BSP’s operating income increase, says Fleming

THE operating income for Bank South Pacific for this quarter was 2.4 per cent higher than the last quarter due to foreign exchange income growth, according to chief executive officer Robin Fleming.
He said the group’s net profit after tax increased by 3.6 per cent to K222 million due to a small income increase and reduction in operating costs.
“There was a stronger foreign exchange during the second quarter.
“There was an additional lending write-offs associated with personal loans.”
Fleming said this was especially due to some of the teachers in the country moving off the payroll during that period and not able to get back on the payroll.
He said the lending write-offs was 26.8 per cent higher in the second quarter.
“Expenses were generally consistent, loan balance sheet growth has stabilised and deposit growth is certainly slow.”
Fleming said the total operating expenses was 0.4 per cent lower in the second quarter due to lower lending losses in the second quarter mainly for PNG.
He provided further updates of the group’s performance for this year up to June saying that they were in the process of upgrading a lot of the branches and sub-branches in the country as well as the countries they operated in.
“At channel growth, (there is) a lot of investments in our branches in PNG and all around the Pacific, sub-branches as well.
“We do have 8,500 Eftpos terminals in PNG and we are going through the process now of upgrading our fleet of Eftpos terminals to add additional functionality and additional capability,” he said.