Focus on Laos deal, new product launch

Business
BSP Finance country manager for Cambodia Choeun Buo (left), Bank South Pacific group chief executive officer Robin Fleming and credit and operation manager for BSP Leasing Co Ltd Lao Viengsavanh Danchampa posing for a picture last Saturday during the bank’s leadership forum.
Participants at the Bank South Pacific leadership forum in Port Moresby last Saturday.

By CLARISSA MOI
ONE of the key objectives for Bank South Pacific (BSP) this year is to finalise the acquisition of its joint-venture business in Laos, Southeast Asia, says chief executive officer Robin Fleming.
“We’ve already completed purchasing and we’ve been operating two years in Cambodia (Southeast Asia),” he said.
“In Cambodia, we made a profit of US$2.6 million (K8.6mil) last year.
“And with the same partners in Cambodia, we are very close to finalise the completion of purchasing business in Laos.”
The business will be called BSP Leasing Co Ltd. The acquisition price is US$2 million (K6.6mil).
Fleming told the media in Port Moresby last Saturday during the bank’s leadership forum that the BSP Leasing Co in Laos was an asset finance business.
“We have those finance businesses in PNG, Fiji, the Solomon Islands, Cambodia – and now, in Laos.
“It’s a small level of asset finance in those particular countries.
“But in the sub-sector, we
operate in Cambodia, we have the largest portfolio of US$50 million (K156.57 million) recognised by
finance companies from multi-
million to small enterprise businesses and then you get the larger banks.
“What’s important to realise with this acquisition and every business around the Pacific is that every one of our subsidiaries, whether it’s a wholly-owned or a branch or partially owned, we have a policy whereby 70 per cent of the profits generated in those countries is repatriated to PNG.
“We use that foreign currency to meet any dividend demands for our non-resident shareholders plus of course bring foreign exchange back into the country.”
Fleming said another key objective of the group
in terms of expansion was the launching of the Wantok Delight product.
“Another key objective in terms of expansions, being with our insurance company, is our Wantok Delight product launching an endowment product in PNG.
“It’s being very much a landmark event with the establishment of BSP Life PNG.
“We also continue to add investment on those key investments during the course of 2020 (would be) on our banking system.
“We will be spending K420 million over the course of five year period on the new banking system where every country where BSP operates.
“The first launch will be in Vanuatu in October 2020 and that’s a key investment not just for Vanuatu, but for all our businesses.”

Bank South Pacific chief executive officer Robin Fleming (left) with participants during the bank’s leadership forum in Port Moresby last Saturday.