The reduction was primarily caused by the Additional Company Tax of K190 million and a one-off tax credit of K135 million.
Despite these challenges, BSP's Acting Group CEO Ronesh Dayal stated that the Group's underlying net profit after tax (NPAT) of K1.136 billion represented a 5.7% increase on 2021 profits, driven by improved economic conditions in the Pacific.
Net interest income rose by 8.8%, foreign exchange income increased by 11.2%, and total loans increased by 4.6% to K15 billion.
BSP has maintained its dividend payout ratio of 75%, with a full-year dividend of K1.74 per share, and remains committed to the prosperity of PNG and the Pacific, with no plans to scale back its existing network or reduce its services in PNG despite the tax rate increase.
BSP's dividend yield is 14.0% and 14.6% on the PNGX and ASX respectively, making it a high-yielding asset compared to other stocks on both markets.
In 2023, a key focus will be adapting to the tax rate increase to 45% on PNG commercial banks, which Mr Dayal believes has the potential to impede investment and growth in PNG's financial sector.