BSP Financial Group (BFL) investor relations material

Executive summary

• Revenue rose 17.7% year-over-year to K1.89b, with net profit after tax up 8.4% to K620m, driven by lending, payment services, and FX earnings.

• Interim dividend declared at 54 toea per share, up 8% year-over-year.

• Maintained robust capital adequacy at 25.3% and cost-to-income ratio at 43.8%, within target range.

• Continued significant investment in technology, digital transformation, and operational resilience through the Modernising for Growth program.

• Announced exclusive banking partnership for the 2026 Rugby League World Cup and plans for a new headquarters in Port Moresby.

Financial highlights

• Group revenue reached K1,885m, up 17.7% year-over-year; NPAT at K620m, up 8.4%.

• Net interest income grew 15.4% to K1,174m; non-interest income comprised 38% of total income, with FX income up 33.8% to K429m.

• Operating expenses increased 21.1% to K825m, reflecting higher employment and technology costs.

• Return on equity was 23.9%, maintaining a long-term record above 20%.

• Gross loans grew 8.6%, total assets up 16.2%, and deposits increased 17.8% in the half.

Outlook and guidance

• Investment spending expected to peak over the next two years, with cost-to-income ratio within the 42%-45% target range.

• Medium-term outlook is positive, with major LNG and mining projects in PNG expected to drive significant economic growth.

• Short-term risks include El Niño impacts on agriculture, mining disruptions, and global energy/tourism headwinds.

• Focus on modernisation, digital adoption, and expanding business banking in underserved markets.

• No adjusting or disclosing events after the end of the reporting period.