BSP Records 12.2 % Drop In Profit
Bank South Pacific has recorded a consolidated operating profit after tax of K381.9 million for the 2020 half year.
This is a 12.2 per cent decrease on the consolidated 2019 operating profit after tax of K434.9 million for the comparative period.
Chairman Sir Kostas Constantinou announced in its market announcement to the PNG Stocks Exchange yesterday.
Sir Kostas said movement restriction measures introduced in the region to reduce the risk of transmission of Covid-19 have significantly impacted economic activity in all countries in which BSP operates.
He said all of BSP’s businesses have been affected with lower transactional banking activity, reduced foreign exchange, contractions in net interest income margins and additional lending provisions.
BSP’s other results include;
Total group revenues have decreased against the corresponding period by 1.6per cent
Revenues across the Group from foreign exchange income declined from K160.8 million to K145.2 million.
Total assets at K22.2 billion compared to K21.9 billion in 2019. Gross loans and advances to customers grew by K47.4 million to K12.5 billion. Customer deposits have increased by K166.9 million to K18.1 billion, driven by additional liquidity injection by regulators to stimulate economic activity.
Group’s operating expenses have decreased by K6.5 million, the cost to income ratio for the group is at 38.5per cent, in line with the same period last year. The bank’s cost to income ratio is 37.0per cent versus 36.4per cent in 1H-2019.
The group’s capital base remains strong. Total capital adequacy at 1H-2020 is 21.3 per cent, a slight reduction from 22.0 per cent in December 2019, reflecting the impact of the K451.4 million final dividend payout on 19 June 2020.
The capital adequacy ratio exceeds the minimum Bank of Papua New Guinea prudential requirement of 12.0per cent.
Sir Kostas said BSP had provided support packages for many banking customers since March 2020 and that dialogue with customers remains a key focus.
He commended staff and management across the BSP group for the 1H-20 results, despite very difficult operating conditions.