Kina Securities Ltd. · ASX:KSL
Kina Securities — H1 2021 Earnings Presentation
24 slides from Kina Securities's earnings presentation, Aug 27, 2021
Slide 1: 2021 Half-Year Results Investor Presentation
27 August 2021 ASX Markets Announcement Office PNGX Markets Exchange Centre Harbourside West Building 20 Bridge Street Unit 1B.02, Level 1, Stanley Esplanade Sydney NSW 2000 Down Town, Port Moresby 121 Australia Papua New Guinea BY ELECTRONIC LODGEMENT 2021 Half-Year Results Investor Presentation Pl
Slide 2: Half Year Results June 2021
Half Year Results June 2021
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer You must read this notice before reading or making any use of this document or any information contained in this document. By accepting this document, you agree to the following terms and conditions, including any modifications to them. Confidentiality: This Presentat
Slide 4: Financial Results
Financial Results • NPAT up 36% on previous corresponding period (pcp) to PGK 39.8m • Revenue up 4% on pcp to PGK 155.7m • Net interest income up 6% on pcp to PGK 85.4m • Non-interest income up 2% on pcp to PGK 70.3m • Capital adequacy at 23.3% • Return on equity 13.9% • Cost to income at 60.9% • Ne
Slide 5: Highlights
Highlights • Continued to reshape the customer experience with digital upgrades and enhancements to mobile and online retail banking. This achieved a 20% uplift in customers using internet banking and 43% uplift in customers taking up mobile banking. • Commenced delivery of a significant suite of up
Slide 6: Highlights Continued
Highlights Continued • D eveloped and commenced rollout of a comprehensive banking package for SMEs, including transaction services, lending, digital banking, and digital partnerships. • Imminent launch of new digital products and services including Pei Beta, an independent online payments platfor
Slide 7: Business Growth
Business Growth • Digital channels revenue increased 66% on pcp • FX income grew 3% against pcp • Funds Management NPAT at PGK 2.3m, representing over 50% growth on pcp • Uplift of 9% in gross loans and advances against Dec 2020 to PGK 1.8bn • Uplift of 8% in Deposits against Dec 2020 to PGK 2.8bn H
Slide 8: Economic Update
Economic Update • The PNG Government’s 2020 Final Budget Outcome reported a budget deficit of PGK 7.3 billion or 8.9% of GDP, 10% higher than forecast. • IMF estimates that real GDP will grow in 2021 by 3.5%. • This outlook is supported by the PNG Government’s commitment to re- open operations at th
Slide 9: Total Societal Impact
Total Societal Impact • SME thought leadership: Continued to deliver our series of thought leadership programs and presentations for the business community. Commencing with the keynote speech to the Prime Minister’s Back to Business breakfast, Kina has also sponsored a week-long SME conference and a
Slide 10: Financial and Business Performance Update
Financial and Business Performance Update • Continued solid business and operational performance in a transformational year while managing COVID impacts. • Solid Loan growth at 9% reflects business robustness in the first half with a significant number of approved loans and a strong pipeline. • Furt
Slide 11: Key Revenue Measures
Key Revenue Measures 180 170 46.7 163 139 39.8 37.3 99 PGK'm 29.3 76 69 71 PGK'm 63 23.6 50 47 40 41 29 28 29 30 26 27 27 23 23 19 19 14 Interest on Loans Interest on Investments Foreign Exchange Income Others Total Jun 19 HY Dec 19 HY Jun 20 HY Dec 20 HY Jun 21 HY Jun 19 HY Dec 19 HY Jun 20 HY Dec
Slide 12: Key Revenue Measures
Key Revenue Measures 29.2 28.5 8.8% 89.3 85.4 26.7 80.4 7.5% 23.3 7.0% 7.0% 7.0% 68.9 18.7 PGK'm 45.7 Jun 19 HY Dec 19 HY Jun 20 HY Dec 20 HY Jun 21 HY Jun 19 HY Dec 19 HY Jun 20 HY Dec 20 HY Jun 21 HY Net Interest Income (PGK'm) Net Interest Margin (%) Net Interest Margin Foreign Exchange Income Ha
Slide 13: Productivity
Productivity Cost to Income Ratio 64.9% 60.9% 57.1% 57.0% 52.0% Jun 19 HY Dec 19 HY Jun 20 HY Dec 20 HY Jun 21 HY Return on Equity 20.4% 17.8% 17.5% 16.8% 13.9% Jun 19 HY Dec 19 HY Jun 20 HY Dec 20 HY Jun 21 HY Half Year Results June 2021 12
Slide 14: Shareholder Returns
Shareholder Returns 16.9 21.3 15.5 20.5 16.8 14.4 13.9 10.0 10.0 8.25 8.8 6.4 6.0 7.3 6.8 5.8 4.0 4.0 5.1 3.0 Jun 19 HY Dec 19 HY Jun 20 HY Dec 20 HY Jun 21 HY Jun19 HY Dec19 HY Jun20 HY Dec20 HY Jun21 HY EPS (PGK toea) EPS (AUD cents) DPS (PGK toea) DPS (AUD Cents) Earnings Per Share Dividend Per S
Slide 15: Balance Sheet - Loans
Balance Sheet - Loans Loans 1H21 Loans FY20 Term Loans - 64.2% Term Loans - 65.9% Investment Property Loan - 5.7% Investment Property Loan - 5.5% Asset Financing - 1.3% Asset Financing - 1.3% Housing Loan - 23.6% Housing Loan - 22.8% Credit Card - 0.3% Credit Card - 0.2% Overdraft 4.9% Overdraft 4.4
Slide 16: Balance Sheet - Deposits
Balance Sheet - Deposits June 2021 HY December 2020 FY On Call - 72.9% On Call - 71.9% 1 Month - 7.9% 1 Month - 5.8% 2 Months - 2.9% 2 Months - 3.2% 3 Months - 5.6% 3 Months - 12.1% 6 Months - 5.1% 6 Months - 1.2% 12 Months - 5.2% 12 Months - 5.1% 24 Months - 0.4% 24 Months - 0.8% Half Year Results
Slide 17: Capital Management
Capital Management 15.0% 30% 24% 23% 10.4% 22% 10.1% 9.6% 20% 8.5% 6% 6% 6% 6% 6% 12% 12% 12% 12% 12% Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 HY Jun 21 HY Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 FY Jun 21 HY Capital Adequacy: T1 + T2 BPNG minimum total risk based capital Leverage Ratio BPNG minimum levera
Slide 18: Asset Quality - Gross Loans and Advances
Asset Quality - Gross Loans and Advances 10.7% 9.8% 9.0% 6.4% 6.1% 6.1% 5.9% 4.5% 3.7% 3.3% 2.6% 2.6% 2.1% 2.1% 1.7% 1.4% 0.6% 0.7% 0.2% 0.2% Loan impairment expense Non-performing loans 90 day arrears Gross non-performing Total provision (Loans & advances) and loans in arrears loans (>180 days) Dec
Slide 19: Loan Portfolio
Loan Portfolio 538 517 519 514 435 380 357 330 316 PGK'm 294 279 261 254 233 155 145 140 106 105 110 109 101 87 92 92 90 83 70 70 23 23 23 24 14 19 15 1 19 5 14 15 17 13 14 16 22 19 5 4 1 9 14 7 9 11 8 8 9 8 8 9 4 1 1 - 2 Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 FY Jun 21 HY Agriculture, Forestry & Fish
Slide 20: Customer Growth
Customer Growth 169,564 171,028 165,014 164,232 23,788 Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 FY Jun 21 HY Customer number growth Half Year Results June 2021 19
Slide 21: Market Share Gains
Market Share Gains 13.1% 13,822 13,812 12.0% 11.9% 13,565 13,499 11.7% 13,415 11.3% 24,527 11.3% 10.3% 22,739 10.1% 21,100 21,214 20,347 7.0% PGK'bn PGK'm 6.4% 1,615 1,759 1,402 1,421 2,461 2,525 2,561 2,773 866 1,418 Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 FY Jun 21 HY Jun 19 HY Dec 19 FY Jun 20 HY De
Slide 22: Balancing Deposits
Balancing Deposits 1,139 1,068 1,055 1,008 763 721 PGK'm 585 591 587 556 544 544 510 456 357 322 326 293 292 20 Fixed Term Cash Management Accounts Current Account Savings Account Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 FY Jun 21 HY Half Year Results June 2021 21
Slide 23: Wealth Management
Wealth Management 8.49 14.19 832 13.82 8.33 13.64 818 805 PGK'bn 12.55 8.08 12.31 790 7.95 7.90 771 Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 FY Jun 21 HY Jun 19 HY Dec 19 FY Jun 20 HY Dec 20 FY Jun 21 HY FuA (PGK'bn) Member ('000) Funds Under Administration Funds Under Management Half Year Results June
Slide 24: kinabank.com.pg
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