Half Year 2024 Kina Securities Ltd Earnings Call Transcript
Key Points
- Revenue growth up 17% half on half, reflecting successful diversification strategy.
- Net interest income investments, fee income, digital, FX, superannuation services, and funds management all on or above budget.
- Solid loan drawdown activity close to PGK400 million, primarily from home lending and business banking.
- Digital segment continues to grow, with plans to deploy over 1,000 terminals in the next six months.
- Increased FX flow due to strong connections with export sectors and state-owned entities.
- Operating expenses up 27% due to higher administration and employee costs.
- Cost-to-income ratio slightly higher at 58 basis points, impacted by front-ended costs.
- Corporate tax rate for the banking sector increased from 30% to 45%, impacting profitability.
- Non-lending loss provision of PGK7.4 million after tax affected statutory results.
- Technical issues during the call caused interruptions and may have affected communication.
Thanks for joining us for this webcast on our first half 2024 results announcement. On the call this afternoon, I also have joining me Johnson Kalo, our Chief Financial Officer; and Ivan Vidovich, our Chief Transformation Officer.
As usual, I'll take the ASX announcement and the investor presentation pack, which was uploaded at close of business yesterday as read and I'll take this opportunity to give more of a high-level overview as a result and provide some additional context for the second half.
The 4D and 5D documents lodged also provide a very comprehensive, I should say, assessment of the results. So that's a very good narrative this half and a continued and consistent story of steady growth.
The most pleasing aspect, though, is our revenue growth, which is up 17% half on half. This is our strongest revenue result half on half and reflects, I think, the execution and success of our diversification strategy with all six key drivers of revenue growth on or above budget.
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