BSP Financial Group (BFL) investor relations material

Executive summary

• Achieved strong financial performance in FY2025, with net profit after tax up 12.9% to PGK 1.17 billion, driven by broad-based revenue growth, diversified income streams, and disciplined execution.

• Maintained market leadership as the largest bank in the South Pacific, serving over 3 million customers across seven countries, with a diversified revenue base and extensive distribution network.

• Continued investment in the Modernising for Growth (MSG) program, focusing on digital transformation, customer experience, and operational efficiency.

• Declared a final dividend of PGK 1.38 per share, bringing the full-year dividend to PGK 1.88, up 13% year-on-year, with a payout ratio of 75%.

• Strategic investments in technology and digital banking underpin ongoing modernisation and customer experience improvements.

Financial highlights

• Group revenue grew 14.4% to PGK 3.41 billion, with net interest income up 9.1% and FX income up 28.7%.

• Operating expenses increased 18.8% to PGK 1.46 billion, reflecting deliberate investment in the MSG program and higher employment and technology costs.

• Operating profit rose 11.3% to PGK 1.95 billion, despite higher investment spending.

• Return on equity increased to 23.8%, up 50 basis points year-over-year, maintaining a 20-year record above 20%.

• Non-interest income grew to 37% of total income, driven by FX and fee income.

Outlook and guidance

• Confident outlook for 2026, with continued focus on digital adoption, modernization, and sustainable growth.

• MSG program investment of PGK 1.2 billion over four years expected to peak CTI within the 42%-45% target range, then normalize to low forties post-program.

• Ongoing commitment to balancing reinvestment, balance sheet strength, and attractive shareholder returns.

• Well positioned to capture growth from expanding populations, trade, and digital adoption in the region.

• Continued focus on modernisation, digital banking, and financial inclusion to drive future growth.