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Fiji Time: 4:09 AM on Friday 25 April

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BSP loans slow down

Geraldine Panapasa
Monday, January 28, 2013

BANK of South Pacific Group loan volume growth slowed by peaking Papua New Guinea project momentum, business cash reserves and the PNG election period totalling $PGK4.6billion ($F3.86b) for the third quarter of 2012.

In the latest unaudited market update, the bank said other interest earning investments were affected by government debt management.

The report showed loans and advances for the third quarter of last year totalled $PGK3.6b ($F3.02b) in PNG while overseas figures stood at $PGK1b ($F0.84b)

"There was growth in cash and other assets through high volumes in payment cycles and lack of alternative investment opportunities," the report said.

"Continued strong growth of total assets including increased investment in BSP's banking infrastructure continued to the 10 per cent year on year loan growth, 27 per cent year on year investments growth and 16 per cent year on year deposits growth."

Other interest earning investments in PNG totalled $PGK4.9b ($F4.12b) while overseas figures totalled $PGK0.3b ($F0.25b).

Customer deposits totalled $PGK10.6b ($F8.89b), bulk of this from PNG customers while a small percentage was from overseas customers.

Net assets totalled $PGK1.4b ($F1.17b) while total assets were valued at over $PGK13b ($F10.9b).