Earnings call transcript: Kina Securities posts softer H1 2026 growth as stock slips

Kina Securities Limited released its first-half 2026 earnings report, revealing weaker-than-expected growth despite a modest increase in profit. The Papua New Guinea lender reported a 4% rise in statutory net profit after tax to PGK 59.7 million, a 2% jump in revenue to PGK 254.8 million, and a 1% increase in earnings per share to 20.3 toea.

Despite the modest growth, the stock slipped slightly, closing at $1.19, down 0.42% from the previous close of $1.195. Management attributed the softer growth to higher costs, margin pressure, and an industry-wide payments disruption. They described the half as one of "weaker growth than what we’ve delivered in recent halves" and highlighted the resilience of their business.

The wealth division showed strength, with funds under administration rising 15% to PGK 25.1 billion and funds under management increasing 10% to PGK 14.4 billion. The loan book grew by 2% year on year, though underlying growth would have been 7% without selective de-risking. Deposit market share fell to 10.9%, but executives said it reflected a deliberate decision to remove higher-cost funding.

The interim dividend increased 13% in kina terms to 14.2 toea. Despite the mixed performance, the bank maintains an attractive P/E ratio of 9.67 and a PEG ratio of 0.7, suggesting potential value.