BSP Financial Group (BFL) H1 2024 earnings summary

Executive summary

• Net profit after tax for 1H24 rose 22% year-over-year to K520.5 million, reflecting strong operational performance, robust earnings, and a one-off tax settlement benefit.

• Underlying profit, excluding one-off items, increased 8% to K461 million.

• BSP maintained market leadership in the South Pacific, supported by digital adoption and a modernised core banking system.

• The Group operates in Papua New Guinea and the Asia Pacific, offering commercial banking, fund management, and life insurance services.

• Balance sheet remains stable, with disciplined risk management and a focus on customer experience.

Financial highlights

• Statutory NPAT rose 22% year-over-year to K520.5 million; underlying NPAT up 8% to K461 million.

• Revenue increased 12% to K1.5 billion, driven by 9% growth in net interest income and 28% rise in FX income.

• Earnings per share grew 22% to 111.4 toea; interim dividend per share up 22% to 45 toea.

• Operating expenses rose 21% due to investments in modernisation and inflationary pressures, but adjusted cost-to-income ratio remained stable.

• Bad and doubtful debt expenses increased 7% year-over-year to K84 million, reflecting higher provisions and write-offs.

Outlook and guidance

• South Pacific economic outlook remains positive, supported by capital expenditure, tourism, and remittance growth.

• PNG entering an investment super-cycle with major projects exceeding K100 billion in value.

• Management remains optimistic about regional and business prospects for the second half of 2024, despite inflationary pressures.

• Continued focus on digital transformation, risk management, and customer-centric growth.

• Capital adequacy and leverage ratios remain well above regulatory minimums, supporting continued growth and resilience.