Kina Securities Ltd. · ASX:KSL
Kina Securities — H1 2020 Earnings Presentation
23 slides from Kina Securities's earnings presentation, Aug 27, 2020
Slide 1: 2020 Half-Year Results Investor Presentation
27 August 2020 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 2020 Half-Year Results Investor Presentation Pl
Slide 2: Kina Securities Limited | Half Year Results - 30 June 2020
Kina Securities Limited | Half Year Results - 30 June 2020 Kina Securities Limited Half Year Results 2020 1
Slide 3: 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. Confidentiality: This Presentation and the informati
Slide 4: Financial Results
Financial Results Deployed acquired deposits successfully with organic business seeing continued growth. NPAT up 24% on pcp to PGK 29.3m. Interim dividend for first half of FY20 AUD 4.0 cents per share or PGK 10.0 toea per share. Revenue PGK 149.2m up 78%. Net Interest income up by 76% to PGK80.4m c
Slide 5: During the tough times, it's the people standing beside you
During the tough times, it’s the people standing beside you who make the difference. PRODUCER JELENA TAMATE SME KINA BANK CUSTOMER 4 Kina Securities Limited Half Year Results 2020
Slide 6: Highlights
Highlights Significant progress made on strategic initiatives to deliver growth: 6. Piloted digital concierge, digital kiosks and online 1. Divested Esiloans portfolio to MiBank for K32.5m in account opening in branch, significantly modernising line with strategic partnership. banking in PNG. 2.Comp
Slide 7: Business Growth
Business Growth FX income Total up 52% to Deposits at Total Net Loans PGK 28.5m PGK 2.5bn at PGK 1.42bn Customer Funds Revenue from new numbers grew Administration up digital channels by 5,968 29% to PGK 3.5m PGK 7.6m 6 Kina Securities Limited Half Year Results 2020
Slide 8: Every success story requires a partner.
Every success story requires a partner. CHEF JULZ HENAO SME KINA BANK CUSTOMER Kina Securities Limited Half Year Results 2020 7
Slide 9: Economic Update
Economic Update Government announced Domestic environment K5.6 billion Covid-19 They also secured sees new macroeconomic economic support US 363.6m assistance from challenges, most package, adding to IMF’s Covid relief fund. prominent is Covid-19. fiscal pressures. Major national resource projects s
Slide 10: Grow with a trusted partner.
Grow with a trusted partner. FASHION DESIGNER TABU WARUPI SME KINA BANK CUSTOMER Kina Securities Limited Half Year Results 2020 9
Slide 11: Key Revenue Measures
KEY REVENUE MEASURES Revenue Statutory NPAT 37.3 69 63 29.3 27.5 47 47 23.6 43 PGK’m 40 PGK'm 20.6 PGK'm 30 28 26 23 23 22 20 19 19 18 14 14 13 9 Interest on Loans Interest on Investments Foreign Exchange Income Others Jun18 HY Dec18 HY Jun19 HY Dec19 HY Jun20 HY Jun18 HY Dec18 HY Jun19 HY Dec19 HY
Slide 12: Foreign Exchange Income
Foreign Exchange Income NIM Foreign Exchange Income 28.5 28.5 8.8% 80.4 8.1% 23.3 7.6% 68.9 23.3 7.0% 7.0% 20.1 20.1 18.7 18.7 PGK'm 45.9 45.7 PGK’m PGK’m 14.1 PGK'm 41.6 14.1 Jun18 HY Dec18 HY Jun19 HY Dec19 HY Jun20 HY Jun18 HY Dec18 HY Jun19 HY Dec19 HY Jun20 HY Net Interest Income (PGK'm) Net In
Slide 13: Productivity
PRODUCTIVITY Cost Cost to to income income ratio ratio Return on Of Equity 64.9% 58.2% 57.1% 57.0% 20.4% 18.3% 50.2% 17.8% 17.5% 16.1% Jun18 HY Dec18 HY Jun19 HY Dec19 HY Jun20 HY Jun18 HY Dec18 HY Jun19 HY Dec19 HY Jun20 HY 12 Kina Securities Limited Half Year Results 2020
Slide 14: Shareholder Returns
SHAREHOLDER RETURNS Earnings per Share Dividend per Share 21.3 15.5 16.7 16.8 12.1 14.4 10.0 10.0 10.0 12.6 8.8 6.4 6.7 6.8 5.0 5.8 4.0 4.0 4.0 4.8 Jun18 HY Dec18 HY Jun19 HY Dec19 HY Jun20 HY Jun18 HY Dec18 HY Jun19 HY Dec19 HY Jun20 HY EPS (PGK toea) EPS (A cents) DPS (PGK toea) DPS (A cents) Kina
Slide 15: Balance Sheet
BALANCE SHEET Loans FY19 Loans 1H20 Esiloan Credit Card Overdraft Credit Card Overdraft 2.6% 0.6% 4.8% 0.5% 4.4% Housing Loan 23.6% Housing Loan 22.5% Assset Financing 1.1% Assset Financing 1.4% Investment Property Loan 6.6% Investment Property Loan 6.1% Term Loans Term Loans 61.9% 63.8% Deposits FY
Slide 16: Capital Management
CAPITAL MANAGEMENT Capital Adequacy Leverage ratio 16% 30% 29% 29% 15% 14% 22% 20% 10% 9% 12% 12% 12% 12% 12% 6% 6% 6% 6% 6% Jun18 HY Dec18 FY Jun19 HY Dec19 FY Jun20 HY Jun18 HY Dec18 FY Jun19 HY Dec19 FY Jun20 HY Capital Adequacy: T1 + T2 BPNG minimum total risk based capital Leverage Ratio BPNG m
Slide 17: Asset Quality
ASSET QUALITY Asset Quality 5.9% 3.3% 2.6% 2.4% 2.2%2.2% 2.1%2.2% 2.1% 1.7% 1.4% 1.4% 1.3% 1.0% 0.9% 0.8% 0.7% 0.6% 0.6% 0.5% 0.4% 0.2%0.2% 0.3% 0.1% Loan impairment expense Non-performing loans and loans - 90 day arrears - Gross non-performing loans (> Total provision in arrears 180 days) Jun18 HY
Slide 18: Portfolio
PORTFOLIO Portfolio 538 514 316 PGK'm 294 279 249 247 233 PGK’m 155 140 87 92 92 90 84 73 70 15 22 19 15 19 15 12 5 7 9 11 8 8 9 4 4 1 1 1 1 - 2 Dec18 FY Dec19 FY Jun20 HY Agriculture, Forestry & Fishing Mining Manufacturing Electrical, Gas & Water Building and Construction Wholesale & Retail Hotel
Slide 19: Customer Growth
CUSTOMER GROWTH Customer numbers growth 5,968 164,232 6,750 141,226 3,163 2,183 18,442 Jun18 Dec18 Jun19 Dec19 EL portfolio sale New customers Jun20 18 Kina Securities Limited Half Year Results 2020
Slide 20: Market Share Gains
MARKET SHARE GAINS Market share percentage - lending Market Market share share percentage percentage - deposits - deposits Market share percentage - lending 11.8% 11.8% 10.3% 10.1% 6.4% 6.4% PGK’m PGK’m 7.0% 6.0% 6.4% 5.3% 2,480 2,504 1,402 1,421 786 852 866 1,316 1,418 1,098 Jun18 HY Dec18 FY Jun19
Slide 21: Deposit Mix
DEPOSIT MIX 1,068 1,034 661 650 PGK'm 585 591 587 556 544 456 396 357 316 293 292 251 103 18 19 20 Fixed Term Cash Management Accounts Current Account Savings Account Jun18 HY Dec18 FY Jun19 HY Dec19 FY Jun20 HY 20 Kina Securities Limited Half Year Results 2020
Slide 22: Wealth Management
WEALTH MANAGEMENT Funds under administration Funds under management management Funds under administration 8.08 805 7.95 13.64 7.90 790 771 12.55 750 7.46 12.31 PGK'bn 11.72 717 7.14 11.38 Jun18 HY Dec18 FY Jun19 HY Dec19 FY Jun20 HY Jun18 HY Dec18 FY Jun19 HY Dec19 FY Jun20 HY FuA (PGK'bn) Member ('
Slide 23: Kina Securities Limited
www.kinabank.com.pg 22 Kina Securities Limited Half Year Results 2020