By CLARISSA MOI
ONE of the challenges for Bank South Pacific for this year is the liquidity balance to sustain lending growth, says chief executive officer Robin Fleming.
He said this during presentation of the 2018 financial results in Port Moresby yesterday.
Fleming said the first six months generally would be more difficult.
“In the last quarter of last year, we’ve allowed a number of our treasury bills to be able to mature,” he said.
“We were able to move from treasury bills into higher yield in line with foreign exchange becoming available.
“Some of the growths in the deposit market will start to taper off,” he said.
“It’s going to be a challenge, particularly for the first six months of this year until some foreign direct investments associated with the LNG projects.
“Hopefully, we get the LNG projects signed up to see more activities in the foreign exchange market, and some more demand in credit growth in the second half of the year.”
Meanwhile, Fleming said BSP would focus on developing and executing its digital strategy and implementation of its new banking system this year.
It will also be maintaining its geographic and service diversification strategy.
Fleming also said they would closely monitor acquisition opportunities in the Pacific.
“You always look around in the Pacific and there’s a combination of smaller banks which operate in countries (in which) we operate in,” he said.
“We face the same challenges from a capital perspective, and from a need to be able to continue to provide a return to shareholders, at the same time investing in systems.
“There’s always a watching around in the Pacific to see if there’s any bank which we might find beneficial and might be a part of BSP,” Fleming said
Fleming said BSP’s strategic focus for this year included:
- Developing capabilities in new product segments and refreshing capabilities of existing e-products;
- evaluating longer-term potential for general insurance and entering markets through appropriate models;
- expanding BSP Life PNG’s product range;
- progressing further market entry opportunities; and
- consolidating leadership position in existing and new Pacific markets.