Kina Securities Ltd. · ASX:KSL
Kina Securities — H1 2025 Earnings Presentation
34 slides from Kina Securities's earnings presentation, Aug 27, 2025
Slide 1: Half Year Results to 30 June 2025
Half Year Results to 30 June 2025 27 August 2025 1
Slide 2: Disclaimer
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. Disclaimer of liability: All information contained i
Slide 3: Contents
Contents. Overview: HY 25 results: Strategy and outlook: Ivan Vidovich – CEO & Johnson Kalo – Chief John Polinelli – Chief Investment & Managing Director Financial Officer Strategy Officer 3
Slide 4: A Year Of Milestones
A Year Of Milestones. • 2025 marks Kina Bank’s 40th Anniversary, which coincides with Papua New Guinea’s 50th Independence Anniversary. • Kina Bank has grown into a dynamic force in Papua New Guinea’s banking sector, driving nation-building while strengthening competition. • Now firmly established a
Slide 5: Celebrating 40 years in PNG
Celebrating 40 years in PNG. 5
Slide 6: Economic Update
Economic Update. • Economic Growth: Following a relatively stable result of 3.8% in 2024, PNG's real GDP growth is projected to increase to 4.7% in 2025, driven by strong gold prices and a competitive agriculture sector. • Inflation: Inflation continues to be a focus, after a modest increase in 2024
Slide 7: Overview
Overview. Organic growth momentum on 1H2024 (PCP) • Statutory NPAT of PGK 57.7m, up 37% • Total revenue PGK 251m, up 10% • Loan book up 16% • NIM up 30 bps to 5.9% Diversified Revenue growth on 1H2024 (PCP) • FX revenue up 37% • Digital revenue up 15% • Funds Management revenue up 24% • Funds Admini
Slide 8: Market Share
Market Share. • Strong loan growth in the half, up Lending Deposits 16% on PCP, driven by business Total Sys tem D eposit (Source BPNG) 14.0% 17.0% and home lending Total Sys tem Lending (Source BPNG ) Kina Loan Book 16.9% Kina Deposit Book Kina Deposit Market Share 13.8% Kina Lending M arket S hare
Slide 9: Shareholder Return
Shareholder Return. Statutory Return on Equity Dividend per Share Statutory Earnings per Share +19% +36% +30% 12.6 20.0 17.1% 10.6 16.2 15.2% 9.7 14.7 13.2% +13% +30% PGK'm 4.5 7.1 4.0 4.0 6.6 5.5 Jun23 HY Jun24 HY Jun25 HY Jun23 HY Jun24 HY Jun25 HY Jun23 HY Jun24 HY Jun25 HY DPS (PGK toea) DPS (AU
Slide 10: 1H 2025 Results
10 1H 2025 Results. 4“) kinabank 5) wy; Together 40 years Kina Securities Limited
Slide 11: Financial Highlights
Financial Highlights. HY2025 HY2024 Movement Revenue (PGK m) 251.0 227.5 10% Underlying NPAT (PGK m) 57.7 49.7 16% Stat. NPAT (PGK m) 57.7 42.2 37% Stat. Cost to income ratio (%) 59.2 64.8* -560 bps Stat. ROE ratio (%) 17.1 13.2 390 bps Interim Dividend (AUD cents) 4.5 4.0 13% Interim Dividend (PNG
Slide 12: Revenue +10%
Revenue + 10%. • Revenue growth across all segments. • Underpinned by: • FX revenues +37% • Loan book growth +16% • Digital revenues +15% • Wealth revenues +20% 12
Slide 13: Loan Book +16%
Loan Book +16%. Solid loan growth of 16% vs PCP 99 72 118 Driven by: 107 96 87 • Business loans (+22% PCP) 90 624 77 108 83 89 • Housing loans (+6% PCP) 98 589 • Asset Financing (+3% PCP) 548 PGK'm • Personal loans (-17%) reflecting Asset Quality uplift, including in 2,121 unsecured personal lending
Slide 14: Net Interest Margin
Net Interest Margin. NIM up 30 bps driven by: 120.0 7.0% • Improved yield rates on Treasury 5.9% 5.6% 6.0% Bills 100.0 5.5% • Competitive pricing on wholesale 5.0% deposits to support growth in the 80.0 loan book 4.0% • Nominal increase in loan portfolio 60.0 returns reflects robust credit risk 3.0%
Slide 15: FX Revenue +37%
FX Revenue + 37%. • FX revenues performed strongly, driven by increased FX inflow from higher commodity prices 50.9 • 1H25 FX revenues +37% and volume +36%, against PNG total FX market turnover +20% 37.0 • Going forward, growth may moderate in 32.0 the short term as BPNG evolves its intervention pra
Slide 16: Digital Revenue +15%
Digital Revenue +15%. • Digital Revenue growth from solid transactional volumes in merchant Merchant fees VISA Fees Mobile Banking fees Internet Banking fees and visa fees. 2 • This growth will be supported in 3 2H by additional merchant terminal 1 deployment and digital product 2 enhancements. 2 20
Slide 17: Kina Wealth
Kina Wealth. • Funds Management Fund under Management (FuM) Fund under Administration (FuA) • Funds increased 19% • Revenue up 24% 1000 FuA (PGK'bn) • Margin expansion driven by 16.0 Member ('000) 21.9 Retail Wealth Management Retail Wealth (PGK'bn) 980 KFM (PGK'bn) 14.0 19.4 • Funds under Administr
Slide 18: Operating Costs
Operating Costs. +0.8% Statutory operating costs +0.8% on PCP: 160.0 9.4 3.7 - 1.6 148.6 147.4 • Administrative costs includes 140.0 3.2 merchant and visa charges which 13.5* grew inline with digital revenues 133.9 120.0 • Occupancy: Corporate office 100.0 relocation resulting in temporary occupancy
Slide 19: Asset Quality
Asset Quality. 8.1% 7.7% 7.7% • Loan portfolio continues to 6.5% 6.6% demonstrate strong quality, 5.9% prudent lending and robust risk assessment • Proactive provision management is expected to deliver continued asset quality improvements. 2.2% 2.3% 2.1% 1.8% 1.5% 1.1% 0.3% 0.4% 0.3% Impairment Exp
Slide 20: Capital Adequacy
Capital Adequacy. Capital Adequacy: T1 + T2 • Capital adequacy ratios remain BPNG minimum total risk based capital healthy and robust in line with BPNG’s Well Capitalised 20.8% classification 19.3% 17.3% • As a growing bank Kina continues to make efficient use of the capital base • Sufficient capaci
Slide 21: Strategy & Outlook
21 Strategy & Outlook. 4“) kinabank wy Together 40 years Kina Securities Limited
Slide 22: 2025 Strategy
2025 Strategy. Vision. Our Vision is to be the most dynamic, progressive and accessible financial services organisation in the Pan Pacific region. Our Values. Our defining purpose is to constantly improve the prosperity Purpose. of the people, communities, and markets that we serve. Prosperity for o
Slide 23: 2030 Strategy Development
2030 Strategy Development. Fostering organic Expanding wealth Strategic M&A initiatives: Optimised capital growth: management services: Emphasising income planning: In PNG’s banking sector by To complement banking diversification, scalability, Ensuring financial resources are prioritising customer e
Slide 24: Sustainable Communities
Sustainable Communities. • Strongim Komuniti Grant (SKG) program: Kina Bank team members participated in 5 projects across provincial PNG in 2025: • School desks for Pinu Primary School and Holy Rosary Primary School • Solar Lights at Catholic Diocese in Kimbe and at Adult Literacy Building (ALB) in
Slide 25: Culture
Culture. • All employee Town Hall & People Leader Conferences, focused on customer experience, culture & recognition for long serving team members • Employee wellbeing and team bonding through community and corporate sports Chairman, Ian Clough, speaking at the all-employees Town Hall this year, 202
Slide 26: Summary & Close
Summary & Close. • Continued market share gains across lending and deposits, as Kina delivers on its strategy, delivering market leading solutions in-line with customer needs • Growth in non-interest income, as Kina aligns growth and capital optimisation initiatives • Investment into technology, lea
Slide 27: Appendices
27 Appendices. a ne} CD ) y 7s kinabank Together 40 years Kina Securities Limited
Slide 28: Board of Directors
Board of Directors. Ian Clough Ivan Vidovich Karen Smith-Pomeroy* Paul Hutchinson Andrew Carriline Non-Executive Director Chief Executive Officer & Managing Non-Executive Director Non-Executive Director Non-Executive Director and Chairman of The Director Chair of the Audit Committee Chair of the Ris
Slide 29: Executive Management
Executive Management. Johnson Kalo Philip Keller Rina Antonio-Jang John Polinelli Aman Shandil Chief Financial Officer & Chief Risk Officer* Chief Operating Officer Chief Investment & Strategy Chief Information officer Company Secretary Officer Rayeleene Elston Ann Steele Nathaniel Wingti Shirly Pra
Slide 30: Corporate Tax
Corporate Tax. • In December of 2024, the PNG Government announced a decrease in Corporate Income Tax on Commercial Bank profits under PGK300m from 45% in FY24 to 40% for FY25 and 35% for FY26 onwards. • KSL expects its blended tax rate, reflecting banking and non-banking income, to be 39%, down fro
Slide 31: Deposit Tenure
Deposit Tenure. 24 months 12 months 6 months 1% 12 months 24 months 9% 4% 6 months 10% 1% 6% 3 months 2% 3 months 3% 2 months 8% 2 months 6% 1 month 1 month 9% 7% On Call On Call 67% 67% 31
Slide 32: Loan Portfolio by Industry
Loan Portfolio by Industry. 102 Other* 77 87 72 Transport & Storage 57 59 120 Hotel & Restaurants 87 70 98 Post & Telecommunication 97 96 283 Building and Construction 196 155 386 Other Business 341 266 413 Real Estate/Renting/Business Services 363 346 763 Personal Banking 721 642 906 Wholesale & Re
Slide 33: Deposits by Product
Deposits by Product. 2,018 1,718 1,682 1,454 1,488 1,482 PGK'm 793 552 503 479 512 431 Fixed Term Cash Management Current Account Savings Account Accounts Jun23 HY Jun24 HY Jun25 HY 33
Slide 34: Thank you
34 Thank you. a ne} ES y 7s kinabank Together 40 years Kina Securities Limited