Kina Securities Limited (ASX:KSL | PNGX:KSL) (Kina) today announced its full-year financial results for 2025, reporting a 20% increase in statutory NPAT to K121 million and a 15% increase in underlying NPAT to K126 million. The result reflects another year of broad-based growth across the Bank’s diversified portfolio, disciplined cost management, and continued investment in organisational capability.
Total revenue increased 13% to K546 million, while operating costs rose 4%, enabling Kina Bank to deliver a strengthened return on equity of 17.4%, and a final dividend of 19 toea, up 25%.
Strong Growth Across Core Revenue Streams
Kina Bank’s strong result was underpinned by growth across both lending and non-lending activities:
- Net interest income increased 20%, driven by 13% loan book growth, and higher returns from government securities.
- Non-interest income grew 6%, supported by a 17% uplift in foreign exchange revenue, and 13% growth across digital payments and channels, offset by reductions in non-operating income and valuation reductions from financial assets.
- Business lending increased 17%, reflecting strong customer engagement in key centres including Port Moresby and Lae, and regional PNG, while home lending grew 4%.
- Kina Bank also strengthened its balance sheet, maintaining a capital adequacy ratio of 17%, well within the Bank’s target range and providing capacity for continued growth.
- Both the Underlying and Statutory NPAT are after taking additional loan provisions of 7m, above the requirements of normal loan growth, to address a number of aged, non-performing loans.
Disciplined Investment While Managing Costs
Across 2025, the Bank progressed several targeted investments to strengthen resilience, improve customer service, and support long-term strategic growth. These included:
- Uplifting leadership capability and specialist roles in strategy, risk, technology, digital innovation and data.
- Strengthening technology and network resilience.
- Enhancements to Anti-Money Laundering and Counter Terrorism Financing capabilities.
- Modernising credit risk environments and commencing several digitisation programs.
These investments were funded while still improving operating efficiency and maintaining a controlled cost base amid depreciation of the PNG Kina against major currencies.
Dividend Statement
The Board declared a final dividend of PGK 19.3 toea per share (AUD 6.5 cents), representing a 25% increase on the prior period. This brings the full-year dividend to PGK 31.9 toea per share (AUD 11.0 cents), a 22% year-on-year increase, reflecting a payout ratio of 77%, at the top end of Kina Bank’s dividend policy.
CEO Ivan Vidovich said the results demonstrate the strength and resilience of Kina Bank’s diversified model:
“Our 2025 results reflect strong performance across the organisation. Revenue growth remained robust throughout the year, underpinned by disciplined execution across our diversified portfolio and a clear focus on delivering value for customers. We continued to achieve double-digit growth across our major revenue lines, including lending, foreign exchange and digital channels.”
“Disciplined investment in core capabilities further enhanced organisational resilience. This included strengthening leadership, uplifting our AML and CTF capabilities, strengthening core technology resilience, commencing several digitisation programs, and maturing our credit environment—work that will continue into 2026 as we commence our new five-year strategic plan. Importantly, these prudent investments were made while still delivering positive momentum in our cost-to-income performance.”
“Our strong balance sheet and improved earnings enabled us to begin delivering dividend growth for shareholdersin 2025. We enter the new financialyear well-capitalised, with the portfoliostrength, capability and reach to support our customers and participate in the growth of the broader economy.”
Grey Listing
Kina is working with regulators, government agencies, customers, and correspondent banks as part of the national response to address these issues. The bank does not expect the Grey Listing to materially affect its operating and financial performance or hinder its strategic plans.
Positioned for Continued Growth
Kina Bank has launched its 2030 Strategy, marking the transition into the next phase of growth as PNG’s challenger bank. In 2026, the Bank plans to issue PNG’s first listed corporate bond under the new capital markets legislation—an important milestone for domestic financial market development.
The Bank expects earnings growth to continue in 2026, supported by diversified revenue uplift, ongoing market share gains, and a scheduled reduction in the statutory corporate tax rate for banking operations.
Further information on the result can be accessed online at www.kinabank.com.pg.
