Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — Q3 2021 Earnings Presentation
19 slides from Bsp Financial's earnings presentation, Oct 28, 2021
Slide 1: Cover letter to ASX
Company Secretary 27th October 2021 For personal use only Mr. Elvis Onyura ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Australia By Electronic Lodgement Dear Mr. Onyura, BSP Financial Group Limited (ASX: BFL | PNGX: BSP) Investor Presentation – Q3 of 2021 In accordance with the ASX
Slide 2: Investor Presentation Q3-2021
For personal use only Investor Presentation Q3-2021 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Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This presentation has been prepared and issued by BSP Financial Group Limited (the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 We service more customers than any other South Pacific bank … via our market leading distribution network. For personal use only K14.2b [A$5.6b] 119 branches and sub-branches In lending Largest network K28.9b [A$11.4b] ~ 2.7m In total assets Customer accounts K5.7b [A$2.3
Slide 5: Q3-2021 results overview
Q3-2021 results overview Strong Q3 results driven by improving economic conditions and cost containment. For personal use only Q2-21 vs YTD Q3-21 Q3-21 ● Profit [NPAT, Km] 698 249 + 1.2% ● Cost-to-income ratio [%] 38.2 37.7 + 74bps ● Earnings per share [toea] 149.6 214.41 + 1.6% ● Market capitalisat
Slide 6: Group NPAT trends
Group NPAT trends Reduction in both operating costs and lower loan impairments as loan growth slows, more than offset lower income … resulting in a 1.2% increase in NPAT. For personal use only INCOME [Km] OPERATING LOAN IMPAIRMENT NPAT [Km] EXPENSE [Km] EXPENSE [Km] -1.0% -2.9% +1.2% 6011 222 36 218
Slide 7: NPAT contribution by business
NPAT contribution by business Growth in OSBs and PNG Bank were responsible for the overall uplift in Group NPAT. OSB contribution has returned to pre-COVID levels. For personal use only PNG BANK [Km] OFFSHORE BRANCHES [Km] SUBSIDIARIES [Km] + K2m - K3m +K3m +5.5% -22.3% +1.8% 44 12 43 11 192 196 10
Slide 8: Underlying performance driver trends
Underlying performance driver trends Negative overall loan growth in Q3-2021, with total system lending contracting in most countries. For personal use only NET LOANS [Kb] TOTAL ASSETS [Kb] -0.3% -0.1% 13.40 13.42 28.90 28.85 13.39 13.35 27.54 25.51 Annual Growth = - 0.4% Annual Growth = +13.1% A$5.
Slide 9: Key ratios
Key ratios Key ratios remain robust … with improving market conditions and reduced expenses driving ROE growth For personal use only COST TO INCOME [%] ROE & ROA [annualised, %] +74bps +116bps -4bps 40.3% 38.0% 37.7% 28% 28% 29% 3.5% 36.9% 3.4% 3.5% 23% 2.9% Q3-20 Q1-21 Q2-21 Q3-21 Q3-20 Q1-21 Q2-21
Slide 10: Income stream trends
Income stream trends A reduction in recoveries contributed to the reduction in loan interest income in Q3- 2021. Nevertheless, the Group’s overall income remains relatively robust. For personal use only Interest – Interest – Fee/ FX Other Total DEFINITIONS loans investments commission income income
Slide 11: Expenditure trends
Expenditure trends Increases in computing costs were offset by lower costs in other categories … resulting in an For personal use only overall expenditure reduction in Q3-2021, when compared to the prior quarter. Staff Computing Premises/ Admin cost Total costs cost equipment operating DEFINITIONS c
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. For personal use only LOANS MARKET SHARE [Q3-2021, %] DEPOSIT MARKET SHARE [Q3-2021, %] Rank Rank PNG 66% #1 PNG 65% #1 Solomon Islands 49%
Slide 13: Channel network
Channel network BSP has the largest channel network in the South Pacific region … and continues investing to improve customer service levels across the Group. For personal use only #1 Rank Recent and future planned investments: Branches ● ● Kerema branch reopened on 9-Sep 2021. BSP will be expandi
Slide 14: Channel growth trends
Channel growth trends Increasing adoption of digital channels … with average digital transactions per month increasing by 1.9 million in the past 12 months to 15.2 million. For personal use only TRANSACTION MIX BY TRANSACTIONS PER CHANNEL MONTH BY CHANNEL [percentage] [million] 1.9 11% 10% 6% 1.8 1.
Slide 15: Key achievements in Q3-21
Key achievements in Q3-21 BSP PAY BSP Pay is a domestic online payment solution launched in Q2 2021. There is merchant For personal use only interest and 9 merchants now offer BSP Pay as an alternative payment option upon for Jungle Online payment. Tapioca Delight RH Trading Jungle Online Tapioca De
Slide 16: Share price trends
Share price trends BSP’s PNGX share price increased by ~ 3% over the past 12 months, whereas its ASX share price softened [-9%] in September … due in part to going ex-dividend and the overall decline in the Australian For personal use only share market. BSP’s 30-Sep ASX price of A$5.00 [K12.64], is
Slide 17: Top Shareholders
Top 10 Shareholders BSP’s Top 10 shareholders represent 83.1% of total issued shares as at Sept-2021 For personal use only TOP 10 SHAREOLDERS [Sept-2021] Rank Name % Held ❶ Kumul Consolidated Holdings Ltd 18.2% ❷ Nambawan Super Ltd 11.6% ❸ Petroleum Resources Kutubu Ltd 9.9% ❹ National Superannuatio
Slide 18: Closing comments
For personal use only Closing comments Q3 21 17
Slide 19: Conclusion
Conclusion For personal use only ● Profitability levels maintained at K249m in Q3-21, despite ongoing COVID-19 impacts … with YTD Group NPAT of K698m, compared to K598m last year [+K100m, or 16.7%] ● Growth in OSBs and PNG Bank were responsible for the overall uplift in Group NPAT ● BSP Group has ma