Profit of Ghana’s fastest-growing financial institution, OmniBSIC Bank, has surpassed GH¢150million in the third quarter of this year – just 11 months after the merged entity overturned its losses.
The bank’s profit before tax rose more than four-fold to GH¢153.65million in the third quarter of this year, from GH¢36.93million in the same period in 2022. The balance sheet was also robust, driven largely by strong growth in investments and deposits while liquidity and capital adequacy ratios remained well above prudential requirements.
Success story
An outcome of a merger between the erstwhile Omni Bank and Sahel Sahara Bank, OmniBSIC posted its first profit of GH¢8.69million in the first quarter of 2022, ending a loss-streak since its takeoff in 2019. It has since remained profitable, posting impressive results quarter after quarter.
Its unaudited financial statements for the third quarter of 2023 indicated that all income lines enjoyed strong growth, resulting in interest income more than doubling to GH¢582.5million in the quarter under review from GH¢ 221.02million in the corresponding period of 2022.
Managing Director-OmniBSIC Bank, Daniel Asiedu, in an interview said that the latest results mark a critical milestone in the bank’s nascent journey. “It obviously shows that we are doing the right things by supporting businesses and our clients with the right products and services, hence the continuous stellar performance,” said the quintessential banker with almost three decades of banking experience.
Mr. Asiedu, who was recently adjudged Personality of the Year, Private Sector at this year’s Ghana CEO Awards, said the excellent performance indicators put OmniBSIC on a higher pedestal to deliver superior value to customers and shareholders.
Resilience in challenges
Beyond historic profit, the bank’s financial results showed it remained liquid and well-capitalised despite the domestic debt exchange programme (DDEP). Due to its diversified portfolio of investments, OmniBSIC recorded the least impairment from debt exchange in the banking industry during 2022. Furthermore, the bank ended the third quarter with a liquid ratio of 95 percent and a capital adequacy ratio of 18 percent.
Its cash and balances with other banks also grew by 18.9 percent to GH¢646.87million.
The financial statement further showed that OmniBSIC enjoyed double growth rates in almost all income lines. Interest income rose by more than 163 percent to GH¢582.54million in the third quarter, driven largely by substantial growth in earning assets.
OmniBSIC posted significant growth in its earning assets to consolidate its position as a robust lender and partner to businesses. Earning assets grew by 88 percent to close the quarter at GH¢3.8billion. Investments almost tripled to GH¢3.19billion in the quarter under review, from GH¢1.23billion in the same quarter of last year.
The bank also disbursed about GH¢620.4million in loans and advances to businesses in the quarter under review. Deposits from customers also rose by 103 percent to GH¢4.01billion in the third quarter of 2023 from GH¢1.97billion in the same quarter last year.
Looking ahead
A fully-fledged universal bank, OmniBSIC is a product of the banking sector consolidation programme spurred by the Bank of Ghana between 2017 and 2019. It has emerged as one of the most successful merger stories in the financial services industry, having delivered endearing products and services as well as a strong financial performance.
In addition to the Managing Director being adjudged Personality of the Year, Private Sector, at this year’s Ghana CEO Awards, OmniBSIC’s Chief Operating Officer (COO), Dr. Philip Oti-Mensah, also won COO of the Year, Private Sector at the same event.
OmniBSIC picked up the Best Corporate Health Walk of the Year award at the Africa Event Awards 2023, and was rated five-star in four categories at the Chartered Institute of Marketing Ghana (CIMG) 2023 Awards night:
• 5 Stars in Customer Satisfaction – Consumer Banking,
• 5 Stars in Customer Satisfaction – Business Banking,
• 5 Stars in Service Quality – Business Banking and
• 5 Stars in Service Quality
The Managing Director is confident that the bank’s strong performance will inspire the staff and management to work hard on exceeding customer expectations.
The Reverend Minister and Chairman of the International Presbytery of the Fountain Gate Chapel (FGC) therefore commended the board and staff for their dedication, and assured the public that the bank is always ready to meet their financial needs. He said the bank is revamping its infrastructure and empowering staff to deliver higher value for customers.
Mr. Asiedu took over the reins of OmniBSIC in May 2021 with a goal to align with the bank’s vision of being the number-one bank in customer service delivery and value creation for stakeholders.
The bank has since reinforced its corporate governance structures and invested in infrastructure to align with the central bank’s corporate governance and other regulatory directives.
Last year, the bank upgraded its banking software and received the International Organisation for Standardisation (ISO) Certification for its Information Security Management System (ISO/IEC 27001:2013); and as well Payment Card Industry Data Security Standard (PCDISS) Certification following a rigorous external assessment of its information security policies, procedures and practices, risk management processes, and the effectiveness of its security controls.
“The plan is to finish the year stronger; not just for the bank but for our stakeholders,” Mr. Asiedu said.
He added that OmniBSIC Bank remains committed to providing innovative products and services to meet the banking needs of customers and the general public, in 40 branches nationwide and all other touchpoints.
