BUSINESS conditions for the Bank of South Pacific Group moderated in the third quarter of 2012 following the completion of some Papua New Guinea liquefied natural gas (LNG) project construction activities.
In its 2012 Quarter Three Results report, the group said the result was also linked to the build-up of surplus liquidity in businesses.
Group deputy chief executive officer and chief financial officer Johnson Kalo released the summary saying the 2012 full year financials were in the process of auditing. He said the fourth quarter update would be released to the Port Moresby Stock Exchange Limited (POMSoX) soon.
"Inflation management continues to be transmitted through a cash reserving policy while interest rates on short-term bank bills and deposits remained depressed," the report said.
"Bank liquidity growth has continued with limited opportunities to invest surplus funds and re-investment rates persistently low. With growing liquidity, higher card transaction volumes are being observed across the bank's large network of Electronic Funds Transfer at Point of Sale (EFTPOS), automatic teller machines, rural agents and branches."
The report said work on BSP systems platforms continued including deployment of globally innovative technology in banking services in PNG.
"Financial benchmarks remain reasonable, group capital position is sound and annualised return on equity close to 30 per cent while cost to income is 56 per cent," the report said.
The report showed deposit volume growth had slowed and was reflected in loan and other financial assets trends.