BSP Financial reports record H1 FY26 profit

BSP Financial Group (ASX:BFL) announced a stellar financial performance for the fiscal year ended Dec. 31, 2025, signaling a year of aggressive growth and operational resilience.

The banking giant reported a statutory net profit after tax of 1.17 billion Papua New Guinea kina, representing a 12.9% increase over the previous year.

The growth was fueled by a double-digit surge in revenue, which climbed 14.4% to 3.41 billion kina, underpinned by a 9% rise in net interest income and a 28.7% jump in foreign exchange earnings.

The group's profitability remains a benchmark for the region, boasting a return on equity of 23.8%, placing it at the upper echelon of ASX-listed banks.

Despite a 15.4% increase in operating expenses—attributed to higher employment costs and the "Modernising for Growth" technology initiative—BSP maintained a disciplined cost-to-income ratio of 42.9%.

Credit quality also remained high, with delinquency rates dropping to 2.7% amid a supportive economic environment.

Group CEO Mark T. Robinson credited the success to disciplined execution across all major markets, noting increases in earnings, deposits, and customer activity.

The board declared a full-year dividend of 1.88 kina per share, with the final 1.38 kina installment scheduled for payment on March 27.

At the time of reporting, BSP Financial Group's share price was $8.55.