BSP Financial shares fall on 24% profit drop
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The news: Shares in BSP Financial dipped on the ASX after Papua New Guinea's largest bank reported a 24% fall in unaudited profit in the three months to September compared to the previous quarter.
The numbers: BSP shares were down 1.6% to $6.20 by 2:20pm AEDT.
BSP reported net profit after tax of 233 million PNG kinas ($88.8 million), down 24% compared to the June quarter.
Quarterly operating profit was down 4% to 429 million kinas, while earnings before tax fell 5.1% to 406 million kinas. Operating expenses increased 7.4% to 321 million kinas. Q3 revenue lifted 0.7% to 750 million kinas.
The context: BSP said the group's NPAT drop was driven by the one-off positive impact in the second quarter of a 95 million kinas tax settlement, partially offset by a 36 million kinas joint venture impairment.
BSP's higher operating expenses during the quarter were in line with the bank's 'modernisation strategy', including an increased staff costs due to a greater number of specialist roles, and rises in administration and premises costs.
The bank noted that the strategy involves "a period of substantial, but prudent investment", to modernise its operations and better service its customers.
The source: ASX announcement
