Despite enduring harsh local and global economic conditions, Nambawan Super Limited (NSL) has delivered strong financial results for 2023.
The results are as follows:
- Fund membership grew by 7,909 (3.6%) to 228,319 members;
- Net asset value now totals K9.84 billion, an increase of K848 million;
- Net profit after tax is K659 million, an increase of K515 million;
- 7% interest delivered to fund members;
- Total member contributions received in 2023 was K970 million; and
- Total member benefit payments paid out to members in 2023 was K781 million.
NSL Chairman, Reginald Monagi when presenting the results on Monday 18 March, said, “If anything, the success of 2023, compared to those of 2022 is an important reminder to us all that from year to year, results will go up or down, but superannuation is a long-term investment.
“The 2023 results have been achieved due to a combination of strong investment earnings received from interest, dividend and rental income. The Fund’s international assets performed strongly in 2023 as global markets proved resilient and recovered strongly following the surge in inflation in 2022. Additionally, foreign exchange gains, largely driven by the BPNG’s currency devaluation program, have also contributed to the strong performance of the Fund’s other investments.”
However, locally, the Fund’s assets did not perform well due to reduced yields from State Securities, lower dividends realized from the Fund’s unlisted equity holdings, and reduced rental income. The Fund’s listed equities, however, did perform well driven largely by the strong performance of BSP Financial Group despite having to contend with the increased 45 percent Corporate Banking Tax introduced at the start of 2023.
Monagi further stated that it is difficult to enjoy the successful results of 2023 with the sobering knowledge that 2024 is off to a rough start.
“Besides the increasing law and order issues, PNG is once again facing a fuel shortage, exacerbating existing issues with unreliable power and water supply. These ongoing challenges impact an already struggling population, business houses, and the economy.
Monagi stated that projects in the oil and gas sector continue to face setbacks, and these delays have had an impact on the expected returns from the long-anticipated economic boom, similar to those experienced by the country more than a decade ago.
“The lack of foreign currency continues to hamper the Fund’s ability to provide stronger results for our members in the offshore markets, as we are not able to make use of international opportunities, especially as local investment opportunities lag due to the state of the economy,” said Monagi.
Despite these setbacks, NSL assures that it will continue to grow member’s retirement savings, while they work to support and help PNG’s economy.