Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — H1 2024 Earnings Presentation
25 slides from Bsp Financial's earnings presentation, Aug 23, 2024
Slide 1: ASX cover letter - 2024 Half-Year Investor Presentation
(p=) (pea) imosi For personal use only VESSIIIISO || 23 August 2024 Ms. Nicola Lombardi ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Australia By Electronic Lodgment Dear Ms. Lombardi, BSP Financial Group Limited — 2024 Half-Year Investor Presentation In accordance with the ASX Listi
Slide 2: Half Year Results 2024 Investor Presentation
23 August 2024 For personal use only Half Year Results 2024 Investor Presentation BSP Financial Group Limited ARBN: 649 704 656, Incorporated in Papua New Guinea Klinki St, Port Moresby National Capital District, Papua New Guinea www.bsp.com.pg | investor.relations@bsp.com.pg investor.relations@bsp.
Slide 3: Important information
Important information NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR business, which the Company in its sole discretion deems necessary or provided in a definitive agreement when, and if, it is executed, and subject INDIRECTLY, IN OR INTO THE UNITED STATES prudent in the conduct of its business or
Slide 4: Contents
Contents For personal use only Overview 1H24 Results Summary 01 02 03 Mark T. Robinson Ronesh Dayal Mark T. Robinson PAGE 4 PAGE 10 PAGE 21 2024 Half Year Results Presentation investor.relations@bsp.com.pg 3
Slide 5: Overview
Overview Mark T. Robinson, Group Chief Executive Officer For personal use only investor.relations@bsp.com.pg 4
Slide 6: Results summary
Results summary Group performance remains robust, at a time of significant investment in the business PGK [millions] AUD3 [millions] For personal use only 1H-23 1H-24 Change 1H-23 1H-24 Change Revenue 1,307 1,459 12% Revenue 552 586 6% ˗ Net interest income 901 982 9% ˗ Net interest income 380 394 4
Slide 7: Our market
Our market BSP is the largest financial institution in the South Pacific, a changing market with favourable tailwinds For personal use only BSP Position External environment South Pacific Leader Foundation for Changing market Favourable trends growth conditions Largest financial Set for next BSP wel
Slide 8: South Pacific leader
South Pacific leader BSP’s NPAT and balance sheet is materially larger than its South Pacific peers For personal use only Statutory NPAT [FY23, Net Lending [FY23, A$m] Total Assets [FY23, A$m] A$m] 6,217 14,485 BSP 374 Total regional banks Total regional banks 49% = A$12,691m 50% = A$29,104m 1,969 5
Slide 9: Customer activity
Customer activity Digital channel adoption accelerated, following new core banking system implementation last year For personal use only AVERAGE MONTHLY TRANSACTIONS [YOY] ACCOUNTS [millions] 18.1m Digital ▲21% YOY +8% 5.4m EFTPOS terminals ▲16% 3.44 3.18 4.5m ATM ▼2% 1.1m Branch & agency ▼8% 1H-23
Slide 10: Building a world class bank
Building a world class bank Strategic shifts that will deliver long term growth For personal use only The South Pacific’s international bank 1 2 3 BETTER SERVE STRATEGIC SHIFTS REVITALISE DRIVE PROSPERITY UNDERBANKED 4 5 6 CORPORATE & BUSINESS BANK OPTIMISE CASH GOVERNMENT 1 2 3 4 ENABLERS TECHNOLOG
Slide 11: 1H24 Result Presentation
1H24 Result Presentation Ronesh Dayal, former Group Chief Financial Officer For personal use only investor.relations@bsp.com.pg BSP Classification: Internal Use Only
Slide 12: Strong H1-24 financial performance
Strong H1-24 financial performance Solid growth in both earnings and dividend per share For personal use only PGK Jun-23 Jun-24 Change AUD Jun-23 Jun-24 Change [millions] [millions] Statutory NPAT 427 520 22% 180 209 16% ACT settlement 1 - 95 - - 38 - JV impairment - (36) - - (14) - Underlying profi
Slide 13: Operating profit
Operating profit Steady growth of the Group’s operating profit, despite significant investments to modernise the business For personal use only YOY 5.9% PGK millions A$351m A$353m 2024 Half Year Results Presentation investor.relations@bsp.com.pg 12
Slide 14: Total income
Total income Robust lending and FX volumes enhance business revenue For personal use only YOY +11.6% Net interest FX income Fees & income up by increased by commission 9.0%, driven 28%, fuelled by income increased mostly by loan increased FX by 7.6% as a growth. flows result of increased elect
Slide 15: Operating expenses
Operating expenses Adjusted cost to income [CTI] ratio remains stable For personal use only CTI 36.5% 38.5% 39.7% 38.5% 11.4% PGK A$202m A$213m A$233m A$225m millions 1 1 Varies from Form 4D value K615m, given exclusion of JV impairment of K36m. 2024 Half Year Results Presentation investor.relations
Slide 16: Credit quality
Credit quality Bad and doubtful debt expenses slightly higher, due to a large specific provision recognised and higher write-offs for UPL/SME Loans For personal use only BAD & DOUBTFUL DEBT DELINQUENCY RATES GROSS IMPAIRED ASSETS 90+ days, as a percentage of total EXPENSES loans +6.6% +14.6% 79 84 6
Slide 17: Loan Provisions
Loan Provisions Provisions to loans remain stable For personal use only PROVISIONS TO LOANS PROVISION SCENARIOS 4.6% 4.3% 4.3% 782.3 747.2 666.4 PGK % millions Jun-22 Jun-23 Jun-24 Upside Base Downside Scenario Scenario Scenario Note: Based on scenarios derived by changing the relative weighting of
Slide 18: Balance sheet
Balance sheet Strong deposit and loan growth For personal use only GROSS LOANS TOTAL ASSETS +10.5% +6.5% 17.2 35.1 37.4 14.6 15.6 A$6.8b 31.5 A$14.7b PGK PGK billions billions Jun-22 Jun-23 Jun-24 Jun-22 Jun-23 Jun-24 DEPOSITS DEPOSIT MIX +5.7% A$1.2b YoY A$10.6b A$11.8b 3.0 3.0 30.0 2.7 25.1 28.4 -
Slide 19: Loan book composition
Loan book composition Solid loan growth in all market segments For personal use only Business Overdrafts & Others, 13% Unsecure d Personal +6% Loans, Business 13% Segment Business Retail ~66% Loans, 9.8 10.0 Mortgage 59% 9.5 s, 16% +15% +13% +25% 2.4 2.6 2.7 PGK 2.0 2.2 2.2 2.1 2.2 1.8 billions A$4.
Slide 20: Key ratios
Key ratios Our business fundamentals remain strong For personal use only RETURN ON EQUITY COST TO INCOME CAPITAL ADEQUACY [Annualised] +320bps +290bps +150bps 35.5% 36.5% 39.7% 25.8% 22.9% 23.0% 22.5% 24.0% 12% 20.0% % % % Jun-22 Jun-23 Jun-24 Jun-22 Jun-23 Jun-24 1 1 2 Jun-22 Jun-23 Jun-24 1 22.2%
Slide 21: Shareholder returns
Shareholder returns Interim dividend increased as a result of increased profits for 1H-24 For personal use only 2024 INTERIM DIVIDEND MARKET CAPITALISATION EX DATE RECORD DATE PAYMENT DATE ASX 27 Aug 2024 28 Aug 2024 20 Sep 2024 +32.7% June 2023 June 2024 $2.3 billion $3.0 billion [$4.86 as at 30/06
Slide 22: Summary
Summary Mark T. Robinson, Group Chief Executive Officer For personal use only investor.relations@bsp.com.pg
Slide 23: Pacific economic activity
Pacific economic activity Economic activity in our markets is forecast to remains relatively healthy, despite growth moderating in some markets. For personal use only GDP The outlook for our South Pacific markets is relatively positive, when 2023e 2024f 2025f Growth compared to developed markets.
Slide 24: Summary: The international bank of the South Pacific
Summary The international bank of the South Pacific For personal use only Big … more customers than ever are choosing to bank with us and we remain the market leader in our region by a comfortable margin. Stable … our balance sheet settings are robust, and our business has strong momentum, as we
Slide 25: Thank You
Thank You For personal use only Half Year Results 2024 Investor Presentation BSP Financial Group Limited ARBN: 649 704 656, Incorporated in Papua New Guinea Klinki St, Port Moresby National Capital District, Papua New Guinea +675 305 7799 | www.bsp.com.pg | Investor.relations@bsp.com.pg invest@bsp.c