Slide 1: Full Year Profit 2015. Kina Exceeds Prospectus Forecasts
For personal use only Full Year Profit 2015. Kina Exceeds Prospectus Forecasts
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 For personal use only this document, you agree to the following terms and conditions, including any modifications to them. Confident
Slide 3: Pro-forma Profit Beats Prospectus Forecast
Pro-forma Profit Beats Prospectus Forecast For personal use only • Pro-forma FY 2015 net profit of Pro-forma profit PGK47.5 million, exceeding prospectus after Tax forecast of PGK45.3 million by 4.9% (PGK Mln) • Net interest margin of 9.6% 47.5 44.2 • Cost to Income Ratio of 44.6% 38.4 • Bad debt ex
Slide 4: Corporate Highlights - IPO Completed
Corporate Highlights - IPO Completed For personal use only Major Shareholders • Dual listing ASX and POMsox • Raised PGK200 million/A$97 Australian Instos million. 26% Fu Shan • 164 million shares issued Investments 35% • PE ratio of 6.4 times 2015 Other 13% NPAT of A0.14/share* • Market cap ≈ A$150
Slide 5: Corporate Highlights - Maybank merger
Corporate Highlights - Maybank merger • Purchase price of PGK349 million (A$173 For personal use only million) • Merger creates: • fourth largest bank in PNG • More than 11,000 clients • Seven branches and an expanding electronic network • Total loans ≈ PGK374 million • Total deposits ≈ PGK683 milli
Slide 6: Kina Bank – Lending momentum building
Kina Bank – Lending momentum building For personal use only Kina Lending Book Lending breakdown (PGK Mln) 369 374 320 280 Business/Term 53% Overdrafts Housing 17% 25% 2012 2013 2014 2015 Lending growth of PGK25 million in Esi Loan 5% December quarter 2015, post settlement of Maybank PNG acquisition
Slide 7: Kina Bank – Low cost deposit base
Kina Bank – Low cost deposit base For personal use only Kina Deposits Deposit profile (PGK Bln) 683 631 580 528 At Call 59% +12 months 9% 6 months 9% 1-3 months 23% 2012 2013 2014 2015 7
Slide 8: Kina Bank – Funding advantage
Kina Bank – Funding advantage For personal use only Large low cost deposit base provides growth potential (Deposits as % of Lending Assets) 183 183 83 65 67 69 71 61 54 Regional 1 Regional 2 Regional 3 Major 1 Major 2 Major 3 Major 4 PNG Bank Kina Source: Company reports. Regional Bank Group data. M
Slide 9: 2015 Income Exceeds Prospectus forecast
2015 Income Exceeds Prospectus forecast Total income PGK125.2 million vs forecast of PGK124.6 million For personal use only SEGMENT INCOME, INTEREST AND NON-INTEREST DOMINATED BY BANKING* INCOME PGK Millions 71.2 71.4 61.4 Banking 62% 54.7 53.8 48.4 43.3 45.3 Forex 22% Wealth Management 2012 2013 20
Slide 10: Strong margin performance
Strong margin performance For personal use only Net Interest Margin (%) 9.6 1.85 1.9 1.97 2.0 2.1 2.1 Regional 1 Major 1 Regional 2 Major 2 Major 3 Major 4 Kina Source: Company Reports 10
Slide 11: Efficient cost management
Efficient cost management For personal use only Competitive cost to income ratio (%) 57.1 53 48.2 44 45 46 42.2 43.5 Major 1 Major 2 Major 3 Kina Regional 2 PNG Bank Regional 2 Major 4 11
Slide 12: Low bad debts, strong capital adequacy
Low bad debts, strong capital adequacy For personal use only % Capital 33* Adequacy 27.5 ratio 24.9 23.3 Leverage ratio 11.2 10.5 11* 9.9 Impairment 1.3 1.1 0.9 0.7 expense as % of loans 2012 2013 2014 2015 *Post 2015 final dividend 12
Slide 13: Kina Funds Under Management
Kina Funds Under Management For personal use only 6000 PGK5.5 billion 5500 5000 4500 4000 3500 3000 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 13
Slide 14: Kina Funds Under Administration
Kina Funds Under Administration For personal use only Funds Under Member numbers PGKm Administration 180,000 5000 160,000 4500 140,000 4000 3500 120,000 3000 100,000 2500 80,000 2000 60,000 1500 40,000 1000 20,000 500 0 0 14
Slide 15: Synergies from the Maybank acquisition
Synergies from the Maybank acquisition For personal use only PROGRESS INVESTMENT Reallocating investment portfolio into assets with PORTFOLIO higher returns and longer maturities OPTIMISATION1 COST OF FUNDING Reduction in cost of funding due to enhanced scale OPTIMISATION1 and capital position Expen
Slide 16: Integration and rebranding well advanced
Integration and rebranding well advanced For personal use only Before After 16
Slide 17: Management team strengthened
Management team strengthened For personal use only CEO Syd Yates Finance and Risk Shared Banking Wealth Treasury Management Services Personal Business 17
Slide 18: PNG – 4.3% growth forecast in 2016
PNG – 4.3% growth forecast in 2016 For personal use only 10 9 8 7 6 5 4 3 2 1 0 18
Slide 19: New developments lift public finances
New developments lift public finances For personal use only • Ok Tedi mine back in production March 2016 • Drought ended in many regions • New mining projects being advanced – Elk Antelope, Frieda River, Wafi Golpu • Govt budget initiatives taking effect • Sovereign Wealth Fund being established • F
Slide 20: Outlook
Outlook For personal use only 2016 guidance • Net interest margin 8-10% • Cost to income ratio < 45% • Lending market share growth • Deposit / loan ratio > 150% • Conservative provisions • Strong capital position • Strong EPS growth 20
Slide 21: Kina Exceeds Prospectus Forecasts. Full Year Results 2015
For personal use only Kina Exceeds Prospectus Forecasts. Full Year Results 2015