- profit soars to GH¢96m in second quarter
Indigenous lender OmniBSIC Bank has taken its stellar performance to the next level – with strong results in the second quarter that deliver superior returns to shareholders and guarantee higher value to customers. 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 last week, showed that profit more than doubled to GH¢96.56million in June this year from GH¢25.04million 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 to stakeholders, as its concerted effort to improve operational efficiency, funded income and asset quality has paid off.
Managing Director-OmniBSIC Bank, Daniel Asiedu, said in an interview that the results indicated that the bank’s financials remain on a strong footing; and it is 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 to the board and staff. Our liquidity position and asset base show that we are well placed to support businesses, and that is all that we strive for,” said the astute banker with more than 30 years’ experience managing top banks.
Beyond 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 percent, indicating a liquid and resilient bank; while the capital adequacy ratio (CAR) was 23.2 percent, reflecting a well-capitalised bank at a time the economic crisis has eroded the capitals of most banks.
Double growth
The results further showed that OmniBSIC enjoyed double-growth in almost all income lines. Interest income rose by more than 178 percent to GH¢371.43million in June 2023, buoyed largely by substantial growth in net trading income.
In addition to the strong showing in its financial soundness indicators, OmniBSIC 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¢1.13billion in the second quarter of 2022 to GH¢2.82billion in the quarter under review.
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Robust loan book
Loans and advances also surged, by 37.4 percent to GH¢643.68million 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-fold, from GH¢1.74billion in the first quarter of last year to GH¢3.62billion in the quarter under review.
Similarly, deposits with banks and other financial institutions rose – by 126 percent to GH¢187.45million in the second quarter from the GH¢82.92million recorded in the same period last year.
Shareholders’ funds benefitted from the sterling performance to close the quarter on a strong note. The financials showed that they ended the quarter at GH¢457million. Return on equity (ROE) also ended the quarter at an impressive 13.23 percent, 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 spurred 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.
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The bank’s MD explained that the second quarter financial results were a testament that customer-centred hard work delivers 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 is 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 Bank of Ghana corporate governance and other regulatory directives.
Last year, it upgraded its banking software and received the International Organisation for Standardisation certification for Information Security Management Systems (ISO/IEC 27001:2013) last May after rigorous external assessment of its information security policies, procedures and practices, risk management processes, and the effectiveness of its security controls.
It also 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 on June 1. “The whole idea is to leverage technology and our relationships to serve better and grow so we can deliver value to stakeholders,” Mr. Asiedu said.
