BSP Financial : Half-Year 2022 Financial Statements

BSP Financial Group Limited and Subsidiaries

ARBN 649 704 656

Interim Condensed Financial Statements

For the half-year ended

30 June 2022

Contents of the Interim Condensed Financial Statements

		Page
Directors' Report	1
Independent Auditor's Review Report	2
Interim Condensed Statements of Comprehensive Income	3
Interim Condensed Statements of Financial Position	4
Interim Condensed Statements of Changes in Shareholders' Equity	5
Interim Condensed Statements of Cash Flows	6
Notes to the Interim Condensed Financial Statements	7
1	Statement of significant accounting policies	7
2	Operating profit before income tax	8
2(a)	Net interest income	8
2(b)	Fee and commission income and other income	9
2(c)	Impairment on financial assets	10
2(d)	Operating expenses	11
3	Segment information	11
4	Income tax expense	13
5	Loans and receivables from customers	14
6	Allowance for expected credit losses	14
7	Shareholders' equity	23
8	Capital adequacy	25
9	Fair values of financial and non-financial assets and liabilities	25
10	Contingent liabilities and commitments	27
11	Derivative financial instruments	28
12	Related parties	29
13	Notes to interim condensed statements of cash flows	29
14	Additional company tax	30
15	Subsequent events	30

APRA Disclaimer:

BSP Financial Group Limited (BSP) is not authorised under the Banking Act 1959 (Commonwealth of Australia) and is not supervised by the Australian Prudential Regulation Authority (APRA). BSP's products are not covered by the depositor protection provisions in Section 13A of the Banking Act 1959 and will not be covered by the financial claims scheme under Division 2AA of the Bank Act 1959.

Report on review of interim condensed financial statements

to the Directors of BSP Financial Group Limited

Introduction

We have reviewed the accompanying interim condensed statements of financial position of BSP Financial Group Limited (the Bank) and its subsidiaries (the Group) as at 30 June 2022 and the related interim condensed statements of comprehensive income, changes in shareholders' equity and cash flows for the six-month period then ended and notes, comprising a summary of significant accounting policies and other explanatory notes. The Directors are responsible for the preparation and presentation of this interim condensed financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this interim condensed financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting'.

Restriction on distribution or use

This report is made solely to the Directors of the Bank, as a body. Our review work has been undertaken so that we might state to the Directors those matters which we are required to state to them in our review report and for no other purpose. We do not accept or assume responsibility to anyone other than the Directors of the Bank, as a body, for our review work, for this report or for the conclusion we have formed.

PricewaterhouseCoopers

Peter Buchholz
Partner	Port Moresby
Registered under the Accountants Act 1996	17 August 2022

PricewaterhouseCoopers, PwC Haus, Level 6, Harbour City, Konedobu, PO Box 484

Port Moresby, Papua New Guinea

T: [phone] / [phone], www.pwc.com.pg

2	BSP Financial Group Limited June 2022 Financial Statements

INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 30 JUNE 2022

		Consolidated	Bank
	Note	Half Year Ended 30 June	Half Year Ended 30 June
All amounts expressed are in K'000		2022	2021	2022	2021
Interest income	2(a)	916,548	832,158	863,751	772,988
Interest expense	2(a)	(41,044)	(56,994)	(34,634)	(48,233)
Net interest income		875,504	775,164	829,117	724,755
Fee and commission income	2(b)	207,381	181,315	191,650	163,070
Other income	2(b)	194,408	177,682	209,002	196,366
Net insurance operating income		9,094	9,630	-	-
Net operating income before impairment and
operating expenses		1,286,387	1,143,791	1,229,769	1,084,191
Impairment on financial assets	2(c)	20,203	(62,615)	25,381	(54,252)
Operating expenses	2(d)	(470,224)	(441,870)	(434,807)	(403,225)
Additional Company Tax	14	(190,000)	-	(190,000)	-
Profit before income tax		646,366	639,306	630,343	626,714
Income tax expense	4	(250,246)	(189,986)	(237,301)	(177,488)
Net profit for the period		396,120	449,320	393,042	449,226
Other comprehensive income
Items that may be subsequently reclassified to profit or loss:
Translation of financial information of foreign
operations to presentation currency		(52,358)	(16,141)	(27,305)	(9,228)

Items that will not be reclassified to profit or loss:

De-recognition of deferred tax on asset revaluation reserve Fair value gain/(loss) on re-measurement of investment securities

Net movement in asset revaluation reserve

Other comprehensive income, net of tax

Total comprehensive income for the period

1,581	-	1,581	-
(49)	20	(49)	20
(515)	157	-	-
(51,341)	(15,964)	(25,773)	(9,208)
344,779	433,356	367,269	440,018

Earnings per share - Basic and diluted (toea)

84.8

96.2

84.1

96.1

Comparative period amounts have been restated to conform to presentation in the current year.

The attached notes form an integral part of these interim condensed financial statements.

3	BSP Financial Group Ltd June 22 Financial Statements