Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — FY2021 Earnings Presentation
25 slides from Bsp Financial's earnings presentation, Mar 1, 2022
Slide 1: ASX cover letter: 2021 Full Year Results Investor Presentation
Company Secretary 01st March 2022 For personal use only Ms. Nicola Lombardi ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Australia By Electronic Lodgment Dear Ms. Lombardi, BSP Financial Group Limited – 2021 Full Year Results Investor Presentation In accordance with the ASX Listing R
Slide 2: Investor Presentation 2021 Full Year Results
For personal use only Investor Presentation 2021 Full Year Results Robin Fleming – Group CEO BSP Financial Group Limited [ARBN: 649 704 656, Incorporated in Papua New Guinea]
Slide 3: 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Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This presentation has been prepared and issued by BSP Financial Group Limited (the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 4: South Pacific market leader
South Pacific market leader BSP Provides financial services to seven South Pacific countries and two in South East Asia. BSP remains the largest South Pacific bank, with the most extensive branch network. For personal use only K13.6b [A$5.3b] In net lending K30.4b [A$11.9b] In total assets K5.6b on
Slide 5: Diversification
Diversification BSP provides banking, asset finance, life insurance, funds management and corporate advisory services. BSP has also established a 50:50 Fintech JV in PNG to improve its digital For personal use only capabilities. We continue to explore both organic and inorganic growth opportunities
Slide 6: 2021 results
2021 results As customers in every country adapted to the COVID-19 impacts, a granular re- assessment of COVID-19 related provisions taken up in 2020, saw adjustments to the level For personal use only of provisions held, which combined with strong liquidity and good foreign exchange revenue across
Slide 7: Group NPAT
Group NPAT Group NPAT increased by K269m [33.4%], as economies we operate in adjusted to a COVID- 19 operating environment … illustrated by double digit income growth and impairment For personal use only releases. INCOME OPERATING LOAN IMPAIRMENT NPAT [Km] EXPENSE [Km] EXPENSE [Km] [Km] +10.3% +33.4
Slide 8: Normalised NPAT
Normalised NPAT Record Group NPAT of K1.075b in 2021, K269m [33.4%] above the prior year of K806m. Normalised NPAT, after adjustments for impairment releases, up 18.7% to K957m. For personal use only NORMALISED NPAT 2021 VS NPAT 2020 [Km] +33.4% +18.7% 118 1,075 957 806 A$316m A$422m A$375m Audited
Slide 9: NPAT by division
NPAT by division All of BSP’s divisions recorded profits, notwithstanding flat economic conditions particularly in tourism dependent economies. For personal use only PNG BANK +K218m OFFSHORE BRANCHES SUBSIDIARIES [Km] [Km] +K51m [Km] +36.1% +33.3% 822 204 -K0.07m 668 -0.2% 604 170 153 52 49 49 A$322
Slide 10: Group financial KPIs
Group financial KPIs BSP continued to grow its assets and deposits … lending growth reflected generally soft economic conditions, confirming the underlying strength of the BSP business. For personal use only NET LOANS TOTAL ASSETS +0.4% NET LOANS [Kb] [Kb] +10.5% [Kb] 13.6 13.6 11.2 30.4 27.5 22.4 A
Slide 11: Key ratios
Key ratios BSP Group has maintained strong results across all key performance ratios. For personal use only COST TO INCOME [%] ROE & ROA +60bps [%] +510bps 37.7 -10bps 3.7 3.7 29.7 29.7 3.1 37.6 24.6 37.5 2021 2019 2020 2019 2020 2021 2019 2020 2021 CAPITAL ADEQUACY PROVISIONS TO LOANS / NPL TO LOAN
Slide 12: Income stream trends
Income stream trends Total income increased by 10.3%. Fee income rebounded, with a focus on channel streams and increased transactional activity. Foreign exchange revenue improved, For personal use only especially in PNG, and surplus liquidity was invested in Government paper. Lending Investment Int
Slide 13: Expenditure trends
Expenditure trends Total operating costs increased by 10.0% year-on-year, with increases in Computing and Staff Costs as BSP continued to invest in its AML capacity and IT delivery. For personal use only Premises & Total Operating Staff costs Computing costs Equipment Admin costs costs COMMENTS YOY:
Slide 14: Market position and portfolio composition
Market position and portfolio composition BSP is #1 in lending in 6 of the 7 countries we operate in and #1 in deposits in 5 countries. Our loan and deposit portfolios are predominantly PNG domiciled. For personal use only LOANS MARKET SHARE [Q4-2021, %] DEPOSIT MARKET SHARE [Q4-2021, %] Rank Rank P
Slide 15: Social and environmental management
Social and environmental management BSP’s Environmental and Social Risk Management (ESRM) policy was established in 2008 to assess and monitor potential environmental and social risks associated with customers’ For personal use only business activities in all jurisdictions that BSP operates. ● ESRM
Slide 16: Competitor trends
Competitor trends BSP continues to dominate in PNG and deliver value to its shareholders For personal use only NPAT TREND GROSS INCOME TREND [Km] 2019 2020 2021 [Km] 2019 2020 2021 822 1,813 1,602 1,595 668 604 YOY = 36.1% YOY = 33.5% YOY = 95% YOY = 13.7% YOY = 10.0% YOY = 1.8% 229 244 505 413 455
Slide 17: Channel network and location
Channel network and location BSP has the largest channel network in the South Pacific region … and continues to invest to improve customer service levels across the Group. For personal use only New branches/sub branches Branches – past 12 months in PNG Sub Branches BSP only Bank in Town ● Koroba Hyb
Slide 18: Channel growth trends
Channel growth trends Increasing adoption of digital channels … with average digital transactions per month increasing by 2.6 million [or 18%] in the past 12 months to 16.9 million. For personal use only TRANSACTION MIX BY MONTHLY AVERAGE CHANNEL TRANSACTIONS BY [percentage] CHANNEL [million] 1.9 1.
Slide 19: Digital insights and key achievements
Digital insights and key achievements LAUNCH OF BSP IPG PRODUCT – 100% PNG MADE ONLINE PAYMENT SOLUTION ● Air Niugini is the first customer to launch BSP Online Ticket payments in Nov-2021 with BSP’s Internet Payment For personal use only Gateway, a homegrown IPG solution developed in BSP for BSP by
Slide 20: Delivering greater value to customers
Delivering greater value to customers Zero fee increases since 2014 and forgone annual fee income circa K62m per annum, due to fees reduced or waived. For personal use only Further fee reductions are scheduled for March 2022 and include the cash handling fee threshold increasing, and the Kundu Packa
Slide 21: Share price trends
Share price trends BSP’s share price on the PNGX increased by 2% over the past 12 months. Conversely, share price on the ASX decreased by 11% since the PNG Government’s announcement of the For personal use only “Market Concentration Levy”. Dividend yield1 based on share price as at 23-Feb-22 and cal
Slide 22: Top shareholders
Top 10 shareholders BSP’s Top 10 shareholders represent 82.4% of total issued shares as at Jan-2022 For personal use only TOP 10 SHAREOLDERS [Jan-2022] No of PNGX No of ASX Total % Rank Name Shares Shares Holding Holding ❶ Kumul Consolidated Holdings Limited 84,811,597 - 84,811,597 18.2% ❷ Nambawan
Slide 23: 2021 dividend
2021 dividend BSP’s final dividend of K1.34, brings our total dividend to K1.73… representing a payout ratio of 75% For personal use only PLANNED PROCESSING FULL DATES ● Ex-date: Thursday, 10 FINAL March 2022 ● Record date: Friday, 11 March 2022 INTERIM K1.73 ● Payment date: Friday, 22 + = April 202
Slide 24: Market Concentration Levy
Market Concentration Levy Any Levy on BSP is a tax on our Shareholders. It reduces the amount of dividends we distribute to our shareholders and will affect the share price … be that by the share price For personal use only reducing, or the reporting of material profit downgrades by BSP. MARKET CONC
Slide 25: Summary
Summary ● Record Group NPAT of K1.075b in 2021, K269m [33.4%] above prior year of K806m, improved business conditions which allowed realignment of Covid related provisions For personal use only taken up in 2020 ● Total Assets up 10.5%, with net lending growth flat at 0.4% ● Cost to income stable at