By Jack Lapauve Jr – EM TV, Port Moresby
Bank South Pacific Chairman Kostas Constantinou is confident BSP has the capacity to fill revenue gaps despite a slowdown in the economy.
Constantinou stated this after releasing BSP’s 2014 results today. The bank recorded a consolidated operating profit of K503 million in last year’s financial year.
Most of the bank’s revenues were sourced from interest incomes in particular treasury bills and inscribed stock. The only downturn was the reduction of revenues from foreign exchange following margin bonds.
Operating profit after tax increased by 16 per cent and total assets rose from K116 million to K15.8 billion.
Chairman Constantinou says the vast customer choice in PNG is also a key factor with almost 90 per cent of people engaged in retail transaction via electronic channels every day.
The bank saw a reduction of operating expenses of K41 million.
While acknowledging that economic activity in Papua New Guinea may be more constrained than in prior years, and the full year impact of reduced margins on foreign exchange transactions, Mr Constantinou expressed confidence in BSP’s capacity to fill these revenue gaps with new business from the recently established BSP finance business in PNG and Fiji, and continued growth in Fiji and Solomon Island markets.