Kina Securities Limited (ASX:KSL)

Kina Securities Limited’s Appendix 4D Half Year Report for the six months ended 30 June 2026 reported statutory and underlying net profit after tax attributable to equity holders of PGK59.7 million, up 4% on the previous corresponding period, on revenue from ordinary activities of PGK254.8 million, up 2%, with profit before tax of PGK88.9 million down 5%; the Board declared an unfranked interim dividend of AUD 4.5 cents per share, equivalent to PGK14.2 toea per share, with a record date of 4 September 2026. The result was supported by 5% growth in net interest income to PGK119.3 million, stable non-interest income of PGK135.5 million, lower impairment losses of PGK6.3 million, and a reduced tax expense following a lower corporate tax rate, although operating expenses rose 7% to PGK159.6 million and net interest margin eased to 5.8%. Net loans and advances were PGK3.10 billion, 2% above June 2025 despite a reduction from December 2025, deposits were PGK4.33 billion, down 4% as the bank optimised funding mix, and asset quality remained sound with non-performing loans at 8.9% of gross loans and provision coverage at 2.6%. Capital was materially strengthened by a successful PGK235 million subordinated Tier 2 bond issuance, lifting total capital adequacy to 26.0%, well above the 12.0% regulatory minimum, while the reviewed report also noted continued strategic execution through digital initiatives, business banking platform enhancements, and a positive outlook for stronger second-half 2026 performance.