BSP’s strong business performance across the Group was maintained in the third quarter of 2023, with year-to-date operating profit of K1.24b, compared to K1.20b for the same period in 2022.
The company’s operating profit growth reflects the improved economic conditions in the region, resulting in loan growth of 6.8% and interest income growth of 9.3% for the first nine months of the year. Strong Mobile Banking and other channel growth generated non-lending fee income growth of 5.4% in the first nine months of the year.
BSP is also pleased to report that Group revenue grew materially in Q3-23, up 11.7% on Q3-22.
Group year-to-date expenditure increased by 11.8%. Expenditure growth drivers included core banking system costs, additional headcount in retail and technology and increased consultancy services. Impairment expense was higher in Q3-23 compared to the same period last year, driven by unsecured personal loan write-offs in the third quarter.
BSP Group CFO Ronesh Dayal and Group CEO Mark Robinson addressing the Media and Investors during Q3 Investor Presentation on Monday 23rd October, 2023.
Consequently, group net profit after tax for the first nine months was K614.4m, or 8.5% lower than the same period last year.
Group CEO, Mark. T. Robinson, said, “Our key performance ratios remain strong when benchmarked against international banks. BSP’s cost-to-income ratio increased to 42.0% in Q3-23 and we expect a level in the low-to-mid forties to continue as we invest in our technology, our services and our people. BSP’s capital base remains strong, with total capital adequacy as of September 2023 at 22.3%, well above the minimum Bank of Papua New Guinea prudential requirement of 12.0%.”
Robinson further stated “BSP remains the largest and most profitable bank in the South Pacific and we will continue to invest in services for our customers across the Pacific.”
LEFT: Private Investor Victor Seeto engaging with BSP Group CEO Mark Robinson during BSP’s Q3 Investor Presentation on Monday 23rd October, 2023. RIGHT: Lars Mortensen, MD of JMP Markets asking questions during BSP’s Q3 Investor Presentation in Port Moresby.