[Photo: FILE]

BSP Financial Group Limited has reported a 12.9 per cent increase in statutory net profit after tax for the financial year ended 31 December 2025, driven by balance sheet growth, resilient margins, and strong foreign exchange earnings.

The regional banking group posted a net profit after tax of K1.17 billion (A$440 million), while revenue rose 14.4 per cent to K3.41 billion (A$1.28 billion). Net interest income grew nine per cent, with margins improving 19 basis points to 6.41 per cent, and foreign exchange income climbed 28.7 per cent, or K161 million.

Return on equity strengthened to 23.8 per cent, up 50 basis points on FY24, placing BSP at the upper end of ASX-listed banks. The bank’s capital adequacy ratio rose to 26.4 per cent, reflecting its ability to support growth while maintaining strong capital levels.

Operating expenses increased 15.4 per cent, largely due to higher employment costs and ongoing investment in technology, including the group’s K1.2 billion “Modernising for Growth” program. The cost-to-income ratio remained at 42.9 per cent.

Loan provisions were stable at 3.3 per cent, while delinquency rates fell 10 basis points to 2.7 per cent, reflecting lending growth and a supportive economic environment.

BSP declared a full-year dividend of K1.88 per share (A$0.71), up 13 per cent on FY24. The final dividend of K1.38 (A$0.57) will be paid on 27 March 2026.

“Earnings, deposits and customer activity increased across all major markets in 2025, reflecting disciplined execution and franchise strength,” Robinson said, noting progress in the bank’s modernisation program, including branch upgrades, next-generation ATMs, EFTPOS terminals, personalised offerings, and the launch of its Business Bank.

Digital adoption rose over 22 per cent, with internet banking transactions up 54 per cent and EFTPOS transactions increasing 16 per cent. BSP also expanded financial inclusion, launching the Wantok Wallet in February 2025, which had over 100,000 sign-ups by year-end.

The strong performance coincides with Papua New Guinea’s 50th Independence anniversary, underscoring regional growth opportunities and the role of businesses like BSP in supporting national development.

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