Photo: Vision City Branch, Kina Bank, Papua New Guinea
Kina Securities Ltd (KSL) reported a net profit of K96.2 million for the 2021 financial year, up 27% from the previous year's statutory net profit of K70.8 million.
One-time expenditures linked with the termination of the Westpac purchase, according to the bank, harmed the statutory results.
The board of directors has announced an unfranked final dividend of AUD 7.00 cents per share/ K18.5 toea per share for the second half of 2021.
The unfranked dividend for the whole year is AUD 10.0 cents per share/26.8 toea per share.
Greg Pawson, Kina's chief executive officer and managing director, said the results highlighted the company's capacity to develop organically while keeping expenses low and executing on strategic goals.
“Throughout 2021, we have been focused on delivering strong growth in target segments, maintaining a disciplined approach to cost management and ensuring our communities remain safe in a pandemic.
“The implementation of our corporate banking strategy and response in developing digital solutions for our customers has helped build a sustainable growth profile,” Pawson said.
Kina achieved lending portfolio growth of 21 per cent which resulted in its market share increasing to 14.5 per cent.
The key achievements were the following:
- THE UNDERLYING NET PROFIT grew by 27% to K96.2 million.
- THE loan book delivered a 21 per cent growth;
- FOREIGN exchange revenue increased by 19 per cent;
- NET fees and commissions grew by 17 per cent to K 89.3 million;
- Kina's robust revenue growth was fueled by non-interest income from fees and commissions and foreign exchange profits, which accounted for 18% of the company's total revenue.
- COST to income ratio (underlying) maintained at 58 per cent
- REDUCTION in impairment cost to K6.5 million; and,
- KINA'S funds' administration division had a net profit of K10.1 million, up 22% over the previous year.
Reference: The National (2 March 2022). “Kina announces K96mil profit”.
