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.
Success story
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, said in an interview 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 in challenges
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.
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