Positive economy outlook seen

Kina Securities Ltd (KSL) has estimated the country’s economy to be moderate at a three per cent rate for this year.
“Looking ahead to 2019, there is generally a positive outlook for the growth of the PNG economy,” it said.
“The World Bank has forecast a growth rate of 5.1 per cent, however, Kina estimates more moderate growth at 3 per cent.”
According to its 2018 financial year results released yesterday, foreign exchange flows and reserves were expected to continue to increase. A number of major new resource projects are expected to make positive progress to towards final investment decisions.
“The general positive outlook is not without risks, which mainly relate to a possible slowdown in growth in international markets,”KSL said.
“PNG’s status as a low-cost country for extractive industries may provide some insulation from these international factors.”
Meanwhile, Kina Bank’s acquisitioning of ANZ Bank PNG’s retail, commercial and small-to-medium enterprise business last year is on track to complete by Sept 30.
According to the bank in its 2018 financial year results released yesterday, the formal regulatory approval was provided by the Bank of PNG on Tuesday.
The acquisition is expected to increase Kina’s earnings and profitability, improve return for shareholders, enhance liquidity to support future lending growth and improve its national footprint.
Chief executive officer Greg Pawson said: “In the year ahead, we are particularly excited by the opportunity provided by the acquisition of ANZ PNG’s retail and small-to-medium enterprise/commercial banking businesses.
“This will improve Kina Bank’s market position and enable it to emerge as a leading participant in these sectors.”
Pawson said the solid result delivered by the bank last year demonstrated the success of the group’s long-standing commitment to its customers.
He said it reflected the ongoing implementation of its digital strategy, the strength of its team and focus on operational capacity building.
“Importantly, these positive results were achieved against a challenging economic backdrop due to the tight supply of foreign exchange and lower economic activity due to natural disasters,” Pawson said.
“These results set a strong foundation for Kina’s vision to be the most-dynamic, progressive and accessible financial services company in Papua New Guinea.”