Kina Securities Limited (KSL) has reported a net profit before tax of PGK175.5 million for the 2023 financial year, representing an increase of almost 20%. This substantial increase indicates the bank’s ability to generate strong returns even amidst economic challenges.
The 20% expansion in the loan portfolio further strengthens this positive outlook, suggesting effective customer acquisition strategies and business growth despite challenges that the Chairman Mr. Isikeli Taureka highlights.
The KSL operates in a market that has its fair share of challenges, including law and order issues, security concerns, unreliable public utility services, foreign exchange constraints, and fiscal and regulatory policy unpredictability. However, the bank has proven to work within those challenges to ensure its business continues to grow from strength to strength and deliver maximum returns for shareholders.
The bank reported a healthy return on investment of 16.8%, showcasing KSL’s efficient use of shareholder capital. This translates to maximizing returns for investors while reinvesting profits strategically for future growth. A dividend of PGK15.9 toea per share shows the company’s commitment to shareholders.
The KSL’s customer base witnessed a 19% increase, a clear indicator of successful customer acquisition efforts. This growth signifies not only an expanding market share but also a growing level of trust in KSL’s services. The bank also achieved a healthy 44% year-on-year increase in digital revenue streams, suggesting a strong customer appetite for its innovative digital banking solutions.
The bank says that its focus will be on continuing the development of its digital capability, driving growth in its core businesses of retail and business banking, and its market-leading wealth management platforms – Kina Investment and Superannuation Services, and Kina Funds Management.
The Chairman highlighted the challenges the bank faces, noting “As you would all appreciate, we operate in a market that has its fair share of challenges that the Board and Management each year try to navigate.
Challenges around law and order, security, unreliable public utility services such as power, foreign exchange, and fiscal and regulatory policy unpredictability are just some of the many challenges we continue to face here in PNG.”
The MD & CEO, Greg Pawson, says “The business has shown agility to adapt when necessary to deal with variability in conditions such as the foreign currency supply inconsistency, low yields on domestic securities, and changes to our corporate tax rate.
“Consultations with the PNG Government on the 15% increase in the corporate income tax from 30% to 45% which came into effect on 1 January 2023, are continuing. Our solid growth gives us the right to continue to invest in the business and we have been cautious to ensure these investments are revenue accretive and at the same time maintaining a strong discipline in managing our cost base”
