For fiscal year 2005, Fidelity Bank recorded its highest ever net profit, at $3.7 million, an increase of $2.4 million or 197% over the previous year. Mr. Anwer Sunderji of Fidelity Bank & Trust International, majority shareholder in the Bank, says they are very pleased with the performance of the bank in 2005 and are anticipating another good year in 2006. Total assets grew by 5.7 per cent to total $143.1 million – driven primarily by a $9 million or 10% increase in the bank’s loan book.
Mr. Sunderji also points out that Fidelity Bank (Bahamas) expects to exceed Basel Committee requirements on risk weighted capital when it completes its planned $15 million rights issued. Confident that a significant portion of those rights will be subscribed for, Mr. Sunderji says the move to increase capital was planned to fuel growth.
Fidelity’s rights issue is scheduled during the second quarter of the year, and involves a debt for equity swap; effectively debt financing will be exchanged for an injection of equity financing to strengthen the bank.
Fidelity Bank has been drawing on the estate planning, investment and securities products offered by its majority shareholder – and other companies within the Fidelity Group. Effectively, it is seeking to establish a competitive niche by setting itself up as a one stop shop for Bahamian consumers to access all financial products. According to Mr. Sunderji, the bank is positioning itself to provide customers with a full range of financial products and services that satisfy their short and long-term wants and needs – equipping them for long term financial security.