Profit and liquidity soared and the balance sheet gained more robustness after all indices registered strong growth in the second quarter of this year.

The results, which were released two weeks ago showed that profit more than doubled to GH¢96.56 million in June this year from GH¢25.04 million last year on the back of robust growth in interest income and controlled expenses.

The excellent performance indicators now consolidate the bank’s growth strategy and its capacity to deliver superior value for stakeholders, as its concerted effort to improve operational efficiency, funded income, and asset quality paid off.

The Managing Director of OmniBSIC Bank, Daniel Asiedu, said in an interview that the results indicated that the bank’s financials remained on a strong footing and it was now comfortably positioned to support businesses and the economy to grow.

“There is still a lot ahead but we can see concrete progress and that is inspiring for the board and staff. Our liquidity position and asset base shows that we are well placed to support businesses and that is all that we strive for,” the astute banker with more than 30 years’ experience managing top banks said.
Beyond the strong profit, the bank’s financial results showed that it remained liquid and well-capitalised, midway into the year.

Its liquidity ratio stood at 91.48 per cent, indicating a liquid and resilient bank while the capital adequacy ratio (CAR) was 23.2 per cent, reflecting a well-capitalised bank at a time when the economic crisis has eroded the capitals of most banks.

Double growth

The results further showed that OmniBSIC Bank enjoyed double growth in almost all income lines.
Interest income rose by more than 178 per cent to GH¢371.43 million in June 2023, buoyed largely by substantial growth in net trading income.

In addition to the strong showing in its financial soundness indicators, OmniBSIC Bank also posted significant growth in its earning assets to consolidate its position as a robust lender and partner to businesses.

Investments rose by more than two folds, from GH¢1.13 billion in the second quarter of 2022 to GH¢2.82 billion in the quarter under review.

Robust loan book

Loans and advances also surged by 37.4 per cent to GH¢643.68 million in the second quarter as the bank extended more support to businesses and the economy in the quarter under review.
Deposits from customers also jumped by more than two folds from GH¢1.74 billion in the first quarter of last year to GH¢ 3.62 billion in the quarter under review.

Similarly, deposits with banks and other financial institutions rose by 126 per cent to GH¢187.45 million in the second quarter from the GH¢82.92 million recorded in the same period last year.

Shareholders’ funds benefited from the strong performance to close the quarter on a strong note. The financials showed that it ended the quarter at GH¢457 million.

Return on equity (ROE) for the quarter also ended at an impressive 13.23 per cent, reflecting a profitable and efficient deployment of resources.

Implications

A fully-fledged universal bank, OmniBSIC traces its roots to a merger between the erstwhile OmniBank and Sahel Sahara Bank that was spurned by the banking sector consolidation programme between 2017 and 2019.

The merger has emerged as one of the most successful in the financial services industry, having delivered a profitable and versatile lender with endearing services and strong performance.
The Bank’s MD explained that the second quarter financial results were a testament that customer-centered hard work delivered results.

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 needs.

“With the foundation almost firmly established, we are now ready to take on more opportunities as we aim to double growth in retail banking, consolidate wholesale banking and further deepen our position on digitalisation,” he said.

Improved corporate governance

A former MD of the Agricultural Development Bank and Zenith Bank Ghana, Mr Asiedu took over the reins of OmniBSIC in May 2021 with a goal to turn its fortunes around.

The bank has since reinforced its corporate governance structures and invested in infrastructure to align with the Bank of Ghana corporate governance and other regulatory directives.

Last year, it upgraded its core banking software. It also received the International Organisation for Standardisation certification for Information Security Management Systems (ISO/IEC 27001:2013) in May after rigorous external assessment of its information security policies, procedures, and practices, risk management processes, and the effectiveness of its security controls.

The Bank has entered into a strategic partnership with the Pan-African Payment and Settlement System (PAPSS) to drive cross-border payments across the continent, with a successful maiden transaction in June.

Mr Asiedu said the whole idea was now to leverage technology and established relationships to “serve our customers better and expand our frontiers so that we can deliver value to stakeholders.”