ASFPNG commends BSP for high profit

Bank South Pacific Group has recorded the 2022 profit of more than K1 billion.

The Association of Superannuation Funds of Papua New Guinea (ASFPNG) commended BSP saying the profit record is a significant return on investment for the three major super funds. 

BSP's full year results, announced to the market, includes a Net Profit After Tax of K1.081 billion, and a dividend payment of K 1.40 per share, bringing the total dividend per share for the Full Year 2022 to 141.74. 

ASFPNG President Ian Tarutia said Nambawan Super, Nasfund and Comrade Trustee Services Limited own a combined total of 24.46% in the largest bank in PNG and the Pacific Islands Region. 

"BSP Group's record profit of K 1.081 million for 2022 is a milestone achievement for the bank and its shareholders, including our three major super funds — Nambawan Super (12.09%), Nasfund (9.70%) and Comrade Trustee Services Limited (2.67%) — which will benefit from increased dividend payments that will be passed onto their contributors. 

“BSP achieved this remarkable result despite the Government's imposition of the Market Concentration Levy as part of the Income Tax Act to collect K 190 million per annum, which represents between 2% to 3% annual crediting rate for the major super funds. 

“ASFPNG supported BSP's Supreme Court action to overturn the State's decision to impose the banking levy, which has been replaced by a new 45% tax on all banks.

“Whilst the Association is pleased with BSP's 2022 results, we are concerned the tax increase of 45% will adversely impact on its performance in 2023 and beyond. Nonetheless, the superannuation industry will continue to support our banking sector to deliver the best results for shareholders and customers." 

Meanwhile, ASFPNG also conveys its heartfelt appreciation to outgoing Chairman Sir Kostas Constantinou, OBE whose retirement was announced on Monday 27th February 2023. 

Mr Tarutia said under Sir Kostas tenure as Chairman, together with former CEO Robin Fleming, BSP achieved significant business growth and expansion in PNG, the Pacific and South East Asia region. 

“Sir Kostas hands over a very strong BSP to the new leadership team and as major shareholders, the super funds look forward to continued success in the years to come.” 

ASFPNG also congratulates Mr Robert Bradshaw on his appointment as new BSP Chairman and looks forward to working with him and his board. 

Freddy Mou