Fleming assures shareholders BSP owns ‘Capital’

BANK South Pacific chief executive officer Robin Fleming has assured shareholders at the annual general meeting on Friday that the bank still owns BSP Capital.
Responding to a shareholder during the meeting, Fleming clarified that BSP was only selling 62.5 per cent of its shareholding in the Port Moresby Stock Exchange (POMSOX) but not BSP Capital.
He said the decision was in line with the requirements of the PNG Capital Market’s Act that prohibited stock exchange members from owning the stock exchange.
As a result, Fleming said BSP last year decided to exit BSP capital’s investment as a shareholder in POMSOX.
“We still own BSP Capital (which) has not been profitable over a number of years. Part of a review strategy is to ensure that we get it into profit and reduce costs associated with the businesa,”he said.
“A couple of decisions have been made towards the end of last year.
“One of those decisions was to replace the non-citizen general manager with a citizen general manager for BSP Capital.
“Our BSP Capital business was successful in being awarded the licensed manager for Nasfund during 2018 and undertook some internal restructuring in conjunction with a full business review. This involved the sale of BSP Capital’s 62 per cent in the Port Moresby Stock Exchange.
“By getting the investment mandate to get some good solid revenue growth, restructuring the business, having to look at other parts of BSP Capital businesses which weren’t making money and stockbroking was one of those. Which means that we still own BSP Capital 100 per cent. We’ve exited the stockbroking in the process of doing that. We sold the shares in POMSOX and BSP Capital’s sole business is now license investment management, fund management and advisory.”