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OmniBSIC Bank, considered the fastest growing bank in the country, has emerged stronger after the debt restructuring programme, with an impressive performance resulting in one of the highest profitability ratios in the banking sector last year.
The bank’s profits increased by 218 percent to GH¢150.6 million in 2023, indicating a significant turnaround from the loss suffered in the previous year.
It also ended the year with a strong balance sheet as total assets increased 86 percent in 2022 to GH¢5.7 billion last year.
An analysis of the bank’s financial status released last week showed that the bank is more profitable, liquid, well capitalized and uses its assets efficiently.
OmniBSIC Bank recorded its initial profit of GH¢8.69 million in the first quarter of 2022 after ending a streak of losses since its takeoff in 2019.
Since then it remained profitable and posted impressive results quarter after quarter.
However, that profitable run was hampered by the Domestic Debt Swap Program (DDEP), which deteriorated the banking sector’s non-performing loans (NPLs), resulting in the creation of GH¢20.8 billion and GH ¢4.33 billion of new bad loans for banks in 2022 and 2023 respectively.
In 2022, OmniBSIC Bank recorded a loss of GH¢127.5 million due to large impairments resulting from the DDEP.
However, its 2023 financial statements showed a turnaround and all revenue lines enjoyed strong growth rates.
OmniBSIC CEO Daniel Asiedu said “this is a critical change” in the effort to reposition the bank as a preferred lender for businesses and households.
He said the stellar performance was the result of staff’s hard work and renewed commitment to better serve customers, earn their trust and help grow their businesses.
“The customer is at the center of our recovery story, and everything we do here is geared toward helping improve the customer’s life and business,” said Asiedu, who is also president of Fountain Gate Chapel International Presbytery (FGC). ). , saying.
“When we achieve it, we will get more business and our results will be good, as you are seeing,” he added.
The bank’s financial statement showed that last year’s record profit was driven by a perfect combination of strong growth in interest income and well-managed expenses.
Gross profits increased 114 percent 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 CEO said the decision to improve operational efficiency paid off as the cost-to-income ratio fell from 90 percent in 2022 to 60 percent last year.
“It is key because as income increases, we must also monitor expenses. To grow, you need to incur costs that drive growth, and we are happy that that is reflected in the financial statements,” said the astute banker.
A closer look at the financial statements showed that the strong balance sheet for the period was funded by significant growth in customer deposits.
After ending 2022 with GH¢2.5 billion, results showed that customer deposits increased by 93 per cent to around GH¢4.9 billion.
The bank was also well capitalized, with its capital adequacy ratio (CAR) ending the year at 22.5 percent, almost double the regulatory requirement of 13 percent.
In addition, it showed that the bank has increased the assets that generate profits.
OmniBSIC’s earning assets increased 105 percent in 2022 to GH¢4.3 billion in 2023, while its return on equity (ROE), which measures a bank’s profitability and how efficiently it deploys its assets, improved from 47 percent. negative percent in 2022 to a positive. 26 percent in the year under review.
The CEO of OmniBSIC Bank noted that the change was a great inspiration for staff and management to work hard to exceed customer expectations.
He congratulated the board of directors and staff for their dedication and assured the public that the bank was always ready to meet their financial needs.
He said the bank was revamping its infrastructure and training staff to deliver greater value to customers.
Asiedu took the reins of OmniBSIC in May 2021 with the objective of aligning with the bank’s vision of being the number one bank in customer service delivery and value creation for stakeholders.
It has since strengthened 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 the good stuff and work closely with our clients to grow their businesses. Our message to you, our dear customers, is to give us the opportunity to serve you, because together we see a better future,” said Mr. Asiedu.
BY TIMES REPORTER
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