Beangke lauds BSP’s after-tax profit of K191.07m last year
By FRANK ASAELI
THE Bank South Pacific Ltd (BSP) has recorded an after-tax profit of K191.07 million for the year ending Dec 31, 2007.
It posted an operating profit of K294.85 million as against the K164.52 million it realised in 2006.
Board chairman Noreo Beangke released the figures on the Port Moresby Stock Exchange (POMSoX) yesterday as he lauded the bank’s profit performance.
Mr Beangke said a strong growth in profitability has complemented a strong growth in all facets of the BSP balance sheet last year.
Total assets during the period increased by 35% to K5.8 billion, from K4.3 billion.
Customer loans and receivables increased from K1.22 billion as of the end of 2006 to K1.64 billion at the end of last year, representing a 34% increase.
The bank also maintained a market share of 51% of total commercial bank loan outstandings at the end of last year.
“The massive 184% growth in BSP total assets during the past three years, together with continuing strong economic conditions, record export commodity prices, good fiscal management of the national government budget and appropriate central bank monetary policy settings, all continued to feature throughout 2007,” Mr Beangke said.
He said a significant improvement in the recognised banking industry efficiency benchmark – the expense-to-income ratio – was also achieved.
The ratio reduced from 52.40% to 39.60% and compared most favourably with the most efficient commercial banks worldwide further confirmed that the clearly identified BSP internal operational expenditure base was sustainable.
BSP also maintained a strong capital adequacy of 29.6% as at year end by international banking definition, Mr Beangke said.
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