Bank keeping its eyes locked on middle income earners

Business

TARGETING the emerging middle income earners is a key growth plan by the Bank South Pacific Group, says chief executive Robin Fleming.
The strategy is based on the strong performance by its products such as the first home ownership scheme.
“They are certainly a growing market and BSP aims to develop solutions through our products to support their financial needs,” Fleming said.
“That is through housing products and the growing middle market and providing value-added services, whether it is coming from BSP Life or BSP Finance.
“The FHOS (first home ownership scheme) is at about K250 million.
“Our housing loans mark is around K700 million.
“We will certainly be looking to hit a billion kina in housing loans if not this year then next year.”
Meanwhile, Fleming confirmed the group recorded more than K750 million in net profit for the 2017 financial year, according to chief executive Robin Fleming.
This is about an 18 per cent increase from 2016 consolidated profit after tax. It is also a first for the bank to record a profit before tax of more than K1 billion.
Fleming told the bank’s shareholders yesterday that the profit trend continued to be “quite positive” over the past five years.
“Conditions were not necessarily ideal and will continue to be somewhat more challenging during 2018,” he said.
“We are very proud that BSP has been able to deliver a net profit of K757 million for 2017.”
The operating expense for 2017 showed an increase of K83.5 million due to system upgrades and moving the head office to Waigani.
Highlights of the 2017 financial year include:

  • Total assets increased by 7.4 per cent or K1.538 billion to K22.370 billion;
  • 2017 dividend paid out was K1.11, dividend yield at 11.6 per cent;
  • BSP Finance Cambodia entrance;
  • Capital adequacy at 24.5 per cent;
  • Cost to income ratio improves to 42.6 per cent; and,
  • Loan provisions maintained at 4.9 per cent.