Bsp Financial Group Ltd. · ASX:BFL
Bsp Financial — H1 2024 Earnings Presentation
24 slides from Bsp Financial's earnings presentation, Aug 23, 2024
Slide 1: Half Year Results 2024
23 August 2024 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.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Important information NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR business, which the Company in its sole discretion deems necessary or provided in a definitive agreement when, and if, it is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 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 4: Overview
Overview Mark T. Robinson, Group Chief Executive Officer investor.relations@bsp.com.pg 4
Slide 5: Results summary
Results summary Group performance remains robust, at a time of significant investment in the business PGK [millions] 1H-23 1H-24 Change AUD3 [millions] 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% ˗ FX income 202 259
Slide 6: Our market
Our market BSP is the largest financial institution in the South Pacific, a changing market with favourable tailwinds BSP Position External environment South Pacific Leader Foundation for Changing market Favourable trends growth conditions Largest financial Set for next BSP well Growth institution p
Slide 7: South Pacific leader
South Pacific leader BSP’s NPAT and balance sheet is materially larger than its South Pacific peers 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 5,172 BANK 1 147 1,419
Slide 8: Customer activity
Customer activity Digital channel adoption accelerated, following new core banking system implementation last year 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 1H-24 2024 Half Year R
Slide 9: Building a world class bank
Building a world class bank Strategic shifts that will deliver long term growth 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 TECHNOLOGY & PARTNERSHIPS & PEO
Slide 10: 1H24 Result Presentation
1H24 Result Presentation Ronesh Dayal, former Group Chief Financial Officer investor.relations@bsp.com.pg BSP Classification: Internal Use Only
Slide 11: Strong H1-24 financial performance
Strong H1-24 financial performance Solid growth in both earnings and dividend per share 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 profit 427 461 8% 180 185 3
Slide 12: Operating profit
Operating profit Steady growth of the Group’s operating profit, despite significant investments to modernise the business YOY 5.9% PGK millions A$351m A$353m 2024 Half Year Results Presentation investor.relations@bsp.com.pg 12
Slide 13: Total income
Total income Robust lending and FX volumes enhance business revenue 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 electronic channel usage an
Slide 14: Operating expenses
Operating expenses Adjusted cost to income [CTI] ratio remains stable 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@bsp.com.pg 14
Slide 15: 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 BAD & DOUBTFUL DEBT DELINQUENCY RATES GROSS IMPAIRED ASSETS 90+ days, as a percentage of total EXPENSES loans +6.6% +14.6% 79 84 693 3.64% 605 3.57% 508
Slide 16: Loan Provisions
Loan Provisions Provisions to loans remain stable 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 key economic variables
Slide 17: Balance sheet
Balance sheet Strong deposit and loan growth 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 -0.05% 25.4 27.0 Term D
Slide 18: Loan book composition
Loan book composition Solid loan growth in all market segments 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$4.0b A$1.1b A$0.9b A$0.9
Slide 19: Key ratios
Key ratios Our business fundamentals remain strong 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% excluding one-offs 1 3
Slide 20: Shareholder returns
Shareholder returns Interim dividend increased as a result of increased profits for 1H-24 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 30/06/23] [$6.45 as at 28/0
Slide 21: Summary
Summary Mark T. Robinson, Group Chief Executive Officer investor.relations@bsp.com.pg
Slide 22: Pacific economic activity
Pacific economic activity Economic activity in our markets is forecast to remains relatively healthy, despite growth moderating in some markets. GDP The outlook for our South Pacific markets is relatively positive, when 2023e 2024f 2025f Growth compared to developed markets. They continued to be s
Slide 23: Summary
Summary The international bank of the South Pacific 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 invest for growth wit
Slide 24: Thank You
Thank You 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.com.pg