In the money
BSP expanding in the region.
Bank of South Pacific’s (BSP) regional expansion has taken a significant step forward with the acquisition of several Westpac operations in the Pacific. BSP has agreed to buy Westpac’s banking operations in Samoa, Cook Islands, Solomon Islands, Vanuatu and Tonga for $A125 million.
BSP already operates in the Solomon Islands and Fiji, in addition to its main PNG business. It has a history of growing through acquisition, having bought Habib Bank’s Fiji assets in 2006, the National Bank of Solomon Islands in 2007, and National Bank of Fiji and Colonial Fiji Life Insurance Limited in 2009.
“It is a regional strategy. We have and will continue to have a strong presence in the region for a very long time,” BSP chairman, Kostas Constantinou, says.
Westpac says its commitment to PNG remains unchanged despite the agreement to offload several of its Pacific operations.
PNG’s first bank, Westpac also plans to maintain operations in Fiji, where for 113 years it has been the country’s longestserving institution.
“Our decision to sell our operations in these nations reflects our desire to increase focus on our growth plans in the larger markets of PNG and Fiji, where we have a strong history,” says Westpac chief executive Rob Whitfield.
With its ties to Asia, Australia and New Zealand, Whitfield says that the PNG and Fiji markets support Westpac’s international aspirations.
“Indeed, we continue to see significant opportunities in both Fiji and PNG markets and will continue to invest in expanding our infrastructure and capability in the region.”
Constantinou, and BSP group CEO, Robin Fleming, have visited the bank’s new operations, in part to assure staff they will continue to be employed.
“Job security is not only contained in the agreement but it’s also an undertaking from myself and that is one of the reasons why I actually visited these countries,” Fleming says.
At the same time, BSP has launched BSP Finance, an asset finance business aimed at offering finance deals of between PGK20,000 and PGK3 million.
The move will enable the bank to compete with ANZ, Westpac and Credit Corporation, which BSP tried unsuccessfully to acquire in late 2013.
PNG country manager for the newly formed subsidiary, Jodi Herbert, says BSP has identified opportunities to provide new and existing clients with asset finance services.
“It’s now about going back to our clients and saying that we can do this business for you as and we are keen to do it,” Herbert says. “There’s a big part of the market where this is the case.”
After launching BSP Finance in Fiji in late 2014, Herbert added that BSP Finance would also investigate introducing the subsidiary in additional Pacific countries, including those territories acquired from Westpac.
It is a regional strategy.
We have and will continue to have a strong presence in the region for
a very long time.