KSL profit up by 27pc

KINA Securities Ltd’s (KSL) underlying net profit for 2021 has increased by 27 per cent, according to the company.
Chairman Isikeli Taureka said in the company’s 2021 financial report yesterday that KSL’s foreign exchange (FX) income grew by 17 per cent and had been averaging a return on equity (ROE) of above 16 per cent.
“Our funds administration business continued to record growth in revenue, consistent with increased funds under management,” he said.
“Earnings per share coming in at 24.68 toea per share, compared with 37.25 toea last year, reflect that the economies we are operating in are beginning to recover from the impacts of the Coronavirus (Covid-19).
“As customers across the globe adapt to the impacts of the Covid-19, a reassessment of the provisions we took in 2020 meant a slight adjustment to our provisions held and this combined with strong revenue and growing FX revenue across all markets led to a solid financial performance in 2021.” He added that last September, the company paid a dividend of 8.25 toea (AUD 3 cents) per share in relation to the profit for the half year ended June 30, 2021.
“Subsequent to the balance sheet date, the directors have declared a final dividend of 18.5 toea (AUD 7 cents) per share on underlying net profit for the second half of 2021, making it a cumulative dividend for the full year at 26.75 toea, which converts to 10 cents Australian,he said.
“This demonstrates the board’s commitment to repatriate earnings back to the owners of our business when growth is achieved.”
Meanwhile, Taureka said the simplified corporate structure and rights issue carried out last year had enabled Kina’s balance sheet to grow.
“Our total capital adequacy is 23 per cent and this positions us well for future organic growth.
“In 2021, we managed our capital adequacy well in response to market conditions and we will maintain a close eye on this in 2022/23.
“Our shareholders would expect nothing less from a publicly listed bank.”