Kina Securities (KSL) H1 2025 earnings summary

Executive summary

• Statutory NPAT increased 37% year-over-year to PGK 57.7m, driven by strong revenue growth and a lower tax rate effective January 2025.

• Achieved record half-year revenue, NPAT, and dividends, reflecting strong business momentum and robust lending book quality.

• Loan book expanded 16% year-over-year, with business lending up 22% and market share rising to 16.9%.

• Non-interest income grew 19%, now 55% of total revenue, supported by strong FX, digital, and wealth management performance.

• Interim dividend declared at AUD 4.5 cents (+13%) / PGK 12.6 toea (+19%), with a payout ratio of 63%.

Financial highlights

• Total revenue increased 10% year-over-year to PGK 251m.

• Net interest margin rose 30 basis points to 5.9%.

• FX income surged 37% year-over-year, digital revenues up 15%, and funds management revenue up 24%.

• Cost-to-income ratio improved to 59.2% from 64.8%.

• Return on equity improved by 390 basis points to 17.1%.

Outlook and guidance

• Strategic plan for 2026-2030 focuses on organic growth, wealth management, inorganic initiatives, and capital optimization.

• Pre-tax earnings growth expected in H2 2025, led by lending and non-lending revenue, with cost controls.

• FX revenue growth may moderate due to evolving central bank intervention policies.

• Anticipated economic uplift from major LNG projects in the medium to long term.

• Strategy centers on growth, resilience, service excellence, and sustainable communities.