BSP’s group profit increases

Business

By DALE LUMA
BANK South Pacific (BSP) has given back to the government – Kumul Consolidated Holdings (KCH) Ltd – a total dividend of K444,877,442 million over the last five years according to chief executive officer Robin Fleming, pictured.
Responding to questions from The National Fleming said, the increased dividends to all shareholders, including Kumul Consolidated Holdings, had been the result of the increase in BSP’s group profit over the past five years.
“BSP’s group profit increase has been driven by market share for lending increasing from around 45 per cent five years ago to almost 63 per cent now,” he said.
“There has also been much higher profit contributions from our businesses outside of Papua New Guinea in the Pacific especially which now provides almost 20 per cent of Bank South Pacific’s group profit.
“BSP has a dividend ratio of approximately 75 per cent which is high but is reflective of both our strong risk weighted capital position and also the need to provide returns consistent with the expectations of all shareholders which includes KCH.”
Fleming said that KCH owned approximately 18 per cent of BSP and had received a total of K116,191,888 million in dividend last year from BSP.
“BSP’s relationship with the Government has been sound and mutually beneficial both in terms of dividends that are paid to KCH and also the banking services that we provide in all 22 provinces in the country,” he said.
Prime Minister Jame Marape also said recently that the government held substantial interests in BSP and that the bank had returned good dividends over the years.
BSP is listed on the Port Moresby Stock Exchange and any shareholder can purchase shares via an approved and licensed stockbroker, according to Fleming.
“Certain requirements and approvals do exist though for any shareholders who has more than 15 per cent ownership in BSP,” he said.

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