Bank South Pacific

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Bank South Pacific (BSP) is the biggest bank in Papua New Guinea. It runs 121 branches across PNG and seven other Pacific nations, serving more than 650,000 business customers. By the end of 2022, BSP had assets of about K33.9 billion and around 3,000 employees. It is listed on the PNG Stock Exchange and the Australian Securities Exchange.

Overview
BSP Financial Group Limited operates as BSP and is known for providing banking and financial services across the Pacific region. Its growth and presence come from expanded operations in several Pacific islands, making it a regional financial leader.

History
BSP’s origins go back to 1957, when the National Bank of Australasia opened a branch in Port Moresby. As Papua New Guinea moved toward independence, the government pushed for locally incorporated banks. The central bank, Bank of Papua New Guinea, was established in 1973. Over the years, BSP gradually increased local ownership and control. In 1993, NIHL acquired NAB’s stake, giving BSP full ownership. In the mid-1990s, the government raised BSP’s capital by selling stakes to local investors. In 2002, the government swapped stakes with BSP, leading to a merger with PNG Banking Corporation (PNGBC), which was completed by 2008.

Pacific expansion
Since 2004, BSP has expanded across the South Pacific. It acquired Westpac’s Niue branch (the island’s only bank) in 2004, later selling Niue to Kiwibank in 2013. In 2006, BSP bought the National Bank of Solomon Islands, and in 2009 it acquired the Colonial National Bank in Fiji. Westpac’s banking operations in Samoa, the Cook Islands, the Solomon Islands, Vanuatu, and Tonga were added to BSP after an agreement in 2015, with the deal closing in 2016. In 2020, BSP celebrated five years of operations in the Cook Islands.

Recent milestones
BSP listed on the Australian Securities Exchange in 2021, reflecting its growth beyond PNG. The bank has continued to build a regional network, offering banking and financial services across the Pacific while maintaining its roots in Papua New Guinea.