Bank South Pacific
| File:Bank South Pacific logo.PNG | |
| Company type | Public |
|---|---|
| PoMSOX:BSP | |
| Industry | Financial services |
| Founded | 1957 |
| Headquarters | Port Moresby, Papua New Guinea |
Area served | Papua New Guinea Solomon Islands Fiji Niue |
Key people | |
| Products | Banking, financial and related services |
| Revenue |  K1.35 billion PGK (2012) |
| K407.74 million PGK (2012) | |
Number of employees | 3,000 full time equivalent[1] |
| Website | www.bsp.com.pg |
Bank South Pacific (or BSP) is Papua New Guinea’s largest bank, with 35 branches throughout the country and in operation in 4 countries. BSP currently services over 650,000 business banking customers throughout the Pacific.[2] As of 31 December 2011 BSP has total assets valued at K11.7 billion and market capitalisation at K3.6 billion.[3]
History
The bank traces its history back to 1 May 1957 when the National Bank of Australasia established a branch in Port Moresby. As independence approached for Papua New Guinea (PNG), the incoming government made known its desire that all banks in PNG be locally incorporated, rather than branches of a foreign parent. In response, the National Australia Bank (NAB) incorporated its operations in 1974.
Then the government encouraged the bank to sell equity to local citizens. BSP conducted public offerings in 1980 and 1981, with the result that local citizens came to hold 13% of the bank's shares. Later, the government decided to acquire control of BSP. In 1993, National Investment Holdings Limited (NIHL) first acquired NAB’s 87% shareholding, and then the 13% of the shares in the hands of the public, giving it 100% ownership of BSP. In 1995 the government decided to increase the bank's capital base, which it achieved by selling a 25% stake to Credit Corporation (PNG) and a 22% stake to Motor Vehicles Insurance (PNG) Trust (now incorporated as Motor Vehicles Insurance Limited).
Actually, the bank's history traces back even further than 1957, though the bank doesn't mention this. In 1916, Commonwealth Bank, the Australian government-owned bank, established a branch in Rabaul and agencies in other towns, to support the banking needs of the Australian Army and its troops who had taken control of the former German colony of New Guinea. In time, this operation became a full-fledged commercial banking operation. Then in 1974, Commonwealth Bank withdrew from PNG by transferring its operations to the new government, which gave the bank the name "Papua New Guinea Banking Corporation" (PNGBC). Unfortunately, PNGBC ran into problems so in 2002, BSP acquired the government’s 49% stake in PNGBC in return for giving the government a 25% stake in BSP. Between 2002 and 2008 BSP and PNGBC merged.
Since 2004, BSP has pursued a strategy of expanding in the South Pacific. It first acquired Westpac’s branch in Niue, which was the only bank of any kind on the island. Westpac had established the branch in 1988 but was interested in reducing some of its operations in the area. Two years later, in 2006, BSP made two further acquisitions. It bought National Bank of Solomon Islands from the government of the Solomon Islands, and it acquired Habib Bank (Fiji), which had begun in 1991 as a branch of HBL Pakistan. Most recently, in December 2009, BSP wholly acquired Colonial National Bank from Commonwealth Bank, thereby further increasing its presence in Fiji.[4]
Notes and references
- ^ PRESS RELEASE - POMSox Announcement BSP now the major banking group in the Pacific - 16/12/09 [1]
- ^ BSP Info Brochure
- ^ [2]
- ^ From Colonial Fiji Newsroom at
Sources
- Tschoegl, A. E. 2005. Foreign Banks in the Pacific: A Note. Journal of Pacific History 40 (2): 223-235.
External links