BSP Group announces final dividend for 2014, 2015

Final dividend announcement for 2014 and the first Quarter Actual results for 2015

Mr Kostas Constantinou OBE, Chairman of Bank of South Pacific Limited (BSP) today announced the final dividend for the year ending, 2014.

Mr Constantinou noted that BSP Group achieved very good results in 2014 with a net profit after tax of K507.4m, an increase of K70.5m on the 2013 result. The directors therefore have determined a final dividend of 56 toea for 2014. This final dividend along with the 20 toea interim dividend paid in October 2014 brings the total dividend payment to 76 toea per share, giving a yield of 10.27% on the current share price of K7.40. The payout ratio for 2014 of 70.08% which is on par with 2013's ratio of 70.77% and up on 2012's ratio at 67.1%.

Dividends per share are 15% higher than 2014 and have increased on average by 14% in each of the last 3 years.

Capital  adequacy  ratios  will  remain  above  BPNG  guidelines  after  payment  of  the  final  dividen d, notwithstanding that this coincides with the purchase of Westpac businesses in Samoa, Tonga, Solomon Islands, Cook Islands and Vanuatu.

The planned processing dates for the 2014 final dividend are:

Ex-date: Friday 29th of May 2015

Record date: Friday 5th of June 2015

Payment date: Friday 19th of June 2015

In announcing the dividend Mr Constantinou stated that the full year dividend represents a distribution to shareholders of K355.57M. (2013 K309.25M) BSP's shareholder base is predominantly Papua New Guinean, and the board was very proud to maintain a dividend policy that resulted in such a large percentage of BSP's profits being distributed to its share-holders with the majority of dividends remaining in Papua New Guinea.

Mr Constantinou also announced the Group's results for the first quarter of 2015. The 2015 first quarter profit after tax is at K130m, which is K7m above that achieved in the last quarter of 2014. BSP's loan growth at the end of the 4th quarter 2014 has resulted in an increase in interest income streams as well as BSP's retail channel income is continuing to be strong, supported by a large market presence of BSP's ATM's and EFTPOS terminals.

BSP's Balance Sheet reflected a generally stable market share in PNG and an expectation of flat business conditions in the short term. Capital adequacy has improved to 25.5% at the end of March 2015.