Ann: Results of 2023 AGM, page-22

Thank you for bringing this to my attention. BFL has passed through my filter, and is on my watchlist, however I do not hold it for a few reasons and in each of which KSL presents a stronger case for a higher return on investment in my view.

1 - BFL is newly listed to the ASX, with a shorter track record of reported performance, unlike KSL.
2 - BLF trades ~40% above book value while KSL is trading 10% below book value.
3 - I like that KSL is strictly based in PNG, unlike BFL which is dispersed throughout the pacific. Ease of valuation.
4 - Kina bank has its name in the country, with "Kina" being the national currency. This carries tremendous psychological effect on potential customers.
5 - A major factor is liquidity. Despite the difference in market cap, KSL is easier to accumulate a large holding compared to BFL.
6 - Point 5 in essence makes KSL larger than BFL for investment purposes.
7 - BFL may be larger, but KSL is the largest in PNG and will be more focused and dedicated to the people of PNG.
8 - KSL with its concentrated portfolio, market base and trading conditions presents a more likely candidate for a 100% rise in SP than BFL in my view

Assuming "Politics" will have an overwhelmingly negative effect on banking just because it is PNG is a non sequitur. We have already seen upheaval from last year's elections (which are by far the most politically turbulent times for most developing nations), which had minimal impact on KSLs financial performance, in fact, their earnings grew! Recent rise in tax rate for banking was a meaningful move, so what more can politics do?

PNG is too integral for AU security for Parliament to ignore any pressing issues in the region, hence why the bulk of our international 'aid' goes to PNG, either in the form of non-perishables or army personnel on 'humanitarian' mission. It is all essentially a game of influence, and money buys influence.

The people of PNG are no more or no less intelligent than the people of any first world nation, anyone who has read the book "Guns, Germs and Steel" by Jared Diamond will understand this. They have in fact shown to be more intelligent to some degree given their situational necessity to make more out of less. Whatever we, as the "civilized" people can learn so can they! It all comes down to the moral foundation and striving for the moral high ground, which we can see is wavering in many parts of our modern world.

PNGs population is 95.6% Christian, comparable to that of England, USA and even Australia prior to their rise to prominence. I will note that AU is now at 40%. The point is that this ethos breeds community, togetherness and strong family units in general which are necessary for national economic growth. I may be getting somewhat sidetracked, but I do see all this as part of the greater investment picture.