PNG slowdown no deterrent to BSP success

THE Bank of South Pacific has increased pre-tax profits by 10.7% despite a slowdown in the Papua New Guinean economy.
PNG slowdown no deterrent to BSP success PNG slowdown no deterrent to BSP success PNG slowdown no deterrent to BSP success PNG slowdown no deterrent to BSP success PNG slowdown no deterrent to BSP success

BSP chairman Kostas Constantinou yesterday released results for the full year to December 31.

He told shareholders that BSP had achieved sound results in 2013, including an increase in pre-tax profits by 10.7% to K592.9 million ($A284 million), from K535.4 million in 2012.

Total assets of the bank at the end of 2013 are just over K15.4 billion.

The customer loan and receivables portfolio has seen net growth of K502 million to K5.3 billion.

Customer deposits continue to grow strongly, especially in the corporate segment in Fiji and in the retail and government segments in PNG.

BSP made a consolidated operating profit before tax of K607 million for the 2013 financial year, an 11.3% increase on the consolidated 2012 operating profit of K545.3 million.

The group result after tax was K436.8 million, while total assets of the group increased by about K2.476 billion to K15.809 billion.

Group revenues increased 19% during the year, with most of the revenue growth coming from non-interest income streams, in particular foreign exchange earnings in PNG.

The report before the board noted extremely aggressive competition in the corporate lending markets in PNG and Fiji, which had impacted net interest income.

Constantinou congratulated staff and management in all of BSP's operations across Papua New Guinea, Fiji and Solomon Islands on the results achieved in 2013.

He expressed confidence in BSP's capabilities to meet expectations of shareholders in 2014.

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