Edward Effah leads Fidelity to 79% Profit increase
In March 2001, Edward Effah was selected as one of the best twenty young leaders in Ghana for the inaugural class of the Ghana chapter of the Africa Leadership Initiative. Since then his name has never left the top performers list. Fidelity Bank under his leadership has recorded some phenomenal successes over the years and shows promise of continuous growth. In the industry, the bank has won several awards including the prestigious Best Bank- Customer Care for the Ghana Banking Awards under his leadership. He is by all standards a high performing individual.
In 2014, the nation was faced with an economic downturn that presented a turbulent period to the financial sector. In spite of this challenge Fidelity Bank recorded an appreciable performance under the leadership of Mr. Edward Effah in 2014 when profits increased by about 79% from the previous year’s GH¢63 million to GH¢112.5 million in 2014.
At the bank’s annual general meeting, Mr. Effeh said; “In the year under review, operating income was GH¢326 million, representing a growth of 67 percent over last year’s figure of GH¢195 million. Growth in operating income was as a result of a 59 percent growth in the net interest income from GH¢117 million in 2013 to GH¢186 million in 2014. Growth in fees and commission on the other hand increased but was below expectation due to the shortage in foreign currency and decreased international trade activities in the year”. He said that effective cost savings, notwithstanding the higher inflationary environment, supported the profit performance, saying “operating expense for the year came to GH¢183 million, 57 percent above that of the previous year.”
According to a news item published on the company’s website; assets of the group soared significantly by 85 per cent from GH¢1.69 billion in 2013 to GH¢3.14 billion in 2014. The bank’s profit after tax increased by about 90 per cent from GH¢43.86 million in 2013 to GH¢83.38 million at the end of last year, buoyed by about a 71 per cent growth in operating income from GH¢197.1 million in 2013 to GH¢336.7 million in 2014.
Mr. Effah attributes the Bank’s performance to improved internal processes substantially, enhanced delivery of service to customers and increased footprint in the Ghanaian banking landscape. He said the bank brought on board IBM, a leading IT company to provide the latest technology platform to serve its customers, invested in a state-of-the-art contact center to serve customers as well as the acquired ProCredit Savings and Loans Limited to ensure expansion of its activities. These factors are largely responsible for the growth. Mr. Edward Effah noted that the integration has been very smooth and that Fidelity currently has the best combination of Human Resources in the sector.
Board Chairman of the Bank, Dr. William Panford Bray, touching on the acquisition of ProCredit noted that the acquisition of ProCredit had helped the bank to increase its footprint across the country with an extended network of 80 branches and 110 ATMs. With the integration of processes and credit methodology well integrated, The bank can now boast of customer base increase from 485,000 to 621,829 helping to improve deposit base by 31 per cent to GH¢1.8 billion.
High performance in the financial sector enables high performance in all other sectors of an economy. With the likes of Edward Effah at the helm of affairs, there is light at the end of the tunnel for Africa as the Cheetahs, slowly move to the front-line. Mr. Effah is a classic example of high performance; a person who’s very presence in any group forces change in the upward direction. Team SPiD-UP is working hard to find out what his driving philosophy is and when this is done, we hope to bring you an inspiring article that will encourage you towards being the best you can be. In the meantime, keep brightening your corner. #SPiD-UP