Kina Securities Limited’s (KSL) acquisition of Maybank last year has paid dividend with a K20.5 million net profit, compared to K 4.5 million in the same period last year.
KSL’s half year report, ending 30 June 2016, reflects the benefits of the K349 million Maybank acquisitions completed in September 2015, and effectively doubled the size of the Kina Securities business.
Profits in the immediately preceding December 2015 second half year were affected by costs amounting to PGK 12.0 million. This was associated with the Maybank acquisition and the completion of the highly successful public float of the company in July, 2015.
The result confirms the benefits of the Maybank acquisition are steadily being realised for shareholders. The merger created a new financial services business in PNG and positioned the company to take a leading role in the development of the emerging PNG financial services industry.
Kina is now well established as PNG's fourth largest bank, with lending assets growing to PGK437 million, up 17 percent from PGK374 million at December 2015 (34 percent annualised).
The bank continues to benefit from access to a large pool of low cost deposits, which totalled PGK634 million, and significantly exceeded lending balances, with the surplus funds invested in interest bearing securities.
The bank recorded a net interest income of PGK31.2 million in the half year to June 2016, compared to K16.7 million in the half year to June 2015.