Earnings release
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ASX/PNGX Market Announcement ARBN: 649 704 656 | ASX: BFL | PNGX: BSP for the period ended 30 September 2026 RESULTS OVERVIEW BSP delivered continued momentum across the Group in the third quarter of 2026 with Unaudited Net Profit after Tax of K334 million, up 8% on the 1H26 quarterly average and 18% on the prior comparable quarter. Revenue of K997m was up 6% on the 1H26 quarterly average and 16% on the prior comparable quarter. Consistent growth in Net Interest Income underscores the strength of our lending across the South Pacific, coupled with balanced growth in Non-interest Income continuing to demonstrate the diversity of our revenue base. We continue to manage costs through the investment phase of our Modernising for Growth program, with our Cost-to-Income Ratio at 43.6% remaining at the midpoint of our 42-45% target range. Credit quality has remained broadly stable, with no material deterioration in provisioning trends during the quarter. Our capital position remains strong, with a Capital Adequacy Ratio comfortably in excess of the regulatory requirement. Our Modernising for Growth program is progressing well and remains focused on our four strategic priorities – better serving our customers; investments that support a safe and secure bank; ensuring our business is simple and scalable; and building a high-performance culture and capabilities. During the quarter, we were also pleased to announce our landmark multi-year sponsorship agreement with the PNG Chiefs, the 19th team to join the National Rugby League. This saw BSP become the Club's Principal Foundation Partner. We are proud to back the nation’s NRL team, commencing in its foundation period ahead of joining the NRL in the 2028 season. Against a backdrop of global geopolitical and macro challenges, economic growth across the South Pacific has held up reasonably well and provides a broadly supportive outlook. While regional risks persist, including higher fuel prices and El Niño, we remain optimistic about the PNG economy. Copper, coffee and cocoa prices remain resilient, and in the medium to longer term, there is a positive contribution to growth from the infrastructure to establish the PNG Chiefs and the pipeline of major energy and resources projects, including Papua LNG. Mark T. Robinson Group Chief Executive Officer COST-TO-INCOME RATIO 43.6% ↓ 20bps on 1H26 qtr avg ↑ 5% on 1H26 qtr avg REVENUE K997m ↑ 6% on 1H26 qtr avg THIRD QUARTER TRADING UPDATE 2026 K435m OPERATING EXPENSES ↑ 8% on 1H26 qtr avg K334m UNAUDITED NPAT BSP Financial Group Limited Section 34, Allotment 6&7, Klinki Street, Waigani Drive, PO Box 78 Port Moresby, Papua New Guinea (+675) 320 1212 | 7030 1212 servicebsp@bsp.com.pg bsp.com.pg 27 October 2026
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PERFORMANCE OVERVIEW 24.9% ↑ 100bps on 1H26 qtr avg Solid lending growth continued with gross loans increasing 1.6% on Jun-26, largely driven by retail mortgages and personal lending products. GROSS LOANS (PGK BILLONS) RETURN ON EQUITY (ANNUALISED) Return on Equity improved to 24.9% reflecting growth in income and disciplined capital management. Total deposits reached K37.5 billion in Q3 2026, up 3.6% on Jun-26, reflecting strong quarterly growth in the deposit base. TOTAL DEPOSITS (PGK BILLIONS) 3.6% Jun-26 Sep-26Jun-26 Sep-26 1.6% 19.1 19.4 CAPITAL ADEQUACY RATIO BSP’s Capital Adequacy Ratio is more than double the regulatory requirement of 12.0% reflecting capacity to support customers and continued investment. LEVERAGE RATIO BSP’s Leverage Ratio remains well above the regulatory requirement of 6.0% NON-INTEREST INCOME K378m ↑ 6% on 1H26 qtr avg Non-interest Income increased as a percentage of total income driven by strong FX income and a deepening of customer relationships across the Group. 36.2 37.5 25.3% 26.0% Jun-26 Sep-26 Regulatory minimum of 12.0% +70bps 8.9% 8.3% Jun-26 Sep-26 Regulatory minimum of 6.0% -60bps
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SUMMARY FINANCIALS PGK (millions) 1H26 qtr avg 3Q26 Movement 3Q26 vs 1H26 qtr avg Movement 3Q26 vs 3Q25 Revenue 943 997 ▲ 6% ▲ 16% Net Interest Income 587 619 ▲ 5% ▲ 12% FX Income 215 231 ▲ 7% ▲ 26% Fee Income 118 127 ▲ 8% ▲ 13% Insurance/Other Income 23 20 ▼ 13% ▲ 43% Operating expenses (413) (435) ▲ 5% ▲ 16% Operating profit 530 562 ▲ 6% ▲ 16% Credit impairment (charges)/release (38) (30) ▼ 21% ▲ 25% Earnings before tax 462 532 ▲ 8% ▲ 15% Tax (182) (198) ▲ 9% ▲ 11% Unaudited NPAT 310 334 ▲ 8% ▲ 18% UNAUDITED PROFIT & LOSS SUMMARY AUD* (millions) 1H26 qtr avg 3Q26 Movement 3Q26 vs 1H26 qtr avg Movement 3Q26 vs 3Q25 Revenue 310 319 ▲ 3% ▲ 1% Net Interest Income 193 198 ▲ 3% ▼ 2% FX Income 71 74 ▲ 4% ▲ 10% Fee Income 39 41 ▲ 5% ▲ 0% Insurance/Other Income 7 6 ▼ 14% ▲ 20% Operating expenses (136) (139) ▲ 2% ▲ 1% Operating profit 174 180 ▲ 3% ▲ 1% Credit impairment (charges)/release (12) (10) ▼ 17% ▲ 11% Earnings before tax 162 170 ▲ 5% ▲ 0% Tax (60) (63) ▲ 5% ▼ 3% Unaudited NPAT 102 107 ▲ 5% ▲ 2% UNAUDITED PROFIT & LOSS SUMMARY * Average exchange rate of 0.3290 AUD=1PGK for 1H26 qtr avg, and 0.3198 AUD=1PGK for 3Q26.
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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 FURTHER INFORMATION Investor Relations Investor.Relations@bsp.com.pg Media Relations pr@bsp.com.pg Investor Centre www.bsp.com.pg/about/investors This announcement was authorised for release by BSP’s Disclosure Committee.