Bank just in the black after Bougainville
p. 37 · Read in the full issue
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through to Westpac Bank-PNG- Ltd’s financial result, with the bank’s bottom line staying barely in the black.
The 89.9 per cent owned Papua New Guinea subsidiary of Westpac Banking Corp managed a net profit for the year ° «o=fo"^ er 30 , of K 242,201 (Uoszss,Z4U), compared to K 6.53 million a for the previous year. The slim million and doubtful 'debt provisions 7 totaled K 8.55 million, which the bank said was related to dislocations in the economy caused by the Bougainville problem. r W estpac-PNG directors decided not to strike a final dividend in view of the
earnings result. Chairman Sir Eric Neal said in the company s annual report that without the Bougainville related ex posure, Westpac would have returned another record result.
Several corporate connections felt the full brunt of t ' llese events and a major priority for 1990 became protection of the bank’s assets while endeavouring to preserve the business base of many clients,” the annual report said.
The report said that the narrow basis of .'b e Pa Pu a New Guinea economy, with mmi r ng T* § oods account fo,r. “£*“*• al * ex PP rt .earnings has £een H 1? , 1 8 h,ed ft the lna P act of ,h , e Bougainville rebellion on the country s
economy. Westpac-PNG joins Steam
ships Trading Co Ltd and Highlands
warn of the damage that law and order breakdowns are having on the economy.
Several proposed minerals projects should pro ; ide F an impetus for longer , u . . ri s , but careful management wo , uld be needed to prevent law and fnlesT f ° re ‘ gn mVeS ‘' ’ l " tneSe ’ . I he Pa P ua New Guinea government s tight monetary policy and other restraint measures led to a slowdown in economic
activity.
The bank said its activities were affected by the depressed business cli mate and tight liquidity conditions in Papua New Guinea for most of the year Falhng P nces *? r ,he ma m agricultural exports conee, cocoa, palm* oil and copra would mean further economic contraction. □