PNG Kina Securities Limited Reports Fraud Case with Significant Financial Impact
Port Moresby, June 20, 2024 — Kina Securities Limited has reported a recent case of fraud resulting in an anticipated loss between K12 million and K15 million on a pre-tax basis. The incident has affected several accounts of a small number of customers, and an investigation is currently ongoing.
In a statement, Kina Securities Limited acknowledged the situation, stating, "The amount involved is the subject of ongoing investigation. Through root cause analysis, certain system vulnerabilities were identified and promptly addressed, with further enhancements to systems and processes being planned."
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| PNG Kina Securities Limited Reports Fraud Case with Significant Financial Impact |
While the exact financial impact is yet to be determined, the company indicated that, based on current information and assuming no recovery, the fraud is likely to reduce Kina's net profit after tax (NPAT) for the half-year ending June 30, 2024, by 13 to 17 percent compared to analyst consensus estimates. This reduction translates to an estimated six to seven percent decrease in the market consensus for the full fiscal year 2024 NPAT.
According to the statement, "Based on the analyst consensus NPAT for the half-year of K49.5 million, the revised forecast NPAT for the half-year based on these events is between K34.6 million and K42.9 million. Based on the analyst consensus NPAT for the FY24 full year of K117.8 million, the revised FY24 forecast NPAT is between K102.9 million and K111.2 million."
The company is actively evaluating all options and prospects for recovering the fraud losses. However, for the purpose of this update, Kina Securities Limited has assumed no recoveries against these losses at half-year.
Kina Securities Limited reassured stakeholders that the identified system vulnerabilities have been promptly addressed, and further enhancements to systems and processes are being planned to prevent future incidents.
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