BSP Records Fifth Consecutive Year of K1 Billion Profit Milestone
Bank South Pacific Financial Group Limited (BSP) has achieved a record-breaking profit of over K1 billion for the fifth consecutive year, with its overall income reaching K2.98 billion in 2024. The bank reported a net profit of K1.04 billion for the year, marking a 16 per cent increase from the previous year. In line with this success, BSP distributed dividends worth K1.66 per share to its more than 4,000 shareholders, amounting to a total payout of K783 million. This distribution reflects the bank’s commitment to rewarding investors while maintaining strong financial health.
Group Chief Executive Officer Mark Robinson highlighted that maintaining a resilient capital base remains a key pillar of BSP’s strategy. He noted that the institution has demonstrated consistent strength and stability over the long term, achieving a 10-year compound annual growth rate (CAGR) of 7.7 per cent in net profit after tax (NPAT). Robinson stated that disciplined execution and sound fundamentals have been instrumental in driving consistent growth, enabling the bank to deliver sustainable value to its shareholders.
The bank’s total income grew by 8.4 per cent, primarily driven by a K120 million rise in net interest income and a K103 million boost in foreign exchange earnings. Fee income also increased by K33 million during the year. However, insurance and other income declined by K25 million, largely due to subdued results from BSP’s Fijian insurance operations. A significant factor contributing to the bank’s strong performance was a one-off positive impact from negotiating a K95 million settlement related to additional company income tax matters. Provisions tied to the planned divestment of its ownership stakes in finance companies in Cambodia and Laos also positively influenced profitability.
Additionally, the revision of economic assumptions linked to the Covid-19 pandemic led to a K120 million reduction in general provisions, further bolstering the bank’s bottom line. These strategic adjustments played a pivotal role in elevating profits by 17 per cent compared to the prior year. Underpinning BSP’s success in 2024 was a substantial investment of K345 million into its modernisation strategy. This initiative focused on enhancing technological infrastructure and expanding specialist roles within the organization. As a result, revenue grew by eight per cent, driven by increased foreign exchange earnings and higher transaction volumes.
However, the push for modernisation came at a cost, with operating expenses rising by 22 per cent due to the heavy investment in upgrading systems and capabilities. Despite this, the bank’s underlying profit still climbed by 10 per cent to reach K979 million compared to 2023. The Group’s cost-to-income ratio (CIR) also expanded, reflecting the financial commitment required to execute its transformation agenda. BSP maintained a robust capital position throughout the 2024 financial year, with total assets growing marginally by 0.5 per cent to K37.1 billion, supported by a 0.6 per cent increase in gross loans.
Beyond its financial achievements, BSP continued to demonstrate its dedication to corporate social responsibility by investing over K17 million in community projects, sponsorships, and donations across the regions where it operates. Such initiatives underscore BSP’s commitment to fostering positive change and supporting local communities. Through its focus on innovation, disciplined execution, and community engagement, BSP has reinforced its position as a leading financial institution in the region.
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