BSP announces K1bil profit

BANK South Pacific Financial Group Limited (BSP) yesterday announced a net profit of K1.075 billion for the financial year ending on Dec 31, 2021.
According to the bank, the result was driven by the release of Coronavirus (Covid-19) provisions, good foreign exchange revenue, and strong transaction volumes across all markets.
Chief executive officer Robin Fleming, noted that overall business sentiment in all countries improved last year.
“Business and customers have adapted to the Covid-19 operating environment, which allowed for provisioning releases and income growth following pandemic-induced lows in the prior year,” he said.
“Investments in our staff and capabilities around anti-money laundering and IT service delivery were the main drivers of cost increases in 2021.”
Fleming also noted that the result was achieved at the same time BSP delivered greater value to its customers, with a number of fees reduced or waived last year as well as the reduction in Kundu Packaging Account fees and cash handling fees effective next month.
“With no fee increases since 2014, annual fee savings to BSP customers are estimated to be K62 million per annum, due to fees being reduced or waived,” Fleming said.
He further noted the bank’s continued commitment to providing traditional branch based banking services to customers in all provinces.
Fleming said given the strong profit result the BSP board announced the final 2021 dividend payment of K1.34 per ordinary share, payable on April 22 this year.
The final dividend of K1.34 per share combined with the interim dividend of K0.39, gives a total dividend of K1.73 per share for the 2021 financial year.
This is a 33.1 per cent increase compared to K1.30 per share paid in 2020.
Dividends paid to shareholders totalled K812 million in 2021, with the vast majority contributing to the growth in personal wealth of everyday working Papua New Guineans that are superannuation fund members.
BSP also paid K282 million in corporate taxes to the Government in 2021.