Q1 2023: Fidelity Bank grows assets value to GHS 15.3bn; NPLs fall to 8.57%
Fidelity Bank, as indicated in its Q1 2023 Financial Statement, has reported an increase in its net asset value from GHS 14.7 billion to GHS 15.3 billion compared to the previous year. This growth in asset value can be primarily attributed to the rise in the bank’s cash and cash equivalents, which increased from GHS 2.6 billion in 2022 to GHS 3.6 billion in 2023.
During the review period, the bank’s liabilities also grew from GHS 13.4 billion to GHS 14.5 billion, primarily driven by an increase in customer deposits, accounting for GHS 11.5 billion of the total liabilities. This growth in customer deposits indicates an increment in loanable funds available for businesses and individuals, resulting in potential growth in interest income for the bank.
Fidelity Bank experienced a marginal improvement in its loan asset quality during Q1 2023, with a decline of 1.56% in non-performing loans (NPL). The bank’s NPLs decreased from 10.13% in 2022 to 8.57% in 2023. This reduction suggests that the bank’s implementation of new loan recovery strategies is beginning to yield positive results.
However, despite the improvement in NPLs, Fidelity Bank’s Capital Adequacy Ratio (CAR) decreased from 24.98% in 2022 to 18.37% in 2023. This indicates that the bank’s ability to absorb potential and unexpected losses has weakened. Nevertheless, the bank’s CAR, even with the reduction, still exceeds the regulatory requirement of a minimum CAR of 10% set by the Bank of Ghana for banks operating in the country.
In terms of profitability, Fidelity Bank posted a net profit of GHS 125 million in Q1 2023, compared to GHS 108 million recorded during the same period in 2022. This signifies a positive growth trend in the bank’s financial performance.
Overall, Fidelity Bank’s Q1 2023 Financial Statement reflects a strengthening of net assets, growth in customer deposits, improvement in loan asset quality, and increased profitability. Despite a decrease in the Capital Adequacy Ratio, the bank remains compliant with the regulatory requirement set by the Bank of Ghana.
