Bank South Pacific Group records K381.9 million Profit

Bank South Pacific Group has recorded a consolidated operating profit after tax of K381.9 million for the 2020 half-year, a 12.2% decrease from the same period last year.

Chairman of the BSP Board of Directors Sir Kostas Constantinou said the lower profits were significantly influenced by reduced income levels due to the impact of COVID-19.

He said this also includes higher debt provisions taken up as a consequence of the changed credit risk profile of borrowers and macroeconomic indicators in all countries across the region that reflected contractions in economic activity.

These were partially offset by savings in operating expenses.Sir Kostas said all BSP's businesses have been affected with lower transactional banking activity, reduced foreign exchange, contractions in net interest income margins, and additional lending provisions.

He said the results showed that movement restriction measures introduced by all governments in the region to reduce the risk of transmission of COVID-19 has significantly impacted economic activity in all countries in which BSP operates.

NBC News/ PNG Today

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