Full Year 2025 Kina Securities Ltd Earnings Call Transcript
Key Points
- Kina Securities Ltd (ASX:KSL) reported a 15% increase in underlying NAT to PGK126 million and a 20% rise in statutory NPA to PGK121 million.
- The company achieved broad-based revenue growth of 13% across its diversified portfolio, with double-digit growth in major revenue lines including lending, foreign exchange, and digital channels.
- Return on equity increased by 200 basis points to 17.4%, and the full-year dividend in PGK was up 22% year on year.
- Kina Securities Ltd (ASX:KSL) saw strong growth in its lending market share, with gross loans up 17.8% year on year, driven largely by its commercial lending portfolio.
- The company maintained disciplined cost management, with operating cost growth limited to 4%, resulting in an improved cost-to-income ratio from 59.1% to 54.7%.
- The company's market share in customer deposits was affected by movements in government-related banking activity, which is unrelated to Kina Securities Ltd (ASX:KSL).
- A one-off non-cash increase in tax expense of 5.5% was required due to the revaluation of deferred tax assets following a scheduled decline in the statutory corporate tax rate.
- Despite strong underlying growth, non-interest income was partly offset by reductions in non-operating income and valuation reductions from financial assets.
- The non-performing loan ratio, although improved, remains at 7.7%, indicating ongoing challenges in asset quality management.
- The company faces potential pressures on margins due to expected lower yields on government securities and a more competitive foreign exchange market.
Thank you for standing by and welcome to the Kina Securities Limited Full Year Results ending 31December, 2025. (Operator Instructions) I would now like to hand the conference over to Mr. Ivan Vidovic, Managing Director and Chief Executive Officer. Please go ahead.
Good morning, everyone and welcome to the presentation of Kina Securities Limited full year results for 2025. My name is Ivan Vidovic, CEO and Managing Director. Thank you for joining us today as we share our strong financial performance and the key drivers of our growth over the past year.
I'm joined today by our Chief Financial Officer Johnson Kalo, who'll be joining me in presenting today and will be available for questions at the conclusion of the presentation. As many of you will know, Johnson has been with Kina since 2019.
Before we begin, please note the disclaimer in our presentation pack, which outlines that this document contains forward-looking statements and is not financial
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