Updated notice of expected material elevation in Ku-ring-gai Financial Services Limited’s company revenues – 16 June , 2023
In terms of its franchise agreement with Bendigo and Adelaide Bank (BABL), Ku-ring-gai Financial Services Limited (KFSL) delivers BABL’s banking and financial services to its community. The franchise agreement provides for a share of interest margin, fee, and commission revenue to be earned by KFSL on the outstanding portfolio of loans, deposits and other business sourced by KFSL.
As noted by KFSL in its previously issued Continuous Disclosure Statements, the increases in the cash rate by the Reserve Bank of Australia during the financial year have elevated the level of earnings for KFSL on this portfolio compared to the prior year. As a result, based on its financial performance to the end of April 2023, KFSL expects its revenue from contracts with customers for FY23 to exceed the prior year by 65% to 75%, with a related material uplift in profit for the year. Applying a similar dividend payout ratio to that of the prior year and an estimate of the profit that would have arisen had there been no changes in the RBA’s cash rate since 1 July 2023, the Board is considering the declaration of an ordinary dividend of between 7.29c and 7.49c per ordinary share. As a result of KFSL’s elevated profit during the year, the Board is also considering declaring a special dividend of between 11.45c and 11.65c per ordinary share. The total ordinary and special dividend would be within the dividend payout limits as prescribed by KFSL’s franchise agreement. The payment of these dividends is subject to: the finalisation of KFSL’s financial results for the year ending 30 June 2023; consideration of the resources required for further investment into KFSL; forecast of future earnings, taking into account current macro-economic conditions; and final declaration by the Board.
Announcement – Turramurra Branch Closure – 2 May 2023.
Community Bank Turramurra branch to close
The board of Ku-ring-gai Financial Services Limited (KFSL), operators of the Community Bank branches at Turramurra and Lindfield, has made the difficult decision to close the Turramurra branch. Bendigo and Adelaide Bank Ltd have agreed to this decision.
Community Bank Turramurra, located at 1273 Pacific Highway Turramurra, will close on Friday, 14 July 2023. The decision to close the branch was carefully considered and is the result of two key factors – the growing trend of our customers to move away from in-branch transactions and towards online and phone banking, and the end of the lease on our Turramurra branch in early August 2023. The premises would require modernisation which would involve significant expenditure as part of a branch refurbishment. Whilst customer numbers have remained reasonably constant, the customer base is ageing; in-branch transaction numbers have declined compared to 2019 (pre-COVID) and the cost per service/transaction has risen.
The Lindfield branch is 7.3km from the Turramurra branch and has plenty of room for reconfiguration. The cost of maintaining two branches within such proximity is disproportionate to the business generated. This decision also considers the availability of our Senior Mobile Relationship Manager to assist Turramurra customers and surrounding areas with any lending enquiries. The consolidation of services to one physical branch, combined with our mobile lender, better positions us to respond to market volatility and evolving customer preferences.
We remain committed and invested in this community.
The branch closure does not change the commitment of the KFSL Board and branch staff to ongoing community investments in our community via our grants, donations, and sponsorships program. Consolidating our physical location will enable us to increase the financial support we can offer our local community – and we have earmarked $500,000 for local projects over the next three years.
Most Turramurra staff have accepted offers to continue working at our Lindfield branch.
We look forward to continuing to support our customers and the broader community from our Lindfield branch. The Bank is in the process of communicating these changes to its Turramurra customers. If you have any questions regarding this decision, please contact us at shareholder@kfsl.com.au
Notice of expected material elevation in company revenues – October 25, 2022
In terms of its franchise agreement with Bendigo and Adelaide Bank (BABL), Ku-ring-gai Financial Services Limited (KFSL) delivers BABL’s banking and financial services to its community. The franchise agreement provides for a share of interest margin, fee and commission revenue to be earned by KFSL on the outstanding portfolio of loans, deposits and other business sourced by KFSL.
The unaudited accounts of KFSL for the first quarter of its financial year ending 30 June 2023 (FY23) indicate that the continued increase in the cash rate by the Reserve Bank of Australia has materially elevated the level of earnings for KFSL on this portfolio compared to the prior year. If this trend continues, KFSL expects its revenue from contracts with customers for FY23 to exceed the prior year by 45% to 65% with a related material uplift in profit for the year.
Updated notice of expected material elevation in Ku-ring-gai Financial Services Limited’s company revenues – February 7 , 2023
In terms of its franchise agreement with Bendigo and Adelaide Bank (BABL), Ku-ring-gai Financial Services Limited (KFSL) delivers BABL’s banking and financial services to its community. The franchise agreement provides for a share of interest margin, fee and commission revenue to be earned by KFSL on the outstanding portfolio of loans, deposits and other business sourced by KFSL.
Further to the Continuous Disclosure Statement provided on 25 October 2022, the continued increases in the cash rate by the Reserve Bank of Australia have further elevated the level of earnings for KFSL on this portfolio compared to the prior year. If this trend remains, KFSL expects its revenue from contracts with customers for FY23 to exceed the prior year by 70% to 90% with a related material uplift in profit for the year. This information is based on KFSL’s unaudited financial results for the first half of its financial year ending 30 June 2023 (FY23) which is due to be published on 17 March 2023.
Event Notification – 14 April, 2023
Ku-ring-gai Financial Services Limited (KFSL) advises that it is undertaking a transaction which may have an impact on the price of KFSL securities. The specific matters relating to the transaction are still ongoing, and so the company is unable to provide any further details at this time. KFSL will provide further updates as soon as practicable, in accordance with its continuous disclosure obligations.