Kina Securities Limited (KSL) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the Kina Securities Limited Full Year Results ending 31st December 2022. [Operator Instructions] I would now like to hand the conference over to Mr. Greg Pawson, Managing Director and CEO. Please go ahead.

Thank you, and good afternoon to everyone from a very stormy and wet port was in PNG. I've got Johnson Kalo, our CFO, with me and our Investor Relations team with [indiscernible]. I'll take the ASX announcement and investor presentation pack uploaded yesterday is red, and we'll take this opportunity really just to give a high-level overview of the year and provide some additional context to the results and the most importantly, the year ahead. So it's a very good narrative for 2022 and a consistent story of steady growth as we closed out year 3 post ANZ and of our 2025 strategic plan. 2022, it's fair to say it was a challenging year, beginning with a return to the new norm post pandemic, a long drawn out PNG, election process impacting domestic business confidence to a certain extent, and public sector capacity and supply chain constraints, making it even harder to do business. However, -- we navigated through these market distractions at this we could. And pleasingly, we were the best-performing bank in PNG for the 2022 fiscal year for revenue, NPAT, deposit, lending, digital and customer growth. So just walking through several of the key highlights. Revenue, firstly, up close to 10% at PGK 369 million that was PGK 35 million on the previous year and almost double that of the 2020-2021 [indiscernible]. This was attributed largely to net interest income, which was up 5%, investments, up 19% and fees and commissions up 35%. Overall, just show of the market expectation of PGK 378 million for 2 main reasons: FX revenue was down 7% year-on-year despite transaction volumes increasing by 17%, and I'll talk to this further shortly. And the slower conversion of business loan growth, which was largely booked in the third and fourth quarters post the PMD election outcome with the [ Mirati ] government we elected for a further term, which did put some business confidence back into the local market. One of the highlights from the results is that over the past 5 years, we've transformed our revenue base to better mitigate our strategic risk and to achieve a good mix with noninterest income now contributing 50% of our total revenue in accordance with our broader plan to diversify our revenue streams. Our wealth businesses also are continuing to post good growth rates and now contribute 15% of the organization's total revenue. Our funds administration and funds management contracts with the major super funds here in PNG, we'll also recently extended pre-additional 3x3 year term. OpEx was 15% up due to higher than budgeted admin costs, and these are largely associated with ICT-related vendor and software costs. Some of our software licensing expenses were up 30% year-on-year. And our objective to strengthen infrastructure, particularly around some of the cybersecurity issues that we've seen happening in Australia. And then although it was up 15%, it was actually within market expectation with underlying NPAT lending is around PGK 106.1 million. It was up 10.8% on 2021. Cost to income was marginally down from the first half but impacted as forecast higher revenue growth, which would have seen us land at about 54 basis points. Now that's a key focus for the organization, driving and continuing to drive an organic growth positive growth for 2023. That is revenue growing at a faster rate than our cost base. We believe this is achievable given our regional expansion plans over the coming year and giving us the ability as well to continue to invest in those growth opportunities and converting them quickly. FX revenue, unfortunately stored in Q4 with larger than forecast Visa settlements, which are lower margin USD, and it is subjected to regulated trading bank. That was due to strong customer and growth usage offshore. We finished down PGK 7 million on 2021, all the customer transaction flows were up 17% against market growth of 10%. So we're still continuing to chip away and grow market share due to new customer acquisition, both on supply and demand. The structural issues regarding supply were challenging at times, but particularly during the election period, although BPNG did intervene more frequently in the second half, the mix of trades shifted to the lower-margin USD as opposed to high-margin AUD pound and the euro. And this was primarily due to growth in customer numbers using our cards offshore, which on the flip side is very pleasing. I mean we onboarded over 30,000 new customers during the course of the year. And it does evidence strong new customer growth and particularly our targeted affluent customer segment, which is working and paying dividends. It's fair to say though that, that impact did take us by surprise and it's a structural issue that we have successfully mitigated and addressed early in 2023 through our correspondent banking arrangements with good upside in profitability for the year ahead. And the currency mix being the same as 2021, we think we would have comfortably hit our forecast budget for last year of PGK 1 million. So that's, again, another key priority for us this year is restoring growth in FX revenues. Investment income, pleasingly, was up 19%, and that was largely due to improved yields on government securities and treasury bill investments. However, this won't hold for 2023 as those yields have effectively halved and it will be certainly critical for us to deploy [indiscernible] liquidity to new lending, hence our expansion plans into regional PNG, which I'll talk about shortly. Overall, lending was up close to 11%, and that was underpinned by the commercial segment at 10%, new loan 25% and home lending Net growth of PGK 220 million onto the balance sheet, slightly behind the PGK 300 million that we had in 2021. And overall, down due to lower system growth, particularly in the commercial segment over the first half, as I said, largely due to the final stages of the pandemic, the drawn out mass election and some issue public sector capacity and efficiency. However, the momentum for us as we saw in the back end of the year with over PGK 300 million in new loans settled and syndicated loans of PGK 155 million committed and undrawn on moving into the 2023 financial year. So we have a solid pipeline. Moving forward, approvals of around PGK 350 million, and we're anticipating for those to draw for the first half of 2023 and hopefully, backing that seasonal trend of a relatively flat first half start to the year. Interestingly, the majority of our loan lending, new lending activity is still from NCD, the National Capital District in May and the investment we're making in expanding our business banking footprint into a further 5 key regional provincial centers early in 2023, all is very well for our growth prospects this year, a key benchmark to test our performance is against GDP growth, which was 3% in 2022 and business lending system growth of 2% in 2022. So if we coined to achieve 10% overall, is a good result and something that we're pleased with. And again, as I said in my even statement, the strongest of the 4 commercial banks in PNG and has resulted in us lifting our market share to 16%. Deposits growth was very strong at around 28% and mostly in low-cost transactional deposits due to new customer transaction flows and increased account activation. Our NIM stabilized at 600 basis points, and that held flat in the half year. There's no real pricing pressure on NIM at the moment due to the extent of domestic liquidity. The only downside is the government securities and treasury bond meals, which have fallen that will be important for us to ensure that these excess deposits are deployed at higher margin lending rates over the course of the first half. Commercial customer numbers were up 17%, and personal customer growth was up 19%. We onboarded over 30,000 new customers, and this parallel growth by endorsing our 95% customer retention target, which we achieved for the year. Also commensurate with this growth account and online activations for both retail and corporate customers were up over 100% year-on-year in accordance with our digital strategy, and this has been a key focus of our customer-facing teams across the business. [ Redcard ] issuance was up 152% year-on-year. Digital channel growth was up 88% due to our expanded FPOS fleet and terminal of tourist strategy, and we've grown our market share in the digital space from 0 base 3 years ago to 25% today and still with considerable upside as we move through 2023. MiBank and financial inclusion -- sorry, our MiBank and financial inclusion partnership performed exceptionally well. We opened our first co-branded branch in Alitalia in 2022. We established a formal agency agreement, which enables KinaBank to open MiBank account on their behalf and facilitate online transfers enabled between the 2 banks here domestically in PNG. And MiBank pleasingly, over the course of the year on boarded over 40,000 new customers in 2022 as well. So between the 2 organizations, we're now reaching in excess of 700,000 Papa New Guinean. On the risk front, 2022 was a period of reconnection with our risk management framework in alignment to 11 material risks that we believe drive times new business model. Traditionally, our focus and risk has used a standard modeling to assess the impact of threats where our growth and strategic intent would lean towards considering a higher level risk maturity model for our business, which we're well on the way to achieving. The business did demonstrate, that's resilient by delivering on the receiving pandemic, the heightened geopolitical risks, including the TMD elections and, of course, the Russian aggression in Ukraine, which has created global volatility, particularly around supply chain. The challenging landscape with increased financial market risks across the board that we have fortunately been able to successfully defend. With respect to the PNG economy, the prospects for a stronger 2023 [indiscernible] into our forward forecast. The primes referenced to the 4Ps, which stands for the 5 major resource projects that the government is committed to and an investment of in excess of USD 30 billion, Harga, Penang, Papa, Pascal and Wafi-Golpu and the petroleum and LNG space. The PNG government budget announcement is that they are very committed to those projects and starting to get traction on them over the course of the year as well, which again to our gross prospects moving forward. The PNG government's budget announcement is planned to increase the corporate tax rate for the commercial banking sector by 50% to 45% for the 2023 fiscal year only is being daily challenged by the sector, including Kina. It goes without saying that we've been actively lobbying against the proposal through a number of means, including the media. The business council of Papua New Guinea, the Prime Minister's offers directly. Several key minister's treasury and the international monetary funds have now set up a formal office here in PNG, so in several critical unintended consequences, including divestment of capital instability and lack of competition in the sector and the result of a higher tax. Support for more consultation is encouraging, and there's been some very positive developments actually over the last week, which may lead to other options being explored and pursued. In the meantime, we have developed though a robust plan to mitigate any potential impact as best we can, including growth revisiting our legal structure, M&A opportunities and offshoring in accordance with our Pan Pacific aspiration. However, at the same time and importantly, recognizing and taking advanced of the strong organic growth opportunity, which continues to prevail for us here in PNG. So before I finish, I thought it would be good to just reflect the results against our 2025 strategic pathway and outline some of the exciting digital initiatives that we have launched and that we have in progress. So looking at our journey effectively from 2020 to 2021, our objective to be a trusted bank on traditional banking and digital banking, which was very much about self-service, growing, digitizing, growing banking market share, digitizing our core business, customer solutions, testing and learning from strategic partnerships in the market. and playing around some innovative business models. We're midway through the second phase, 2022 to '24, your trusted financial services partner, which is again about traditional banking, digital banking, investment banking and our banking as a service partnership platform, along similar lines for the strategic partnership that we have with MiBank. Really, that is about partnering to create and capture value through business-to-business and business-to-consumer. And then by 2025, your trusted partner in the Pan Pacific region, a fully diversified investment bank to being in the marketplace of assets, capabilities and services again through business to business and business to consumer. Our digital footprint has been a huge focus, and it is a portfolio that serves multiple purposes. We've now got revenue is around PGK 54 million, actually, PGK 54 million Kina through our digital and channels portfolio, which include digital payments in net Payment Gateway, e-KYC digital identification, partnerships in blockchain, cloud, our partnership integration and API management platform, which is being fully implemented over the past 2 years. And that, as I said earlier, a as well for our bank as a service platform, which we're in the process of rolling out. The several sort of key digital platforms that we have in play at the moment. What that banking, which we talked about in the investor presentation, -- it's a telco disruption really of the banking value chain and to take the bank to where customers interact socially and professionally. WhatsApp is a very well utilized channel here in PNG, among the highest, I think, usage rates in the world. The second is exchange, our e-KYC noble retail FX product, which is now in the third phase of testing. And following the recent approval of the e-KYC platform by BPMG, we are now able to deploy that at scale in 2023 as an independent retail effects product poured by Kina Bank. Xero, we were the first bank in PNG to integrate the zodiac feed, which is now becoming critical to our suite of SME digital services. And we're in Phase 1 of that rollout with Phase 2 and 3 to occur in the first half of this year. Phase 1 of the Kina wallet will launch this half in 2023, PNG's first digital wallet. It enables Kina to occupy the digital wallet real estate usually filled by Apple and Google and mature markets, loyalty programs, discount, cards and partner offers can follow in later phases of that. [indiscernible] in Phase 2 of testing. That's PNG's first independent bill payments platform that customers with any bank can use that has the potential, which we're very excited about of becoming the [indiscernible] of PNG. Through a strategic partnership with NiuPay, we offer e-commerce for the PNG government sector, Kina's partnerships with NiuPay have enabled capture an estimated 50% market share in Internet payments and a foothold in digitization of government services, including the Inland Revenue Commission, the lands department and the integration department as well. And finally, Pronto, which is really the strategic partnership backing into our [indiscernible] strategy. So in partnership with [ Ponto ] the only bank in PNG to successfully deploy integrated post scale, the key capability behind our digital growth of 88% year-on-year. And as I mentioned earlier, with considerable upside determined of the largest retailer in PNG [indiscernible] recently said TymeBank did in 3 days, what took BSP to years or failed to do or deliver in 3 years. So we're really excited about that 2-macroice strategy. So they just could do a bit of an overview of what's happening in the digital footprint space, which will be coming to fruition. Some of those are already over the course of this year as well. To finish in closing, our focus for 2023 continues to be very positive and in line with our 5 strategic priorities, growth resilience, service excellence, dynamic people and sustainable communities. The most exciting of these initiatives is the expansion of our business banking franchise in regional PNG, our new private and corporate advisory teams and the delivery of our KYC program, which I've just outlined fully, which in conjunction with the Super Funds will enable us to significantly speed up new customer growth while digital onboarding an exchange, which has modeled off global FX retail, FX payments platforms, Revolute and Wise will be a key enabler for some good growth this year as well. We're also expanding and will be expanding our bank as a service platform to other smaller financial services organizations in PNG recognizing the success to date of our MiBank partnership. So a lot in there. Thank you for listening. I'll wrap it up there. I've got Johnson Kalo, our CFO, with me. So I think now we're in a position to open up for questions.

[Operator Instructions] Your first question comes from Glen Wellham with MST Financial.

Well done on the results, guys. Just a first question on capital adequacy. So 22.5%. It's down a little bit from previous year and previous year before that. Is that something you want to continue to bring down? And then what level would you be comfortable at? I mean, obviously, it's quite a high level at the moment.

Thanks, Glen. I'll hand over to Johnson just to respond.

I think we're sitting at a comfortable position given the risks that we face in the market at the moment as well as the growth options that we do need to consider in those conditions. So 22% is -- it is high. It is coming down, but I do think it's probably a safe position to be. We can probably squeeze a few more percentage points coming down, but we would like to have a good sort of solid foundation in reserve to take opportunities as they do come.

Yes. And the only thing I would add to that, Glen, is we made a commitment when we did the capital raising a few years back of PGK 80 million return EPS and return on equity, which we've achieved in the time frame that we said, which was 18 months, it will be important for us to deploy some of that capital into the growth that we will see thinkers of the bulk of some of these major resource projects coming online, particularly in regional PNG. The Highlands highly present which is hence why we're expanding our business banking footprint in those locations. We want to take advantage of that. And the only other thing I'd say is we had a board meeting actually early last week, is to determine what would be a comfortable level for us in PNG, if, in fact, the tax rate hike for 2023, this fiscal year does go ahead. We may seek to reinvest some of that capital elsewhere. And there are as a result of that, some options that I touched on in the presentation that we are considering at the moment.

And I suppose from an Australian perspective, some of the growth numbers are astounding when you look at -- so SME growth in particular, 25% growth in revenue last year. What can we expect going forward? And can you give us some color on is that mostly systems growth? Or is there -- are you taking market share? Or can you give us some following where that division is growing so strongly?

Yes. It's largely -- it is largely attributed to market share gains. So we've now surpassed Westpac is the second most profitable bank continue to. But clearly, there's a big gap still between us and the BSP in that respect that we're eager continue to close by being a commanding and competitive challenging brand. It's fair to say Westpac is not really doing anything at the moment, and there's not a great deal left on their balance sheet here in PNG that appeal to us. Certainly, BSP is a target. And again, I think we're well placed for good strong growth in SME. And also the agri sector, which the government is very supportive from a policy perspective. But again, there's some possibility for tax concessions in relation to those 2 segments where we seem to be aggressively supporting them. So with the proposed regional expansion into [ Copec ], Lae, [ Grocer ] and [ Megan ] and Mount Hagen where we'll have business bankers on the ground that are able to make decisions, and we'll have the discretion to make those decisions we think there's a considerable opportunity for us to take share away from DST. And I think over 2023, 2024 GDP growth is forecast at around 5%, 6%. So there will be a degree of upside in terms of system growth, generally, but that refinance opportunity for us is still very advantageous.

Your next question comes from Charlie Green with Hunter Green.

I think this is the first for all of us probably. But just a follow-up on that capital management -- your capital question previously. So is it the second half dividend, the payout ratio fell from 94% to 75%, if I've got that right? Is that like a super bullish signal on account that you're holding back capital for growth? Or is there something else going on there with that payout prose?

No. I think that's a little bit of a signal is to try and stabilize again our capital position. We did have a couple of years prior to this when we were well outside our dividend payout ratio range, and we've sort of just rationalized that a little bit. We are still paying 10 around that $0.10 dividend per share for the full year mark. So I think that sort of neutralizes that impact.

Okay. What's that observation? Is that because what taps got end-to-end encryption? Is that to help explain its high take-up in PNG?

Yes. The other element, though, is that there's still a large proportion of customers here that use USSD platforms. So in other words, they're not using our smartphone mobile app because of the cost of data, which is comparatively high in P&G it is coming down. Ultimately with the advent of the Coal fee cable, thanks Israelian government. But it still does mean that a lot of consumers go for -- what you would compare to Australia and fund banking through that USSD platform, which [ Lataplays ] to. But yes, the encryption is an element of that. And the other main objective for us is we have another platform called KinaConnect, which the telcos here, did you sell and to a lesser extent, be mobile pit-to-ticket for every transaction that goes through by migrating those customers on to what that there's a financial benefit, a commercial financial benefit for us, which we're keen to leverage.

Now -- and just my final question. So a lot of other financials in Australia at least had the results briefing on the day of the result. And I was just actually tried to dial in yesterday, assuming that it was going to be yesterday, is there something that sits behind that 24-hour delay on your results prepays?

No, not in particular, other than I was in transit yesterday, driving back from Port Mordy, which was a contributing factor. But normally, we work in the afternoon of the date of the announcement.

[Operator Instructions] Your next question comes from Richard Coles with Morgans.

Just a quick one. Just wanted to ask the pathway on growth in the digital growth areas has been really, really strong. Just when will that max out? How long can you continue to deliver sort of really strong growth rates in that area? And I imagine that things is only finite length of share you can take in things like POS and those sort of things. So just understanding how you see that trajectory and that what's been a really strong growth area for continuing for you over the next few years?

Yes. Look, I think the forward growth prospects continue to be really strong. I mean when we're using those percentages year-on-year, there's also a fairly low base to begin with. In fact, as Eurobet years ago because it still came into being after we acquired the business, as you know. The key drivers for us in terms of continued digital growth on more customers at scale and the KYC platform is the key enabler for that. We're really excited about that and the partnership with the Provident Funds because when you think about it as their fund administrator, we have access to data effectively on every customer, employee and every employer. And so it's going to be critical for us to leverage that and convert as many of those into new-to-bank customers. And the KYC will be the facilitator for that. And of course, then that transfers into activity. So using our digital channels will be a big part of that. Because the KinaBank franchise itself has 230,000 customers. Now in a country with a population of latest estimates are 12 million. I think UNDP are estimated 17 million because there hasn't been a sense here for almost 5 years, there's a considerable opportunity moving forward. And I think the other piece to consider here, too, is that still 70% of the country is effectively unbanked. So as more come into the formal sector, that presents upside for us as well. And we really only have one major competitor in that space at the moment, which is BSP. The Westpac platform is probably a decade out of date, and ANDs don't compete in that space because we're a corporate instabank here in PNG. And even some of the smaller organizations that have been granted provisional banking licenses like Credit Corp and TSA will have to go through huge investment programs before they can even seems to have an impact. We've had a considerable CapEx spend on our digital channels over the past 3 years, which is now coming to fruition. So I think the upside, Richard, is still very, very positive. The terminal of choice play, it's just not something that you're familiar with in Australia, but many merchants here have a terminal for every bank. They don't need to do that. Part of the product that we have has built in redundancy to ensure our terminals are working 98% of the time. And through the relationship that we have with [ Quanto ], that means that effectively, they can just use our terminals. And that's where we're starting to get a lot of upside. In fact, close to 60% of our transaction volume through our terminal is coming from other bank customers. So tell you upside.

Just a question on that, Greg. It's obviously a bit more difficult to see with the bank because we can't see so easily the CapEx you're spending on that area. But will that business be accretive to the group ROE longer term?

Obviously, the lending margins you make are very, very strong, but just understanding the breakdown of the nonbank income and what that will mean for group ROE is it built out. Yes, absolutely. So it's a similar story, Richard, to FX revenue is effectively straight to the bottom line. So the cost of ever for that channel aside from the outlay of the scheme, which for us at the moment is Visa is very profitable.

Okay. And just a second question. Obviously, the margin -- the NIM was a bit lower than expected. I think you mentioned things like deposits and the earnings on government securities coming down, just your comfort level in getting that back to 6% to 8% this year, sort of that target margin and how you'll go about that?

Yes. Look, I think we're playing a conservative card in terms of NIM. In 2022, there are a number of factors associated with that in the first half. It was more about wholesale deposits for FX flow. So the major multinationals here are very liquid. We've got a lot of tea they want to park it somewhere. So there's an offset there to say, well, we've got a lazy PGK 30 million, PGK 40 million if we give that to you in advance of some FX flow, what rate can you give, that pressure point lessened in the second half. So we were able to kind of hold our position. Is there upside? And then -- with what's going on with T-bills and government securities at the moment, I think it's going to be relatively flat. There might be 10, 20 basis points in it for the first half of this year, what will be critical for us is deploying those excess deposits into new lending and into the provincial locations because they're the sorts of transactions that fall within the kind of PGK 1 million, PGK 5 million, PGK 10 million, PGK 15 million ranges that are not price sensitive at all. The price sensitivity is really in the corporate sector, and we're not at all a lender to the corporate sector in PNG. If we are via a syndicated facility, we've got a couple of those on our books at the moment, but we don't have a great deal of price pressure in that space. And I know Johnson if you're monitoring this daily if anything you want to mention in that respect.

You're right, Greg. The trends are exactly that, especially in that government paper space. But [indiscernible] the one area where we can get some upside on the NIM and the other one is I think we've positioned our deposits look a little bit better to go for that larger lending growth -- so we will have a little bit of flexibility in managing our funding and managing our funding costs as well. So I don't think the there is some way to recover that NIM.

Okay. And just one last one, Greg. Obviously, the bad debt profile has been a real strong area. Bad debt is coming down. I mean your bad debt numbers are very good even versus Australian banks. What's sort of been driving the improvement? Are there any areas you're concerned about going forward, I guess, in a worsening global economic environment, that trend is pretty impressive?

Yes. just we don't -- we're not seeing the upward cycle interest rates that you're experiencing in Astra at the moment. We, unlike -- we self-fund for start. So all of our funding comes from our deposit base. And you can see that in our deposit-to-loan ratio, which is very conservative at the moment. We don't price off the equivalent of the IBA overnight cash rate, which is called the KFR Kent Facility Rate here. That's sitting at about 3%. It has no bearing on how we price for our own internal indicated lending rate, which is really our cost of capital, cost of funds and then there's a slight margin and then the risk margin on top of that. So there's no upward cycle, although in saying that, we did increase our indicator lending rate late last year by about 25 basis points. But we're not seeing any real pressure to have to do that again in the immediate to medium term. So I think that as a result, we're not seeing that pressure passed on to customers of having to fund payments based on higher interest rates. And look, if I'm completely honest. I think we've put a lot of effort into our risk management practices, particularly through our recovery teams. We've got a very strong team now, which we've built over the sort of latter half of 2022, and we had a considerable focus on our 90-day plus position, which we've improved markedly. And that's the function, I would say, of just effective management at the end of the day. If you lose on those sorts of things, customer behavior starts to shift against us. So we've got a fairly tight ran on that at the moment in terms of how we manage it. We just had quite a big restructure of our business banking lending business, bringing all of the lending teams back together. So our management of things like annual and periodical review has improved quite markedly. We're also doing a considerable review at the moment of our -- the data that sits within our security register around collateralization. We actually think that there's some upside there that our current position with respect to bad debt is actually conservative.

And sorry, I'll fire just one more. So Greg, when do you have any feel on when the tax issue might sort of sell out as far as time line? And have you thrown up the word alternatives, is there any sort of things being moved that you can sort of maybe mention that have been the [indiscernible]?

Yes. I sort of touched on them. I think, firstly, the thing that the PNG government will be very sensitive to is seeking to invest, and that's what I meant by the point of our divestment into other jurisdictions. And as you know, through our attempt to acquire the Westpac business is in one line, that's an intention of ours. And CG is a destination for offshoring largely to help facilitate a market reduction in our cost to income is higher on our agenda at the moment. That's a topic very sensitive to the government here [indiscernible] has a corporate tax rate of 15%, for example, Singapore 17%. So the offshoring of roles would otherwise performed here in PNG is very, very sensitive to the energy government. Our continued support, we do offer a very small concessional lending product for me that's been very successful. It's up to about PGK 500,000. We put a triad of PGK 550 million for that. The government wants to support us that provide prefunding to DSP and MBB and want to bring us into that fold. And I mentioned that there's possibly -- and this could be an opportunity for us even if the tax increase for this fiscal year doesn't go ahead with some tax concessions around what we are planning to do in the agri sector, which the government is very favorable on as well. Johnson and the team are doing a lot of work around our legal structure. One of the advantages that we have is we have other businesses as part of our diversification plan and fund Admin and CFM that doesn't come under the commercial banking revenue. The IRC Revenue Commission, the BPMG, and the IMF posed to it. So we've been modeling quite heavily with them to put the eves as well. We just heard yesterday, we've been invited to an extended consultation period over the course of next week as well. So the battle is not over, but I would like to say we are feeling a lot more positive, I think, than we were a few weeks ago. And if, in fact, it doesn't go ahead I'm not sure that the government will make a formal statement with respect to that, but it could just be pushed under the carpet and go away. We have these consultations with teary every single year. Last year, it was about putting in place deposits. I don't know if you remember in Australia a year ago, we used to have a standout on deposits, that we're considering that. And we successfully dismissed that. So [indiscernible] not out, but we're working hard to make sure that we get a favorable outcome.

We have no further questions at this time. I'll now hand back to Mr. Pawson for any closing remarks.

No, I think that's it. The issue on the ASX is very comprehensive. But of course, Johnson and myself are open to any questions that you may have if you can reach out to us or our Investor Relations team. Thank you for your attention. It was a good year to which to despite some of the challenges, and we're very excited about the prospects we have for the year ahead as well.

That does conclude our conference for today. Thank you for participating. You may now disconnect.