Financial result a reflection of staff, management’s efforts: Chairman

The National Business

BANK South Pacific (BSP) Financial Group Ltd’s 2021 financial result is a reflection of efforts by its management and staff throughout the year, group chairman Sir Kostas Constatinou says.
Sir Kostas was commenting on BSP’s recent announcement of more than K1 billion in net profit for the year.
“The result is a reflection of significant efforts of BSP’s management and staff throughout the year and the support of our customers,” he said.
“PNG Bank results, which contributed 75 per cent of group profits, increased to K821.9 million in 2021, a 36.1 per cent increase compared to the prior year’s profit of K603.8 million.
“In addition to the release of the Coronavirus (Covid-19) impairment provisions, net interest income increased by K159.4 million and was driven by strong market liquidity, while BSP’s loan market share increased from 64.5 per cent to 66.3 per cent over the reporting period.”
Key 2021 financial highlights for the group were:

  • NET interest income increased by 10.6 per cent, driven by higher interest revenues from investment securities and lower cost of funds due to high market liquidity;
  • FEES and commission income increased by 6.1 per cent compared to the previous corresponding period due to increased transaction activity with fewer restrictions on movement and gatherings in PNG throughout 2021;
  • FOREIGN exchange earnings increased by 13 per cent compared to the prior year, driven by higher currency flows from both resource and non-resource based sectors;
  • TOTAL loans and advances remained largely flat at K14.4 billion despite market share increases in the main markets, demonstrating a subdued economic climate for the most part of the year. Deposit growth increased by 10.5 per cent to K23.9 billion, supported by improved market liquidity; and
  • NET loan and investment impairment charge was a credit of K42.6 million for 2021, compared to K201.3 million expense in 2020 and was mainly driven by general provision release of K113.4 million for the group in 2021.