Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — H1 2023 Earnings Presentation
25 slides from Bsp Financial's earnings presentation, Aug 21, 2023
Slide 1: ASX cover letter for 2023 Half-Year Investor Presentation
Acting Company Secretary 21st August 2023 Ms. Nicola Lombardi ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Australia For personal use only By Electronic Lodgment Dear Ms. Lombardi, BSP Financial Group Limited – 2023 Half-Year Investor Presentation In accordance with the ASX Listing R
Slide 2: Investor Presentation 1H-2023
Investor Presentation For personal use only 1H-2023 Mark T. Robinson BSP Financial Group Limited [ARBN: 649 704 656, Incorporated in Papua New Guinea] BSP Classification: External Confidential
Slide 3: Disclaimer
Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR to take any action, whether in or out of the ordinary course of business, which executed, and subject to such limitations as may be provided in such INTO THE UNITED STATES the Company in its sole discretion deems necessary
Slide 4: South Pacific market leader
South Pacific market leader 25.5m per month transactions For personal use only ~ 3.5m Customer accounts 125 branches Largest network K14.9b [A$6.1b] In net lending K35.1b [A$14.4b] In total assets K6.1b on PNGX [A$2.6b on ASX] Market capitalisation 1 1 Market capitalisation values based on last pric
Slide 5: 1H-23 results
1H-23 results Net Profit After Tax 1H-23 vs 1H-23 1H-22 For personal use only K427.2m 1H-22 … 7.6% ↑ from 1H-2022 Net profit after tax [Km] 427.2 397.2 +7.6% Cost-to-income ratio [%] 38.1 36.5 +160bps Earnings per share Earnings per share [toea] 91.4 85.0 +7.6% K0.91 PNGX market capitalisation1 [Kb]
Slide 6: 1H-2023 Group Financial Performance
For personal use only 1H-2023 Group Financial Performance BSP Classification: External Confidential
Slide 7: Operating profit trend
Operating profit trend INCOME OPERATING EXPENSE OPERATING PROFIT BEFORE IMPAIRMENTS AND TAXES [Km] +4.2% [Km] 1H-23 VS 1H-22 [Km] For personal use only +8.7% +1.6% 1,341.1 510.9 1,287.4 470.2 441.9 1,143.8 A$209m A$548m 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 OPERATING PERFORMANCE [Km] +1.6% 817.2 830.2
Slide 8: Tax impacts
Tax impacts Two material PNG taxation changes occurred in 2022 TAX IMPACTS ON NPAT and 2023. [Km] For personal use only ● 2022 – payment of the -8.9% K190m additional company tax (ACT) ● 2023 – increase in tax rates for commercial banks from 30% to 45%. Adjusting for the impacts of the above taxes,
Slide 9: Credit quality
Credit quality Impairment expenses increased by K98.8m off a 10 YEAR TREND – IMPAIRMENT EXPENSE TO GROSS LOANS [%] low 1H-22 base, due to post For personal use only 0.80% COVID-19 provision releases 0.50% in 2022. 0.46% 0.49% 0.37% 0.28% 0.28% 0.37% 0.44% 1H-23 impairment expense -0.14% as a percent
Slide 10: Balance sheet
Balance sheet NET LOANS TOTAL ASSETS +8.3% +11.6% [Kb] [Kb] CAGR CAGR For personal use only 14.9 4.1% 35.1 12.1% 13.8 31.5 13.4 28.9 A$14.4b A$6.1b 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 DEPOSITS DEPOSIT MIX [Kb] +13.1% [Kb] Demand deposits Term deposits CAGR 3.0 CAGR 28.4 2.7 3.2 25.1 13.3% 25.4 -7.5%
Slide 11: Key ratios
Key ratios COST TO INCOME RETURN ON AVERAGE EQUITY RETURN ON AVERAGE ASSETS [%] [Annualised, %] [Annualised, %] +160bps -10bps For personal use only -10bps 38.6% 38.1% 3.2% 26.4% 36.5% 21.9% 21.8% 2.6% 2.5% 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 CAPITAL ADEQUACY1 PROVISIONS TO LOANS N
Slide 12: Income trends
Income trends Income increased by 4.2% to NET INTEREST INCOME FX INCOME K1.3b in 1H-23. [Km] [Km] ● Despite loan growth of +1.6% +14.7% For personal use only 8.3%, net interest income 875.5 889.4 201.7 775.2 growth was lower by 154.1 175.8 1.6% due to lower yields from government securities. 1H-21 1
Slide 13: Expenditure trends
Expenditure trends Expenditure increased by 8.6% to K510.9m in 1H-23, STAFF COSTS TECHNOLOGY COSTS driven by: [Km] [Km] For personal use only +36.3% ● Technology – higher +11.7% software, maintenance 251.1 102.6 224.8 and volume related 206.0 75.3 69.2 channel costs. ● Staff – additional staff in co
Slide 14: Market position and loan portfolio composition
Market position and loan portfolio composition LOANS MARKET SHARE DEPOSIT MARKET SHARE [1H-2023] Rank [1H-2023] Rank For personal use only PNG 66% #1 PNG 66% #1 Solomon Islands 45% #1 Cook Islands 53% #1 Tonga 36% #1 Solomon Islands 49% #1 Cook Islands 36% #2 Tonga 45% #1 Samoa 30% #1 Samoa 40% #1 F
Slide 15: 1H-2023 Group Operational Performance
For personal use only 1H-2023 Group Operational Performance BSP Classification: External Confidential
Slide 16: Moving customers to digital channels
Moving customers to digital channels BSP Average monthly transactions 1H-23 For personal use only EFTPOS 8% Transactions via Branches 500+ 18% Transactions 15% 4.6m Terminals via EFTPOS ATM Mobile & 14.9m 15,000+ EFTPOS 19% Online All Payment Channels Operational 18% Transactions via 56% 7% 2.2m Bra
Slide 17: Supporting our communities
Supporting our communities ... Our contribution For personal use only in 1H-23 SPONSORSHIPS K1.8m DONATIONS K616k COMMUNITY PROJECTS K600k 16 INVESTOR PRESENTATION BSP Classification: 1H-23 External Confidential
Slide 18: Shareholder returns and growth outlook
For personal use only Shareholder returns and growth outlook BSP Classification: External Confidential
Slide 19: Market capitalisation
Market capitalisation JANUARY 2022 JANUARY 2023 AUGUST 2023 For personal use only +5.2% PNGX K5.7 billion K5.8 billion K6.1 billion … K12.25 on 3/1/22 … K12.41 on 3/1/23 … K13.05 on 17/8/23 +14.7% ASX $2.0 billion $2.3 billion $2.6 billion … $4.27 on 3/1/22 … $4.90 on 3/1/23 … $5.62 on 17/8/23 INVES
Slide 20: Dividends
Dividends SHAREHOLDER RETURNS SUMMARY For personal use only 1H-2021 1H-2022 1H-2023 Change Interim dividend [K] 0.39 0.34 0.37 + 8.8% EPS [K] 0.96 0.85 0.91 + 7.5% Dividend yield1 (PNGX) 11.7% 13.5% 14.1% + 60bps Dividend yield1 (ASX) 9.9% 13.4% 15.2% + 180bps 1 Dividend yield was calculated on 2022
Slide 21: Growth outlook
Growth outlook K REAL GROSS DOMESTIC PRODUCT For personal use only 2021 2022e 2023f 2024f Australia 5.2% 3.7% 1.6% 1.7% New Zealand 6.1% 2.4% 1.1% 0.9% Fiji -5.1% 14.5% 7.0% 5.0% Papua New Guinea 0.1% 4.5% 3.7% 4.4% Samoa -7.1% -6.0% 5.0% 3.6% Vanuatu 0.6% 1.9% 3.5% 3.6% Solomon Islands -0.6% -4.1%
Slide 22: PNG resource project investment
PNG resource project investment Project / Value Project Partners K Construction K For personal use only Early 2024 K45.0b Production 2027 – 2028 Late 2024 K18.2b Production 2027 2028 K39.2b Production 2031 Pasca A K5.6b TBA 21 INVESTOR PRESENTATION BSP Classification: 1H-23 External Confidential
Slide 23: 1H-2023 Closing
For personal use only 1H-2023 Closing BSP Classification: External Confidential
Slide 24: Closing remarks
Closing remarks Leading South Pacific brand … with origins dating back to 1957 For personal use only Payments leader … moving customers to digital channels Continued strong profits and shareholder returns … interim dividend increasing by 8.8% BSP’s capital base remains solid, with total capital adeq
Slide 25: Thank you
THANK For personal use only YOU We welcome your questions 24 INVESTOR PRESENTATION BSP Classification: 1H-23 External Confidential