Rising Costs and Board Changes Pose Questions for BSP’s Next Growth Phase
BSP Financial Group reported a 17% rise in net profit and a 16% dividend increase for 2024, while advancing key digital and SME banking initiatives across the South Pacific.
- 17% increase in net profit after tax to over K1 billion
- 16% higher dividend payout, totaling K1.66 per share
- Launch of Wantok Wallet to enhance financial inclusion
- Establishment of Business Bank segment for SMEs
- Board renewal with two new non-executive directors
Robust Financial Performance Anchors BSP’s Growth
BSP Financial Group Limited has delivered a standout financial year in 2024, reporting a 17% increase in net profit after tax (NPAT) to over K1 billion. This strong performance was underpinned by solid revenue growth, including a 7% rise in net interest income and a 22% surge in foreign exchange income, reflecting BSP’s expanding footprint and operational strength across the South Pacific.
Shareholders benefited directly from this success, with dividends rising 16% to K1.66 per share, representing a 75% payout ratio. BSP’s return on equity climbed to 23.3%, continuing a remarkable two-decade track record of consistent profitability and shareholder returns, with 86% of shares owned by Papua New Guineans, ensuring local communities reap the rewards.
Modernising for Growth: Digital and SME Banking Initiatives
Beyond the numbers, BSP is actively transforming its operations through its Modernising for Growth strategy. A key highlight is the launch of the Wantok Wallet, a mobile-first digital wallet designed to bring financial services to underbanked populations. Accessible via simple mobile phones without internet, the wallet has already attracted nearly 49,000 users, facilitating everyday transactions such as bill payments and cardless ATM withdrawals.
Complementing this is the establishment of a dedicated Business Bank segment focused on small and medium-sized enterprises (SMEs). Launched in April 2025, this initiative aims to unlock growth opportunities by providing tailored financial products and specialist support, leveraging BSP’s extensive branch network and regional expertise.
Operational Efficiency and Cash Management Enhancements
BSP is also addressing operational challenges through its Cash Optimisation program, which introduces automation and regional cash centres to improve efficiency and reduce costs. The deployment of cash counting and authentication machines across branches has allowed staff to focus more on customer service, enhancing the overall banking experience.
Governance and Board Renewal
In governance, BSP has refreshed its Board with the appointment of two new non-executive directors, David Hornery and Donna Cooper, bringing valuable digital banking and leadership experience. This renewal follows the retirement of long-serving directors and signals BSP’s commitment to strong oversight as it navigates its next growth phase.
Looking Ahead: Sustaining Momentum in 2025
Entering 2025, BSP reports continued momentum with a 13% NPAT growth in the first quarter and ongoing digital transaction expansion. The bank remains focused on deepening financial inclusion, enhancing customer experience, and supporting regional economic development. With a capital adequacy ratio more than double regulatory requirements, BSP is well-positioned to invest in future growth while managing risks prudently.
Bottom Line?
BSP’s blend of strong financial results and strategic innovation sets the stage for sustained leadership in Pacific banking.
Questions in the middle?
- How will BSP’s new digital initiatives impact long-term profitability and customer retention?
- What challenges might arise in scaling the Business Bank segment across diverse Pacific markets?
- How will increased operational costs from modernization affect BSP’s cost-to-income ratio going forward?
