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Kina Bank announces profit

The longest serving bank in Papua New Guinea, Kina Bank announced a K45.6 million (US$12.9 million) net profit after tax, as of August 29, 2022.

The board said this was an increase of 15 per cent compared to the same period last year.

According to a statement issued by Kina Bank, the half-year results reflected strong revenue growth and ongoing progress, against the key strategic priorities of the Kina Group.

Kina said it remained committed to “delivering improved returns by growing market share organically, disciplined expense management and a prudent approach to maintaining a resilient balance sheet.”

“Revenue growth was evident across both net interest and non-interest income. Net interest income grew by 8 per cent against the same period last year due to solid lending performance in SME and home lending. In non-interest income, merchant facility fees and FX income contributed to the 34 per cent increase against PCP.”

Kina Bank CEO Greg Pawson (L). According to a statement issued by Kina Bank, the half-year results reflected strong revenue growth and ongoing progress, against the key strategic priorities of the Kina Group. Picture: Kina Bank

The board has declared a half year dividend for the H122 of AUD 4.1 cents per share/ PGK 10.3 toea per share. Kina’s capital position remains strong with total capital adequacy of 22 per cent, well above the regulatory target of 12 per cent.

Kina’s managing director and chief executive officer Greg Pawson said the result demonstrated top line growth momentum, execution of their digital initiatives and a solid start to lending for the half.

“Over the past 6 months we have continued to build out our organic growth strategy. Increasing market share in our targeted segments remains the focus for 2022 supported by a robust balance sheet that ensures profitable growth,” Mr Pawson said.

“Underpinning revenue momentum is a disciplined approach to deliver customer-led digital solutions. The Launch of our ‘Single View’ is a market first in PNG. Single view enable’s customers to access their superannuation balances via Kina’s online banking channel.”

The longest serving bank in Papua New Guinea, Kina Bank announced a K45.6 million (US$12.9 million) net profit after tax, as of August 29, 2022. Picture Kina Bank

The bank had a lending growth of five per cent. The lending portfolio delivered solid results across home and corporate lending. Home lending grew by PGK 84.3m, representing ten per cent growth with housing loans contributing 41 per cent of loan book growth.

Business lending experienced growth in term and asset financing loans and agriculture sector, with expectations for higher growth in the second half of the year.

Deposits grew 12 per cent over the past six months largely attributed to an increase in fixed term deposit resulting in a lengthening of the balance sheet duration.

Net interest margin reduced to 6.2 per cent due to a lower yield in government securities, strong growth in corporate deposits supporting a strong lending pipeline and acquiring additional share of customer transactional banking including FX, and deliberate strategy of participating in corporate lending.

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