BSP Financial Group (BFL) H1 2025 earnings summary

Executive summary

• Achieved nearly 10% growth in both revenue and net profit after tax (NPAT) for the first half of 2025, with growth across lending, FX, fees, and insurance.

• Largest bank in the South Pacific, operating in 7 countries with a diversified revenue base and strong market leadership in PNG.

• Net profit after tax for the half year ended 30 June 2025 was K572 million, up from K521 million in the prior year period.

• Interim dividend for 1H25 increased by 11.1% to K0.50 per share, with 3.2 million active customer accounts.

• Continued investment in modernization, digital infrastructure, and financial inclusion initiatives.

Financial highlights

• Revenue for 1H25 rose 9.8% year-over-year to PGK 1,602m; statutory NPAT up 9.8% to PGK 572m.

• Net interest income increased 3.6%, FX income surged 23.6%, and fee/commission income grew 14.6% compared to 1H24.

• Operating expenses rose 17.6% due to investments in technology and staff, with cost-to-income ratio at 42.5%.

• Total assets reached K38,916 million, up from K37,123 million at year-end 2024.

• Customer deposits increased to K30,711 million from K29,083 million.

Outlook and guidance

• Focus remains on digital transformation, expanding financial access, and modernizing processes.

• Continued investment in technology and data to drive efficiency and customer experience.

• Expectation for cost-to-income ratio to normalize post-modernization.

• Anticipates higher tax rate in the second half as earnings exceed a tax threshold.

• The Group’s capital adequacy and leverage ratios remain well above regulatory minimums, supporting a strong outlook.