THE Bank South Pacific (BSP) recorded a net profit of K890 million in the 2019 financial year – an increase of K46.3 million from 2018.
It means a total dividend payment of K1.34 per share, generating 11 per cent yield, according to the bank.
The full-year dividend represents K626.10 million to BSP shareholders.
Chief executive officer Robin Fleming said 2019 was a very positive year for the bank.
“Contributions from the offshore branches did increase during 2019,” he said.
“For PNG, we saw it at 75 per cent but equally the offshore branches.”
Fleming, however, said income growth was somewhat flatter.
“We did see across the various countries in which we are operating some of the Gross Domestic Product (GDP) and economic activity start to slow down in some degree,” he said. “In PNG, we were in the situation where we were coming off an earthquake-related situation for the oil and gas sector.
“While some of the GDP, from an oil and gas perspective, was being able to rebound, some of the other activities, from an economic perspective, did start to taper off at the end of 2019.”
Fleming said 2020 would be far more difficult, particularly the support recognised from a shareholders perspective. Other highlights of the annual report include:
- Total assets up to 6.2 per cent just under K25 billion and loans 5.6 per cent;
- Lower cost income ratio reduced to 37.7 per cent from 41 per cent in 2018;
- Loan provisions increased to 4.89 per cent; and,
- Capital adequacy steady at 22 per cent, still well above BPNG requirements of 12 per cent.