BSP Vanuatu records K5.3mil profit

The National Business

BANK South Pacific (BSP) Vanuatu recorded a net profit of Vt186.5 million (K5.3mil) for the 2019 financial year.
BSP Vanuatu country head Nik Regenvanu said 2019 saw a reduction of 36 per cent in net profit to Vt186.5 million (K5.3mil).
“The decrease was mainly a result of the softening economic position in Vanuatu and also an increase in operational expenditure in the business.”
The breakdown of the results are:

  • Deposits from customers increased by 6.4 per cent to Vt16.3bil (K4.6mil);
  • Loan portfolio remained relatively stable at Vt9.6bil (K2.7mil);
  • Total income decreased by Vt33mil (K95,000) to Vt1.129bil (K325,000). The majority of this decrease was from non-interest income;
  • Total expenses increased by Vt67.5mil (K1.9mil) to Vt942.9mil (K27mil) primarily due to increased insurance costs and depreciation costs from capital investments in Freswota branch along with higher impairment costs due to required provisioning uplift for loans;
  • Net profit was Vt186.5mil (K5.3mil); and
  • Capital and Reserves were Vt1.962bil (K560,000) which is well above RBV minimum requirements.