Bank of South Pacific looking for infrastructure development in next week’s Budget


Bank of South Pacific says it will be closely monitoring next week’s Budget for any opportunities to get involved in infrastructure development, after posting an after-tax profit of  K105 million (US$ 40.4 million) last quarter.


BSP Chairman, Kostas Constantinou

BSP chairman Kostas Constantinou said in a statement that last quarter’s profit is up K7 m ($US2.6 m) on the third quarter last year and the bank’s total profit for the three quarters this year is K310m (US$110 m).

Constantinou says the bank’s performance was bolstered by strong foreign exchange earnings as the market responded to lower stocks of foreign currency.

He said economic conditions have remained subdued and challenging into the final quarter of 2013.

Low interest rates have prevailed, influencing very competitive pricing in the lending market, ‘and further validating a push for greater channel productivity by all banks, via mobile and electronic banking solutions’.

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Constantinou did not detail what infrastructure opportunities the bank was wanting from next week’s Budget, but added other longer term future strategic considerations included ‘business or geographic diversification, a core banking platform renewal, and a review of our branch banking model’.

David Caradus, partner at the accounting firm, Price Waterhouse Coopers PNG has told clients he has asked the government to include in the Budget  a ‘GST deferral scheme’, saying the timing of the payment of GST on imported goods is a ‘potentially significant cost’.

Caradus said PWC has recommended these payments should be paid when lodging a GST return.

To read Paul Barker’s commentary on the direction he thinks next week’s Budget should take, click here.