BSP posts K436m profit

BANK South Pacific Limited has announced a net profit of K436.8 million for the 2013 financial year, with a final dividend of 66 toea per share to be paid to shareholders.

This was announced by the bank’s group chairman Kostas Constantinou last Friday.

Mr Constantinou said 2013 has been a successful one for the bank with it recording a net profit fefore tax of K595 million and the net profit after tax being an increase of K29 million on the 2012 result.

Given these results, the directors had determined a final dividend of 46 toea for 2013.

This final dividend, along with the 20 toea interim dividend paid in October 2013, brings the total to 66 toea per share, giving a yield of 8.6 per cent on the current share price of K7.70.

He said the payout ratio for 2013 of 70.8 per cent is up from the 2012 ratio of 67.1 per cent, and 2011 at 67 per cent.

Mr Constantinou said the capital adequacy rations will remain well above the Bank of PNG guidelines after payment of the final dividend on Friday June 20.

Mr Constantinou stated that the full year dividend represents a distribution to shareholders of K309 million. “The bank’s shareholder base is predominantly Papua New Guinean, and the board is very proud to maintain a dividend policy that resulted in such a large percentage of its profits being distributed to its shareholders with the majority of dividends remaining in Papua New Guinea,” he said.

Other achievements for 2013 are:

l Net income of K1.52 billion;

l Total asset now at K15.8bn;

l Continued positive loan and deposit growth, and,

l Very strong capital and liquidity position.

Mr Constantinou said the bank has also performed very well in the first quarter of 2014.

He said this year’s first quarter profit after tax is K136m, which is K9m above that achieved in the last quarter of 2013.

He said the bank’s retail channel income is continuing to be strong, supported by a large market presence of its  ATMs and EFTPOS terminals.

He said its balance sheet reflected a generally stable market share in PNG and an expectation of growth in the next two quarters, adding capital adequacy has improved to 20% at the end of March this year.