bank can easily meet or pay its short term debt obligations without facing any form of liquidity challenges.
The bank’s Capital Adequacy Ratio (CAR) – another financial soundness indicator – increased from 21% in Q1 2021 to 24% in Q1 2022.
CAR measures a bank’s ability to cover loan losses or bad debts made in the provision of loans to businesses and households.
Fidelity Bank’s CAR of 24% is well above the Bank of Ghana’s 13% minimum CAR requirement.
The bank within the review period also increased its assets value by some GHS 4.1bn ending the first quarter of 2022 with total assets value of GHS 14.7bn.
This is against the total assets value of GHS 10.5bn recorded in Q1 2021.
Accounting for the surge in total assets value were the bank’s cash and cash equivalents and investment securities which increased by GHS 1.5bn and GHS 2.1bn respectively.
Cash and cash equivalents increased from GHS 1.1bn to GHS 2.6bn whereas investment securities holdings of the bank also increased from GHS 6.7bn to GHS 8.8bn in Q1 2021 and Q1 2022 respectively.
Total liabilities of the bank for the review period also increased from GHS 9.4bn to GHS 13.4bn marking an increase of some GHS 3.9bn year-on-year.
Per Fidelity Bank’s Q1 2022 Financial Statement, net profit amounted to GHS 108m as against the GHS 89m net profit recorded in Q1 2021.
Based on the recorded net profit, earnings per share for shareholders increased from GHS 3.55 to GHS 4.31