BSP records net profit of K381.9 million, 12.2pc decrease

BSP group has recorded a net profit of K381.9 million for this year’s half year results, a 12.2 per cent decrease on the consolidated 2019 operating profit after tax of K434.9 million for the comparative period.
The bank noted in its half year report that lower profits were significantly influenced by reduced income levels due to impact of the Covid-19, movement restrictions and higher debt provisions taken up as a consequence of the changed credit risk profile of borrowers and macroeconomic indicators in all countries across the region that reflected contractions in economic activity.
These were partially offset by savings in operating expenses.
Total group revenue decreased against the corresponding period by 1.6 per cent due to reduction in BSP PNG’s indicator lending rate of 1 per cent and overall lower transaction activity across all entities due to the Covid-19.
This was partially offset by increased income from portfolio growth over the last 12 months.
Revenue across the group from foreign exchange income declined from K160.8 million to K145.2 million, with international travel restrictions resulting in significantly lower scheme card based activities.
BSP bank’s underlying growth was impacted, total assets of the bank at the first half of this year was K22.2 billion compared to K21.9 billion in 2019.
Gross loans and advances to customers grew by K47.4 million to K12.5 billion.
Customer deposits increased by K166.9 million to K18.1 billion, driven by additional liquidity injection by regulators to stimulate economic activity.