BSP Financial Group Ltd. · ASX:BFL
BSP Financial — Q3 2022 Earnings Presentation
22 slides from BSP Financial's earnings presentation, 2022
Slide 1: Investor Presentation Q3-2022
Investor Presentation Q3-2022 Robin Fleming – Group CEO BSP Financial Group Limited [ARBN: 649 704 656, Incorporated in Papua New Guinea]
Slide 2: Disclaimer
Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This presentation has been prepared and issued by BSP Financial Group Limited (the "Company"), and may not be reproduced in whole or in part, nor may any of its contents be disclosed to any other per
Slide 3: South Pacific market leader
South Pacific market leader BSP provides financial services to nine countries across the South Pacific and South East Asia. BSP is the largest and most profitable South Pacific bank, with the most extensive branch network. K14.1b [A$5.9b] In net lending 1 K31.9b [A$13.5b] In total assets 1 K5.8b on
Slide 4: Q3-2022 results overview
Q3-2022 results overview Strong YTD Q3 results supported by improving economic conditions, loan growth, increased transactional revenue and uplift in foreign exchange revenues. Q3-21 vs YTD Q3-22 YTD Q3-21 Q3-22 ● NPAT after Additional Company Tax (ACT) 671.5 698.8 - 3.9% [Km] ● NPAT before Addition
Slide 5: Q3-2022 Group Financial Performance
Q3-2022 Group Financial Performance
Slide 6: Group NPAT trends
Group NPAT trends Year-on-year income increases, coupled with improved credit quality and consequent provision adjustments, contributed to a 10.4% increase in NPAT compared to Q3-21. INCOME [Km] OPERATING IMPAIRMENT NPAT [Km] EXPENSE [Km] EXPENSE/ + 7.1% - 5.0% (RECOVERY) [Km] - 15.8% before ACT 667
Slide 7: NPAT contribution by business
NPAT contribution by business PNG Bank and Offshore Branches performed positively in Q3-22, notwithstanding PNG Bank NPAT was lower than prior quarter due to higher FX income and provision releases in Q2-22. The Offshore Branches contribution to Group NPAT has increased materially … driven largely b
Slide 8: Underlying performance driver trends
Underlying performance driver trends Minimal loan and deposit growth in Q3-22. However, banking system remains liquid in all countries, which permits ongoing investment in government instruments moreso in PNG. NET LOANS [Kb] TOTAL ASSETS [Kb] + 1.1% + 0.9% 14.1 13.9 14.1 32.2 31.6 31.9 13.3 28.9 Ann
Slide 9: Key ratios
Key ratios BSP’s capital adequacy remains well above regulatory requirements. Continual improvement in credit quality saw a reduction in the provisions to loans ratio, with provisions now more aligned to pre-COVID levels. COST TO INCOME [%] ROE & ROA [annualised, %] +110bps +30bps -10bps 38.2 37.8 3
Slide 10: Income stream trends
Income stream trends Higher volume related interest revenue, coupled with better foreign exchange flows and fee income, have driven the overall income growth in Q3-22, when compared to the same period last year. Interest – Interest – Fee/ FX Other Total DEFINITIONS loans investments commission incom
Slide 11: Expenditure trends
Expenditure trends Overall expenditure increased by 15.1% in Q3-22 compared to Q3-21, driven by increased resourcing in Retail, Operations and Compliance teams to support customer growth, higher channel related costs (contributing to higher channel revenue) and higher property maintenance costs. Pre
Slide 12: Market position and portfolio composition
Market position and portfolio composition BSP is #1 in lending and deposits in five countries. Our loan and deposit portfolios are predominantly PNG domiciled. LOANS MARKET SHARE [Q3-22, %] DEPOSIT MARKET SHARE [Q3-22, %] Rank Rank PNG 66% #1 PNG 64% #1 Tonga 48% #1 Cook Islands 53% #1 Solomon Islan
Slide 13: Operational Performance
Operational Performance
Slide 14: Channel growth trends
Channel growth trends Our transaction activity continues to grow YoY across all channels, with digital transactions increasing by circa 5 million per month since 2020 … driven by growing BSP customer use of BSP’s mobile banking services in PNG. TRANSACTION MIX BY TRANSACTIONS PER CHANNEL MONTH BY CH
Slide 15: Banking made easy
Banking made easy Safe, secure and convenient 24/7 cashless payments … we continue to innovate and pioneer new services and products to improve customer service levels. Vodafone Top-Up is now available in PNG via our mobile banking service. PNG – TOP 3 PERFORMING CHANNELS ONBOARDED MERCHANTS MOBILE
Slide 16: Digital innovation
Digital innovation Digital solutions that are meeting customer needs and continue to drive channel activity growth. BSP PAY SCHOOL FEE MERCHANTS ● 19 partners now offer BSP Pay, as a non- ● Over 400 schools and tertiary institutions card alternative payment available to online in the Education secto
Slide 17: Shareholder returns
Shareholder returns
Slide 18: Share price trends
Share price trends BSP’s share price on the PNGX closed Q3-22 at K12.41, which was 0.9% higher over the trailing 52 weeks … whereas the ASX prices remained constrained with trading liquidity volumes being very small. BSP’s market capitalisation1 on the PNGX was K5.8bn and A$2.3b on the ASX at 30-Sep
Slide 19: Top 10 Shareholders
Top 10 Shareholders BSP’s Top 10 shareholders represent 78.3% of total issued shares, as at 30-Sep-22. TOP 10 SHAREOLDERS [30-September-2022] No of PNGX No of ASX % Rank Name Total Holding Shares Shares Holding ❶ Kumul Consolidated Holdings Limited 84,811,597 - 84,811,597 18.2% ❷ Nambawan Super Limi
Slide 20: Updates on Additional Company Tax
Updates on Additional Company Tax BSP maintains that the Additional Company Tax (ACT) is unfair and discriminatory. More broadly, it suppresses business and investment confidence in PNG … and its economic costs far outweigh its benefits. Accordingly, BSP has initiated a judicial review with the Supr
Slide 21: Closing comments
Closing comments HIBSP our Bank. our People. ND? (C=
Slide 22: Conclusion
Conclusion ● Profitability levels YTD Q3-22 at K671.5m remained fairly consistent with the same period last year of K698.8m, despite BSP expensing an additional K190m in company taxes due to the introduction of the Additional Company Tax. ● The key drivers for revenue included increased interest inc