BSP Expecting Positive Financial Results In 2021

By: PNG Business News March 05, 2021

Bank South Pacific (BSP) Group expects its financial results to be no less than last year’s.

This was according to BSP chief executive officer Robin Fleming, who said that the year started off well for the bank.

Ending December 31, 2020, the bank made a net profit of K806.2 million, a 9.5 per cent decrease compared to K890 million in 2019. The decrease was caused in part by the effects of the pandemic.

Other highlights for 2020:

Total assets up by 12.3 per cent and loans up 3.0 per cent

Cost to income stable at 37.4 per cent, 37.7 per cent in 2019

Capital adequacy steady at 23.3 per cent, still well above the Bank of PNG requirement of 12 per cent

Loan provisions increased to 5.9 per cent

Dividend yield at 11.17 per cent based on the share price at K12

Increased profit contributions.

Fleming said that even with the challenges of COVID, the bank performed well in 2020.

“For 2021, we’ve certainly planned on archiving a result which is no less than 2020,” he said. “And the year has started off well and from an investor perspective always caveat by saying that if there had been any material change in our profitability, we would be compelled under the continuous disclosure (requirement) to announce to the market. Therefore absent of any continuous disclosure announcement, we can say that this year has started off as we would have expected according to plan.”

He noted, “There has been no event that gives BSP indication to signal to the market that there’s been a change in our operating performance which would require to make a disclosure to our investors.”

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