Logo of Phnom Penh Post newspaper Phnom Penh Post - AMK, Amret see profits soar during third quarter

AMK, Amret see profits soar during third quarter

AMK, Amret see profits soar during third quarter

THE Kingdom’s fifth-largest micro-lender, AMK, reported yesterday that its net profit increased by 76 percent quarter on quarter.

Profits at the microfinance institution in the third quarter climbed to US$567,415, up from $322,611 in the second quarter.

AMK Chief Executive Officer Pete Power, said yesterday that the rise was the result of a 12 percent increase in outstanding loans.

Loan value rose to $31.81 million in the third quarter, from $28.34 million at the end of the second, and non-performing loan ratios fell to 2.29 percent from 2.52 percent.

“During quarter three farmers need cash to inject into their farming activities, so the demand for credit is increasing,” he said.

“We expect that loans outstanding will hit $33 million, and the NPL rate will decline to below 2 percent by the end of this year.”

Chairman of Cambodian Microfinance Association Chea Phalarin, who is also general manager of the second largest MFI Amret, said yesterday that his firm also saw the net profit rise by around 20 percent to $1.2 million over the last quarter.

Lending grew 9 percent in quarter three, while the number of borrowers increased to 230,000 from 215,000.

“There is a better business environment, more customers approached us for loans in Q3,” he said, and added that the bad loan rate dropped to 1.2 percent from 1.9 percent.

With statistics for the whole industry due to be released late this week, Chea Phalarin was optimistic about the forthcoming results.

“In general, it’s expected that better profit would be experienced among all the micro-lenders in Q3,” he said.

Last week, the Kingdom's largest micro-lender Prasac reported a 99 percent increase in net profit over the last quarter.

MOST VIEWED

  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong