First Atlantic Bank Pledges to Protect Shareholder Value
First Atlantic Bank has reassured its shareholders of prioritising sound governance, disciplined growth, and ethical business practices to safeguard their investments following the bank’s Initial Public Offering (IPO) and listing on the Ghana Stock Exchange (GSE).
Speaking at a celebratory lunch held at the Labadi Beach Hotel on Friday, December 20, Managing Director and CEO, Odun Odunfa, emphasized the bank’s commitment to long-term sustainability over quick profits. “The only thing we can promise investors is that we’re going to run a decent business, a proper business,” he told Joy News in an interview.
Mr. Odunfa explained that while First Atlantic Bank aims to meet market forecasts, its operations are inevitably influenced by broader economic factors and regulatory demands. “Ours is a regulated business. We publish forecasts, and we try to deliver. Our business is affected by many things—the macros, the micros. It’s affected by all sorts of indices,” he noted.
He stressed that the bank’s reputation for discipline and transparency, qualities that attracted investors in the first place, will remain central to its operations. “We will aspire to meet market expectations, but we will not cut corners to do so. We will do our business properly. We’re going to build to last,” he affirmed.
According to Mr. Odunfa, the thorough due diligence conducted by investors prior to the IPO demonstrates their confidence in the bank’s business model and governance. “After all, the investor class or the investor group did a deep due diligence on us, and they found us suitable. The reason they found us suitable is because we’ve done things in a certain way,” he stated.
The successful IPO, he added, reflects a broader positive sentiment towards both First Atlantic Bank and the Ghanaian economy. “It says a lot about the confidence in the system right now, in our business,” he said.
He highlighted improvements in key macroeconomic indicators, such as cedi stability, easing inflation, and regulatory reforms, as contributing factors to investor optimism. “You’ve seen how the cedi has trended. You’ve seen how inflation has trended. You’ve heard how our regulator has positioned itself… I think it’s a good time for Ghana,” he added.
Mr. Odunfa underscored the deliberate decision to list on the GSE, emphasizing the importance of Ghanaian participation in the growth of the local capital market. “We’re Ghanaians, we’re in Ghana. Where else would we list?… If Ghanaians don’t believe in the Ghanaian Stock Exchange, nobody else will,” he said.
Beyond benefiting shareholders, the IPO will enable First Atlantic Bank to expand its investor base, strengthen its governance structures, and invest in key areas such as digitisation, regional growth, and staff development. “We have to broaden the investor base, and we have to deepen governance… We’re investing heavily in digitisation across Africa, West Africa, and Africa. We’re also investing a lot in the human capital,” he explained.
Reflecting on the bank’s journey, including its restructuring and merger with Energy Bank to meet the Bank of Ghana’s capital requirements, Mr. Odunfa stated that these experiences reinforced the importance of adhering to sound principles. “Growth does not come easy. If you’re going to do a good thing, you have to go through a process… If you do things properly, you will do well, and people would recognise it in the long run,” he said.
First Atlantic Bank, established in 1994 and licensed as a universal bank in 2011, has experienced consistent growth through consolidation and expansion. The IPO and subsequent listing on December 19 represent a significant milestone in its transformation into a publicly owned institution.
Mr. Odunfa concluded by reiterating the bank’s commitment to delivering disciplined management, ethical operations, and long-term value for its shareholders. “They should expect that they’ve invested in a good business that will continue to grow and we’ll continue to do things properly,” he said.
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