Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — FY2024 Earnings Presentation
28 slides from Bsp Financial's earnings presentation, Feb 24, 2025
Slide 1: Full Year Results 2024 Investor Presentation
24 February 2025 Full 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.com.pg
Slide 2: 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Important information NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR business, which the Company in its sole discretion deems necessary or provided in a definitive agreement when, and if, it is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 3: Contents
Contents Overview FY24 Results Summary 01 02 03 Mark T. Robinson Maryann Lameko- Mark T. Robinson Vaai PAGE 4 PAGE 12 PAGE 25 2024 Full Year Results Presentation investor.relations@bsp.com.pg 3
Slide 4: Overview
Overview Mark T. Robinson, Group Chief Executive Officer investor.relations@bsp.com.pg 4
Slide 5: BSP
BSP OUR PURPOSE Championing Prosperity for the South Pacific OUR VISION The South Pacific’s International Bank OUR VALUES We respect, value and empower We strive for excellence, integrity We work and thrive as a team with each other, embracing diversity and continuous improvement in and for the well
Slide 6: Our market
Our market BSP is the largest financial institution in the South Pacific. The Market BSP Robust GDP growth in all markets in which we operate Megaprojects and foreign investment Investing in technology to better serve our stimulating Pacific economies customers and deliver exceptional customer
Slide 7: South Pacific market leader
South Pacific market leader LENDING MARKET SHARE DEPOSIT MARKET SHARE PNG #1 61.2% PNG #1 63.3% Solomon Islands #1 40.1% Cook Islands #1 55.5% Cook Islands #2 37.3% Solomon Islands #1 46.6% Samoa #1 33.7% Tonga #1 42.1% Tonga #1 33.1% Samoa #1 39.9% Fiji #1 27.1% Fiji #1 25.8% Vanuatu #3 13.7% Vanua
Slide 8: High growth in our digital channels
High growth in our digital channels We continue to invest in market leading digital channels across the South Pacific. AVERAGE MONTHLY TRANSACTIONS [YOY] ACCOUNTS1 [millions] 19.3m Digital ▲20% YOY +17% 5.9m EFTPOS terminals ▲20% 2.80 2.40 4.7m ATM ▲ 1% 1.2m Branch & Agents ▲ 10% FY23 FY24 1 Exclude
Slide 9: Results summary
Results summary Robust group performance. PGK [millions] FY231 FY24 Change AUD4 [millions] FY231 FY24 Change Revenue 2,749 2,979 8% Revenue 1,154 1,172 2% Operating expenses (1,013) (1,231) 22% Operating expenses (425) (485) 14% Operating profit 1,736 1,748 1% Operating profit 729 688 (6%) Bad & dou
Slide 10: Strong capital management
Strong capital management Capacity to invest for growth. CAPITAL ADEQUACY LEVERAGE RATIO +180bps 26.2% +120bps 24.4% 10.8% 9.6% 12.0% 6.0% % % Dec-23 Dec-24 Regulatory Dec-23 Dec-24 Regulatory 1 Minimum 1 Minimum 1 BPNG prudential minimum 2024 Full Year Results Presentation investor.relations@bsp.co
Slide 11: Shareholder metrics and final dividend
Shareholder metrics and final dividend Attractive returns for our investors. Closing share price1 Net tangible assets per share Earnings per share Return on equity K19.90 K9.30 K2.22 23.3% As at 31 Dec 24 ▲9% ▲17% ▲180 bps From From FY24 final dividend FY24 total dividend K1.06 K1.43 K1.21 K1.66 FY2
Slide 12: FY24 Result Presentation
FY24 Result Presentation Maryann Lameko-Vaai, Acting Group Chief Financial Officer investor.relations@bsp.com.pg
Slide 13: Strong FY24 financial performance
Strong FY24 financial performance Solid growth in both earnings and dividend per share. PGK FY23 FY24 Change AUD FY23 FY24 Change [millions] [millions] Statutory NPAT 890 1,038 17% 374 407 9% ACT settlement 1 - (95) - - (37) - JV impairment - 36 - - 14 - Underlying profit 890 979 10% 374 385 3% Earn
Slide 14: Total income
Total income Solid revenue growth, boosted by net interest and FX income. YoY 6% 22% 2% 8% PGK millions A$1,154m A$1,172m 2024 Full Year Results Presentation investor.relations@bsp.com.pg 14
Slide 15: Net Interest Margin
Net Interest Margin 2024 NET INTEREST MARGIN DRIVERS NET INTEREST MARGIN TRENDS 606 604 593 565 572 Bps Bps FY20 FY21 FY22 FY23 FY24 2024 Full Year Results Presentation investor.relations@bsp.com.pg 15
Slide 16: Operating expenses
Operating expenses CTI ratio remains competitive, while accommodating modernisation expenditure. CTI 36.9% 37.8% 41.3% 38.2% 9.4% PGK millions A$425m A$437m A$485m A$448m 1 1Varies from Form 4E value K1,267m, given the exclusion of JV impairment of K36m. 2024 Full Year Results Presentation investor.
Slide 17: Operating profit
Operating profit1 Revenue growth was higher than expense growth including modernisation expenditure. YOY +0.7% PGK millions A$729m A$688m 1Excludes JV impairment and ACT recovery 2024 Full Year Results Presentation investor.relations@bsp.com.pg 17
Slide 18: Credit quality
Credit quality Bad and doubtful debt expenses reduced significantly, due to improved credit quality and prudent credit decisioning. BAD & DOUBTFUL DEBT 2024 BAD & DOUBTFUL DEBT DRIVERS (200) (200) 201.3 182.2 89.9 PGK PGK millions millions (5.4) (18.2) (42.7) (A$7m) 1 FY15 FY20 FY21 FY22 FY23 FY24 1
Slide 19: Credit quality (cont.)
Credit quality (cont.) Improving delinquency rates and required provisions. DELINQUENCY RATES PROVISIONS TO LOANS 90+ days, as a percentage of total loans (80bps) 3.6% (100bps) 5.5% 2.8% 2.8% 2.8% 4.9% 5.1% 2.6% 4.3% 4.3% 3.3% 1.7% % % Dec-15 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-15 Dec-20 Dec-21 D
Slide 20: Loan book composition
Loan book composition The corporate segment remains our largest borrower, during a period of subdued demand. Corporate Others, 4% Overdrafts, 6% Unsecured Personal Loans, 13% +1% Corporate Segment Corporate Loans, 59% 9.8 9.9 ~65% 8.9 Retail Mortgages, 17% +11% +2% (14%) 2.6 2.9 A$0.4b (14%) PGK 2.3
Slide 21: Balance sheet
Balance sheet Strong growth in our loans and total assets over the last 10 years. GROSS LOANS TOTAL ASSETS CAGR = 8.2% 0.5% 37.0 37.1 CAGR = 7.1% 33.8 0.6% 30.4 27.5 16.7 16.8 14.4 14.3 15.0 18.2 PGK PGK billions 9.1 billions Dec-15 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-15 Dec-20 Dec-21 Dec-22 Dec-
Slide 22: Deposits
Deposits Strong growth in deposits over the last 10 years. The small decline in 2024 was partly due to the timing of various government deposits and some corporates year-end actions. DEPOSITS DEPOSIT MIX Demand Deposit Term Deposit 5.0% CAGR = 8.0% (2.5)% 3.0 3.1 2.8 29.8 29.1 2.8 3.7 26.9 23.9 21.7
Slide 23: Key ratios
Key ratios Robust core business fundamentals. RETURN ON EQUITY COST TO INCOME CAPITAL ADEQUACY +180bps +440bps +180bps 29.7% 44.4% 25.7% 26.2% 27.8% 27.6% 41.3% 25.1% 24.4% 24.6% 37.0% 36.6% 36.8% 36.9% 23.1% 23.2% 23.3% 21.5% 12% % % % Dec-15 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-15 Dec-20 Dec-21
Slide 24: Shareholder returns
Shareholder returns Attractive capital gains and dividend performance. TOTAL SHAREHOLDER RETURN [TSR1] PNGX [BSP] CAGR = 17.6% 45.3% 371% 19.90 12.25 12.41 13.70 7.50 192% 5.7 5.8 6.4 9.3 3.5 2015 2021 2022 2023 2024 Market Cap [PGK Billion] Price Per Share [PGK] 136% ASX [BFL] CAGR = 16.0% 67% 22.9
Slide 25: Summary
Summary Mark T. Robinson, Group Chief Executive Officer investor.relations@bsp.com.pg
Slide 26: Positioned Well for the Future
Positioned Well for the Future Our strong performance in FY24 continues to lay a solid foundation for BSP’s future growth and success. Our conservative strategy for managing capital means we are well-placed to navigate the current environment and realise future growth opportunities. Across the Pacif
Slide 27: Summary
Summary The international bank of the South Pacific. Strong growth fundamentals … with more customers choosing to bank with us and we remain the market leader in our region. Our balance sheet is robust, and our business has strong momentum, as we invest for growth with an intense focus on our cu
Slide 28: Thank You
Thank You Full 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.com.pg