Kina Securities Ltd. · ASX:KSL
Kina Securities — TIP Group's Inaugural Conference (March 2025)
19 slides from Kina Securities's conference presentation, Mar 18, 2025
Slide 1: TIP Group's Inaugural Conference
For personal use only T I P G RO U P ’ S I N AU G U R A L CO N F E R E N C E Ivan Vidovich – CEO & Managing Director Johnson Kalo – Chief Financial Officer 20 March 2025 1
Slide 2: Kina Bank – Overview
Kina Bank – Overview. Kina Securities Limited (Kina Bank) was established in 1985 and For personal use only is now Papua New Guinea's second largest bank and financial services company. Kina Bank offers customers end-to-end financial solutions – from savings accounts to business loans, investments t
Slide 3: PNG Economy. Economic recovery post-COVID has been steady
PNG Economy. Economic recovery post-COVID has been steady For personal use only Fast-growing economy • A$55b GDP forecast in 2025 6.5% Strategic economic location • South-east Asia to the North, Indonesia to the East and Australia to the South 4.5% Non-Resource sector dominated by coffee, cocoa, pal
Slide 4: Resource Project Pipeline
Resource Project Pipeline. For personal use only Annual Output Production Project Name Shareholders Total Capex (million tonnes Construction Start Start LNG) Papua LNG US$15 billion 5.6 2026 2030 Pasca A US$ 2 billion 0.75 2026 2028/31 P'nyang LNG US$ 11 billion 2.7 2030 2034 4
Slide 5: Economic growth underpinned by solid foundations: political stability
1. For personal use only Generally political stability Stable political leadership • 3 Prime Ministers since 2000 Economic growth Deep linkages with Australian economy • Strong institutional linkages to Australian Gov’t underpinned by solid Australia is the country’s largest trading partner foundati
Slide 6: Sound, well-regulated financial/banking system
Sound, well-regulated financial/banking 2. For personal use only system Independent Central Bank • “performance of (PNG) financial institutions as captured by the financial soundness indicators is good” (IMF Economic growth 2024) Financial sector assets ~ 70% of total GDP underpinned by solid • +3 C
Slide 7: Strategy
Strategy. For personal use only Our Vision is to be the most dynamic, progressive and accessible financial Vision. services organisation in the Pan Pacific region. Our Values. Our defining purpose is to constantly improve the prosperity of the Purpose. people, communities, and markets that we serve.
Slide 8: Kina Bank snapshot (FY2024)
281,099 13% 18 For personal use only Total Customers Customer Number of growth YoY branches Kina Bank 27% 68% snapshot Digital revenue growth YoY FX revenue growth YoY (FY2024). 17% 14% 736 Market share Market share Number of staff lending deposits 8
Slide 9: A diversified financial services company
A diversified financial services company. For personal use only 9
Slide 10: Shareholder return
Shareholder return. For personal use only Return on Equity Dividend per share Statutory Earnings per Share 19.6% 40.6 26.4 26.1 25.6 36.6 35.7 16.8% 17.9% 15.7% 17.1% 16.8% 10.6 16.4 10.0 10.0 13.8 13.8 FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 ROE - Statutory ROE - Underlying D
Slide 11: Financial Highlights
Financial Highlights. FY2024 FY2023 Movement % For personal use only Net Interest Income (PGK m) 222.2 203.3 9% Revenue (PGK m) 488.8 404.2 21% Net Profit before Tax (PGK m) 184.1 175.5 5% Underlying NPAT (PGK m) 111.9 105.0 7% Statutory NPAT (PGK m) 102.5 105.0 (2%) Cost to income ratio (%) 58.6 54
Slide 12: Profitable, sustainable growth FY24
Organic growth momentum For personal use only • NPBT up 5% • Underlying NPAT up 7% • Lending up 13% Profitable, • Net Interest Income up 9% sustainable growth Non Interest Income • FX Income up 68% FY24. • Digital Channels up 27% • Wealth Management Income up 28% Shareholder returns • Full year divi
Slide 13: Loan growth of 13%
Loan growth of 13%. For personal use only 1,942 1,651 • Solid loan growth of 13% vs PCP. 1,344 • Driven by Business and Home loans. PGK’m 576 608 534 94 110 113 72 93 98 76 84 86 82 101 105 Business Loan Home Loan Investment Property Asset Financing Personal Loan Overdraft and Other FY2022 FY2023 FY
Slide 14: Asset Quality
Asset Quality. For personal use only • Overall portfolio quality remains solid. 8.7% • Elevated risk mainly in personal loan portfolio. 8.1% 6.8% 6.5% 6.3% 5.4% 2.3% 1.9% 1.9% 2.0% 1.5% 0.8% 0.7% 0.4% 0.2% Impairment Exp % of GLA NPL % of GLA + 90 day arrears + 180 day arrears Provision % of GLA Dec
Slide 15: Deposit tenure
Deposit tenure. For personal use only FY2024 Year on year, deposit FY2023 12 months 24 months profile stability. 12 months 24 months 1% 2% 9% 9% 6 months 5% 6 months 3 months 9% 2% 3 months 2 months 3% 6% 2 months 4% 1 month 8% 1 month On Call 7% On Call 68% 67% On Call 1 month 2 months 3 months 6 m
Slide 16: Net Interest Margin
Net Interest Margin. For personal use only 7.1% 7.2% 7.1% 7.0% 6.5% 6.5% 6.2% 6.0% 5.8% 5.5% 5.6% 5.6% NIM impacted by: 5.5% 5.3% • Gradual lift in the 2H on treasury bill yield rates. • Solid growth in commercial and home lending 3.4% 3.4% 3.4% • Stable growth in corporate 2.8% wholesale deposits 9
Slide 17: Market share gains
Market share gains. Capitalising on opportunities for deposit and lending For personal use only market share growth in PNG. Market share percentage - lending Market share percentage - deposits 16,864 33,106 16,176 31,256 30,018 14,142 17.1% 13.9% PGK'bn PGK'bn 15.8% 15.3% 12.9% 13.1% 2,159 2,562 2,8
Slide 18: Corporate Tax
Corporate Tax. For personal use only • In December of 2024, the PNG Government announced a gradual decrease in Corporate Income Tax on Commercial Banks from 45% to 2022 2023 2024 2025 2026 40% for 2025 and 35% for the 2026 fiscal year. • The decrease in rate was effective as of 1 January Standard ra
Slide 19: Thank you
For personal use only 19 Thank you
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