In a remarkable feat of resilience and strategic maneuvering, OmniBSIC Bank has not only weathered the storm of financial turbulence but emerged triumphant, posting a historic profit of GH¢150.6 million in 2023.
This staggering figure marks a monumental 218% increase from the previous year, signaling a remarkable turnaround for the bank.
The journey to this pinnacle of success was arduous, fraught with challenges and obstacles. OmniBSIC Bank, like many others in the sector, faced the daunting task of dealing with the aftermath of the debt restructuring program. However, rather than succumbing to adversity, the bank seized the opportunity to revitalize its operations, emerging stronger and more resilient than ever before.
Key to this resurgence was the bank’s unwavering commitment to excellence and innovation. A thorough analysis of the financial statements released last week revealed a plethora of strengths that underpin OmniBSIC’s newfound success. From enhanced profitability and liquidity to robust capitalization and efficient asset deployment, the bank exemplifies excellence in every facet of its operations.
The road to profitability was not without its setbacks. The domestic debt exchange program (DDEP) presented formidable challenges, exacerbating non-performing loans (NPLs) across the banking sector. In 2022, OmniBSIC Bank recorded a staggering GH¢127.5 million loss, primarily attributable to impairments stemming from the DDEP. However, the resilience and determination of the bank’s leadership and staff catalyzed a remarkable turnaround in 2023.
Critical Turnaround
Mr. Daniel Asiedu, the Managing Director of OmniBSIC Bank, hailed the bank’s remarkable transformation as a “critical turnaround” in its quest to reposition itself as a preferred lender for businesses and households alike.
Mr. Asiedu attributed the bank’s stellar performance to the relentless dedication and renewed commitment of its staff to serve customers better, earn their trust, and facilitate the growth of their businesses.
“At the center of our turnaround story is the customer,” remarked Mr. Asiedu, who also serves as the Chairman of the International Presbytery of Fountain Gate Chapel (FGC). “Everything we do here is geared towards enhancing the lives and businesses of our customers. When we succeed in that endeavor, our bottom line flourishes,” he added.
Meanwhile, the bank’s financial statement showed that last year’s record-high profit was driven by a perfect mix of strong growth in interest income and well-managed expenditures.
Gross earnings rose by 114 per cent in 2022 to GH¢920 million while operating income more than doubled from GH¢206 million in 2022 to GH¢534 million in the period under review.
The Managing Director said the decision to improve operational efficiency paid off, with the cost-to-income ratio dropping from 90 per cent in 2022 to 60 per cent last year. “It is key because as we grow the revenues, we also need to watch the expenses. To grow, you need to incur costs that fuel growth, and we are happy that it is reflecting in the statements,” the astute banker said.
Strong Balance Sheet
Further analysis of the financial statements showed that the strong balance sheet for the period was funded by significant growth in customer deposits. After ending 2022 at GH¢2.5 billion, the results showed that customer deposits rose by 93 per cent to about GH¢4.9 billion.
The bank was also well-capitalised, with its capital adequacy ratio (CAR) ending the year at 22.5 per cent, almost double the regulatory requirement of 13 per cent. It further showed that the bank has increased the assets that deliver earning to it.
OmniBSIC’s earning assets rose by 105 per cent in 2022 to GH¢4.3 billion in 2023 while its return on equity (ROE), which measures a bank’s profitability and how it efficiently deploys its assets, improved from a negative 47 per cent in 2022 to positive 26 per cent in the year under review.
The Managing Director of OmniBSIC Bank noted that the turnaround was a strong inspiration for the staff and management to work hard to exceed customer expectations. He 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 was 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 one bank in customer service delivery and value creation for stakeholders. It has since reinforced its corporate governance structures and invested in infrastructure in line with the central bank’s corporate governance and other regulatory directives.
“We now aim to step up on the good things and work closely with our customers to grow their businesses. Our message to you, our cherished customers, is give us a chance to serve you, for we see a brighter future ahead together.”
Mr. Daniel Asiedu
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