Kina Bank has reported a 36 per cent increase in net profit for the first half of 2021, compared to the corresponding period last year. The results suggest the bank is successfully weathering the impact COVID-19 pandemic.
Kina Haus in downtown Port Moresby. Credit: Kina Bank
Revenue grew by a steady four per cent compared to the first half of 2020. The company has attributed to the rise to increased ‘transactional volumes’ over its digital platforms, which led to 10 per cent increase in fees and commissions income.
‘Continued stable foreign exchange (FX) trading income, an increase in the loan book, investment in high yielding government securities, and lower cost of funds contributed positively to the overall performance of the business,’ the bank said in its results announcement.
The bank also reported growth in its funds management and funds administration businesses.
On the expenditure side, the bank reported a reduction in its cost of operations – a flow-on benefit of its 2019 acquisition of ANZ’s retail banking operation in PNG. Kina reported a fall in cost to income ratio from 64.9 per cent to 60.9 per cent.
The overall result was a K39.8 million net profit after tax (NPAT) for the six months ending 30 June.
Kina Bank’s Greg Pawson.
‘The results demonstrate that our strategy of transformation is successful and driving the business in a strong direction. Kina has continued growth momentum for the first half of our financial year 2021, reflecting five consecutive half years (PCP) of improved performance,’ said the bank’s CEO Greg Pawson in a statement.
‘The growth in NPAT was driven by an increase in transactional volumes, continued cost discipline and growth in the existing loan book. This was supported by our sharpened focus on re-shaping the customer experience and the continued delivery of innovative products and services.’
The bank also flagged its intention to launch new services aimed at supporting small and medium-sized businesses, as well as new digital products and services.
Kina Bank’s Chief Executive Officer, Greg Pawson, will be a speaking on innovation in the financial services sector at next week’s 2021 Papua New Guinea Investment Conference. For further details, visit www.pnginvestmentconference.com.
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Happy to be newly registered business account with KINA BANK…proud to have bank that bring competition in the country where customer will be happy to do business competitive banks …