BSP released its unaudited quarter 3 2020 results at a media and investor briefing on Monday 26 October 2020. In announcing the Group's profit, BSP CEO Robin Fleming noted that despite COVID-19 impacts, sound profitability levels were maintained by the BSP Group in the third quarter 2020.
- The Group recorded a consolidated net profit after tax of K216 million for the 2020 third quarter, a 31.7% increase from Q2-2020 to Q3-2020. The increase in profit was largely influenced by impairments moderating back to historic levels in Q3-2020 and increased interest income from government bonds. This Q3-2020 result combined with our earlier results, brings BSP's year to date September 2020 profit to K598 million, K49 million [or 7.6%] lower than in the corresponding period in 2019.
- Group revenue was up marginally during the quarter, predominantly from interest income from loans and investments.
- All BSP business divisions grew their profits in Q3-2020 and their profits are in-line with prior year results, which is a strong outcome, given business conditions and a reduction in BSP PNG's indicator Lending Rate [ILR] by 100bps on 1 April 2020.
- BSP Group has maintained positive results in key performance ratios. Cost to income reducing to 37.3% in Q3-2020. Capital adequacy improved marginally to 22.0% in Q3-2020. This is above Q3- 2019 levels [21.1%] and well above BPNG's 12% requirement. BSP continues to lead the market in technology investment by ensuring our digital channels are making banking convenient, safe and cheaper for our customers. We are also helping our small and large business customers to trade "24 hours / seven days a week" to increase their incomes and reduce their costs.
- BSP continues to play a leadership role in the growth of PNG's emerging digital economy. Just over three-quarters [77%] of all customer transactions were via digital channels in Q3-20 with an annual increase of +10%. Channel activity rebounded by +2.8% post Q2-20 COVID-19 lockdown disruptions.
- BSP's share price remains stable at K12.00 representing an annual increase of 4%. The 2020 interim dividend of K115m [25 toea per share] paid on 16 October.
BSP Group CEO Robin Fleming with BSP representatives presenting the Q3 financials