Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — Shareholder Meeting (May 2023)
31 slides from Bsp Financial's shareholder meeting presentation, May 19, 2023
Slide 1: ASX cover letter for 2023 AGM Presentation
Company Secretary 19th May 2023 Ms. Nicola Lombardi ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Australia By Electronic Lodgment Dear Ms. Lombardi, BSP Financial Group Limited – 2023 Annual General Meeting Presentation In accordance with the ASX Listing Rules, BSP Financial Group Li
Slide 2: Annual General Meeting
Annual General Meeting 19th May 2023 Ballrooms 3 & 4, Crown Hotel, Port Moresby, Papua New Guinea BSP Classification: Public
Slide 3: Chairman’s Address
Chairman’s Address Board Chairman Mr. Robert Bradshaw BSP Classification: External Confidential
Slide 4: Group CEO’s Address
Group CEO’s Address Group CEO Mr. Mark T. Robinson BSP Classification: External Confidential
Slide 5: 2023 Annual General Meeting Shareholder Presentation
2023 ANNUAL GENERAL MEETING Shareholder Presentation Mark T. Robinson – Group CEO BSP Financial Group Limited [ARBN: 649 704 656, Incorporated in Papua New Guinea]
Slide 6: 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Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This presentation has been prepared and issued by BSP Financial Group Limited (the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 7: 10 year results overview
2023 ANNUAL GENERAL MEETING 10 year results overview The Group’s revenue and net profit after tax (NPAT) increased steadily over the last 10 years, dropping slightly in 2020 due to COVID-19 impacts but rebounded strongly in the following years with record profits of over K1 billion. REVENUE & NPAT [
Slide 8: Q1-2023 results overview
2023 ANNUAL GENERAL MEETING Q1-2023 results overview Strong Q1-23 results delivered, despite the increased corporate tax rate in PNG and cost increases associated with delivery of the new core banking system. Q1-23 vs Q1-22 Q1-23 Q1-22 ● Profit before Tax [Km] 367 381 +3.8% ● Statutory Profit [NPAT,
Slide 9: Q1-2023 performance
2023 ANNUAL GENERAL MEETING Q1-2023 performance Profit before tax increased by 3.8% from Q1-22, supported by income growth and lower loan impairment expenses. However, this was partially offset by higher operating costs in Q1-23. INCOME [Km] OPERATING LOAN IMPAIRMENT PROFIT BEFORE TAX +K39m EXPENSE
Slide 10: NPAT movement Q1-2022 to Q1-2023
2023 ANNUAL GENERAL MEETING NPAT movement Q1-2022 to Q2-2023 ● Q1-23 statutory NPAT increased by K150m from Q1-22, largely due to the one-off K190m ACT recognised in Q1- 22. ● Gains in net interest income, FX income and other income [mainly from increased transaction volumes] contributed to the Q1-2
Slide 11: Q1-2023 profit contribution by business
2023 ANNUAL GENERAL MEETING Q1-2023 profit contribution by business ● The large reduction in PNG Bank’s NPAT from Q4-22 is largely due to the K135m tax credit recognised in Q4-22, coupled with the increased corporate tax rate on the Q1-23 results. ● Offshore Banks NPAT has increased materially … up
Slide 12: Key ratios
2023 ANNUAL GENERAL MEETING Key ratios ● Cost to income is slightly higher, driven by higher staff costs, new core banking expenses, premises costs and channel related costs. ● ROA and ROE were lower, driven by growth in assets and retained earnings respectively, coupled with weakened growth in NPAT
Slide 13: Concluding Q1-2023 remarks
2023 ANNUAL GENERAL MEETING Concluding Q1-2023 remarks ● Profit before tax increased by 3.8% from Q1-22, supported by income growth and lower loan impairment expenses. However, this was partially offset by higher operating costs in Q1-23. ● Q1-23 statutory NPAT increased by K150m from Q1-22, largely
Slide 14: BSP Banking System Update
BSP Banking System Update 2023 ANNUAL GENERAL MEETING Shareholder Presentation Mark T. Robinson – Group CEO BSP Financial Group Limited [ARBN: 649 704 656, Incorporated in Papua New Guinea] Friday 19th May 2023 BSP Classification: External Confidential 13
Slide 15: 1. Banking System Overview
1. Banking System Overview OLD NEW FEATURES ● Aging Legacy Systems ● Integrated Banking –improved ● Consolidates 20 systems for critical (end of life) customer experience services. ● Poor user Interface and ● Modern but Complex ● Personal loan applications lodged online. Experience Technology and Su
Slide 16: 2. Banking System Delivery Planning
2. Banking System Delivery Planning Extensive planning and resources were allocated for the switch to our new Banking System. Timeline Planning commenced 2016 2017 2021 2023 Initiation & Planning Project Kick-off Vanuatu Go-Live PNG Go-Live ● Vendor request for ● Planning and ● Vanuatu ● PNG Impleme
Slide 17: 3. Project Team Workstreams
3. Project Team Workstreams BSP’s project team were assigned dedicated tasks across critical delivery workstreams … in line with leading project management practices. 1. 2. 3. 4. 5. WORKSTREAMS DISCOVERY ANALYSIS BUILD + TEST READINESS ROLL OUT Parameterization Gaps Requirements Product Mapping Role
Slide 18: 4. Go-Live Issues
4. Go-Live Issues RESOLUTION BSP Channels with Post Go-Live Issues TARGET DATE ● Backlog of Cheques outstanding. Working Well ● Domestic Payments (including KunduPei & batch uploads) Post Go Live 31 May 2023 Increased data validation by the new system resulting in higher exception processing. Branch
Slide 19: 5. Remediation of Go-Live Issues
5. Remediation of Go-Live Issues ● Senior Management working ● Weekly meetings with Regulator to group overseeing all remediation update on progress. efforts. ● Retail and Corporate teams undertaking customer visits to ● Additional resources deployed provide personalised support for to assist resolu
Slide 20: AGM Agenda
AGM Agenda General Business Approve and adopt the Minutes of the previous Annual General Meeting of Shareholders held on 20/05/2022. Ordinary Business 1. Receive and approve the BSP Group Financial Statements, Director’s Report and Auditor’s Report for the Year Ended 31/12/2022. 2. Adopt the Remuner
Slide 21: General Business
General Business Minutes of the Previous Annual General Meeting of Shareholders held on 20th May 2022 To receive, consider and accept the Minutes of the previous Annual General Meeting held on 20th May 2022 as a correct record of that meeting. BSP Classification: External Confidential 21
Slide 22: BSP Classification: External Confidential
BSP Classification: External Confidential 22
Slide 23: Ordinary Business: Item 1 Annual Report and Financial Statements
Ordinary Business Item 1: Annual Report and Financial Statements for the Year ended 31st December 2022 To receive the Annual Report, including the Financial Statements, Director’s Report and Auditor’s Report, for the Company and its subsidiaries for the year ended 31st December 2022. BSP Classificat
Slide 24: Ordinary Business: Item 2 Remuneration Report
Ordinary Business Item 2: Remuneration Report for the Year ended 31st December 2022 To adopt the Remuneration Report of the Company for the year ended 31st December 2022. BSP Classification: External Confidential 24
Slide 25: Ordinary Business: Item 3 Re-election of Directors
Ordinary Business Item 3: Re-election of Directors (a) Priscilla Kevin (b) Robert Bradshaw BSP Classification: External Confidential 25
Slide 26: Re-election of Director Priscilla Kevin
Ordinary Business Item 3: Re-election of Directors (a) Priscilla Kevin who retires by rotation and offers herself for re-election as a director of the Company. BSP Classification: External Confidential 26
Slide 27: Re-election of Director Robert Bradshaw
Ordinary Business Item 3: Re-election of Directors (a) Robert Bradshaw who retires by rotation and offers himself for re-election as a director of the Company. BSP Classification: External Confidential 27
Slide 28: Ordinary Business: Item 4 Election of Director
Ordinary Business Item 4: Election of Director Ian Tarutia who was appointed to fill a casual vacancy and offers himself for election as a director of the Company. BSP Classification: External Confidential 28
Slide 29: Item 5: Increase in Aggregate Fee Limit for Non-Executive Directors
Ordinary Business Item 5: Increase in Aggregate Fee Limit for Non-Executive Directors To approve an increase in the Aggregate Fee Limit for Non-Executive Directors from PGK4.5m to PGK6m. BSP Classification: External Confidential 29
Slide 30: Item 6: Appointment of Auditor
Ordinary Business Item 6: Appointment of Auditor To appoint PricewaterhouseCoopers as Auditor of the Company from the conclusion of this meeting until the conclusion of the next annual meeting of the Company and that the Board be authorized to fix their remuneration. BSP Classification: External Con
Slide 31: Q&A
Q&A BSP Classification: External Confidential 31