KSL posts K4.55m net profit

 KINA Securities Ltd has reported a net profit after tax of K4.55 million for the six months to June 30 this year.

The company said the result exceeded internal expectations and KSL was well positioned to achieve the profit forecasts outlined in prospectus recently issued for its successful dual listing on the Australian Securities Exchange and the Port Moresby Stock Exchange on July 30 this year.

The results did not include any contribution from Maybank Papua New Guinea business, as its acquisition by KSL was not completed at end of the period. The acquisition remains on schedule for completion by end of this month.

Before tax and costs associated with MPNG acquisition, profit was K8 million for six months to June 30, compared with K12.34 million in prior corresponding period.

Meanwhile, the Kina Group would be PNG’s fourth largest bank, with more than 11,000 clients and seven branches. It would be the largest wealth management business in PNG, and one of the largest fund administrators in the country.

The company said the combination of KSL and MPNG would provide significant opportunities for growth through new product offerings and capacity to cross-sell additional products to the combined customer base. It is expected to lead to reduced funding costs and operational cost savings.

While economic conditions in PNG have slowed over past year, national growth rates were still expected to be healthy at around 10 per cent. Notwithstanding slower economy, first half profit result for Kina Securities for six months exceeded internal forecasts, leaving the company on track to achieve forecasts outlined in recent prospectus for the Kina initial public offering.

Shareholders would be provided with a further update following completion of the MPNG acquisition in the coming week.