Good start for Kina Security Limited

 KINA Securities Limited says it has started 2016, with momentum increasing after the completion of the Maybank acquisition, and as the integration of operations and systems gathers pace. 

According to its first financial report as a listed entity, new business lending is accelerating in 2016, deposit volumes continue to rise, funding costs are being reduced, and non-interest income is increasing steadily. The report says while the PNG economy experienced some slowing of activity due to reduced commodity prices, Kina’s target markets of small business and retail consumers remained relatively resilient. 

The focus for 2016 will be to extract maximum benefits from the Maybank merger through seizing opportunities for sales to new and existing customers, increasing investment portfolio returns and reducing funding costs.

Systems integration and technology enhancements are also being implemented to provide greater service and access to a broader customer base, and strengthened risk management systems are being introduced to maintain credit quality.  The bank remains well placed to deliver steady growth in operating results this year, including: 

• Net interest margin of 8 to 10 per cent;
• cost to income ratio of less than 45 per cent due to ongoing effective cost management;
• profitable and quality lending growth, with strong momentum building in the period since the completion of the Maybank merger last September; and
• continued growth of the low-cost deposit base.