BSP records growth in third quarter

BANK South Pacific Group (BSP) profit after tax dropped nine per cent from K136 million in Quarter-2 to K124 million in Quarter-3, 2015.

Despite the K12 million reduction, the bank stated its revenue continued its positive trend, and went up slightly from K399 million in Quarter-2 to K402 million in Quarter-3.

Bank executives including chief executive officer Robin Fleming and deputy CEO and Group chief financial officer Johnston Kalo had from the outset stated the economic conditions had remained difficult in the second half of 2015 and would continue into 2016.

Nevertheless, Mr Fleming stated that the overall results for the quarter had shown that the bank continues to respond to the economic challenges that are thrust on the bank, adding BSP would continue to report profits that shareholders could expect at this time.

In presenting the Quarter-3 results, he has stressed that despite the tough economic conditions that the underlying performance of the bank remained sound and income generation strong, adding it continued to maximise its lending opportunities as well as its investments and in turn its assets.

Mr Johnston said the decline in the profit after tax was mainly due to the loan write offs in the bank’s retail segment, but had also noted the on-going recovery at the rate of 36 per cent of the write off for the quarter. He added that the year to date (as of September) net profit after tax was K391 million compared to K385 million in the previous corresponding period of 2014.

He said the bank’s costs continued to be controlled to plan, adding the increases in net expenses had been exceptional. "The group’s operating expenses were reduced by six per cent (K34 million) over the year reflecting BSP’s prudent cost management.

"The group’s cost to income ratio was 47.7 per cent at the end of the Quarter," he added.
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