Kina Securities Ltd. · ASX:KSL
Kina Securities — FY2020 Earnings Presentation
21 slides from Kina Securities's earnings presentation, February 2021
Slide 1: Kina Securities Limited | Full Year Results 2020
Kina Securities Limited | Full Year Results 2020 February 2021
Slide 2: 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 3: Financial Results
Financial Results • NPAT up 25% on PCP to PGK 76.0m • Revenue up 53% on PCP to PGK 314.8m • Net interest income up 48% on PCP to PGK 169.7m • Non-interest income up 59% on PCP to PGK145.1m • Capital adequacy at 23.8% • Return on equity 16.8% • Cost to income at 58.1% • Net interest margin 7.5% • Ear
Slide 4: Highlights
Highlights • Successfully transitioned the ANZ acquisition with zero customer attrition and grew customer numbers by 4,550 over 2020. • Simplified the corporate structure and successfully conducted a Non-Renounceable Rights Issue as a 1:2 rights issue, strengthening capital adequacy and positioning
Slide 5: Highlights
Highlights • Partnered with local Fintech company to deliver e-commerce services to the public sector. • Launched Xero bank feed API - another first for the Pacific and the first phase of a broader business advisory services capability. • Doubled number of eftpos terminals with market leading perfor
Slide 6: Business Growth
Business Growth • FX Income grew 32% on PCP to PGK 55.2m • Total Deposits up 5% to PGK 2.6 bn • Gross Loans and Advances (business lending growth 20%) up 16% to PGK 1.7 bn • Funds Admin profit grew 9% to PGK 8.3m • Digital channels revenue grew in first full year of operations to PGK 18.8m • Grew lo
Slide 7: Economic Update
Economic Update • IMF estimates that real GDP declined by 3.3% in 2020. • Deferment of Papua LNG and P’nyang LNG before the Covid-19 outbreak put a dampener on investments in resource-adjacent sectors. • Pandemic triggered unprecedented fiscal response: o Debt-to-GDP ceiling increased from 45% to 60
Slide 8: Total Societal Impact
Total Societal Impact • Promoted enterprise and financial inclusion Successfully completed first ‘bank as a service’ business innovation project to provide our financial inclusion partner, MiBank, with cards issuing, REPS interchange and POS. Through our partnership with MiBank over 130,000 Papua Ne
Slide 9: Key Revenue Measures
Key Revenue Measures Revenue NPAT
Slide 10: Key Revenue Measures
Key Revenue Measures NIM FX Income
Slide 11: Productivity
Productivity Cost to income ratio Return on equity
Slide 12: Shareholder Returns
Shareholder Returns Earnings per share Dividends per share
Slide 13: Balance Sheet
Balance Sheet Loans FY20 Deposits FY20
Slide 14: Capital Management
Capital Management Capital Adequacy Leverage Ratio
Slide 15: Asset Quality – Gross Loans and Advances
Asset Quality – Gross Loans and Advances -Values above are in PGK millions. -The increase in Loan Impairment Expense is commensurate with the increase in Gross Loans from K1.42b to K1.65b in Dec 2020. -Increase in loans in arrears (+ 180 days) relates to a small number of residential and business lo
Slide 16: Portfolio
Portfolio 538 294 279 249 247 155 84 87 ae 92 | a 70 22 19 7 n 15 15 9 u 14 15 44 5 7 1 1 8 aa L: ca —_im oe aT Deci9 FY Decis FY Dec20 FY Agriculture, Forestry & Fishing. aMi Manufacturing Electrical, Gas & Water (Building and Construction | Wholesale & Retail Hotel & Restaurants W Transport & Stor
Slide 17: Customer Growth
Customer Growth 165,014 { 164,232 | 23,788 (ssa Ex Juni8 HY Deci8 FY Juni9 HY Dect FY Jun20 HY
Slide 18: Market Share Gains
Market Share Gains Market share percentage - lending Market share percentage - deposits
Slide 19: Balancing Deposits
Balancing Deposits 721 650 556 544 510 Fixed Term Cash Management Accounts Current Account 1,068 1,023 PGK'm 322 293 19 — Savings Account mDeci8FY mDecl9FY mDec20FY
Slide 20: Wealth Management
Wealth Management Funds under administration Funds under management
Slide 21: www.kinabank.com.pg
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