#1Investor Presentation 1H-2023 Mark T. Robinson BSP Financial Group Limited [ARBN: 649 704 656, Incorporated in Papua New Guinea] BDD BSP#2Disclaimer NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES This presentation has been prepared and issued by BSP Financial Group Limited (the "Company"), and may not be reproduced in whole or in part, nor may any of its contents be disclosed to any other person without the prior written consent of the Company. This presentation is provided by the Company for general information purposes only, without taking into account any recipient's personal objectives, financial situation or needs. It should not form the basis of or be relied on by the recipient in considering the merits of any particular transaction and does not purport to contain all of the information that an interested party may desire. 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Actual future results and operations are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company, and could vary materially from the Forward Statements. Similarly, no representation or warranty is made that the assumptions on which the Forward Statements are based may be reasonable. This presentation contains certain non-IFRS measures that the Company believes are relevant and appropriate to understanding its business. No audit, review or verification has been undertaken by an independent third party of the assumptions, data, historical results, calculations and forecasts presented. Past performance is no guarantee of future performance. The recipient acknowledges that no person is intended to act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other person. By accepting and providing this presentation, the recipient expressly disclaims any fiduciary relationship with any person and agrees that the recipient is responsible for making its own independent judgements with respect to any transaction and any other matters regarding this presentation. The Company is not authorised under the Banking Act 1959 (Cth) (the "Banking Act") and is not supervised by the Australian Prudential Regulation Authority. The Company's products are not covered by the depositor protection provisions in section 13A of the Banking Act and will not be covered by the financial claims scheme under Division 2AA of the Banking Act. !!!BSP INVESTOR PRESENTATION 1H-23 2#3South Pacific market leader BSP PNG SOLOMON IS. VANUATU SAMOA FIJI TONGA COOK IS. INVESTOR PRESENTATION 1H-23 25.5m per month transactions 2 ~ 3.5m Customer accounts 125 branches Largest network K14.9b [A$6.1b] In net lending K35.1b [A$14.4b] In total assets K6.1b on PNGX [A$2.6b on ASX] Market capitalisation 1 1 Market capitalisation values based on last price as at 17/08/23 on ASX ($5.60) and PNGX (K13.05). 3#41H-23 results Net Profit After Tax K427.2m 7.6% from 1H-2022 Earnings per share KO.91 ... 7.6% from 1H-2022 Market capitalisation K6.0b 2.3b on the ASX 1H-23 vs 1H-23 1H-22 1H-22 Net profit after tax [km] 427.2 397.2 +7.6% Cost-to-income ratio [%] 38.1 36.5 +160bps Earnings per share [toea] 91.4 85.0 +7.6% PNGX market capitalisation¹ [Kb] 6.1 5.8 +5.2% ASX market capitalisation¹ [A$b] 2.6 2.3 +13.0% Total assets [Kb] 35.1 31.5 +11.6% Capital adequacy ratio [%] 22.5 23.2 -70bps 1 Market capitalisation values based on last price as at 17/08/23 on ASX ($5.60) and PNGX (K13.05). Note: Comparatives for prior periods have been restated to reflect the modified retrospective transition to the new accounting standard IFRS 17 (Insurance contracts), which came into effect on 1 January 2023. BSP INVESTOR PRESENTATION 1H-23 4#51H-2023 Group Financial Performance#6Operating profit trend INCOME [km] OPERATING EXPENSE +4.2% [km] 1,143.8 1,287.4 1,341.1 A$548m +8.7% 510.9 470.2 441.9 A$209m 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 OPERATING PERFORMANCE [km] 701.9 +1.6% 830.2 817.2 A$339m 1H-21 1H-22 1H-23 !!!BSP OPERATING PROFIT BEFORE IMPAIRMENTS AND TAXES 1H-23 VS 1H-22 [km] +1.6% 39.8 817.2 13.9 830.2 (40.7) 1H-22 Net interest Non-interest income income Operating expenses 1H-23 INVESTOR PRESENTATION 1H-23 6#7Tax impacts Two material PNG taxation changes occurred in 2022 and 2023. 2022 - payment of the K190m additional company tax (ACT) ● 2023 - increase in tax rates for commercial banks from 30% to 45%. Adjusting for the impacts of the above taxes, the Group NPAT reduced by 8.9%. TAX IMPACTS ON NPAT [km] 397.2 190.0 BSP -8.9% 587.2 427.2 107.8 In 535.0 1H-22 NPAT ACT Impact 1H-22 underlying 1H-23 NPAT 15% tax impact NPAT 1H-23 NPAT recalculated @ 30% INVESTOR PRESENTATION 1H-23 7#8Credit quality Impairment expenses increased by K98.8m off a low 1H-22 base, due to post COVID-19 provision releases in 2022. 1H-23 impairment expense as a percentage of gross loans, is broadly in-line with historic levels. 10 YEAR TREND-IMPAIRMENT EXPENSE TO GROSS LOANS [%] 0.46% 0.49% 0.37% 0.37% 0.28% 0.28% 0.80% 0.44% -0.14% 0.50% 1H-14 1H-15 1H-16 1H-17 1H-18 1H-19 1H-20 1H-21 1H-22 1H-23 !!!BSP IMPAIRMENT EXPENSE [km] 62.6 +K98.8m 78.6 A$32m 1H-21 (20.2) 1H-22 1H-23 INVESTOR PRESENTATION 1H-23 8#9Balance sheet NET LOANS [Kb] 13.8 13.4 +8.3% 14.9 CAGR 4.1% TOTAL ASSETS [Kb] A$6.1b # 1H-21 1H-22 1H-23 DEPOSITS [Kb] 23.0 25.1 +13.1% 31.5 28.9 +11.6% CAGR 35.1 12.1% A$14.4b 1H-21 1H-22 1H-23 DEPOSIT MIX [Kb] CAGR 28.4 13.3% A$10.9b 1H-21 1H-22 1H-23 !!!BSP INVESTOR PRESENTATION 1H-23 ■Demand deposits ■Term deposits 3.0 CAGR 2.7 3.2 25.4 -7.5% 22.4 19.8 17.2% # 1H-21 1H-22 1H-23 9#10Key ratios COST TO INCOME [%] 38.6% 36.5% RETURN ON AVERAGE EQUITY [Annualised, %] +160bps 38.1% 26.4% 21.9% -10bps RETURN ON AVERAGE ASSETS [Annualised, %] -10bps 3.2% 2.6% 21.8% 2.5% 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 CAPITAL ADEQUACY¹ [%] 1 -70bps 23.0% 23.2% 1H-21 1H-22 Based on Bank of Papua New Guinea prudential standards BSP 22.5% PROVISIONS TO LOANS [%] 6.1% 4.6% -30bps NET NPL TO LOANS [%] +60bps 4.3% 2.2% 1.8% 1.6% 1H-23 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 INVESTOR PRESENTATION 1H-23 10#11Income trends Income increased by 4.2% to K1.3b in 1H-23. • Despite loan growth of 8.3%, net interest income growth was lower by 1.6% due to lower yields from government securities. FX income increased by NET INTEREST INCOME [km] 875.5 775.2 1H-21 14.7%, due to higher volumes. FEE INCOME [km] Fee income up 4.4%, driven by growth in transaction volumes via our payment channels. !!!BSP +1.6% 889.4 FX INCOME [km] 175.8 154.1 +14.7% 201.7 1H-22 1H-23 1H-21 1H-22 1H-23 207.4 181.3 +4.4% 216.5 1H-21 1H-22 1H-23 11 INVESTOR PRESENTATION 1H-23#12Expenditure trends Expenditure increased by 8.6% to K510.9m in 1H-23, driven by: Technology - higher software, maintenance and volume related channel costs. • Staff - additional staff in compliance and risk, overtime support post Go-Live and CPI adjustments. STAFF COSTS [km] 224.8 206.0 !!!BSP +11.7% TECHNOLOGY COSTS [km] 251.1 75.3 69.2 +36.3% 102.6 1H-21 1H-22 1H-23 1H-21 1H-22 1H-23 INVESTOR PRESENTATION 1H-23 12 12#13Market position and loan portfolio composition LOANS MARKET SHARE [1H-2023] PNG Solomon Islands Tonga Cook Islands Samoa Fiji Vanuatu DEPOSIT MARKET SHARE [1H-2023] Rank Rank 66% #1 PNG 66% #1 45% #1 Cook Islands 53% #1 36% #1 Solomon Islands 49% #1 36% #2 Tonga 45% #1 30% #1 Samoa 40% #1 26% #1 Fiji 23% #2 15% #4 Vanuatu 13% #4 Source: Central Banks for all countries except Cook Islands which are business estimates. LOANS PORTFOLIO COMPOSITION [1H-2023] PNG Fiji 22.5% Solomon Islands 3.1% Samoa 2.9% Tonga 1.8% Vanuatu 1.6% Cook Islands 1.1% !!!BSP 66.8% DEPOSIT PORTFOLIO COMPOSITION [1H-2023] PNG Fiji 13.1% Solomon Islands 3.7% Samoa 3.1% Tonga 2.1% Cook Islands 2.0% Vanuatu 1.8% INVESTOR PRESENTATION 1H-23 74.1% 13 33#141H-2023 Group Operational Performance#15Moving customers to digital channels BSP Average monthly transactions 1H-23 18% 8% Transactions via +15% EFTPOS יו 4.6m Terminals Branches 500+ ATM Transactions via EFTPOS 15,000+ +19% K 18% EFTPOS Transactions via ATMs All Payment Channels Operational 56% Digital transactions via mobile, online and other channels 14.9m online Mobile & +7% K +1% ATM Agency 4.7m ATM 2.2m Branch & DDD BSP INVESTOR PRESENTATION 1H-23 15 15#16Supporting our communities ... Our contribution in 1H-23 SPONSORSHIPS K1.8m DONATIONS K616k COMMUNITY PROJECTS K600k DDD BSP SP BSP BSP SP IBSP BSP SP HE BS BSP Papua New Guinea SP 5 Fancis Group Led PNG CANCER FOUNDATION TWENTY THOUSAND KINA ONLY 04/09/2023 K 20,000.00 BSH SP HIBS 0000 12 034- 056 78009- 1234⑈ CANGER W FOUNDATION Papua New Guinea BSP PALMOLIVE GP IBS IIIBSP CANCER FOUNDATION Papua New Guines TRUPELA MAN OUTREACH PREVENTION EDUCATION PROGRAM CANCER EDUCATION & AWARENESS WORKSHOP NCER UNDATION New Guinea ANCER OUNDATION ua New Guines BSP BSP BSP BS BSP NATURE PARK HIBS BSP BSP BSP BSP BSP SP Papua New Guinea -PORT MORESBY NATURE PARK FIFTY THOUSAND KINA ONLY K 50,000.00 -08.06.2023 ANCER BSP 0000 12 034- 0564 76009- 1234 BSP Explore the best of PNG B BSP SP B BSP SP SP BOTANICAL ZOOLOGICAL BSP BSP MBSP BSP Paradise BSP Liklik Junior Softball Competition ank. Our Sport. Proud Sponsor of the BSP BSP BSP BSP BS BSP PORT MORESBY BSP BS BSP SP BSP HBS BSP BSP SP BSP BSP BSP ID INVESTOR PRESENTATION 1H-23 16#17Shareholder returns and growth outlook#18Market capitalisation JANUARY 2022 JANUARY 2023 PNGX K5.7 billion K5.8 billion K12.25 on 3/1/22 ASX $2.0 billion !!!BSP ... $4.27 on 3/1/22 ... K12.41 on 3/1/23 $2.3 billion $4.90 on 3/1/23 INVESTOR PRESENTATION 1H-23 +5.2% +14.7% AUGUST 2023 K6.1 billion K13.05 on 17/8/23 $2.6 billion $5.62 on 17/8/23 18#19Dividends SHAREHOLDER RETURNS SUMMARY 1H-2021 1H-2022 1H-2023 Change Interim dividend [K] 0.39 0.34 0.37 + 8.8% EPS [K] 0.96 0.85 0.91 +7.5% Dividend yield¹ (PNGX) 11.7% 13.5% 14.1% + 60bps Dividend yield¹ (ASX) 9.9% 13.4% 15.2% +180bps 1 Dividend yield was calculated on 2022 Final (K1.40) and 2023 Interim (KO.37) dividend and based on the respective closing prices on the PNGX and ASX as at 30 June 2023; an exchange rate of 0.4163 (as at 30 June 2023) was used in the calculation of the ASX dividend yield. !!!BSP INVESTOR PRESENTATION 1H-23 19 19#20Growth outlook REAL GROSS DOMESTIC PRODUCT 2021 2022e 2023f 2024f Australia 5.2% 3.7% 1.6% 1.7% New Zealand 6.1% 2.4% 1.1% 0.9% Fiji -5.1% 14.5% 7.0% 5.0% Papua New Guinea 0.1% 4.5% 3.7% 4.4% Samoa -7.1% -6.0% 5.0% 3.6% Vanuatu 0.6% 1.9% 3.5% 3.6% Solomon Islands -0.6% -4.1% 2.5% 2.4% Tonga -2.7% -2.0% 2.5% 2.8% Source: IMF Growth Forecast, April 2023 BSP 20 INVESTOR PRESENTATION 1H-23 20#21PNG resource project investment C PAPUALNG Project/Value K45.0b ExxonMobil Project Partners Te TotalEnergies Santos JX Construction Early 2024 Production 2027 – 2028 WAFI-GOLPU JOINT VENTURE K18.2b NEWCREST MINING LIMITED THARMONY Late 2024 Production 2027 K39.2b ExxonMobil Santos X 2028 Production 2031 b Pnyang Corporation Limited Pasca A K5.6b !!!BSP twinza INVESTOR PRESENTATION 1H-23 TBA 21 21#221H-2023 Closing#23Closing remarks Leading South Pacific brand... with origins dating back to 1957 Payments leader ... moving customers to digital channels Continued strong profits and shareholder returns ... interim dividend increasing by 8.8% $ BSP's capital base remains solid, with total capital adequacy of 22.5% !!!BSP Attractive economic growth rates forecast for key markets INVESTOR PRESENTATION 1H-23 23#24bmobile4GLTE DIGICEL 8:45am عد الى الان THANK YOU Payments 1. Ticket Payment 2. BillPay 3. School Fee Payment 4. Mobile Merchant Payment 5. NCDC Services #. Home CANCEL SEND www.bsp.com.pgeno DIAL *131# to make payments from your home or office. BSP Mobile Banking, the convenient way to pay. BSP We welcome your questions BSP Banking at your fingertips anywhere, anytime 24/7. BSP Mobile Banking *131#, the convenient way to bank. www.bsp.com.pg eno INVESTOR PRESENTATION 1H-23 Terms & Conditions apply. BSP 24 24