Strong financial performance supported by balance sheet growth, resilient margins and continued investment for the future

BSP Financial Group Limited (PNGX: BSP | ASX: BFL) (“BSP”) today released its financial results for the year ended 31 December 2025, delivering another year of solid profitability underpinned by disciplined execution and a clear focus on long-term value creation.

BSP 2025 Financial Results – Highlights[1]

• Statutory net profit after tax of K1.17b (A$440m), up 12.9% on FY24 driven by continued balance sheet growth, stable margins and strong foreign exchange earnings.
• Revenue of K3.41b (A$1.28b), up 14.4%, driven primarily by net interest income up 9% with net interest margins increasing to 6.41%, up 19bps, and strong FX income up 28.7% or K161m (A$50m) from FY24.
• Delivering strong shareholder returns with ROE of 23.8%, up 50bps on FY24, positioning BSP at the upper end of ASX-listed banks.
• Operating expenses well managed, up 15.4% on the back of higher employment costs and technology investments, including BSP’s Modernising for Growth program.
• CTI ratio 42.9%, up 160bp and within 42%-45% guidance, notwithstanding continued investment to sustain shareholder returns.
• Provisions to loans were stable at 3.3% with higher impairment expenses reflecting lending growth, while delinquency rates were down 10bp to 2.7%, reflecting a supportive economic environment and the quality of the loan book.
• Capital adequacy of 26.4%, up 20bps, reflecting capacity to support customers and continuing growth, while maintaining prudent capital levels.
• Full year dividend per share of K1.88 ($A0.71), up 13%, reflecting BSP’s continued commitment to disciplined capital management and shareholder distributions. The final dividend of K1.38 ($A0.57) is payable on 27 March 2026.

BSP Chairman Robert Bradshaw said: “This is a strong result with impressive financial performance in a fast changing and highly competitive environment, reflecting our 20-year track record of delivering growth in profitability and attractive shareholder returns.

“We enter 2026 with confidence.  The region’s economies are growing faster than many developed markets, supported by resilient communities, entrepreneurial businesses and expanding trade. With the investment we are making in our people, the modernisation of our infrastructure and deep local relationships, we look forward to continuing to help the region to grow and prosper.”

Mark T. Robinson, Group Chief Executive Officer, commented: “BSP delivered broad based growth in 2025, with earnings, deposits and customer activity increasing across all major markets, reflecting the strength of our franchise and disciplined execution.

“We accelerated the rollout of our multi-year K1.2b Modernising for Growth program to improve the experience for our retail and business customers. We are already seeing results. We made further progress in improving our customers’ experience through branch upgrades, the roll out of next generation infrastructure, including new ATMs and EFTPOS terminals, new personalised customer propositions and the launch of our Business Bank.

“A particular highlight was the continued acceleration in digital adoption, up over 22%, with internet banking transactions up 54% and EFTPOS transactions up 16%.

“At the same time, we are strengthening our operations by developing our workforce for the future with digital capabilities and modern banking competencies. We have also made further investments in automated controls and advanced AML systems, keeping transaction error rates below international benchmarks.

“Our scale and financial strength is allowing us to invest substantively in financial inclusion, for the benefit of our communities as well as our shareholders. In February 2025, we launched the Wantok Wallet, which makes everyday banking possible for people who would otherwise travel long distances to a branch or rely on cash. By year end, over 100,000 people had signed up for Wantok Wallet.

“Our strong financial performance is a positive result for Papua New Guinea in its 50th year of Independence, highlighting the growth opportunities available in the South Pacific and the important role large regional business can play in supporting national development goals.”

[1] All comparisons are with the 2024 financial year unless otherwise stated.