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BSP 18th August 2021 ASX / PNGXX Market Announcement ASX : BFL | PNGX : BSP HALF YEAR RESULTS - 30th June 2021 BSP Financial Group Limited ( BSP ) announced a net profit after tax result of K449.3 million for the half year ended 30 June 2021 , a 17.6 % increase compared to the same period last year of K381.9 million . Easing of pandemic related domestic restrictions , combined with improved liquidity levels in Papua New Guinea ( PNG ) and the offshore branches , other than Fiji , contributed to the improved results . Fiji has been more severely affected by Delta variant Covid - 19 impacts and economic activity remains subdued . Total Group revenue increased against prior year by 8.4 % , with improvements noted across most revenue streams . Interest on loans was lower by 6.9 % , with the impact of the reduction in the Indicator Lending Rate in PNG by 100bps on 1 April 2020 , affecting the full 6 month period in 2021 compared to 3 months in 2020 . Loan volume growth has also been flat or negative in most countries . Foreign exchange related income across the Group increased 6.1 % compared to prior year , driven by improved currency flows derived from Bank of PNG interventions . Operating expenses increased by 8.6 % against the prior comparative period to K439.9 million . Depreciation relating to the new core banking system replacement project , professional service fees associated with the ASX listing , which was successfully completed in May 2021 and increased staff costs contributed to the increase . The weakening of the PGK against major currencies also had the impact on the cost base . Despite these increases , the Group's cost to income ratio remains stable . The Group's total assets grew by 5.0 % ( K1.4 billion ) over the first half of the year , driven by strategic growth in investment securities leveraging on available liquidity levels . Lending growth remains challenging due to the slow rate of economic recovery across all countries . The total impairment charge was K62.6 million , a decrease from K111.5 million in the prior comparative period , which included a large uplift in provisions to cater for the uncertain potential impact of COVID - 19 at that time . Provisioning expenses have normalized this year as macro - economic factors improved and the balance sheet impact of COVID - 19 became more certain . The total balance of allowances for losses on loans and advances increased from K788.6 million ( 5.7 % of loans ) in June 2020 to K872.6 million ( 6.1 % of loans ) in June 2021 . BSP Financial Group Limited Incorporated in Papua New Guinea ARBN : 649 704 656 Section 34 , Allotment 6 & 7 , Klinki Street , Waigani Drive , National Capital District PO Box 78 , Port Moresby , Papua New Guinea WEBSITE : www.bsp.com.pg | EMAIL : servicebsp@bsp.com.pg | PHONE : +675 3201212 or +675 3057842