BSP Financial Group (BFL) Q1 2026 TU earnings summary

Executive summary

• Unaudited net profit after tax (NPAT) reached K278 million, up 14.6% year-over-year, reflecting strong operational discipline and a diversified earnings base.

• Revenue increased 18.5% to K900 million, driven by growth in net interest, FX, and fee income.

• The business continues to invest in its Modernising for Growth program, resulting in higher operating expenses.

Financial highlights

• Net interest income rose 15.9%, FX income surged 31.4%, and fee income grew 16.6% compared to 1Q25.

• Gross loans increased by K1.5 billion (9.7%), and total deposits grew 17.9% year-over-year.

• Operating expenses climbed 22.3%, with the cost-to-income ratio rising to 45.0% from 43.6% in 1Q25.

• Credit impairment expenses increased 61.0%, mainly due to specific business customer provisions.

Outlook and guidance

• Cost-to-income ratio expected to normalize within the 42–45% target range after peak program expenditure in 2026–2027.

• No material operational impact observed from Papua New Guinea's placement on the FATF grey list; ongoing commitment to compliance and risk management.