PNG government account transfer could materially impact BSP Financial Group

BSP Financial Group Limited (BSP) announced that the Papua New Guinea government's national executive council has instructed various departments, including state-owned enterprises, to transfer accounts from commercial banks to the newly established National Banking Corporation Limited. This decision, if fully executed, is anticipated to have a material impact on BSP's net profit after tax. The company is currently evaluating the timing and precise financial implications, alongside developing mitigation strategies.

Despite this potential challenge, BSP confirmed it maintains a robust capital and liquidity position, exceeding current regulatory requirements. As the largest financial institution in Papua New Guinea with a history spanning over a century, BSP operates in seven South Pacific countries, employs more than 4,500 staff, and serves a diverse shareholder base including superannuation funds, landowner companies, and thousands of retail investors.

BSP has reaffirmed its commitment to its customers, employees, shareholders, and the communities it serves, promising to keep the market informed in accordance with its continuous disclosure obligations.