Kina Securities (KSL) H2 2025 earnings summary

Executive summary

• Statutory NPAT increased 20% to K121m, with underlying NPAT up 15% to K126m, driven by broad-based revenue growth and a lower tax rate.

• Revenue grew 13–15% to K546m, supported by lending, FX, and digital channels.

• Lending market share rose, with gross loans up 13–17.8% year-over-year, led by commercial lending.

• Customer deposits increased from PGK 4.3bn to PGK 4.6bn, despite system-wide deposit spikes.

• Full-year dividend increased 22% in PGK, with a payout ratio of 77%.

Financial highlights

• Net interest income rose 20–22% year-over-year to PGK 268m, now 49% of total revenues.

• Non-interest revenue grew 6%, with FX revenue up 17% to PGK 100m and digital income up 13%.

• Operating costs increased 4% to PGK 298m, with cost-to-income ratio improving to 54.7–55% from 59.1%.

• Earnings per share increased 20% to 41.8 toea.

Outlook and guidance

• Anticipates continued earnings growth in 2026, driven by revenue uplift, market share gains, and a lower corporate tax rate (35%).

• Expects headwinds from lower yields on government securities, tighter FX margins, and further PGK depreciation.

• Focus remains on organic growth, capital optimization, and customer experience improvements.

• Selective investments planned for long-term growth and resilience, including Tier 2 capital bond issuance.