BSP records K158m profit

The National Business

By Gedion Timothy
BANK of South Pacific has recorded a K158.1 million profit in the second quarter of this year – an increase of 10 percent from the first quarter.
Chief executive officer Robin Fleming and Chief financial officer Johnson Kalo announced the result to investors yesterday at the Bank of South Pacific headquarters in Port Moresby.
Kalo said the increase was driven mainly by interest and lending incomes plus forex income driven by more foreign currencies being traded in the quarter.
He said the operating expense for the quarter slightly increased by 3.6 per cent from the first quarter.
Kalo said BSP’s cost-to-income ratio improved to 43.3 per cent in the second quarter from 45.6 per cent in the first quarter, reflecting the higher increase in income relative to operating expenses.
“We are very pleased with the results for the first half of the year – net profit after tax of K301 million thus represents an increase of 13 per cent from first half of 2015, and ten per cent of quarter one.
It also reflects our performances being relatively resilient notwithstanding some changes in the macroeconomic conditions particular around some of the challenges present in relation to forex.”
“Contributions have come from all countries – Papua New Guinea obviously the leading contributor to BSP’s group performance.
“Fiji remains a very competitive market and our businesses in Cook Island, Samoa, Tonga and the Solomon Islands have also contributed positively at this stage.”
Bank South Pacific continues to be a dominant force in the market leading the way with innovation and technology.
In 2014, BSP Group achieved loan growth of 28 per cent, and a 4 per cent reduction in operating costs, supporting growth in annual profit to over K507 million.
According to the Bank of South,  Pacific, it continues to be a dominant force in the market, leading the way with innovation and technology.
It said in 2014, BSP Group achieved loan growth of 28 per cent, and a 4 per cent reduction in operating costs, supporting growth in annual profit to over K507 million.
There were no increases in fees during the year, but fee income grew as the volume of customer transactions continued to increase, particularly through the electronic banking channels, which now represent more than 80 per cent of total customer transactions