By Staff Reporter

BSP Reports Record K1 Billion Profit for Fifth Consecutive Year

22/4/2025

PORT MORESBY – Bank South Pacific Financial Group Limited (BSP) has announced a record profit of K1.04 billion for the 2024 financial year, marking the fifth consecutive year it has achieved a profit exceeding the K1 billion threshold. The group's total income for the year reached K2.98 billion, reflecting its strong performance across the Pacific region.

This result represents a 16 per cent increase in net profit compared to 2023. A dividend of K1.66 per share was declared, resulting in a total payout of K783 million to over 4,000 shareholders.

BSP Group CEO Mark Robinson attributed the achievement to the bank’s consistent strategy and focus on sustainable growth. “Our performance underscores our long-term strength. With a 10-year compound annual growth rate of 7.7 per cent in net profit after tax, we have maintained our position as a leading financial institution in the Pacific,” Robinson said.

He added that the bank’s core strengths—sound fundamentals and disciplined execution—have enabled it to deliver value and stability to its shareholders. “A strong capital position remains central to our strategy,” Robinson noted.

According to BSP, overall income growth in 2024 stood at 8.4 per cent. This was largely driven by a K120 million increase in net interest income and a K103 million rise in foreign exchange earnings. Fee income also increased by K33 million, while income from insurance and other sources declined by K25 million due to weaker returns from operations in Fiji.

The bank also noted that part of the profit growth—an additional 17 per cent—was the result of several one-off factors. These included a K95 million settlement related to additional company income tax and a reduction of K120 million in general provisions following an updated economic outlook post-COVID-19. BSP is also preparing for its exit from finance operations in Cambodia and Laos.

Investment in digital and operational modernisation was another highlight of the year. The bank allocated K345 million towards enhancing its systems and services, which contributed to an 8 per cent growth in revenue, driven by higher foreign exchange activity and transaction volumes.

However, the bank’s operating costs rose by 22 per cent, reflecting increased spending on technology upgrades and specialist staffing. As a result, the underlying profit still rose by 10 per cent to K979 million, although the Group’s cost-to-income ratio also increased.

BSP closed the year with a strong balance sheet, reporting a 0.5 per cent rise in total assets to K37.1 billion. Gross loans grew by 0.6 per cent, further supporting its asset growth.

In line with its corporate social responsibility initiatives, BSP invested over K17 million in community development projects, sponsorships, and donations throughout the regions in which it operates.

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