Kina announces half year result of K46.4 million NPAT - Post...

Kina announces half year result of K46.4 million NPAT - Post Courier

Kina Securities Limited (ASX:KSL|PNGX:KSL) has announced a Net Profit After Tax (NPAT) of K46.4 million which was a 2 per cent increase on Prior Comparing Period (PCP) of K45.6 million.

The result is for the first six months of this year.

The Group’s Profit Before Tax grew 19 per cent to K77.7m compared to PCP of K65.6m.

Kina’s CEO and Managing Director, Greg Pawson said the result demonstrates the continuing execution of their digital initiatives, tightened discipline on costs, and a strong start to lending for the year.

“The NPAT outcome for the first six months of this year reflects Kina’s continued strong focus on growing revenue while prudently maintaining expenditure.

The business has had to respond to some trying market conditions by continuing to strengthen our organic growth strategies in lending and digital channels.

Kina is progressing well through its bank-to-market-maker roadmap, increasing market share in our targeted segments while building a robust balance sheet that ensures profitable growth,” Mr Pawson said.

Mr Pawson said whilst the increase in pre-tax profits is commendable, it has been entirely absorbed by the increase in the corporate income tax rate for PNG’s commercial banks from 30 per cent to 45 percent , leaving very little for future investment in branches, technology, credit, products and services, and skills.

The results also reflected continued revenue growth, despite structural market challenges around a decline in rates on Treasury Bills and Government Securities and particularly the supply of foreign currency, where KSL has continued its commitment to serve PNG businesses and citizens with a disproportionately low share of foreign currency.

Loan book growth of 10 per cent in the first half to K2.4b contributed to a Net Interest Income of PGK98.1m (+6 per cent).

Fees and Commissions increased by 19 per cent underpinned by the expansion of Kina’s digital channel.

As customer digital acquisition has been growing, KSL has continued to improve market share of loans and deposits over the period to 16 per cent and 13 per cent respectively.

The Wealth Management arm of the business, has also continued steady growth in profitability and funds managed and administered.

The Board also declared an unfranked half year dividend for the HY23 of AUD4.0 cents per share or K9.7 toea per share.

Kina remains on track to deliver its 2025 Strategic Plan to drive a market leading digital customer experience and digital product portfolio, and organic growth in the core banking business, focused on organisational sustainability and corporate responsibility.