Kina Securities Ltd. · ASX:KSL

Kina Securities — FY2016 Earnings Presentation

23 slides from Kina Securities's earnings presentation, Feb 23, 2017

  1. Slide 1: Full year results – December 2016

    For personal use only Kina Securities Ltd Full year results – December 2016 February 2017

  2. Slide 2: Important notice and disclaimer

    Important notice and disclaimer You must read this notice before reading or making any use of this document Not financial product advice: The information contained in this Presentation is not, For personal use only or any information contained in this document. By accepting this document, and should

  3. Slide 3: Statutory Profit After Tax

    For personal use only Statutory Profit After Tax (PGK Mln) 41.0 5.0 Dec-15 Dec-16 3

  4. Slide 4: Corporate Highlights

    Corporate Highlights ) =) @ < © ) ae @®

  5. Slide 5: Corporate highlights: lending, deposits, Nasfund win

    Lending up 62% to PGK606 million, driven by customer service, strong management and new product offerings. Maybank integration completed. Banking New mobile products, improved systems and online services. Kina customers can access all ATMs in PNG, and a vast network of EFTPOS terminals. Deposits up

  6. Slide 6: Lending increased 62%

    Lending increased 62% For personal use only Kina Lending Book Lending breakdown (PGK Mln) 606 Overdrafts 10% Esiloan 4.3% 374 Term/Business 69% Housing 17% 196 202 2013 2014 2015 2016 6

  7. Slide 7: Large low cost deposit base grows 40%

    Large low cost deposit base grows 40% For personal use only Kina Deposits Deposit profile (PGK Mln) (% of total) At Call 958 42% 12 months 1% 686 6 months 30% 1-3 months 252 27% 225 2013 2014 2015 Jul-05 7

  8. Slide 8: Income grows 66%

    Income grows 66% For personal use only Interest and non-interest income (PGK Mln) 117.0 51.9 69.7 26.8 65.1 42.9 2015 2016 Net Interest Income Non-interest Income 8

  9. Slide 9: Other Income continues to rise

    Other Income continues to rise For personal use only Foreign Exchange Wealth Management (PGK Mln) 20.6 18.5 17.1 7.8 2015 2016 2015 2016 9

  10. Slide 10: FUM up strongly

    FUM up strongly For personal use only (PGK Bln) 6500 6.2 6000 5.9 5.3 5.4 5500 5000 4.8 4.6 4500 4.1 4000 3500 3000 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 10

  11. Slide 11: Nasfund to boost FUA

    Nasfund to boost FUA For personal use only Member Numbers Funds Under Administration (000) (PGK Bln) ~700 forecast ~9.5 forecast 5.61 4.85 4.41 3.74 3.82 147 155 161 170 139 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 11

  12. Slide 12: Efficiency improving steadily

    Efficiency improving steadily For personal use only Cost to Income Ratio Costs (%) 61.3 59.0 48.8 Other 47.5 Software 17% 5% Staff Lease 7% 51% Admin 21% Jun-15 Dec-15 Jun-16 Dec-16 12

  13. Slide 13: Strong capital adequacy, low loan impairments

    Strong capital adequacy, low loan impairments For personal use only Capital 30 27.5 Adequacy (%) 33 3.8 3.2 3 24.9 23.3 Total provision (%GLA) 2.1 11.2 10.5 11.0 9.9 Impairment expense (%GLA) 8.4 0.8 Leverage (%) 0.6 0.5 0.2 2012 2013 2014 2015 2016 Jun-15 Dec-15 Jun-16 Dec-16 13

  14. Slide 14: Economy

    Economy —] \ wy Hitmen » WY inw yp Te et AjuG asn_feuosied 10-

  15. Slide 15: PNG – 2.8% growth forecast in 2017

    PNG – 2.8% growth forecast in 2017 For personal use only Economic Growth 2005-2021 15

  16. Slide 16: Major new resource projects

    Major new resource projects Potential government approval of: ¢ Frieda River and Wafi-Golpu projects (2017) ¢ PNG's second LNG project, the Total-led Papua LNG Project (2018) Tourism and construction Short-term opportunities due to the APEC Summit in 2018. New power projects ¢ ExxonMobil to start co

  17. Slide 17: For personal use only

    For personal use only

  18. Slide 18: Our strategy for growth

    Our strategy for growth At a macro level, we participate in rapid development of PNG financial system For personal use only Total assets PNG Financial System 18

  19. Slide 19: Our strategy for growth.

    Our strategy for growth. ~We will deliver shareholder value and proactively move to lift market share by: : re ey @) 7 ut Leveraging = Relationshi WN Innovation and ae —_ =) Technology me © . Sout - . at the centre of Operational rae 000 - everything we do Excellence © HP? (or cm! w, Expert, AB AB ©

  20. Slide 20: For personal use only

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  21. Slide 21: For personal use only

    our relationship with key Funds to facilitate cross- selling opportunities the Nasfund transition to our fund administration services our technology transformation. Expanding Kina’s suite of personal and business banking products and services e.g. mobile applications for retail customers and mobile

  22. Slide 22: 2017 guidance

    2017 guidance Net interest margin Cost to income ratio lending growth; of the low cost deposit base prudential position and conservative capital adequacy

  23. Slide 23: For personal use only

    For personal use only

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