This is 350% increase from the first half of 2015.
The results confirm the benefits of Kina's K349 million acquisition of Maybank PNG, completed in September 2015, which effectively doubled the size of the Kina business.
Chief Executive Syd Yates said the results were pleasing and demonstrated that the merger was delivering excellent returns for shareholders.
"The Company has made great progress in the past six months. Our lending has increased sharply, and our asset quality is sound.
"Despite the slowdown in the PNG economy, we are continuing to enjoy solid growth in lending, and we see great potential to grow further in the coming years by providing innovative products and quality service to our customers.
"The merger of the Maybank and Kina businesses created a new financial services business in PNG and positions the company to take a leading role in the development of the emerging PNG financial services industry," he said.
Kina is now well established as PNG's fourth largest bank with lending assets growing to K437 million, up 17 percent from K374 million at December 2015 (34% annualised).
The bank recorded 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 Non-interest income totalled K30.5 million for the half year, up from K9.7 million in the June half of 2015, with the increase primarily driven by foreign exchange income.
Compared with the prior comparable June half, total operating income more than doubled to K61.7 million, reflecting the solid fundamentals of the merged banking business.
“Overall asset quality remains sound.
“The loan impairment increased compared with the prior half year, reflecting more subdued general economic conditions in PNG, however, impairment expense remained relatively low at K2.5 million, equal to just 0.6 % of gross loans and advances.
Gross non-performing loans totalled PGK6 million, equal to 1.4% of gross loans and advances.”
The underlying security of the business is exceptionally strong, with regulatory capital (T1+T2) at 34% of Risk Weighted Assets, compared with regulatory required minimum of 12%.
The Board elected to maintain this position in order to leverage growth opportunities, both organic and inorganic.