BSP posts K436m profit

 THE Bank South Pacific Group posted a net profit of K436.8  million last year,

Its consolidated operating profit before tax was K607 million last year, up 11.3% from the operating profit of K543.3 million in 2012

Chief executive Robin Fleming yesterday released the results for the full year to December 2013.

Despite a slowdown in the PNG economy during the period, he said the group achieved sound results last year.

The highlights included: 

• K15.8 billion in total assets, up K2.476 billion; 
• Pre-tax profit growth of K592.9 million up 10.7%, from K535.4 million in 2012;
• Assets of more than K15.32 billion at the end of 2013;
• Net growth of K493.4 million in loans and receivables to K5.26 billion; and
• Strong customer deposits growth, especially in the corporate segment in Fiji and in the retail and government segments in PNG. 

BSP’s capital base has remained sound, according to the bank.

At the end of last year, the bank’s total capital adequacy was 19.4% despite the impact of continued growth in balance sheet assets and the total dividend payments of K272.73 million. 

The capital adequacy ratio exceeded the minimum Bank of Papua New Guinea prudential requirement of 12%. 

Fleming said the group’s revenues increased 19% during the year and most of the  growth came from the non-interest income streams, particularly in the foreign exchange earnings in PNG. 

He said tough competition in the corporate lending markets in PNG and Fiji had impacted net interest income.

Growth had also been achieved with customer transaction volumes. 

The expansion of electronic banking facilities mainly through the network of Eftpos merchants, agents and devices and increased mobile phone banking transactions, were compelling features of BSP’s customer engagement activities in 2013. 

Fleming said that increases in expenses were experienced mainly in the areas of depreciation and amortisation and in premises and equipment expenses.