K72mil in net interest income posted despite forex issue

Kina Bank recorded a net interest income of K72.4 million despite a drop in foreign exchange income for last year.
Kina Bank’s net interest income was up by 11 per cent from the previous corresponding period, according to Kina Group’s announcement to the Port Moresby Stock Exchange.
“This was achieved by driving loan book growth while ensuring careful management of cost of funds and yield on interest earning assets,” according to a POMSox announcement.
“Interest income from investments grew by 17 per cent or K2.8 million.
“Interest income on loans grew by 32 per cent or K19.3 million.
“In 2017, bank fees and commissions income grew by 11 per cent, reflecting growth in lending and retail customer segments.
“This assisted in cushioning the impact of the drop in foreign exchange income.
“Total non-interest income for Kina Bank was lower by K12.5 million.
“As advised to the market in May 2017, the impact in H1 (first half) 2017 is K10.7 million in respect of loss of foreign exchange revenues.”
The acquisition of a new USD correspondent banking partner last July enabled a restoration of foreign exchange revenues to K7.1 million for the year.
However, this is still lower than the prior year by K13.5 million.
Greg Pawson, the chief executive of Kina Securities Ltd, said despite the challenges faced last year, the business remained in good shape.
“In our banking business, we have restored our USD correspondent banking relationship during the year,” Pawson said.
“In addition, we have upgraded the core banking system and delivered new mobile banking applications for corporate and retail customers.”