BSP Financial Group Ltd. · ASX:BFL
BSP Financial — Bank of South Pacific — Q2 2019 Earnings Presentation
18 slides from BSP Financial's earnings presentation, Aug 28, 2019
Slide 1: Q2-2019 Investor Presentation
Q2-2019 Investor Presentation Group CEO – Robin Fleming
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Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This presentation has been prepared and issued by Bank of South Pacific Limited (the “Company”), and may not be reproduced in whole or in part, nor may any of its contents be disclosed to any other p
Slide 3: Where BSP operates
Where BSP operates BSP is the leading financial services provider in the countries in which we operate #1 Loan market share in 5 countries #1 Deposit market share in 5 countries POMSOX Share Price of K11.27 as at 31- Jul-19, Market cap of K5.27b Q2-2019 INVESTOR PRESENTATION BSP Classification: Inte
Slide 4: BSP's growing service offering
BSP’s growing service offering Aligned to BSP’s geographical and income diversification strategy, BSP has expanded its product / service offering into both existing and new markets. Papua New Solomon Guinea Fiji Islands Samoa Cook Islands Vanuatu Tonga Cambodia Bank Bank Bank Bank Bank Bank Bank Fin
Slide 5: Highlights for first half of 2019 [YTD June]
Highlights for first half of 2019 [YTD June] BSP continues its strong performance. However, income growth is slowing due to the prevailing business and economic environments. Profit (NPAT) up Total Income up GROUP NPAT TREND 4.0% to 0.5% to [Km] 844.1 K434.9m K1.071b 757.0 Capital adequacy Loan prov
Slide 6: Highlights for first half of 2019 [YTD June]
Highlights for first half of 2019 [YTD June] Our key ratios are trending favourably … a clear picture of our corporate health. COST TO INCOME TREND ROE AND ROA TRENDS 42.6% 30.6% 30.7% 30.3% ROE ROA 39.0% 38.5% 3.5% 3.7% 3.7% 2017 2018 YTD June 19 2017 2018 YTD June 19 PROVISIONS AND NPL TO LOANS CA
Slide 7: Group key performance indicator trends
Group key performance indicator trends BSP’s loans continue to grow [+8.4%] despite economic challenges. However, deposits declined slightly [-1.3%] year-on-year, given tighter market liquidity in PNG and Fiji. NET LOAN TRENDS TOTAL ASSETS TRENDS [Km] 13.07 [Kb] 12.56 23.39 12.07 22.99 22.96 11.21 2
Slide 8: Channel growth
Channel growth Continued channel investment to improve service levels across the BSP Group Total Branches 84 46 17 8 3 2 4 4 Branches 48 46 0 0 0 0 0 2 Sub Branches ATMs 538 318 120 31 24 9 23 13 EFTPOS 12,481 8,457 1,992 350 415 427 438 402 EFTPOS 556 359 44 54 38 8 28 25 Agent Q2-2019 INVESTOR PRE
Slide 9: Market strength
Market strength BSP maintains its strong market position across the Pacific … noting, its loan and deposit portfolios are predominantly PNG domiciled. LOANS MARKET SHARE DEPOSIT MARKET SHARE Rank Rank PNG 62% #1 PNG 60% #1 Solomon Islands 57% #1 Solomon Islands 52% #1 Tonga 42% #1 Cook Islands 42% #
Slide 10: Q2-2019 results
Q2-2019 results Q2-2019 INVESTOR PRESENTATION BSP Classification: Internal Use Only 10
Slide 11: Profit and Loss [Q2-19]
Profit and Loss [Q2-19] BSP’s NPAT increased by 3.6% in Q2-19, due to a small income increase and reduction in operating costs. BSP’s year-on-year [Q2-18 vs Q2-19] NPAT increased slightly by 0.1% Total Income Operating Lending Write- NPAT costs offs HIGHLIGHTS PQ 2.4% (0.4%) 26.8% 3.6% ● Q2-19 opera
Slide 12: Balance sheet [Q2-19]
Balance sheet [Q2-19] Loans and advances increased by 1.9%, while deposits rose slightly by 0.8% in Q2-19. Total assets have increased by 1.6% to K23.4b. Loans and Deposits Total Total Net assets / HIGHLIGHTS advances Assets Liabilities SH equity ● Total loans increased by K238m in PQ 1.9% 0.8% 1.6%
Slide 13: Group key ratios [Q2-19]
Group key ratios [Q2-19] All key ratios remain positive COST TO INCOME TREND ROE [annualised] 43.1% 40.6% 40.1% 32.5% 32.0% 39.5% 38.5% 29.2% 29.8% 30.8% Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Cost to income Ratio ROE ROA [annualised] LOAN TO DEPOSIT RATIO 68.3% 68.7% 69.5% 71.9
Slide 14: Group key risk ratios [Q2-19]
Group key risk ratios [Q2-19] Our risk ratios remain stable and asset quality remains sound CAPITAL ADEQUACY HIGHLIGHTS 3.1% 4.7% ● Capital adequacy ratio decreased 6.9% 7.3% 6.2% slightly to 20.9% in Q2-19 20.9% following payment of final 15.8% 19.8% 19.4% dividend. Remaining well in 15.0% 14.8% ex
Slide 15: Channels [Q2-2019]
Channels [Q2-2019] Mobile banking is our leading channel, with branches representing only 7% of total transactions in Q2-2019 … given continued focus to reduce customers cash dependency [in-line with our digital strategy] with ongoing investment in EFTPOS, internet and mobile banking. QUARTERLY CHAN
Slide 16: Share price
Share price Dividend yield of 12.3%, based on closing 31-Jul-19 K11.27 share price … and market capitalisation of K5.27b. 1-Jun 2018 to 31-Jul 2019 11.20 11.06 11.09 1,200 10.97 11.00 1,030 1,004 1,000 10.80 10.58 10.60 10.37 800 10.31 K5.27b 10.40 10.25 10.26 10.26 10.26 Market Cap 10.14 10.20 10.0
Slide 17: 2019 interim dividend
2019 interim dividend 5.6% interim dividend increase to 38 toea. 2018 2019 Interim Interim YoY ∆ K0.36 Vs K0.38 = 5.6% PLANNED PROCESSING DATES ● Ex-date: 02-Oct-19 ● Record date: 09-Oct-19 ● Payment date: 18-Oct-19 Q2-2019 INVESTOR PRESENTATION BSP Classification: Internal Use Only 17
Slide 18: Thank You
Thank You Q2-2019 INVESTOR PRESENTATION BSP Classification: Internal Use Only 18
Bank of South Pacific — Q2 2019 Earnings Presentation on 6ix