OmniBSIC Bank posts strong, resounding results… bags GH¢52.12m profit in 1st qtr

OmniBSIC Bank ended the first quarter of 2023 on a positive note, with a stellar performance that defies the challenges facing the local banking sector.

This was achieved through a concerted effort by the bank to improve operational efficiency, funded income, and asset quality.

The bank’s strong performance resulted in profit before tax growing by 500 per cent to GH¢52.12 million in the first three months of 2023.

OmniBSIC Bank’s results showed that profit before tax was GH¢8.69 million in the same quarter of 2022 but surged to GH¢52.12 million last quarter on the back of strong growth in all revenue lines.

Its financial performance that was published last week showed that OmniBSIC also remained liquid and well-capitalised. The bank’s liquidity ratio stood at 91.4 per cent, indicating a liquid and resilient bank.

The capital adequacy ratio (CAR) was also 23.5 per cent, reflecting a well-capitalised bank at a time when the economic crisis has eroded the capitals of most banks.

OmniBSIC grew its interest income by 204 per cent within the period. It rose from GH¢58.02 million in the first quarter of 2022 to GH¢176.28 million in the same quarter this year.

The bank’s non-funded income also grew by about 98 per cent from GH¢17million to GH¢34 million as a result of a rapid increase in commission and fees and trading income.

In addition to the strong showing in its financial soundness indicators, OmniBSIC also posted significant growth in its earning assets. Investments more than doubled from GH¢1.17 billion in the first quarter of 2022 to GH¢2.89 billion in the quarter under review.

The bank grew its loans and advances by 37.4 per cent to GH¢618.13 million in the first quarter of this year. Loans and advances were GH¢ 449.87 million in the same period last year but increased on the back of more support extended to businesses and the economy in the first quarter of this year.

While deposits from customers also more than doubled from GH¢1.78 billion in the first quarter of last year to GH¢3.53 billion in the same quarter this year, deposits with banks and other financial institutions rose from about GH¢84.66 million to GH¢242.97 million within the same period.

The Managing Director of OmniBSIC, Daniel Asiedu, said the results indicated that the bank generally improved its financial soundness indicators over the period, in terms of asset quality, liquidity, and capital adequacy ratio.

Mr Asiedu said the balance sheet remained strong because of the buoyant growth in investments and increased support to businesses and the economy through loans and advances.

A wholly indigenous bank, OmniBSIC was launched in 2019 as the outcome of a merger between two strong brands meant to consolidate their operations and serve customers better.

It faced turbulence in its first years until late 2021 when the ingenuity of the current board, management, and staff started paying off.

The MD said the bank was not resting on its laurels but was pushing further with innovations and products to help meet the growing needs of customers.

The astute banker, who is also a Reverend Minister and the Chairman of the International Presbytery of Fountain Gate Chapel (FGC), said the bank recently upgraded its banking software to the latest version of FLEXCUBE, a universal banking software used by the world’s big lenders, to ensure efficient service delivery.

The former MD of Zenith Bank Ghana and the Agricultural Development Bank said the upgrade had made OmniBSIC’s operations smoother, noting that further major milestones should be expected in the coming financial year.

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