Kina Securities Ltd reported a 4% year-on-year increase in statutory net profit after tax for the first half of 2026, reaching PGK 59.7 million. Revenue grew 2% to PGK 254.8 million, though earnings per share edged up just 1% to 20.3 toea. The interim dividend rose 13% in kina terms to 14.2 toea, though it remained flat in Australian dollar terms at 4.5 cents.
The company’s capital adequacy ratio surged to 26%, up 870 basis points from December 2025, reflecting a strengthened balance sheet. Net interest margin declined 10 basis points to 5.8%, while return on equity fell 50 basis points to 16.6%. Operating costs increased 7% to PGK 159.6 million, pushing the cost-to-income ratio to 62.6%. Credit risk costs eased 10 basis points to 0.2%.
Foreign exchange revenue dropped 5% to PGK 48.3 million, partly due to a one-off PGK 2.4 million loss on the 2025 final dividend payment. The wealth business remained a standout, with funds under administration up 15% to PGK 25.1 billion and funds under management rising 10% to PGK 14.4 billion.
Loan book growth slowed to 2% year-on-year, though underlying growth would have been 7% before strategic de-risking. Deposit market share declined to 10.9%, while lending market share held steady at 16.9%. The non-performing loan ratio stood at 8.9% under updated IFRS 9 methodology, with provision coverage improving to 2.6% of gross loans.
Management highlighted headwinds including an industry-wide card interoperability disruption affecting EFTPOS, e-commerce, and ATMs, which is expected to be resolved by year-end. The company also noted softer growth in transaction-related revenue and deliberate balance-sheet adjustments.
Kina Securities’ stock last traded at $1.19, down 0.42% from the previous close. The shares have ranged between $1.15 and $1.385 over the past 52 weeks, with a price-to-earnings ratio of 9.67 and a dividend yield of 9.21%.
