Kina Securities (KSL) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax reached PGK 57.7 million, up 37% year-over-year, driven by revenue growth and a lower tax rate effective January 2025.

• Achieved record half-year revenue, NPAT, and dividends, reflecting strong business momentum and robust lending book quality.

• Marked 40th anniversary with continued innovation and market leadership in PNG's banking sector.

• Focused on organic growth, digital transformation, and community impact initiatives.

• Interim dividend declared: A$0.045 and PGK 12.6 TOYA, up 13% and 19% respectively, with a 63% payout ratio.

Financial highlights

• Total revenue increased 10% year-over-year to PGK 251 million, with FX income up 37% and digital revenues up 15%.

• Loan book expanded 16% year-over-year, with business lending up 22% and market share rising to 16.9%.

• Non-interest income grew 19%, now 55% of total revenue, supported by strong FX and digital channel performance.

• Net interest margin rose 30 basis points to 5.9%.

• Cost-to-income ratio improved to 59.2% from 64.8%.

Outlook and guidance

• Strategic plan for 2026-2030 focuses on organic growth, wealth management, inorganic initiatives, and capital optimization.

• Pre-tax earnings growth expected in H2 2025, led by lending and non-lending revenue.

• FX revenue growth may moderate due to evolving central bank intervention policies.

• Anticipated economic uplift from major LNG projects in the medium to long term.

• Strategy centers on growth, resilience, service excellence, and sustainable communities.