Bank of South Pacific reports profit increase

Banks of South Pacific reports profit increase
Image: BSP Headquarters in Port Moresby

DESPITE a slowdown in the country’s economy last year, Bank South Pacific’s operating profit increased by 16.1 per cent to K507.3 million from K436.8 million in 2013.
Yesterday, BSP board chairman Kostas Constantinou released the full year report for
2014, saying BSP’s revenue went up by 4 per cent mainly coming from treasury bills and inscribed stock.
He said income from foreign exchange dropped from K184.5 million in the first half of last year to K83 million in the second half.
“The drop was blamed on the changes to the margin bands on foreign exchange,” he said.
“BSP’s total assets at the end of last year were at K15.41 billion.
“Loans and advances to customers; portfolio has seen net growth of K1.50 billion to K6.74 billion.”
He said customer deposits grew steadily up 4.1 per cent to K12.8 billion mainly in the retail, government segments and corporate segment in Fiji.
Constantinou said the bank’s operating expenses show reductions of K41.7 million and operating expenses will continue to be a focus this year.
“The group’s capital base remains sound. Total capital adequacy at the end of 2014 is 24 per cent notwithstanding the impact of continued growth in balance sheet assets as well as total dividend payments of K309.14 million.
“The capital adequacy ratio exceeds the minimum Bank of Papua New Guinea prudential requirement of 12 per cent.”
Constantinou expressed confidence in BSP’s capacity to fill these revenue gaps with new business from the recently established BSP Finance business in PNG and Fiji and continued growth in Fiji and Solomon Island markets.
He said the board looks forward to adding new markets to Bank South Pacific upon the finalisation of the agreement to purchase Westpac’s operations in Samoa, Cook Islands, Vanuatu, Tonga and Solomon Islands which remain subject to regulatory approval.