Kina Securities Ltd. · ASX:KSL
Kina Securities — Investor Presentation (October 2024)
20 slides from Kina Securities's investor presentation, Oct 14, 2024
Slide 1: Investor Presentation Notice
14 October 2024 ASX/PNGX | Announcement ASX Markets Announcement Office PNGX Markets Exchange Centre Monian Tower 20 Bridge Street Office 2, Level 1, Douglas Street Sydney NSW 2000 Port Moresby 121 Australia Papua New Guinea BY ELECTRONIC LODGEMENT Investor Presentation Notice For personal use only
Slide 2: Presentation to clients of Smartkarma
For personal use only Presentation to clients of Smartkarma Greg Pawson – Managing Director & CEO Johnson Kalo – Chief Financial Officer Deepak Gupta – Executive General Manager Wealth Management & Corporate Advisory 15 October 2024 1
Slide 3: Macro Update
Macro Update. Macro growth stable in medium-term • Real GDP growth for this year is forecasted at 3%, from 2.7% REAL GDP GROWTH (%) For personal use only in 2023. 6.00 • Mining sector growth with Porgera Mine resuming and spill over effects into non-resource sector. 5.00 Retail/Wholesale sector has
Slide 4: Major Resource Project Update
For personal use only Major Resource Project Update Medium term outlook post-2026 is still very bullish on PNG economy with major capital projects totalling nearly $30billion over 8-10 years of construction. Project US$ billion Start Date Papua LNG (Total) 10.00 2026 P’nyang LNG (ExxonMobil) 12.00 2
Slide 5: Kina Bank's Vision
For personal use only Kina Bank’s Vision. To be the most dynamic, progressive and accessible financial services company in the Pan Pacific. “PNG’s leading digital bank.” 4
Slide 6: Kina Bank – Overview
Kina Bank – Overview. For personal use only • Kina Securities Limited (Kina Bank) was established in 1985 and is 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 7: Key milestone
For personal use only 6 Key milestone.
Slide 8: From a Bank to a Market Maker
From a Bank to a Market Maker. 2020-21 2022-24 2025 For personal use only Your trusted bank Your trusted financial services partner Your trusted partner in the Pan Pacific Region + Traditional banking + Traditional banking + Investment Banking Bank Services + Pan Pacific diversified investment bank
Slide 9: Overview
Overview. For personal use only Organic growth momentum • Gross revenue up 17% • Underlying NPAT up 7% • Statutory NPAT down 9%, materially impacted by fraud loss provision of PGK13.5m (pre -tax) and PGK7.4m (post-tax) • Deposit up 8%, Lending up 12% vs June 2023 Diversified Revenue growth • Interes
Slide 10: Financial Highlights
Financial Highlights. For personal use only 2024 Half Year Results Jun-24 Jun-23 Movement Net Interest Income (PGK m) 111.6 98.1 14% Foreign Exchange Income (PGK m) 37.0 21.6 71% Underlying Cost to Income (%) 58.9 56.2 (270bps) Underlying Return on Equity (%) 15.6 15.2 40bps Ordinary Dividend (AUD c
Slide 11: 1H NPAT impacted by one-off expense
1H NPAT impacted by one-off expense. For personal use only 1H Stat. NPAT 1H Stat. NPAT line 1H Underlying NPAT line 49.6 • Statutory NPAT declined by 9% YoY to PGK42.2m, impacted by non-lending loss provision of PGK7.4m after tax. • Commercial loans and foreign exchange PGK'mm 46.4 income driving co
Slide 12: Shareholder Return
Shareholder Return. For personal use only Capital Adequacy Statutory Earnings per Share 22.0% Dividend per Share 20.8% 16.2 19.3% 10.6 15.9 10.3 14.7 9.7 12.0% 4.1 4.0 4.0 6.3 6.6 5.5 Jun22 HY Jun23 HY Jun24 HY Jun22 HY Jun23 HY Jun24 HY Jun22 HY Jun23 HY Jun24 HY DPS (PGK toea) DPS (AUD cents) EPS
Slide 13: Solid Revenue and Loan Growth in 1H
Solid Revenue and Loan Growth in 1H. For personal use only Revenue Net Loans Return on Equity 250 2,645 15.9% 15.2% 2,368 213 13.2% * 197 2,053 PGK'm PGK'bn PGK'm Jun22 HY Jun23 HY Jun24 HY Jun22 HY Jun23 HY Jun24 HY Jun22 HY Jun23 HY Jun24 HY * Underlying ROE would have been 15.6% 12
Slide 14: Loan portfolio growth
Loan portfolio growth. For personal use only 1,822 1,603 1,357 PGK'm 548 589 493 94 86 86 95 98 108 53 77 96 Overdraft Term Loans Investment Property Loan Asset Financing Housing Loan Jun22 HY Jun23 HY Jun24 HY 13
Slide 15: Net Interest Margin
Net Interest Margin. For personal use only 120.0 8.0% 7.1% 7.2% 7.0% 7.0% 6.5% 6.5% 100.0 6.1% 6.0% • NIM movement impacted by: 5.5% 5.6% 5.6% 6.0% • Solid growth in commercial lending 80.0 5.5% 5.0% continues to hold NIM at 5.6% 5.3% • Lower yields on central bank and treasury 60.0 4.0% bills. • Gr
Slide 16: Asset Quality
Asset Quality. For personal use only 9.3% 7.7% 7.7% 7.1% 6.4% 5.9% 2.2% 2.2% 1.8% 2.0% 1.9% 1.3% 0.1% 0.2% 0.3% Impairment Exp % of GLA Non-performing loans and +90 day arrears +180 days arrears Total provision % of GLA 5.6m 20.8m loans in arrears Jun22 HY Jun23 HY Jun24 HY 15
Slide 17: Market Share
Market Share. For personal use only Market share percentage - Lending Market share percentage - Deposits 16,799 15,128 33,391 13,801 15.7% 15.7% 31,778 13.4% 27,704 13.1% PGK'bn PGK'bn 14.9% 12.2% 2,053 2,368 2,645 3,392 4,154 4,474 Jun22 HY Jun23 HY Jun24 HY Jun22 HY Jun23 HY Jun24 HY Total System
Slide 18: Kina Bank – non lending operations
Kina Bank – non lending operations. For personal use only • It is also the largest wealth management business in PNG, with more than PGK11 billion funds under management. • As the country’s largest fund administrator, it administers accounts on behalf of more than 938,000 beneficiaries whose funds t
Slide 19: Kina Wealth
Kina Wealth. For personal use only Funds under Management Funds under Administration 10.60 938 896 9.49 PGK'bn 19.40 8.96 860 17.65 17.24 Jun22 HY Jun23 HY Jun24 HY Jun22 HY Jun23 HY Jun24 HY FuA (PGK'bn) Member ('000) 18
Slide 20: Thank you
For personal use only Thank you For more information: Phone: +675 308 3800 Email: Investor.relations@Kinabank.com.pg Web: https://investors.kinabank.com.pg/investors/ 19
Kina Securities — Investor Presentation (October 2024) on 6ix