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BSP delivers K890 million profit for FY23

Wednesday, February 21, 2024

The BSP Financial Group announced a net profit after tax (NPAT) of K890 million and declared a final dividend of K1.06 per share, payable on 22 March 2024, bringing the full year dividend for FY23 to K1.43 per share.

Group CEO, Mark Robinson, noted that whilst this net profit result was 18% lower than last year, it reflected the new 45% corporate tax rate in Papua New Guinea that had a direct impact of K209 million on NPAT.

Income increased 8.4% to K2.8 billion, driven by foreign exchange income, which increased 26.3%, as well as lending volume growth that drove a 5.7% increase in net interest income versus the prior year.

The Group’s cost to income ratio remained relatively stable at 38.5% in FY23, despite a 9.9% increase in expenditure, arising primarily from ongoing investments in technology as well as inflation.

BSP Financial Group’s 2023-year performance announcement facilitated via webcast.

BSP’s dividend yield on both the PNGX and ASX was 10.4%, and the capital adequacy ratio of 24.4% as of year-end was well above the 12% regulatory requirement.  The 2023 return on equity of 21.5% compared favourably to other ASX listed banks.

Mr. Robinson concluded by saying, “we understand that banking is a vital service for all communities we operate in and remain committed to supporting the prosperity of the South Pacific.  BSP has embarked on a comprehensive investment program to improve our customer service levels and build a world class bank”.