BSP Financial Group Limited (BFL) investor relations material

Executive summary

• Achieved 9.8% growth in both revenue and net profit after tax (NPAT) for the first half of 2025, with strong performance across all business lines and continued market leadership in the South Pacific.

• Maintained a strong return on equity (ROE) at 23.6% annualized, continuing a 20-year record of returns above 20%.

• Interim dividend increased by 11% to 50 toea per share, with 3.2 million active customer accounts.

• Ongoing investment in digital transformation and modernization, including the launch of the One Talk/Wantok Wallet, driving financial inclusion and customer growth.

• Earnings per share increased to 122.5 toea from 111.4 toea year-over-year.

Financial highlights

• Revenue rose 9.8% to K1.6 billion, with NPAT up 9.8% to K572 million compared to the same period last year.

• Net interest income grew 3.6% to K1,017 million, FX income surged 23.6%, and fees/commissions increased 14.6% year-over-year.

• Operating expenses rose 17.6% to K681 million, mainly due to investments in technology and staff, with cost to income ratio at 42.5%.

• Bad and doubtful debts fell 20% to K67 million, with delinquency rates down to 2.8% from 3.6% a year ago.

• Total assets expanded to K38.9 billion, and deposits rose 2.4% to K30.7 billion.

Outlook and guidance

• Focus on delivering world-class service, investing in digital products, and modernizing the branch network.

• Expectation for cost to income ratio to normalize around 42.5% post-modernization.

• Continued commitment to financial inclusion and expanding digital adoption across the South Pacific.

• Well positioned to capture opportunities from regional population growth, trade expansion, and digital adoption.

• Capital adequacy and leverage ratios remain well above regulatory minimums, supporting a strong outlook.