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.

Mul Primary School in Western Highlands Province has received a 5,000L water tank through Kina Bank’s Strongim Komuniti Grant (SKG) program, helping address long-standing challenges around access to clean and reliable water at the school. 

This donation was led by Kina Bank staff member Joseph Tongia under the SKG program, an internal staff-led initiative that supports meaningful projects across Papua New Guinea. Through the grant, Mul Primary School was also able to purchase cement, a tap set, and the required piping to complete the tank installation. 

Access to clean water has been a critical need for the school, impacting students, teachers and the wider community. The new water tank will support improved hygiene, health, and a safer daily learning environment for students. 

Said Mul Primary School Headmaster, Mr John Miliki, “the water tank will greatly improve the daily learning environment and will make a great a positive contribution to the education, health and wellbeing of our students.” 

The Strongim Komuniti Grant program aligns with Kina Bank’s sustainability and community support priorities and is exclusively available to Kina Bank staff, who can apply for grants each quarter. Since its 2023 inception, the SKG program has supported a wide range of projects including learning and reading materials for schools, medical supplies for rural communities, school furniture and solar power installations at health facilities. 

Kina Bank’s Joseph Tongia said he was proud to support the Mul community through the program and see the tangible impact the grant would have for the children. 

Joseph Tongia (right) presenting the water tank and cement bags to Mul Primary School Headmaster, Mr John Miliki (left).

Kina Bank has reaffirmed its commitment to the wellbeing of the people of Papua New Guinea by presenting a K100,000 cheque to Links of Hope to support its ongoing work with vulnerable children and families across Papua New Guinea. Links of Hope is a non-profit organisation focused on supporting those affected by the HIV and AIDS epidemic in Papua New Guinea.

The cheque was presented in Port Moresby by Kina Bank CEO and Managing Director, Ivan Vidovich, and received by Links of Hope National Operations Manager, Seruma Numa.

Kina Bank has been supporting Links of Hope since 2021, beginning with the donation of a vehicle and K100,000 in memory of former Kina Bank staff member, the late Nancy Moka, a passionate supporter and champion of the cause.

Mr Vidovich said the continued partnership reflects Kina Bank’s commitment to making a meaningful difference in communities.

“It is humbling to continue our support toward this cause. Links of Hope is making a profound difference in the lives of vulnerable children and families, and we are honoured to stand beside an organisation that works with such compassion and integrity. Our contribution reflects Kina Bank’s commitment to supporting communities and enabling brighter futures across Papua New Guinea.”

Seruma Numa applauded Kina Bank for its ongoing support.

“Thank you to Kina Bank for your support over the years. Your continued partnership empowers us to reach children and families who rely on our care and services. We are truly grateful for your commitment and for standing with us as we strive to change lives across Papua New Guinea.”

Kina Bank CEO and Managing Director, Ivan Vidovich (left) presenting the donation to Links of Hope’s Seruma Numa (right).

Kina Bank has delivered a positive but cautious outlook for Papua New Guinea’s economy in 2026, highlighting the need for strong regulation, capital markets development, and close cooperation between government and business.

Kina Bank CEO and Managing Director Ivan Vidovich stated that during the Prime Minister’s Back to Business Breakfast in Port Moresby on Tuesday 03^rd February in Port Moresby.

Mr. Vidovich noted that global uncertainty continues to affect markets, but PNG remained resilient throughout 2025. He said geopolitical developments around the world are shaping trade flows, while Australia’s strengthening economy, and US dollar weakness could affect the Kina–Australian dollar exchange rate.

“With the Australian dollar trading around US$0.70 against a weakening US dollar, further interest rate rises in Australia could push the PGK/AUD closer to 0.30 this year,” he said. “Given PNG’s reliance on Australian imports, we expect imported inflation to rise. Even so, we anticipate GDP growth of around 4% in 2026, in line with trends in the Asia–Pacific.”

He also noted that global gold prices – with recent trading above US$5,000 per ounce – provide a welcome boost for PNG’s export earnings and foreign exchange reserves.

Kina continues to see steady demand for credit across multiple sectors, including retail and wholesale, agriculture, construction, and logistics. He acknowledged the Government’s efforts to strengthen fiscal management, progress reforms, and improve revenue collection, along with the work of the Bank of Papua New Guinea and the Internal Revenue Commission.

Mr. Vidovich also addressed Kina’s position as it awaits the Financial Action Task Force’s Grey‑Listing decision.

“We are well prepared, and we don’t expect major impacts to our strategy or operations,” he said. “But some external stakeholders may take a cautious approach.”

Kina Bank also advised it was working collaboratively with regulators, to broaden domestic investment opportunities through the development of PNG’s capital markets. Under the country’s updated capital markets laws. Mr. Vidovich said this would be a major step in developing PNG’s financial system.

“In line with our established track record as PNG’s challenger bank, we’re also focusing on how banks can help grow stronger and more diverse capital markets. This shows our confidence in the regulatory reforms and our commitment to creating more local investment opportunities,” he said.

Kina Bank CEO and Managing Director Ivan Vidovich deliver his speech at Back to Business Breakfast.

Malala Coconut Co-operative Society has seta new benchmark by introducing White Copra, a value-added product that delivers premium returns to farmers. Since its establishment in 2022, the cooperative has grown from 15 to 20 active members, comprising 15 men and 5 women. Monthly production has doubled from 12.5 tonnes to 25 tonnes, reflecting both workforce expansion and operational efficiency. Malala also diversifies into high-value coconut products including virgin coconut oil, herbal soap, and infused oils, creating new income streams for its members.

Malala supplies White Copra to Marico in Bangladesh and, since 2025, has expanded into the Indian market with White Copra and Coconut Shell Charcoal. Domestically, it partners with Kumul Organicsin Madang and distributes virgin coconut oil to Goroka and Port Moresby. These market linkages have secured premium prices—currently K4.70 per kilogram for White Copra compared to K3.50 for black copra—demonstrating the financial benefits of innovation. The cooperative has built 15 White Copra dryers, a Virgin Coconut Oil shed, a mini laboratory, storage facilities, and a transit storage shed. Logistics are supported by a dedicated vehicle, while nurseries—one main and five onsite—are operated in partnership with the South Pacific Community under the Business-Friendly Program. This innovation, combined with the adoption of ICT-based banking systems, positions Malala as a forward-looking cooperative committed to modernization and financial inclusion.

White Kopra is considered sustainable and climate-friendly because it uses clean, efficient dryin g methods that reduce waste, avoid smoke pollution, and open up eco-friendly product chains. Itis produced by drying fresh coconut meat in controlled ovens or indirect heating systems until the moisture content drops to about 5%, resulting in a clean, high-grade product. Unlike traditional copra methods that relied on open fires or smoke-based drying—which often caused deforestation, air pollution, and inconsistent quality—White Kopra’s process is part of a circular economy model that reuses by-products such as coconut shells for charcoal briquettes and liquid smoke, minimizing environmental impact. This innovation helps address climate risks by reducing carbon emissions, cutting reliance on wood fuel, and preventing the degradation of coastal coconut groves.

Beyond sustainability, White Kopra serves as the foundation for a range of downstream products: Virgin Coconut Oil, natural soaps, skincare items, and other coconut-based goods that add value to local economies while promoting green consumer choices. In short, White Kopra transforms coconut farming from a resource-intensive practice into a climate-resilient, eco-friendly industry with multiple sustainable spin-offs.

Daulo Commodities Cooperative Society is a leading farmer-based cooperative in Papua New Guinea, recognized for its resilience, self-reliance, and commitment to sustainable growth. Built entirely from reinvested business profits, the cooperative has expanded steadily by cultivating strong customer relationships and establishing overseas market networks.

By 2024, Daulo employed 10 full-time staff and 10 casual workers, supportingoperations that include a coffee factory, storage facilities, office infrastructure, and logistics assets such as a dedicated truck. The cooperative works with three coffee exporters and buyers, ensuring quality through farm-gate wet processing, solar drying, and strict cup-testing standards.

Daulo is also a champion of social inclusion, empowering women, widows, and smallholder farmers to participate in SME ventures and access fair export prices. Through transport support and direct market linkages, the cooperative ensures rural producers receive competitive returns. Since 2022, Daulo has established 12 coffee cluster groups and collection points, strengthened localleadership and expanded its footprint across the province.

Internationally, The Daulo Cooperative (Daulo Commodities Cooperative Society Ltd) won the National Energy Globe Award for Papua New Guinea in 2024. The award, issued by the Energy Globe Foundation in Austria, is a global recognition of outstanding environmental initiatives and innovative solutions to environmental challenges. The cooperative’sefforts were recognized for highlighting Papua New Guinea’s homegrown innovation on a global stage, with participation from over 180 countries in the 2024 awards.

Key achievements of their project:

• Planted over 200,000 pine and eucalyptus trees per household to combat soil
• Supported more than 1,600 households through training and resource centres, improving food security and income opportunities.
• Promoted disaster-resilient crops and organic farming
• Curbed bush burning and rehabilitated millions of coffee trees, which helps restore soils and protect water systems.