BSP First Half 2026 Trading Update: Strong Performance, Continued Investment
BSP Financial Group Limited delivered solid first-half earnings growth, supported by broader revenue, strong foreign exchange income and continued lending momentum, while investment under its Modernising for Growth program kept costs elevated.
Issued 21 August 2026 • Banking & Finance • 1H26 vs 1H25
Prepared by JMP Securities Limited — Equities Research
BSP delivered a strong start to FY2026, with unaudited statutory NPAT of K619.9 million, up 8.4% on 1H25. Revenue rose 17.7% to K1.89 billion, underpinned by broad-based growth across lending, payment services and customer-driven FX earnings. Operating expenses grew faster than revenue as the Group continued to invest through its Modernising for Growth program. Credit quality remained sound and capital ratios stayed comfortably above regulatory minimums.
First Half 2026 at a Glance
H1 2026 Results Snapshot
| PGK millions | 1H25 | 1H26 | Change % |
|---|---|---|---|
| Net interest income | 1,017 | 1,174 | +15.4% |
| FX income | 321 | 429 | +33.8% |
| Revenue | 1,606 | 1,890 | +17.7% |
| Operating expenses | (681) | (825) | +21.1% |
| Credit impairment charges | (62) | (66) | +6.5% |
| Statutory NPAT (unaudited) | 572 | 620 | +8.4% |
JMP Commentary
Performance Overview
PNGX Trading Activity — January to June 2026
BSP shares delivered a first-half total return of +18.7% — a +13.0% capital return from K24.55 to K27.75 plus the K1.38 dividend. Volumes were heaviest in April and thinnest in March, with the stock re-rating steadily higher through Q2.
| Month | Trading Days | Volume | Value (PGK) | Close Range |
|---|---|---|---|---|
| January 2026 | 14 | 711,725 | K17.5m | K24.55 |
| February 2026 | 11 | 302,574 | K7.5m | K24.55 – K25.36 |
| March 2026 | 9 | 18,069 | K0.5m | K25.37 – K26.91 |
| April 2026 | 13 | 1,121,117 | K30.2m | K26.90 – K27.50 |
| May 2026 | 16 | 1,047,078 | K29.0m | K27.50 – K28.00 |
| June 2026 | 17 | 1,041,634 | K29.1m | K27.75 – K28.15 |
Outlook & JMP View
- El Niño is weighing on agricultural output and production at some major PNG resources projects.
- Management remains optimistic on a medium-term resources super cycle across PNG and the South Pacific.
- BSP has been named exclusive banking partner of the 2026 Rugby League World Cup and plans a new purpose-built Port Moresby headquarters.
Momentum intact; the cost program is still the story to watch.
H1 NPAT growth of 8.4% and revenue growth of 17.7% confirm continued operating momentum, with FX income again the standout. The 43.8% CTI ratio sits near the top of the 42%–45% target band, while management continues to guide to peak Modernising for Growth spend through 2026–2027. Capital adequacy of 25.3% continues to support growth and dividend capacity.
Non-Financial Highlights
Speak to JMP Securities for research questions, market colour or trading enquiries.
Lars Mortensen
Managing Director
lars.mortensen@jmpmarkets.com | +675 7056 5124
Nathan Chang
Director — Head of Equities
nathan.chang@jmpmarkets.com | +675 7167 3223
Benny Takin
Equities Trader
benny.takin@jmpmarkets.com | +675 7001 9121
Disclaimer
This client alert has been prepared by JMP Securities Limited (Capital Market Licence holder, Securities Commission of PNG). It is general information only and does not take into account the objectives, financial situation or needs of any particular person and is not an offer or solicitation to buy or sell any security. Information is sourced from BSP Financial Group Limited’s First Half 2026 Financial Results (21 August 2026), PNGX matched on-market trade data (January–June 2026) and JMP analysis. Investors should obtain independent professional advice before making any investment decision.