OmniBSIC Profit Surpasses GH¢150m

Profit of Ghana’s fastest growing financial institution, OmniBSIC Bank, has surpassed GH¢150 million in the third quarter of this year – just 11 months after the merged entity overturned its losses.

The bank’s profit before tax rose by more than four-fold to GH¢153.65 million in the third quarter of this year from GH¢36.93 million 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.

An outcome of a merger between the erstwhile Omni Bank and Sahel Sahara Bank, OmniBSIC posted its first profit of GH¢8.69 million 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¢582.5m million in the quarter under review from GH¢ 221.02 million in the corresponding period in 2022.

The Managing Director of OmniBSIC Bank, Daniel Asiedu, noted that the latest results marked 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,” the quintessential banker with almost three decades of banking experience, said.

Mr. Asiedu, who was recently adjudged the 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

Beyond the historic profit, the bank’s financial results showed that 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 the debt exchange in the banking industry in 2022.

Furthermore, the bank ended the third quarter with a liquid ratio of 95 per cent and a capital adequacy ratio of 18 per cent. Its cash and balances with other banks also grew by 18.9 per cent to GH¢646.87 million.

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¢582.54 million 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¢3.8 billion.

Investments almost tripled to GH¢3.19 billion in the quarter under review from GH¢1.23 billion in the same quarter last year.

The bank also disbursed about GH¢620.4 million in loans and advances to businesses in the quarter under review.

Deposits from customers also rose by 103 percent to GH¢4.01 billion in the third quarter of 2023 from GH¢1.97 in the same quarter last year.

Looking Ahead 

A fully-fledged universal bank, OmniBSIC is a product of the banking sector consolidation programme spurned 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 the 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 the COO of the Year, Private Sector, at the same event.

OmniBSIC picked up the Best Corporate Health Walk of the Year 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 was confident that the bank’s strong performance would inspire the staff and management to work hard to exceed 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 was always ready to meet their financial needs.  He added that the bank is revamping its infrastructure and empowering staff to deliver higher value to customers.

Mr Asiedu took over the reins of OmniBSIC in May 2021 with a goal to align with the bank’s vision to be the number 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 Organization for Standardization (ISO) Certification for its Information Security Management System (ISO/IEC 27001:2013) as well as 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.

Mr. Asiedu added that OmniBSIC Bank remained committed to providing innovative products and services to meet the banking needs of customers and the general public in all its 40 branches nationwide, and all other touchpoints.