The Kina Securities Ltd (ASX: KSL) share price made moves today after the company posted a 4% lift in net profit after tax (NPAT) for the first half of 2026, along with a 13% increase in its interim dividend in PGK terms.
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What did Kina Securities report?
- Statutory NPAT rose 4% year on year to PGK59.7 million
- Revenue increased 2% to PGK254.8 million
- Net interest income grew 5% to PGK119.3 million
- Interim dividend up 13% in PGK at 14.2 toea (AUD 4.5 cents, stable year on year)
- Capital adequacy ratio strengthened to 26.0% (+870 bps), boosted by PNG's first listed corporate bond
- Operating costs rose 7% to PGK159.6 million
- Non-interest income represented 53% of total revenue, declining slightly by 2%
What else do investors need to know?
Kina Securities made history this half by issuing PNG's first listed corporate bond, raising PGK235 million. This has significantly fortified its capital position and supports the group's long-term growth ambitions as outlined in its 2030 Strategy.
The group continued to invest in its digital capabilities, launching the Pei Beta digital wallet for retail customers and a new Corporate Online Banking platform for businesses. While loan book growth was deliberately slowed as part of balance sheet optimisation, management remains confident in a robust lending pipeline for the second half.
Macroeconomic headwinds such as a weaker kina and lower government yields put pressure on costs and margins. In addition, revenue in payment acquiring was temporarily affected by interoperability issues between a major PNG bank and new debit cards. Industry-wide fixes are expected to restore balance by the end of the year.
What did Kina Securities management say?
CEO Ivan Vidovich commented:
Our first half 2026 results reflect a resilient performance despite the anticipated macroeconomic headwinds. Earnings were also affected by the debit card interoperability matter involving a major PNG bank, which altered the competitive landscape in payments acquiring channels, reduced customer choice and constrained transaction-related revenue growth. The issuance of KSL's PGK235 million Tier 2 Bond, the first listed corporate bond in PNG, materially strengthened our capital position and balance sheet capacity and represents an important early milestone in the delivery of the 2030 strategy… We entered the second half with positive momentum, and expect earnings to increase during the remainder of 2026.
What's next for Kina Securities?
The company is focused on driving organic growth in the second half of the year, aiming to accelerate loan growth while carefully managing external challenges. Improved foreign exchange activity and a strengthened balance sheet are expected to underpin earnings for the rest of 2026.
Kina Securities also plans ongoing investment in technology and capabilities under its 2030 Strategy, maintaining a disciplined approach to risk and capital management for long-term shareholder value.
Kina Securities share price snapshot
Over the past 12 months, Kina Securities shares have declined 8%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.
