…as merger process ends
Following the release of an updated list of licensed banks by the Bank of Ghana on Thursday last week – which Goldstreet Business accurately reported as implying the completion of two out of the three bank merger processes begun last year – the erstwhile OmniBank and Sahel Sahara Bank, (BSIC) have formally announced the completion of their merger process. The two entities will, effective, today, March 4, 2019, operate under the merged name OmniBSIC Bank Ghana Limited.
The merger was necessitated by the need to increase capital to meet the Bank of Ghana’s new minimum capital requirement of GHc 400 million. An official statement from the bank released at the weekend said “This merger represents a pooling of the expertise of two major banks with strengths in various banking services to provide more opportunities, increase access and make the merged entity attractive to the banking public.”
The merger has created a bank with lots of potential across several customer segments, by combining the erstwhile Omni Bank’s reputation and expertise in SME banking with BSIC’s skills in international banking and trade finance. Importantly both banks have been consistently profitable and indeed both were well reputed for their exemplary customer service even though neither ranked among the most visible banks in Ghana. Expectedly the merged entity will get the visibility it deserve and which their customers readily attest to.
The release goes on to claim that the merged entity offers a wider branch network; a selection of best user friendly and robust electronic banking platforms; a stronger balance sheet; a variety of products and services; as well as several correspondent banking partners and international trade lines
The bank claims that in line with OmniBSIC’s strategic vision, customers will continue to be placed at the centre of major activities in the bank’s quest to become the bank of choice in excellent customer service.
In its statement, OmniBSIC Bank noted, “We remain committed to delivering enhanced products and services including Corporate Banking, Commercial and Retail Banking, Digital Banking and Trade Finance delivered through excellent customer service to our over 160,000 customers in the country and million others across the continent”.
OmniBSIC is one of the five banks – and arguably the most deserving of the extra equity financing due from Ghana Amalgamated Trust imminently. It requires the smallest of the five, at GHc130 million, and importantly this will give it one of the best capital adequacy ratios in Ghana’s banking industry.
The merger is expected to result in no immediate job losses as agreed between the shareholders. Rather, as part of the merger process, there is ongoing effort to achieve seamless cultural integration and capacity building to ensure all staff are carried along to reach the vision of the bank.