Kina Securities Ltd Full year results December 2016 February 2017 - PowerPoint PPT Presentation

Kina Securities Ltd Full year results – December 2016 February 2017

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The Recipient acknowledges that to the maximum upon its own assessment, independent analysis and advice in relation to the extent permitted by law: (1) any and all liability in respect of the information business, assets and financial position and affairs of Kina Securities Limited. contained in this Presentation is expressly excluded, including any liability arising from fault or negligence on the part of any person, for any direct, indirect, Forecasts: This Presentation may contain various plans, costs projections, estimates, forecasts and other forward looking statements (" Forecasts ") which consequential or contingent loss or damage suffered by any person arising from the use of the information or otherwise arising in connection with it; (2) no responsibility involve subjective judgments. 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Conflicts: The Kina Group, its Directors, officers, employees or agents may own Not an invitation, advertisement or offer of securities: This Presentation is not, shares in Kina Securities Limited. By accepting this Presentation, you acknowledge and should not be considered as, an invitation, advice or recommendation to apply and agree that none of the Kina Group, its Directors, officers, employees or agents are responsible to you in a fiduciary capacity nor is your access to the Presentation for securities and does not contain any application form for securities. This Presentation does not constitute an advertisement for an offer to sell or the or the information evidence of any fiduciary relationship between you, another solicitation of an offer to buy securities. This Presentation is not a disclosure Recipient or the Kina Group, its Directors, officers, employees or agents individually document (as defined in the Australian Corporations Act) or a prospectus (as or at all. defined in the Papua New Guinea Securities Act). The provision of this Presentation is not a representation to you or any other person that an offer of securities will be made. Any offer of securities or prospective transaction would be undertaken solely on the basis of a prospectus or other disclosure document prepared in accordance with the applicable securities laws and regulations. 2

Statutory Profit After Tax (PGK Mln) 41.0 5.0 Dec-15 Dec-16 3

Lending increased 62% Kina Lending Book Lending breakdown (PGK Mln) 606 Overdrafts 10% Esiloan 4.3% 374 Term/Business 69% Housing 17% 202 196 2013 2014 2015 2016 6

Large low cost deposit base grows 40% Kina Deposits Deposit profile (% of total) (PGK Mln) At Call 958 42% 12 months 1% 686 6 months 1-3 months 30% 252 27% 225 2013 2014 2015 Jul-05 7

Income grows 66% Interest and non-interest income (PGK Mln) 117.0 51.9 69.7 26.8 65.1 42.9 2015 2016 Net Interest Income Non-interest Income 8

Other Income continues to rise Foreign Exchange Wealth Management (PGK Mln) 20.6 18.5 17.1 7.8 2015 2016 2015 2016 9

FUM up strongly (PGK Bln) 6500 6.2 5.9 6000 5.4 5.3 5500 4.8 5000 4.6 4500 4.1 4000 3500 3000 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 10

Nasfund to boost FUA Funds Under Administration Member Numbers (000) (PGK Bln) ~700 forecast ~9.5 forecast 5.61 4.85 4.41 3.82 3.74 170 161 155 147 139 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 11

Efficiency improving steadily Costs Cost to Income Ratio (%) 61.3 59.0 48.8 Other Software 47.5 17% 5% Staff Lease 7% 51% Admin 21% Jun-15 Dec-15 Jun-16 Dec-16 12

Strong capital adequacy, low loan impairments Capital 30 33 Adequacy (%) 3.8 3.2 27.5 3 24.9 23.3 Total provision (%GLA) 2.1 11.2 10.5 11.0 9.9 Impairment expense (%GLA) 8.4 0.8 Leverage (%) 0.6 0.5 0.2 2012 2013 2014 2015 2016 Jun-15 Dec-15 Jun-16 Dec-16 13

PNG – 2.8% growth forecast in 2017 Economic Growth 2005-2021 15

Our strategy for growth At a macro level, we participate in rapid development of PNG financial system Total assets PNG Financial System 18

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