Indigenous
lender, OmniBSIC Bank has recapitalised to about GH¢516 million – above the
regulatory requirement of GH¢400 million.
The large capital gives comfort to customers and the general public,
strengthens the bank’s buffers and its balance sheet as well as enhances its
capacity to fund big-ticket transactions in an economy where businesses are
recovering from the global twin challenges.
The bank has also consolidated its turnaround story after recording significant
profit in the second quarter of this year.
Its second quarter 2022 financial statement showed that the bank posted a
profit-before-tax of GH¢25.04 million compared to a loss of GH¢11.72 million in
the same quarter last year.
The bank posted its maiden gross profit of GH¢8.69 million in the first quarter
of this year after recording losses since it was outdoored from the merger in
2019.
Rights issue
The unaudited financial statement showed that OmniBSIC Bank, which is the
outcome of a merger of Omni Bank and Sahel Sahara Bank Ghana, raised its
capital from about GH¢268.2 million in the second quarter of 2021 to GH¢516
million in the same period this year.
It followed the injection of about GH¢247 million by shareholders.
The Managing Director of the bank, Daniel Asiedu, explained in an interview
that the recapitalisation followed a successful rights issue that was fully
underwritten by the shareholders.
The successful recapitalisation of the bank above the regulatory limit and the
consolidation of its turnaround now means that the bank’s profitability and
resilience are on firmer footing.
With capital in excess of GH¢500 million, OmniBSIC, a wholly-indigenous bank,
now joins the league of lenders with large capital and deep buffers, capable of
supporting businesses to expand and improve upon their bottom lines.
Liquidity position
The bank’s second-quarter results showed that beyond the strong profit, its balance
sheet and liquidity position were strong.
While deposits, and loans and advances enjoyed strong growth, cash and balances
with other banks almost doubled.
Cash and balances rose from GH¢261.7 million in the second quarter of 2021 to
GH¢497.23 million in the period under review – indicating the depth of the
bank’s liquidity.
OmniBSIC’s investments also shot up to about GH¢1.13 billion in the second
quarter of this year from the GH¢805.43 million recorded in the same period in
2021.
Implications
Mr Asiedu, who is leading the revitalisation of the bank, said the successful
recapitalisation and the consolidation of the turnaround represented key
milestones to customers and the bank in its nascent history.
“For the recapitalisation, it means that we are solid and it also gives comfort
to our customers and the general public that we are fully paid up.
“Now that we have in excess of GH¢500 million in capital, it means that the
public and our corresponding banks should be confident dealing with us,” he said.
He added that the strong capital also increased the bank’s capacity to support
businesses and thus called on the general public and entrepreneurs in
particular to take advantage of the situation to grow.
Unparalleled customer service
The result of the ‘refreshed OmniBSIC Bank’ is a combination of solid talent
acquisition, capital injection and the infusion of new ideas and products and
services into its operations by the board and management over the last year.
In May 2020, Mr Asiedu, an astute banker with more than three decades of
management experience in multinational and state-owned banks, took over as MD
with a vision to revitalise the bank and reposition it on the path of
profitability.
With the support of the board, the chartered accountant and economic policy
analyst has revamped and rejuvenated the staff, restructured the operations and
introduced new products and services tailored at the needs of customers.
A new banking application is also underway to help strengthen the bank’s
operations and improve its delivery to customers, the former MD of Zenith Bank
Ghana and the Agricultural Development Bank (ADB) said.
He explained that customer service was also prioritised and revamped, making it
unparalleled at the moment.
“So, generally, we are on the right path with the support of the board and of
course, God,” he added.
Experienced hands
Beyond leveraging his goodwill and experience, the Reverend Minister and
Chairman of the International Presbytery of the Fountain Gate Chapel (FGC) said
he had recruited experienced hands to man key positions as part of the plan to
strengthen the bank’s structures.
He was hopeful that these and the improved product line and customer service
would endear the bank more to customers, leading to increased business.
Source: Peacefmonline.com