BSP Financial Group reported an 8.4% increase in statutory net profit after tax to 620 million kina for the first half of 2026, driven by a 17.7% rise in revenue to 1.89 billion kina.
Operating profit grew 15.1% year-over-year to 1.06 billion kina, while total assets expanded 16.2% to 36.2 billion kina. Deposits climbed 17.8% to 25.8 billion kina, and gross loans increased 8.6% to 14.7 billion kina. The group's return on equity remained robust at 23.9%, though return on assets dipped 20 basis points to 2.8%.
Operating expenses rose 21.1% to 825 million kina, primarily due to a 22% increase in employment costs and higher administrative and technology expenses. The cost-to-income ratio ticked up 130 basis points to 43.8%, still within the target range of 42% to 45%. Capital adequacy stood at 25.3%, well above the Bank of Papua New Guinea's minimum requirement of 12%.
Net interest income increased 15.4%, while fee and commission income rose 11.5%, accounting for 38% of total income. Foreign exchange income contributed 23% to total revenue. The Modernizing for Growth program drove 138 million kina in investment spending during the half, including 77 million kina in capitalized expenses and 62 million kina in operational costs.
BSP deployed over 210 new ATMs and 10,000 EFTPOS terminals across its seven South Pacific markets. The BSP OneTouch wallet now serves more than 278,000 customers in Papua New Guinea. The group's interim dividend was raised 8% to 54 toea per share, payable on September 24, 2026.
Chief Financial Officer Glen Skarott noted the group is funding its investment program from a position of earning strength. Chief Executive Officer Mark Robinson described BSP as the South Pacific's international bank and expressed a bullish outlook on Papua New Guinea's medium-term prospects, citing potential super-cycle gains from major resource projects including Papua LNG, PNG LNG, and Wafi-Golpu.
BSP Financial Group operates in Papua New Guinea, Fiji, Solomon Islands, Vanuatu, Samoa, Tonga, and the Cook Islands. The combined projected value of the Papua LNG, PNG LNG, and Wafi-Golpu projects exceeds 100 billion kina.
