BSP Financial Group (BSP) has announced a strong financial performance for the full year ending December 31, 2024, reporting a statutory net profit after tax of K1.038 billion ($F0.60 billion), representing a 17% increase compared to the previous financial year. This information was shared on prominent stock exchanges including the South Pacific Stock Exchange, the Papua New Guinea Stock Exchange, and the Australian Stock Exchange.
The increase in profit can be attributed to significant growth in volume and revenue across nearly all of BSP’s business segments. Additionally, a notable improvement in bad and doubtful debts provision contributed positively, alongside the effects of an additional company tax settlement recognized in the first half of 2024.
BSP Group chairperson Robert Bradshaw highlighted that net operating income grew by 8% to K3 billion ($F1.74 billion), while net interest income rose by K2 billion ($F1.16 billion), a 7% increase over the previous year. Although total expenses increased to K1.3 billion ($F0.75 billion) due to ongoing modernization efforts and inflationary pressures, the cost-to-income ratio adjusted from 37.8% in FY23 to 41.3% in FY24. However, excluding costs related to modernization initiatives, this ratio remained stable at 38.2%.
Bradshaw also indicated that the group’s capital adequacy ratio stood at a robust 26.2%, significantly above the Bank of Papua New Guinea’s minimum requirement of 12.0%, reflecting a solid capital base that has improved by 230 basis points since December 2023. The board announced a final dividend payment of K1.21 ($F0.70) per ordinary share, payable on March 21, 2025, which, combined with an interim dividend from October 2024, results in a total FY24 dividend of K1.66 ($F0.97) per share, maintaining a 75% payout ratio, consistent with prior years.
Bradshaw expressed satisfaction with the bank’s performance, noting that the pre-tax profit reached a record K1.8 billion ($F1.04 billion)—a 14% increase from FY23—and highlighted that the full year statutory profit was just shy of the group’s record in FY22, prior to the recent tax rate increase to 45% for banks in Papua New Guinea.
This financial outlook reflects BSP’s strategic planning and effective management in a competitive banking environment, indicating a strong foundation for future growth and continued investment in modernization initiatives.
BSP’s proactive approach to meet market demands while ensuring stable and robust financial health is a positive indicator, setting the stage for their ongoing success and contribution to economic development in the region.
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