Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — Q3 2022 Earnings Presentation
23 slides from Bsp Financial's earnings presentation, Oct 27, 2022
Slide 1: Cover letter to ASX
Company Secretary 27th October 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 – 2022 Q3 Investor Presentation In accordance with the ASX Listing Rules, BSP Fin
Slide 2: Investor Presentation Q3-2022
For personal use only Investor Presentation Q3-2022 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Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This presentation has been prepared and issued by BSP Financial Group Limited (the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 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. For personal use only K14.1b [A$5.9b] In net lending 1 K31.9b [A$13.5b] In to
Slide 5: 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. For personal use only Q3-21 vs YTD Q3-22 YTD Q3-21 Q3-22 ● NPAT after Additional Company Tax (ACT) 671.5 698.8 - 3.9% [Km]
Slide 6: Q3-2022 Group Financial Performance
For personal use only Q3-2022 Group Financial Performance
Slide 7: 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. For personal use only INCOME [Km] OPERATING IMPAIRMENT NPAT [Km] EXPENSE [Km] EXPENSE/ + 7.1% - 5.0% (RECOVERY) [Km]
Slide 8: 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 … For personal use
Slide 9: 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. For personal use only NET LOANS [Kb] TOTAL ASSETS [Kb] + 1.1% + 0.9% 14.1 13.9 14.1 32.2 3
Slide 10: 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. For personal use only COST TO INCOME [%] ROE & ROA [annualised, %] +110bps +30
Slide 11: 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. For personal use only Interest – Interest – Fee/ FX Other Total DEFINITIONS loans invest
Slide 12: 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 For personal use only channel related costs (contributing to higher channel revenue) and higher property
Slide 13: 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 [Q3-22, %] DEPOSIT MARKET SHARE [Q3-22, %] Rank Rank PNG 66% #1 PNG 64% #1 Tonga 48% #1 Cook Island
Slide 14: Operational Performance
For personal use only Operational Performance
Slide 15: 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 For personal use only customer use of BSP’s mobile banking services in PNG. TRANSACTION MIX BY TRANSACTIONS P
Slide 16: 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. For personal use only PNG – TOP 3 PERFORMING CHANNELS ONBOA
Slide 17: Digital innovation
Digital innovation Digital solutions that are meeting customer needs and continue to drive channel activity growth. For personal use only 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
Slide 18: Shareholder returns
For personal use only Shareholder returns
Slide 19: 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 For personal use only K5.8bn and A$2.3
Slide 20: Top Shareholders
Top 10 Shareholders BSP’s Top 10 shareholders represent 78.3% of total issued shares, as at 30-Sep-22. For personal use only 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%
Slide 21: 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 For personal use only costs far outweigh its benefits. Accordingly, BSP has initiated a judicia
Slide 22: Closing comments
For personal use only Closing comments 21
Slide 23: Conclusion
Conclusion ● Profitability levels YTD Q3-22 at K671.5m remained fairly consistent with the same For personal use only 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