Kina Securities Ltd (ASX:KSL)

Half Year 2026 Kina Securities Ltd Earnings Call Transcript

Aug 30, 2026 / 12:30 AM GMT

Release Date Price: A$1.2 (+0.42%)

Transcript

Key Points

Positve

Statutory NPAT grew 4% to 59.7 million KINA, with earnings per share up 1% to 20.3 toya.
Capital position strengthened materially, with capital adequacy ratio up 870 basis points to 26% following the successful, oversubscribed $235 million Tier 2 bond issuance.
Interim dividend increased 13% in KINA terms to 14.2 toya, marking the third consecutive half of PGK dividend growth.
Wealth business showed strong growth, with funds under administration up 15% to 25.1 billion KINA and funds under management up 16% to $14.4 billion.
Asset quality remains solid with a lower cost of credit risk at 0.2%, down 10 basis points, and provision coverage strengthened to 2.6% of gross loans.
Underlying loan growth would have been 7% against prior corresponding periods, excluding deliberate de-risking actions, and the lending pipeline remains strong at 7%.
The Papua LNG project is progressing, with capital costs cut to around $14 billion and FID targeted for Q4 2026, which could be a major catalyst for growth.

Negative

Earnings growth was softer than recent halves, with revenue growth of only 2% and net interest margin easing 10 basis points to 5.8%.
Deposit market share declined to 10.9%, reflecting a deliberate strategy to run off higher-cost fixed deposits and cash management account balances.
Foreign exchange revenue was down 5% year-on-year, including a one-off $2.4 million FX loss on the 2025 final dividend payment.
The card interoperability issue with a major PNG bank disrupted payment acquiring revenue across ATMs, e-commerce, and EFTPOS, with full recovery potentially extending into 2027.
Operating costs rose 7% to $159.6 million KINA, driven by FX translation impacts, inflation, and continued investment in digitization, leading to a higher cost-to-income ratio.
The NPL ratio increased to 8.9% on a comparable basis, partly due to a 30% reduction in the loan book (denominator effect), though NPL balances actually reduced slightly.
The KINA's continued depreciation against the Australian dollar meant the interim dividend held flat in AUD terms at $0.05 despite the 13% PGK increase.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KSL.AX - Kina Securities Ltd
Half Year 2026 Kina Securities Ltd Earnings Call
Aug 31, 2026 / 12:30AM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by and welcome to the Keena Securities Limited KSL half-year results ending 30 June 2026.

All participants are on a listen-only mode. There will be a presentation followed by a question-and-answer session.

If you'd like to ask a question, you'll need to press the star key followed by the number one on your telephone keypad. I'd now like to hand the conference over to Mr. Ivan Vitovich, Managing Director and Chief Executive Officer. Please go ahead.

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Unidentified_2 [2]
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Thank you.

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