Ghana’s fastest-growing bank, OmniBSIC Bank Plc, has opened 2024 positively by delivering strong results in the first quarter which is a strong indication of superior returns to shareholders and higher value for businesses this year.
The bank’s profit soared by more than 58 per cent
to GH¢82.58 million in March while liquidity and the balance sheet gained more
robustness within the period, its first quarter financial statements showed.
All other financial metrics also registered strong
growth in the first three months, in a perfect continuation of the impressive
performance chalked up in 2023.
Last year, the bank emerged stronger from the debt
restructuring program, with an impressive performance that resulted in one of
the biggest profitability ratios in the banking sector.
Profit rose by 218 percent to GH¢150.6 million in
2023, indicating a significant turnaround from the loss suffered in the
previous year.
The Managing Director of OmniBSIC Bank, Mr Daniel
Asiedu said the strong performance in the first quarter of 2024 further
consolidates the bank’s growth strategy and its capacity to deliver superior
value for stakeholders.
Mr. Asiedu, in his statement promised to continue
to motivate the staff to keep up the momentum, noting that the impressive
performance in 2023 and the first quarter of this year was the result of a
concerted effort to improve operational efficiency and asset quality while
growing funded income.
“The plan is to entrench both profitability and a
robust balance sheet,” the astute banker with more than 30 years of experience
managing banks said.
Liquidity
Beyond the strong profit, OmniBSIC’s financial
results showed that the bank remained liquid and well-capitalized in the first
quarter.
Deposits with banks and other financial
institutions rose by more than 57 per cent to GH¢5.5 billion in the first
quarter from GH¢3.5 billion in the same period last year.
Consequently, the bank’s liquidity ratio stood at
93.81 per cent, indicating a liquid and resilient Bank.
The capital adequacy ratio (CAR) was also 19.66
per cent, reflecting a well-capitalized bank at a time when remnants of the
economic crisis that eroded the capitals of most banks still linger.
Other indicators
The results further showed that OmniBSIC Bank
enjoyed strong growth in almost all income lines.
Interest income rose by 681 per cent to GH¢284.99
million in March 2024, buoyed largely by substantial growth in net trading
income.
OmniBSIC Bank also posted significant growth in
its earning assets to consolidate its position as a robust lender and partner
to businesses.
Investments enjoyed significant growth, rising
from GH¢2.99 billion to GH¢4.34 billion in the first quarter of 2024.
Impact
Profitability trajectory
OmniBSIC Bank posted its maiden profit of GH¢8.69
million in the first quarter of 2022 after ending a loss streak since its
takeoff in 2019.
It had since remained profitable, posting
impressive results quarter after quarter.
That profitable run was, however, hampered by the
domestic debt exchange program (DDEP) that deteriorated the non-performing
loans (NPLs) of the banking sector, resulting in the creation of GH¢20.8
billion and GH¢4.33 billion new bad loans for banks in 2022 and 2023
respectively.
Its Managing Director recently described the
babk's 2023 profit as a critical turnaround in the strive to reposition the
bank as a preferred lender for businesses and households.
Mr Asiedu, who is a Reverend Minister and Chairman
of the International Presbytery of the Fountain Gate Chapel told the media that
the bank was putting in its best to serve customers and post strong results.
He stressed that the bank would not post
impressive results if it did not offer superior services and products and thus
asked businesses and individuals to approach it for service.
The former MD of Zenith Bank and the Agricultural
Development Bank said the OmniBSIC will increase its deposit mobilization and
lend more to businesses this year as it aims to expand its support to both
private and public enterprises.
Source:
peacefmonline