BSP posts K890mil net profit

THE Bank South Pacific Financial Group (BSP) posted a net profit after tax of K890 million in the 2023 Financial Year (FY23), declaring a final dividend of K1.06 per share.
The final dividend will be payable on March 22, bringing the full year dividend for FY23 to K1.43 per share, according to BSP chief executive officer Mark Robinson.
He said while the net profit result was 18 per cent lower than last year, it reflected the new 45 per cent corporate tax rate that had a direct impact of K209 million on the net profit.
“Income increased 8.4 per cent to K2.8 billion, driven by foreign exchange income, which increased 26.3 per cent, as well as lending volume growth that drove a 5.7 per cent increase in net interest income versus the prior year,” Robinson said.
BSP’s cost-to-income ratio remained relatively stable at 38.5 per cent in FY23, despite a 9.9 per cent increase in expenditure, arising primarily from ongoing investments in technology as well as inflation.
BSP’s dividend yield on both the PNG Stock Exchange (PNGX) and Australian Securities Exchange was 10.4 per cent. The capital adequacy ratio of 24.4 per cent as of year-end was well above the 12 per cent regulatory requirement.
The 2023 return on equity of 21.5 per cent compared favourably to other ASX listed banks.
“We understand that banking is a vital service for all communities we operate in and remain committed to supporting the prosperity of the South Pacific.
“BSP has embarked on a comprehensive investment programme to improve our customer service levels and build a world class bank,” Robinson said.”