BSP Financial Group and Oil Search present half year results, Papua New Guinea signs agreement with the Organisation for Economic Co-operation and Development. The business news you need today.

The Central Bank rejects claims it is propping up the kina. Source: BAI

Banking

Last week, BSP Financial Group Limited announced its half year results – a net profit after tax result of K449.3 million, which represents a 17.6 per cent increase compared to the same period last year, and total revenue up by 8.4 per cent. The bank attributed the increase to improved liquidity levels in PNG and offshore branches, except Fiji, as well as eased COVID-19 restriction. BSP Financial Group also said that ‘foreign exchange related income across the group increased 6.1 per cent compared to prior year, driven by improved currency flow derived from Bank of PNG interventions.’ (BSP Financial Group)

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Providing an update on the rollout of the Small Medium Enterprise Credit Enhancement Scheme, the Chief Executive Officer of Bank South Pacific Financial Group, Robin Fleming, reportedly said that the bank has loaned out K55 million to K58 million out of the K100 million it received last year from the government. Fleming said: ‘Certainly, we have been successful in getting K55 million out and we are confident that we will continue the draw down process with customers who do qualify.

‘We have also adjusted some of the qualification requirements reducing the equity down to 10 per cent and also the increase the turnover threshold customers in that SME category.’ (The National)

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Loi Bakani, Governor of the Bank of PNG, reportedly told The National that Teachers Savings and Loans Society’s (TISA) application for a banking licence is still ‘going through the approval process.’ With a balance sheet of over K986 million at the end of 2020, Tisa wants to enter the banking space. BPNG Assistant Governor, Ellison Pidik, explained that TISA  and the BPNG are working on identifying priority areas. It was reported that one of them is establishing relationships with corresponding banks overseas. (The National)

Resources

Oil Search also presented its half yearly results – 75 per cent increase in revenue and an eight per cent in earnings before interest, taxes, depreciation, amortization, and exploration expense. The company said that the results have to do with the oil and LNG markets recovery from the initial impacts of the pandemic and a ‘robust demand rebound in Asia.’

‘We have seen a significant increase in core earnings, reflecting higher realised oil prices and a sustained focus on reducing underlying costs, whilst a lower net debt position has contributed to a significant improvement in the company’s overall financial strength.’ (Oil Search)

International

PNG has signed the Multilateral Convention on Mutual Administrative Assistance with the Organisation for Economic Co-operation and Development (OECD) joining 142 countries. Joshua Kalinoe, PNG Ambassador to Belgium and the EU, signed the agreement on behalf of PNG. The agreement means that PNG will open up ‘its treaty network for the exchange of information for tax purposes, including on tax evasion and avoidance with signatory jurisdictions. Kalinoe said in a statement: ‘It is my hope that PNG will work closely with the OECD to ensure that my country meets international financial accountability standards, including on tax compliance and money laundering.’ (Embassy of PNG, Brussels)

Gender equality

The Pacific Institute of Leadership and Governance and the United Nations (UN)  Women have signed a Memorandum of Understanding to establish a Political Leadership Academy in PNG. The Academy, the first of its type in PNG, will be established under the UN Women’s Women Make the Change Program to help support and promote women’s political participation by providing training, mentorship and learning exchange opportunities. (LOOP PNG)

BSP Financial Group CEO Robin Fleming will be speaking at the 2021 Business Advantage Papua New Guinea Investment Conference (7–9 September). For more information, visit www.pnginvestmentconference.com.