Papua New Guinea’s Bank South Pacific has again delivered an above market performance despite challenging business and economic conditions last year (2017).
And the country’s green bank has announced that it will maintain a disciplined focus on returns over growth.
BSP Group CEO Robin Fleming in his presentation at the bank’s AGM last week said 2017 was an outstanding year with better than expected market performance across virtually all sectors.
“2017 was an outstanding year with better than expected market performance across virtually all sectors and the achievements also included several factors,” he said.
“Our return on equity (ROE) was up to 30.6 per cent, (and) it’s highest in the last five years.”
“The cost-to-income ratio was down to 42.6percent, (and) it’s the lowest in the last five years, notwithstanding investments in the new core banking system and digital channels such as EMV and EFTPOS.”
Other results presented were the bank’s total assets which went up 7.4 per cent to K22.4 billion (US$6.8 million), its total income up 11.5 per cent to K1.99 billion (US$612 million), profit (NPAT) up 17.6 per cent to K757 million (US$232 million), cost to income ratio improved to 42.6 per cent, capital adequacy improved to 24.5 per cent, loan provisions maintained at 4.9 per cent, ROE up 1 per cent to 30.6 per cent and dividend yield of 11.6 per cent.
“Our continued discipline focused on return over growth, capital adequacy, loan loss reserves, dividend yield, EPS and our immediate focus now is on developing and executing our digital strategy and the core banking system implementation to maintain our leadership position including increasing contribution from non-PNG business … we expect greater contributions in coming years,” Fleming said.
BSP is a significant contributor to economic growth in PNG and the Pacific and has consistently delivered strong performances despite challenging business and economic environments.
[Source: PACNEWS, First Edition, Thursday 31st May 2018.]