Earnings release
Page 1
BSP Financial Group Limited ARBN: 649 704 656, Incorporated in Papua New Guinea 17.4 17.7 30.7 32.1 Sep-24 Sep-25 Gross Loans Total Deposits 3Q25 financial performance is compared with the 3Q24 results, unless stated otherwise. Building the South Pacific’s International bank “BSP has delivered another strong quarter, with revenue of K860 million in the third quarter, up 15% on the prior comparable period. This result reflects the resilience of our diversified franchise and disciplined execution of our Modernising for Growth program where we continue to invest in technology, our people and capability to position BSP for the future. Unaudited net profit after tax increased 22% to K284 million, supported by strong operational discipline and growth across foreign exchange, fee, and lending income, underpinned by the continued high credit quality of our loan portfolio. Our capital position remains strong, with a capital adequacy ratio of 26.0%, comfortably above regulatory requirements. As we advance our ambition to build the South Pacific’s International Bank, we remain focused on creating sustainable value for shareholders and supporting the communities we serve. I would like to thank our customers, staff and shareholders for their ongoing support.” Mark T. Robinson, Group Chief Executive Officer Key Highlights Operating Performance Third Quarter Trading Update 2025 OPERATING Unaudited earnings before tax (EBT) for 3Q25 was K462 million, a 14% increase compared to 3Q24. Key performance drivers included: • Revenue Growth: Total operating income rose 15% year-on- year, due to 13% growth in net interest income, 24% growth in FX income, 12% increase in fee income. • Operating Expenses: Total operating expenses increased by 17% versus the prior comparable period, as BSP continues its investment in modernizing the business to better serve our customers. • Cost Efficiency: The Group’s cost-to-income ratio rose from 43% in 3Q24 to 44% in 3Q25, within the Group’s target range. • Credit Charges: Credit impairment expenses increased by 3%, marginally higher than 3Q24. Credit provisioning to lending balances remain in line with the Group’s expectations. The Group’s ongoing improvements in operating performance while investing in strategic growth initiatives drove a 22% increase in unaudited statutory NPAT to K284 million for the quarter. Volume (Kb) For personal use only
Page 2
BSP Financial Group Limited ARBN: 649 704 656, Incorporated in Papua New Guinea 24.2% 26.0% Sep-24 Sep-25 7.9% 8.4% Sep-24 Sep-25 BSP 2025 Third Quarter Trading Update Summary Financials PGK (millions) 3Q241 3Q25 Movement 3Q25 vs 3Q24 Revenue 750 860 ▲ 15% Net Interest Income 488 551 ▲ 13% FX Income 148 183 ▲ 24% Fee Income 100 112 ▲ 12% Insurance/Other Income 14 14 ▲ 0% Operating expenses (321) (374) ▲ 17% Operating profit 429 486 ▲ 13% Credit impairment (charges)/release (23) (24) ▲ 4% Earnings before tax 406 462 ▲ 14% Tax (174) (178) ▲ 2% NPAT (Statutory) 232 284 ▲ 22% Capital, Funding & Liquidity Footnotes 1 Sums may vary from 3Q24 Trading Update due to differentiated approach to rounding. 2 Capital Adequacy Ratio, based on Bank of Papua New Guinea prudential standards. 3 Leverage Capital Ratio, based on Bank of Papua New Guinea prudential standards. Capital Adequacy Ratio (CAR) stood at 26.0% at the end of 3Q25, representing an increase of 180 basis points compared to 3Q24. Leverage Capital Ratio (LCR) was 8.4% in 3Q25, up 50 basis points year-on-year following continued strength in our earnings in FY 2025. As in previous periods, our CAR and LCR remain comfortably above the minimum regulatory thresholds, demonstrating the Group’s continuing financial strength as we invest in our strategic initiatives. Regulatory Minimum 12.0% Regulatory Minimum 6.0% Capital Adequacy Ratio2 Leverage Capital Ratio3 K30.7b K32.1b For personal use only
Page 3
BSP Financial Group Limited ARBN: 649 704 656, Incorporated in Papua New Guinea BSP 2025 Third Quarter Trading Update For Further Information INVESTOR RELATIONS Email: Investor.Relations@bsp.com.pg PUBLIC RELATIONS Email: pr@bsp.com.pg INVESTOR CENTRE www.bsp.com.pg/about/investors This announcement was authorised for release by BSP’s Disclosure Committee. Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This quarterly update has been prepared and issued by BSP Financial Group Limited (the "Company"), and may not be reproduced in whole or in part, nor any of its contents be disclosed to any other person without the prior written consent of the Company. This disclosure covers this information and any subsequent sharing and/or reprint of this information. This announcement is provided by the Company for general information purposes only, without taking into account any recipient's personal objectives, financial situation or needs. It should not form the basis of or be relied on by the recipient in considering the merits of any particular transaction and does not purport to contain all of the information that an interested party may desire. This announcement does not purport to be all -inclusive or to contain all of the information that may be relevant to the announcement. This announcement is given in a summary form and does not purport to be complete. It is not an offer to buy or sell, or a solicitation to invest in or refrain from investing in, any securities or other investment product. Nothing in this announcement constitutes investment, legal, tax, accounting or other advice, recipient must conduct their own independent investigations and where professional advice is required, the recipient is required to obtain the relevant professional advice. This announcement has not been filed, lodged, registered, reviewed or approved by any regulatory authority in any jurisdiction and recipients of this announcement should keep themselves informed of, and comply with and observe, all applicable legal and regulatory requirements. The Company and its related bodies corporate and other affiliates, and their respective officers, employees, advisors, representatives, consultants and agents ("Relevant Parties") make no representation or warranty, expressed or implied, as to, and no reliance should be placed on, the fairness, accuracy, completeness, timeliness or reliability of the contents. To the maximum extent permitted by law, none of the Relevant Parties accept any liability (including, without limitation, any liability arising from fault of negligence on the part of any of them) for any loss whatsoever arising from the use of this presentation or its contents or otherwise arising in connection with it or as a result of any omission, inadequacy or inaccuracy herein. This announcement may contain forward-looking statements, forecasts, estimates and projections ("Forward Statements"). No independent third party has reviewed the reasonableness of any such statements or assumptions. No representation or warranty is made that the assumptions on which the Forward Statements are based may be reasonable or accurate. The recipient acknowledges that no person is intended to act or be responsible, implied or otherwise, to the recipient, its management, stockholders, creditors or any other person. By using this announcement the recipient expressly disclaims any fiduciary relationship with any person and agrees that the recipient is responsible for making its own independent judgements with respect to any transaction and any other matters regarding this announcement. The Company is not authorised under the Banking Act 1959 (Cth) (the "Banking Act") and is not supervised by the Australian Prudential Regulation Authority. The Company's products are not covered by the depositor protection provisions in section 13A of the Banking Act and will not be covered by the financial claims scheme under Division 2AA of the Banking Act. Company's products are not covered by the depositor protection provisions in section 13A of the Banking Act and will not be covered by the financial claims scheme under Division 2AA of the Banking Act. For personal use only