The National Banking Corporation Limited (NBCL) has confirmed a major milestone in its ownership structure, with Papua New Guinea citizens and local businesses investing K100 million in new equity through the first phase of its private placement, acquiring a 48% stake in the bank.
This equity raise has diluted the State’s holding, represented by Kumul Consolidated Holdings and the National Development Bank, to 52%. Phase two of the private placement is currently in progress and expected to reduce the State’s shareholding further to approximately 35% by the end of October 2025.
Chairman Darrell Seeto explained the positive investor reception: “The interest shown by experienced and sophisticated Papua New Guinean investors in taking up new equity in NBCL has been extremely positive and shows that these new investors have faith in the development and expansion plans of the Bank.”
He emphasized that the dilution of State ownership was always planned. “It was a condition of the commercial banking licence granted by the Bank of Papua New Guinea that this was the case.”
NBCL aims to serve all market segments by expanding its branch network across Papua New Guinea. These segments include commercial, personal, small and medium enterprises (SMEs), government and state-owned enterprises, agriculture, and urban and rural communities — including both financially literate and financially illiterate customers.
“NBCL is not here just to be another commercial bank,” said Seeto. “We are here to make an impact through financial inclusion and developing the financial sector.”
The Marape-Rosso Government has supported NBCL from inception and recognizes that more competition is needed in PNG’s banking and finance sector to benefit the wider population. “It is the government’s agenda to provide more competition… to ensure a more productive financial sector to the benefit of the people of PNG,” said Seeto.
The bank operates within the strong governance framework established by former Prime Minister Sir Mekere Morauta, overseen by the Bank of Papua New Guinea. NBCL complies with all capital adequacy and leverage ratio requirements applicable to registered commercial banks.
Seeto stated, “NBCL meets all its capital adequacy ratios requirements with BPNG and its latest capital raise will strengthen its balance sheet to grow in the future and compete with other commercial banks.”
Though NBCL is smaller compared to its competitors, it has already introduced strong competition through attractive interest rates and fee offers, which have prompted responses from larger banks: “We are creating competition as the bigger banks react to interest rate and fee offers made by NBCL to businesses and individuals who shop around for a good banking deal.”
Excellent service remains NBCL’s focus. “Ultimately, the success of any bank rests on its service and the attention it gives to its customers. If the seven commercial banks in PNG do this well, the people of Papua New Guinea are the winners,” noted Seeto.
Strong governance and widespread competition across PNG—not just in major cities—are essential components of a healthy banking sector.
For investors interested in becoming shareholders, Seeto invites qualified Papua New Guinean citizens or permanent residents investing over K250,000 to register interest at investorcentre@nbcpng.com.pg by October 20, 2025.
Looking forward, NBCL plans to seek a public listing on the PNG National Stock Exchange (PNGX) during the first quarter of 2027 via an Initial Public Offering (IPO). This will allow retail customers and the broader public to own shares in NBCL.
“NBCL will be a ‘Gift to the Nation’ where all Papua New Guinea citizens can have a sense of ownership in a bank. Priority allocation of equity will be given to NBCL customers and PNG citizens,” Seeto concluded.
