The Bank South Pacific (BSP) again looks to firm its position this year as the leading performer in the banking sector in Papua New Guinea (PNG).
BSP dominates market share in PNG, with its share of loans at 46%, and a deposit at 56%.
BSP Group has achieved sound results in 2013, despite a slowdown in PNG’s economic growth from 9.2% in 2012 to around 5% in 2013.
“These results have been achieved despite a slowdown in PNG’s economy in 2013” the chairman of BSP, Kostas Constantinou says.
Mr Constantinou attributed the decrease in the economic growth to winding down to PNG project and the low commodity prices at the global level which impacted on exports.
Whilst BSP’s performance continues to trace the positive trends in the economies of PNG and its Pacific neighbors, Constantinou says that BSP is a strong proponent of financial inclusion program in the Pacific, creating a not so distinguishable economic moat to shield itself from its rivals.
However, Group CEO, Robin Fleming says competition from rival banks remains strong.
BSP continues to invest technology, risk management and other resources, to extend banking services at minimal cost to customers in parts of market that have poor access to banking services.
A strong growth for BSP is also reported Fiji and Solomon Island; where the chairman says the bank has a sizeable market share.
“In Fiji, BSP has improved its performance in 2013, in an extremely high competitive market.
“BSP has again yielded good results in the Solomon Islands, where a strong market position is being developed in electronic banking channels” Constantinou says
Mr Constantinou noted that BSP Group achieved very sound results in 2013 with a net profit after tax of K436.8m, an increase of K29 million on the 2012 result.
As a result, a dividend of 46 toea for financial year 2013 was declared during the annual general meeting of BSP today.