OmniBSIC Bank Posts Historic Profit, Makes GH¢150m Gain In 2023

The fastest growing bank, OmniBSIC Bank, has emerged stronger in the aftermath of the debt restructuring program, with an impressive performance that resulted in one of the biggest profitability ratios in the banking sector last year.

An analysis of the Bank’s financial statement released last week showed that the bank is more profitable, liquid, well-capitalized, and deploys its assets efficiently.DDEP ChallengeOmniBSIC 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.

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.‘Critical turnaround’In 2022, OmniBSIC Bank recorded a GH¢127.5 million loss on account of the large impairments resulting from DDEP.

“When we succeed at that, we will get more business and our bottom line will be good as you are seeing,” he added.Gross earningsThe 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.

After ending 2022 at GH¢2.5 billion, the results showed that customer deposits rose by 93 percent to about GH¢4.9 billion.

It further showed that the Bank has increased the assets that deliver earning to it.

OmniBSIC’s earning assets rose by 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 it efficiently deploys its assets, improved from a negative 47 percent in 2022 to positive 26 percent in the year under review.Looking aheadThe 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.