BSP Financial Group Limited has reported a remarkable 12.9 percent growth in statutory net profit after tax for the fiscal year ending December 31, 2025. This impressive increase can be attributed to strong balance sheet growth, resilient profit margins, and a significant boost in foreign exchange earnings.
The regional banking institution recorded a net profit after tax of K1.17 billion (A$440 million), accompanied by a 14.4 percent rise in revenue, amounting to K3.41 billion (A$1.28 billion). The bank also experienced a nine percent increase in net interest income, with profit margins improving by 19 basis points to reach 6.41 percent. Moreover, foreign exchange income surged by 28.7 percent, equivalent to K161 million.
Strengthening its financial metrics, the return on equity climbed to 23.8 percent, marking a 50 basis point increment from fiscal year 2024. This positions BSP among the leading banks listed on the Australian Securities Exchange (ASX). Additionally, the bank’s capital adequacy ratio increased to 26.4 percent, indicating robust capital levels that support ongoing growth.
Operating expenses rose by 15.4 percent primarily due to higher employment costs and sustained investments in technology, notably through its ambitious K1.2 billion “Modernising for Growth” initiative. Despite these increases, the cost-to-income ratio remained stable at 42.9 percent.
BSP maintained stable loan provisions at 3.3 percent, and delinquency rates saw a notable decrease of 10 basis points to 2.7 percent, a reflection of increased lending and a supportive economic climate. In line with its strong performance, BSP has declared a full-year dividend of K1.88 per share (A$0.71), which is a 13 percent increase compared to the previous financial year. Shareholders can expect the final dividend of K1.38 (A$0.57) to be distributed on March 27, 2026.
Robinson, the bank’s spokesperson, highlighted that earnings, deposits, and customer activities grew across all major markets in 2025, resulting from disciplined execution and the bank’s robust franchise. The bank has made commendable progress in its modernization efforts, including upgrading branches and introducing next-generation ATMs and EFTPOS terminals, along with personalized customer offerings and the establishment of its Business Bank.
Digital adoption has also seen a marked increase, with internet banking transactions up by 54 percent and EFTPOS transactions rising by 16 percent. BSP has also made strides in enhancing financial inclusion with the launch of the Wantok Wallet in February 2025, which garnered over 100,000 sign-ups by year’s end.
The bank’s strong performance coincides with Papua New Guinea’s 50th Independence anniversary, emphasizing the potential for regional growth and the vital role that businesses like BSP play in shaping national development. This positive trajectory not only reflects the bank’s effectiveness but also highlights the broader economic opportunities emerging in the region.
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