Welcome [www.bsp.com.pg]

1 Welcome to the Leading bank of the south Pacific bank OF south PACIFIC LIMITED23 BSP - THE LEADING bank OF THE south let me introduce bank south Pacific, the largest bank in Papua New Guinea and the south south Pacific (BSP) is an iconic and unique bank in Papua New Guinea and the Pacific, recognised for its strong commitment to the region and its Melanesian uniqueness. BSP has the largest branch network in Papua New Guinea, Cook Islands, Fiji, Samoa, Solomon Islands, Samoa and Tonga with branches and sub branches in cities and towns in these countries and also in remote rural locations. Our branch network is complemented by electronic banking networks that can meet the banking needs of our customers wherever we operate. At BSP we are proud of our whole of bank capabilities whereby our teams in Corporate, Retail, Paramount and Treasury are able to provide solutions to our clients, drawing on our capabilities and broad presence across the Pacific.

2 This capability is unmatched by our competitors. As Papua New Guinea and the Pacific is our home we have knowledge, history, experience and a commitment to the region that other financial institutes cannot offer. BSP offers Premium Banking Services Centres in all major towns in Papua New Guinea, Fiji and Solomon Islands. Our BSP First and BSP Priority personal banking offerings will satisfy even the most demanding expectations. BSP also has three 100% owned subsidiaries; BSP Capital Ltd - stockbroking and funds management in PNG; BSP Finance specialist Asset Finance company in Fiji and PNG and BSP Life specialist Life Insurance company in Fiji. In 2015, BSP expanded our reach to Tonga, Samoa and Cook Islands, reinforcing our position as the Leading bank of the south Pacific. BSP has and will continue to have a strong commitment to providing the highest level of customer service and customised financial solutions to our corporate customers.

3 This is an exciting time for us as we Welcome new businesses and colleagues in the Pacific and the future promises to be exciting and rewarding for all of us. I invite you to contact BSP if you intend to do business in Papua New Guinea and the Pacific, a region which we are proud to call FLEMING, CSMG roup Chief Executive OfficercapabilityAttention to detail, service and the latest in banking Welcome FROM OUR CEO 45 BSP - THE LEADING bank OF THE south south Pacific Limited opened its doors in 1957 in Port Moresby as a branch of the National bank of Australasia Limited. In 1995 a consortium of Papua New Guinea businesses acquired the bank creating the first PNG private sector owned bank . bank south Pacific purchased the State Owned - Papua New Guinea Banking Corporation (PNGBC - for-merly CBA PNG) in 2002 creating the largest bank in PNG.

4 Other acquisitions followed: National bank of Solomon Islands 2007, Habib bank in Fiji in 2006, Colonial Group of Companies (Banking & Life Businesses) in Fiji in 2010. bank south Pacific rebranded to become BSP in 2009. Our shareholders include major PNG Institutions IPBC, Nasfund, Nambawan Super, Petroleum Resources Kutubu, Credit Corporation, MVIL, PNG Teachers Savings & Loan, Comrade Trustees, and the International Finance Corporate (IFC). In 2012, BSP s account opening process employing a tablet computer and instant card issuance, won the award for the world s Best bank Led Mobile Money Program at the 2012 Connected World Global Awards. In 2014, BSP Group achieved loan growth of 28%, and a 4% reduction in operating costs, supporting growth in annual profit to over K507 million. There were no increases in fees during the year, but fee income grew as the volume of customer transactions continued to increase, particularly through the electronic banking channels, which now represent more than 80% of total customer transactions.

5 Launch of the new subsid-iary company BSP Finance in PNG and Fiji in 2014. BSP has been internationally recognised for its underly-ing liquidity and capital strength, including The Banker 2014 Top 1000 Banks, ranked: #1 Top 5 Returns on Capital (ROC) in the Asia Pacific (excluding Japan & China). #1 Top 5 Returns on Assets (ROA) in the Asia Pacific (excluding Japan & China). #14 Top 25 Return on Capital (%).2015 was very much a milestone year for BSP in many ways. Despite economic conditions BSP recorded a profit of million, representing a increase on 2014, for its shareholders. The expansion of BSP across the Pacific also entered a new phase with the acquisition of the former West-pac businesses in Cook Islands, Samoa, Solomon Islands and Tonga, with Vanuatu to complete on July 1st, 2016. During 2015 PNG celebrated its 40th anniversary of independence and the country successfully hosted the Pacific Games in Port Moresby of which BSP was the Official 370 years of collective experience in the south Pacific A brief history of BSP A show of strength BillionTotal Assets MillionNet Profit After Tax MillionNet Loans and Advances MillionDividends Paid 2011201220132014201567 BSP - THE LEADING bank OF THE south Group continues to grow its profit, in 2015 it recorded million, an increase of from 2014.

6 Total assets have grown 16% to billion. BSP is the largest non - mining company in the south Pacific. BSP operates in Fiji, Solomon Islands, Cook Islands, Samoa and Tonga. BSP continues to be a dominant force in the market leading the way with innovation and technology. 50%MARKET SHAREBSP holds over 50% of the PNG banking market and is therefore larger than the others combined in the south Pacific. 20%CAPITAL ADEQUACY RATIO BSP is strongly capitalised with a regulatory capital adequacy ratio of over 20%, and externally rated by Standard & > 2 MILLION CUSTOM-ERS THROUGHOUT THE south EMPLOYS OVER 4,000 PEOPLE ACROSS THE ASSETS HAVE GROWN 16% FROM 2014. PROFIT INCREASED BY FROM 2014. BSP contributes more than banking solutions, services and products, it has helped sustain and grow the Papua New Guinea community for several years.

7 All Amounts are expressed in K'00020112012201320142015 Company income taxes paid to PNG Government 119,590 212,081 155,391 188,627 249,210 Other taxes paid to PNG Government (IWT,FCWT,BWT) 10,091 6,204 4,989 2,568 3,701 GST paid and not able to be recouped 10,703 12,836 14,082 11,024 16,793 Dividends Paid 223,526 258,975 271,686 309,141 367,239 Payments to PNG Based Suppliers/Creditors 240,402 489,754 440,331 314,699 229,985 Payments to PNG Training Institutions 2,133 8,076 6,076 3,787 4,231 Superannuation Payments 5,176 5,873 6,509 6,475 6,955 Salaries, bonuses and allowances paid 144,808 166,064 174,349 162,735 154,943 Commercial Rental Payments 13,094 12,621 12,637 16,159 13,743 Residential Rental Payments 10,396 33,445 36,219 28,294 25,822 Water 144 693 1,069 721 1,208 Power 5,544 8,771 10,517 8,539 9,403 Telecommunication 8,507 13,498 17,016 15,243 14,993 Donations and Sponsorships 3,879 4,192 9,267 9,358 8,218 Total 797,993 1,233,083 1,160.

8 138 1,077,370 1,106,444 A clearStatement Contributing to the community 89 BSP - THE LEADING bank OF THE south and Loss (K 000) 20112012201320142015 Net interest income 597,479 681,554 740,857 884,761 1,006,251 Non interest income584,867 671,870 781,217 603,737 539,290 Bad and doubtful debt (expense)/recovery(25,234)(70,952)(78,57 3)(76,796)(89,905)Other operating expenses(688,621)(748,346)(833,849)(703, 085)(691,084)Operating Profit468,491534,126 609,652 708,617 764,552 Impairment of non-current asset--(14,967)--Share of profits from associates6,496 11,170 12,270 10,233 1,598 Profit before tax474,986 545,296 606,955 718,850 766,150 Income tax (expense)(119,039)(137,552)(170,127)(211 ,511)(234,271)Profit/(loss) after tax355,947 407,744 436,828 507,339 531,879 Dividends (toea)Dividends paid per share1 Balance Sheet (K 000)Net loans and advances4,300,9134,804,6265,306,3626,756 ,9978,621,514 Total assets11,681,29313,333,10215,761,42015,8 16,50718,196,303 Deposits9,366,28110,860,52212,200,99912, 708,38314,595,374 Capital1,344,1881,465,8931,619,0601,800, 1932,029,176 Performance RatiosReturn on on Prudential RatiosCapital Asset rates (One (1) PNG Kina buys):US per share has been adjusted for 10/1 share consolidation in 2011.

9 In 2011, BSP paid a full and final dividend for the 2010 year in June, and an interim dividend for 2011 year, in October. In 2012, BSP paid a final dividend for the 2011 year in June, and an interim dividend for 2012 year in October. In 2013, BSP paid a final dividend for the 2012 year in June, and an interim dividend for 2013 year in October. In 2014, BSP paid a final dividend for the 2013 year in June, and an interim dividend for 2014 year in October. In 2015, BSP paid a final dividend for the 2014 year in June, and an interim dividend for 2015 year in continues to provide value to its stakeholders through quality profitable growth, customer experience innovation, and team-orientated employee continual growth and progress, such words as improvement, achievement, and successhave no meaning. Benjamin Franklin 1011 BSP - THE LEADING bank OF THE south tradition of visionary thinking BSP works to constantly reinvent banking with a host of developments that are already a reality today - or are well on the way to becoming so.

10 Our story is full of groundbreaking innovations, such as: the first bank in the south Pacific to introduce Mobile Banking, SMS Banking and the Mobile Banking application; the first to introduce Galaxy Tablet technology enabling paperless account opening; the first bank to introduce Concierge banking in the south Pacific - BSP First; the first bank in PNG to introduce MasterCard Corporate Debit Cards; the introduction of real-time account transfers; the launch of BSP s Online Business Banking, featuring superior functionality to view accounts, transfer money locally & overseas, BillPay, batch payments, e-statements, payroll management; the only bank in PNG with a 24/7 access Customer Service continue to invest in technology because we understand the economic benefits of meeting our customers growing needs, while also ensuring our staff have the systems to enable them to work to the best of their have been developing solutions for the needs of rural-dwellers, with our new range of agencies and services - bringing modern city banking services to the most remote, previously unbanked has made banking in the south Pacific more dynamic, straightforward and accessible than ever before, offering an unparalleled level of banking services to biggest advantage for our customers is access.