Kina media releases

Rapidly growing PNG financial services company, Kina Securities Limited, has reported a net profit of PGK20.5 million for the six months to 30 June 2016, up 350% from the first half of 2015.

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Kina appoints director

kina-photo-081612 September 2016

Leading PNG financial institution Kina Securities Limited (ASX: KSL, POMSoX:KSL) today announced the appointment of experienced financial services executive Karen Smith-Pomeroy as a non-executive director.

Ms Smith-Pomeroy has more than 30 years’ experience in the financial services sector, with senior roles in Queensland and South Australia, including five years as Chief Risk Officer for Suncorp Bank.

She has specific experience in risk and governance, deep expertise in credit risk and specialist knowledge of a number of industry sectors, including energy, property and agribusiness.

Ms Smith-Pomeroy is currently a non-executive director of Queensland Treasury Corporation, Stanwell Corporation Limited, InFocus Wealth Management Group and National Affordable Housing Consortium Limited. She is a member of the Queensland Advisory Board for Australian Super, Australia’s largest industry super fund.

She holds accounting qualifications and is a Fellow of the Institute of Public Accountants, Fellow of the Financial Services Institute of Australasia, a member of Association of Superannuation Funds of Australia, a Certificate member of Governance Institute of Australia and a Graduate of the Australian Institute of Company Directors.

Sir Rabbie Namaliu, Kina Chairman said he was delighted to have Karen join the Board. “Her breadth of experience will be very valuable to Kina Securities,” he said. “In particular, she brings important insights in the areas of credit risk and governance, which are a focus for the Board as we expand our lending and grow our business in the coming years.”

For further information:
Joe Dowling Carolyn Ive
Stockwork Corporate Kina Communications Manager
+61 421 587755 +675 719 92 825

Kina records strong profit growth, lifts dividends

Kina

Operating performance and earnings

Rapidly growing PNG financial services company, Kina Securities Limited, has reported a net profit of PGK20.5 million for the six months to 30 June 2016, up 350% from the first half of 2015.

The results confirm the benefits of Kina’s PGK349 million acquisition of Maybank PNG, completed in September 2015, which effectively doubled the size of the Kina business.

The Company has declared an interim dividend of A4.09 cents per share, which follows the dividend of A3.4 cents per share paid for the full year to December 2015.

The results are for the first full six months period for the merged Kina/Maybank business, and the first since the highly successful public float of the Company in July 2015.

Chief Executive Syd Yates said the results were pleasing and demonstrated that the merger was delivering excellent returns for shareholders.

“The Company has made great progress in the past six months. Our lending has increased sharply, and our asset quality is sound.

“Despite the slowdown in the PNG economy, we are continuing to enjoy solid growth in lending, and we see great potential to grow further in the coming years by providing innovative products and quality service to our customers.

“The merger of the Maybank and Kina businesses created a new financial services business in PNG and positions the company to take a leading role in the development of the emerging PNG financial services industry,” he said.

Kina is now well established as PNG’s fourth largest bank with lending assets growing to PGK437 million, up 17 percent from PGK374 million at December 2015 (34% annualised).

The bank recorded net interest income of PGK31.2 million in the half year to June 2016 compaK16.7 million in the half year to June 2015

Non-interest income totalled PGK30.5 million for the half year, up from PGK9.7 million in the Ju2015, with the increase primarily driven by foreign exchange income.

Compared with the prior comparable June half, total operating income more than doubled to Pmillion, reflecting the solid fundamentals of the merged banking business.

Overall asset quality remains sound. The loan impairment increased compared with the prior hreflecting more subdued general economic conditions in PNG, however, impairment expense rrelatively low at PGK2.5 million, equal to just 0.6 % of gross loans and advances. Gross non-ploans totalled PGK6 million, equal to 1.4% of gross loans and advances.

The underlying security of the business is exceptionally strong, with regulatory capital (T1+T2)Risk Weighted Assets, compared with regulatory required minimum of 12%. The Board electedmaintain this position in order to leverage growth opportunities, both organic and inorganic.

Outlook

Kina continues to make solid progress in the development and consolidation of its business following the Maybank merger completed last year.

The medium term outlook for the PNG Economy remains positive in the 2016 Mid Year Economic & Fiscal Outlook. While GDP growth has been revised down to 2.2 percent, the market segments that are the focus of the Kina Securities business have so far remained reasonably resilient.

“Our staff have worked tirelessly to continue to deliver the best possible products and services for our customers, and I look forward to reporting further encouraging profit results for the full year,” Mr Yates said.

For further information:
Joe Dowling
+61 421 587755

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