presentation to shareholders - pngpresentation to shareholders 23 may 2014 robin fleming ... 200 400...

Presentation to Shareholders 23 May 2014 Robin Fleming - Group CEO

2
Vision
To be the Leading Bank in PNG and the South Pacific.
Strategic Imperatives
To maintain, develop, and foster customers that will deliver value to BSP; through customer care, best employees and innovation, and a continuing contribution to community development.

3
Strategic Focus 2013
In 2013 BSP moved from transformation to implementation
BSP has placed a sharper focus on strategically critical areas and cost control measures
This focus has supported short term results in 2013 and is expected to positively impact future results

4
Strategic Imperatives 2014
A key component of BSPs strategy will be a whole of bank sales and service program integrated with our vision, our values, our culture
Linkage of BSPs values of integrity, professionalism, leadership, quality, people, and teamwork is intrinsic to embedding a true service and sales culture within BSP

5
BSPs optimal sales and service culture is to place customer satisfaction at the forefront of planning processes and operational activities
Customer satisfaction should then translate to improved returns for shareholders
BSP is placing a renewed emphasis on training and career development of staff
Financial inclusion remains a key objective of Retail banks strategy

6
Improved customer Sales & Service will be delivered through market leadership in innovation, technological advances and the modernization of all our systems and procedures, and the continued simplification & automation of all our operational & support processes.
Appropriately train, develop & reward our staff.
Continue our Social & Sporting commitment to people and communities in which we operate.

7
BSPs Strategic Map

Economic Conditions

Global Economy
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2011 2012 2013 2014
GD
P g
row
thGlobal GDF growth (real)
Advanced economies
Emergies and developing economies
World
Global GDP growth (real)

PNG Economy
10
0%
5%
10%
15%
20%
25%
02468
101214161820
2009 2010 2011 2012 2013 2014 2015
GD
P g
row
th %
US
Billio
ns
PNG GDP
GDP World Bank Bank of PNG IMF
- 1,000 2,000 3,000 4,000 5,000
Oil and gas extraction
Electricity, gas and water
Other
Finance, property, business services
Mining and quarrying
Transport, storage and comms
Manufacturing
Wholesale and retail trade
Community, social, personal services
Construction
Agriculture, forestry and fishing
Kina millions
Real GDP by economic activity 2012 2015

11
Financial Performance 2013

12
Group Profit Before Tax (Kina million)
103
534
595
-
100
200
300
400
500
600
700
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

13
87
408 437
-
50
100
150
200
250
300
350
400
450
500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Group Profit After Tax (Kina million)

14
Group Profit & Loss Trends
(Millions of Kina) 2009 2010 2011 2012 2013
CAGR,
last 5
Years
Income
Net Interest Income 474 544 597 682 741 14.5%
Foreign Exchange Income 104 139 193 224 353 22.7%
Fee and other Income 147 272 304 380 428 29.6%
Total Income 726 955 1,094 1,285 1,522 19.6%
Expenses
Operating Expenses (296) (469) (547) (597) (658) 26.6%
Depreciation and SW Amort'n (39) (54) (53) (84) (176) 45.0%
Bad and doubtful debt (15) (21) (25) (71) (79) 47.2%
Other expenses 2 (1) (15) -21.4%
Profit before tax 378 411 468 534 595 12.5%
Tax expense (121) (128) (119) (138) (170) 11.1%
Share of Profits from Assoc. 6 11 12
Profit after tax 257 283 356 408 437 13.8%
EPS (toea) 56.3 59.1 75.9 86.9 93.3 13.0%
Dividends per share (toea) 22.0 53.7 47.3 55.0 58.0 21.4%

15
Group Total Assets (Kina billion)
2.20
13.33
15.81
-
2
4
6
8
10
12
14
16
18
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

16
Group Deposits & Loans (Kina billion)
0.68
4.80 5.31
1.84
10.86
12.20
0
2
4
6
8
10
12
14
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Loans Deposits

17
Group Balance Sheet Trends
(Millions of Kina) 2009 2010 2011 2012 2013
CAGR,
last 5
Years
Assets
Cash & Short Term Deposits 1,188 1,344 1,501 2,134 3,476 37.1%
Loans & Advances 3,639 4,091 4,301 4,805 5,306 17.8%
Investments 3,886 3,857 4,724 4,861 5,571 10.6%
Fixed Assets + Other Assets 685 735 1,155 1,533 1,455 30.8%
Total Assets 9,398 10,027 11,681 13,333 15,809 18.4%
Liabilities
Customer Deposits 7,494 7,985 9,366 10,861 12,201 16.1%
Non-Lending Provisions 165 95 170 109 143 -0.6%
Other Liabilities 805 813 801 898 1,845 68.9%
Total Liabilities 8,464 8,893 10,337 11,867 14,190 18.5%
Shareholder Equity 934 1,134 1,344 1,466 1,619 16.8%

18
Group Interest Income
11.3%
4.2%
7.7%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013
Returns on Loans and Investments
Return on Loans Return on Investments Returns- Loans & Investments

19
Cost To Income Ratio BSP Group
55.3% 57.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

20
Cost to Income ratio BSP PNG Bank
61.3%
54.2% 52.3%
40.6%
44.8% 43.4%
46.9%
50.1%
46.9% 50.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

21
Non Interest Income to Total Income
41.0%
47.1%
39.1%
42.2%
39.3%
34.7%
43.0%
45.4%
47.0%
51.3%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

22
Channel Performance 2009 to 2014

23
* PNG 8,456 merchants
BSP continues to expand its service channels
BSP Group Banking Services as at April 2014
Branches
BSP Rural
sub-
branches ATM's EFTPOS
AGENTS/
Rural
Outlets
PNG 42 39 295 12,535 225
FIJI 18 - 108 1,838 42
SI 7 - 18 129 17
*

24
ATMs 20092014
100
150
200
250
300
350
1,000
1,500
2,000
2,500
3,000
3,500
2009 2010 2011 2012 2013 2014
ATM Transactions
No. of ATMs
Tx Per
Month (000)
No. Of
ATMs

eftPOS 20092014
25
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2009 2010 2011 2012 2013
eftPOS Transactions
No. of eftPOS Terminals
No. of
eftPOS terminals
Tx Per
Month (000)

26
Branch Transactions 2009-2014 per month (000)
300
400
500
600
700
800
900
2009 2010 2011 2012 2013 2014

27
600
800
1,000
1,200
1,400
1,600
1,800
2011 2012 2013
PNG Retail Accounts
Accounts - Group
Retail Customers 20112014 No. Of Accounts (In 000)

28
Group Income Analysis

29
0
200
400
600
800
1,000
1,200
1,400
1,600
2009 2010 2011 2012 2013
Group Income Growth 2009 - 2013 (Kina million)
Other Income
Net Insurance Income
Fx Income
Banking Fee and Commissions
Net Interest Income

30
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013
Group Relative Composition of Income 2009-2013
Other Income
Net Insurance Income
Fx Income
Banking Fee and Commissions
Net Interest Income

31
Competition Analysis PNG Banks
BSP, ANZ, WBC
12 Months to September 2013

32
Branches
0 20 40 60 80 100
BSP (incl Rural)
ANZ
WBC
81
15
15

33
ROE
0.0% 10.0% 20.0% 30.0% 40.0%
WBC
ANZ
BSP
WBC, 32.4%
ANZ, 28.1%
BSP, 28.3%

34
Profit After Tax (Kina million)
BSP, 393.8Mn
ANZ, 313.0Mn
WPAC,

presentation to shareholders - pngpresentation to shareholders 23 may 2014 robin fleming ... 200 400...

Documents