BSP paid K5bil in dividends

By DALE LUMA
BANK South Pacific Financial Group Ltd has paid about K5 billion in dividends since 2012, its chief executive officer Robin Fleming says.
“All shareholders had benefited from the bank’s record profit of K1 billion last year with a K809 million dividends payout,” he said at the bank’s annual general meeting on Friday.
The shareholders include Kumul Consolidated Holdings, Petroleum Resources Kutubu, National Superannuation Fund (Nasfund), Nambawan Super Ltd, Fiji National Provident Fund, Solomon Islands National Provident Fund, Samoa National Provident Fund, Teachers Savings and Loans Society (Tisa), Credit Corporation and Motor Vehicle Insurance Ltd (MVIL).
Commenting on the 2021 financial year, Fleming said the year was positive but dampened by the K190 million Additional Company Tax imposed by the Government.
“BSP is seeking a judicial review of the tax for the benefit of our shareholders, who are mostly Papua New Guineans, to ensure that the tax is equitable and consistent with the Constitution,” Fleming said.
“Our share price is not fully reflecting the underlying value of BSP’s profitability.
“But the fact remains that any tax of K190 million on any Papua New Guinean institution will have impact on future earnings and share prices,” he added.
Fleming said the bank’s cost to income ratio was stable, capital adequacy was still above Bank of PNG minimum level, with improvement in loan ratios.
“There is also positive underlying profitability for the first quarter of this year, notwithstanding the K190 million additional tax.”