BSP Financial Group Limited (BSP) has reported impressive outcomes for the third quarter of this year, with a strategic focus on modernizing its operations to support future growth. The group achieved a 3 percent increase in revenue, totaling K750 million ($F427 million), primarily driven by heightened activity in the foreign exchange markets and an uptick in fee income, although this was partially balanced by a 1 percent decrease in net interest income.
Operating expenses rose by 11 percent to K321 million ($F182.7 million). This increase aligns with BSP’s strategy of undertaking considerable yet measured investments to enhance their operations and improve customer service. CEO Mark Robinson highlighted that these investments are crucial for long-term growth and delivering sustainable returns.
Despite a 2 percent drop in operating profit compared to the average from the earlier half of the year, there was a 5 percent year-over-year increase compared to the same quarter last year. Notably, impairment expenses decreased by K20 million ($F11.4 million) in this quarter, attributed to lower write-offs and better recoveries.
BSP’s unaudited underlying net profit after tax for the quarter was K233 million ($F132.6 million), in line with the first half year quarterly average. Robinson elaborated that the 11 percent decline in unaudited net profit after tax was influenced by a one-time positive effect from an additional company tax settlement in the second quarter, balanced against a joint venture impairment.
He also pointed out that results for the first half of 2024 showed a solid 8 percent growth compared to the first half of 2023. The underlying net profit after tax for the third quarter benefited from a lower impairment charge compared to the average of the first half of 2024.
Robinson emphasized BSP’s strong capital position, allowing continued investment in modernization while expanding the loan portfolio. The group’s capital adequacy ratio at the end of the third quarter stood at 24.2 percent, well above regulatory requirements.
This positive outlook not only reflects the company’s resilience and strategic focus but also indicates a commitment to evolve and better serve its clients while maintaining a strong balance sheet. BSP is poised to navigate the challenges of the financial landscape effectively, reinforcing its position in the market.
In summary, BSP Financial Group Limited demonstrates a strong performance in the third quarter, supported by proactive investments and sound financial management, indicating a promising trajectory for future growth and stability.
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