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NUKU’ALOFA, TONGA – BSP Tonga has announced a net profit after tax of T$11.6 million for the financial year ending December 31, 2024, marking a 20.9% decrease compared to the previous year. The decline is attributed to higher loan impairments and inflationary pressures, which led to increased operating expenses. Despite the drop in profits, BSP Tonga maintains strong liquidity and remains the leading bank in Tonga, serving over 47,000 active customers across the Kingdom.
BSP Tonga’s Financial Performance and Key Drivers
BSP Tonga’s financial results reflect a challenging year for the bank, with a notable decline in net profit due to economic factors. According to BSP Tonga Country Head, Mrs. Faasu Atkinson, the decrease in profitability was driven by a rise in loan impairments alongside inflationary pressures that increased the bank’s operating costs.
Despite these challenges, Mrs. Atkinson emphasized that the bank remains stable, well-capitalized, and with sufficient liquidity to continue supporting its customers. “We are committed to being the bank of choice for customers in Tonga,” she said, pointing to the bank’s strong market share in deposits and lending. BSP Tonga also boasts the highest digital footprint in the country, with 15 ATMs, 285 EFTPoS terminals, and 38 agents across various regions, ensuring customers can access services even outside regular banking hours.
Community Engagement and Social Responsibility
BSP Tonga continues to play a significant role in the community, a key aspect of its corporate social responsibility. In September 2024, the bank made generous donations of TOP$50,000 to local charities, including the ‘Ofa Tui moe ‘Amanaki Disability Centre and the Children’s Ward at Vaiola Hospital, as part of its 50th-anniversary celebrations. In addition, the bank contributed TOP$2.3 million through FX Levy payments to the Government of Tonga, supporting sports and other community initiatives.
These actions highlight BSP Tonga’s commitment not only to its financial success but also to the well-being of its customers and the broader Tongan community.
Recognition and Customer Satisfaction
BSP Tonga’s commitment to delivering top-tier customer service has been recognized by its clients, as evidenced by the bank’s recent accolade for ‘Best Customer Service’ in the Financial Institution category. This award was based on online votes from customers and the public, underlining BSP Tonga’s continued focus on improving the customer experience across all channels.
BSP Group’s Wider Performance
The financial performance of BSP Tonga comes as part of the wider BSP Financial Group’s results, with the Group CEO, Mark Robinson, reporting a statutory net profit after tax of K1.038 billion (AUD$408 million) for the full year. This reflects the strong regional presence and ongoing growth of the BSP Group across the Pacific.
What’s Next for BSP Tonga?
Looking ahead, BSP Tonga remains focused on its mission to strengthen its position as the leading financial institution in the Kingdom. As the bank continues to manage economic pressures and capitalize on its market dominance, future profitability will depend on how effectively it navigates external challenges, including inflation and global financial uncertainty. However, with its strong community engagement and focus on customer satisfaction, BSP Tonga is poised to continue its role as a key player in Tonga’s financial sector.
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