View
1
Download
0
Category
Preview:
Citation preview
BSP Qtr.4/2014 Results Summary
Johnson Kalo, Deputy CEO / CFO
2
Q4/2014 Results
3
Profit & Loss (Kina ‘million)
• Group Q4 NPAT of K123m increased K1m vs.
Q3, Although Bank NPAT increased +K3m,
this was reduced by a weaker result for
BCap, and having to absorb start up costs for
BSP Finance in PNG and Fiji
• Total Q4 Revenue of K377m is similar to Q3.
Increased fx turnover contributed K8m to a
revenue increase over Q3 and Loan portfolio
growth drove a revenue increase of
K8m(+3.6%) over Q3, but these gains were
offset by weaker Q4 revenue from
subsidiaries
• Increased B&DD provisions have been driven
by Fiji B&DD provisions + normal provisioning
commensurate with portfolio growth for PNG
• Depreciation & amortisation have remained
steady. Other Operating Costs have remained
low relative to 1st half of 2014 and will
continue to be a focus in 2015.
123
377
24 31
153
0
50
100
150
200
250
300
350
400
450
Net Profit(After tax
plus Assoc.Inc.)
Revenue Bad andDoubtful
Debts
Depreciationand
Amortisation
OtherOperatingExpenses
Kin
a M
illio
ns
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
4
Balance Sheet (Kina ‘billion)
• Growth in loans by K1.5Bn (28%) in
2014 to K6.8bn reflected in an
improved market share of over 50%
in PNG.
• Other Interest Earning assets
(mostly C-bills and T-bills) reduce
through 2014 as investments are
replaced by loans.
• Deposits increase slightly in Q4 ,
note full year growth of K0.5bn to
K12.8bn
• Total Assets of K15.9bn reduced by
K83m in Q4 (2014 inc. K116m)
Foreign Currency placements
decrease K455m in Q4, but note all
other assets increase K368m.
• Total Assets stable with Loan growth
funded by a combination of deposit
growth and reductions on other
interest earning assets.
6.8
4.8
12.8
15.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Loans Other InterestEarning Assets
Deposits Total Assets
Kin
a M
illio
ns
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
5
Market Share
Deposits Loans
56%
24%
39%
47%
0%
10%
20%
30%
40%
50%
60%
70%
PNG Fiji SolomonIslands
Total
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
50%
21%
28%
39%
0%
10%
20%
30%
40%
50%
60%
PNG Fiji SolomonIslands
Total
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
6
Customers and Channels
Customers (‘000) eftPOS
1,527
257
75
1,859
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
PNG Fiji SolomonIslands
Total
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
11,663
1,922
152
13,737
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
PNG Fiji SolomonIslands
Total
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
7
Customers and Channels
ATMs Branches, BSP Rural (PNG)
310
112
19
441
0
50
100
150
200
250
300
350
400
450
500
PNG Fiji SolomonIslands
Total
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
44 41
18
7
110
0
20
40
60
80
100
120
PNG PNG Rural Fiji SolomonIslands
Total
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
8
Financial Risk Management
Capital Adequacy Provisions to Loans
19.4%
4.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Tier 2 Capital
Tier 1 Capital
Return BPNG requirement - 12%
4.6%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
9
Funds
Deposit Type (K ‘billion) Deposit Mix (K ‘billion)
74%
26%
0%
20%
40%
60%
80%
100%
120%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
Kin
a B
illio
ns
Wholesale Retail
Current 10.7 Bn
84%
Term , 2.0 Bn,
16%
10
2014 Full Year Results
11
2014 Full Year Profit & Loss
Profit (K’m) Group Distribution of NPAT (K’m)
2014 2013 YoY D 5yr D
Income 1,582.7 1,522.1 60.6 627.7
Net Interest 852.9 740.9 112.0 308.9
Non Interest 729.8 781.2 (51.4) 318.8
Total Expenses (874.1) (927.4) 53.3 (330.7)
Depreciation &
Amortisation(126.8) (175.8) 49.0 (72.7)
Operating
Expenses(670.5) (658.0) (12.5) (201.8)
Impairment -
Subsidiary0.0 (15.0) 15.0 0.0
Loan Impairment (76.8) (78.6) 1.8 (56.2)
Profit Before Tax 708.6 607.0 101.6 297.8
Profit After Tax 507.3 436.8 70.5 224.2
PNG Fiji S. I %
Bank 457.3 27.3 11.4 98%
Subsidiaries 0%
BSP Capital (0.8) -0%
BSP Life 13.0 3%
BSP CN 0.0 0%
BSP Finance (0.5) (0.3) -0%
% 90% 8% 2% 100%
12
Balance Sheet as at Dec 31 2014
Assets & Liabilities (K’m) Group Distribution of Assets (K’m)
2014 2013 YoY ∆ 5yr ∆
Assets 15,877 15,761 115 5,850
Loans 6,817 5,306 1,511 2,726
Investments 118 117 2 64
Other Assets 8,941 10,338 -1,397 3,060
Liabilities 14,077 14,142 -66 5,184
Deposits 12,708 12,201 507 4,724
Other 1,368 1,941 -573 460
Equity 1,800 1,619 181 666
PNG Fiji S. I %
Bank 12,745 2,028 517 96%
Subsidiaries 0%
BSP Capital 14 0%
BSP Life 545 3%
BSP CN 19 0%
BSP Finance 5 3 0%
% 80% 16% 3% 100%
13
Performance Summary 2014 (1)
• NPAT – The Group recorded a consolidated operating profit after tax of
K507.3 million for the 2014 financial year, a 16.1% increase on the
consolidated 2013 operating profit after tax of K436.8 million.
• Revenue – Group revenues have increased 4% during the year.
– Revenue growth has come from interest income streams,
– Revenues from foreign exchange income reduced from K184.5m
for the 1st half of 2014, to K83m for the 2nd half of 2014 following
changes to the margin bands on foreign exchange.
14
Performance Summary 2014 (2)
• Operating Expenses – Group operating expenses show reductions of -4.3% and operating expenses
will continue to be a focus in 2015.
– The cost to income ratio for the bank is 46.5%, down from 51.7% in 2013.
The Group includes BSP Life operational costs, which is the main driver for a
higher cost to income ratio for the Group of 50.4%, albeit down from 54.8% in
2013.
• Balance Sheet – Total assets of the Group increased, by K116 million to K15.9 billion.
– Group Loans and Advances to Customers has seen net growth of K1.5 billion
to K6.8 billion.
– Group Customer Deposits continue to grow steadily (up 4.1% to K12.7b),
mainly in the retail and government segments in PNG, and in the corporate
segment in Fiji.
• Capital Adequacy – Q4/14 ratio of 24.0% - well above BPNG requirement of 12%
15
Strategy Update
• Growth Strategies – Establishment of BSP Finance PNG and Fiji
– Pacific expansion with acquisition of Westpac’s operations in Samoa, Cook Islands, Vanuatu, Tonga, and Solomon Islands
• Vision/Values – 2014 began with restatement of BSP’s Vision and Values
• People – iCare refresh completed in 2014, launched first cohort of BSP’s 3-year Leadership
Development Program
• Growth – loans and deposits growth and recovered market share in a competitive market
• Choice – focused on improving and extending electronic banking facilities for customers
• Cost Reduction – maintained focus on reducing costs, with cost savings initiatives, benefit realisation on
investments, and progress on implementing property strategy
16
Shares
17
Share Price
K3.46bn market Cap
K3.46bn market Cap
Share Price K7.40
27-Feb
Share Price K7.40
27-Feb
Share Price
in Kina
Share b’back introduced July 2014
Share b’back introduced July 2014
0.0
0.5
1.0
1.5
2.0
2.5
3.0
K6.20
K6.70
K7.20
K7.70
K8.20
K8.70
Volume Traded
in Millions
Consolid’d Earnings per share 108.3 toea
Share price K7.40 as at 27 Feb 2015
Interim Dividend pd. Oct’14 20 toea per share
18
Thank You
Recommended