Logo of Phnom Penh Post newspaper Phnom Penh Post - FTB assets rose 5pc in 2009

FTB assets rose 5pc in 2009

FTB assets rose 5pc in 2009

Troubled bank that had 32pc NPL rate in 2008 opens Sihanoukville port branch

PREAH SIHANOUK PROVINCE
FOREIGN Trade Bank of Cambodia (FTB) assets rose to US$275 million in 2009, a 5 percent increase from 2008, while gross loans and advances to customers climbed to $108 million, a 7 percent rise for the same period, according to the bank’s annual figures.

“We saw that during the hard time of the global economic crisis, our total assets rose, FTB’s general manager, Gui Anvanith, told the Post Friday during the launch of a new branch of the bank at Sihanoukville Autonomous Port. “This was because prior to the … crisis we were already careful with many of our services, to avoid many large impacts.

“Now the difficulties have gone, and we’re left with a lot of money to provide loans, and that’s why we’ve seen our loans also increase,” he said.

Annual figures for the bank show a rise in capital to $33 million, 17 percent shareholder equity growth, to $42 million, and a 2 percent increase in deposits, to $227 million.

The bank is now assessing its non-performing loans (NPL) and profit, with an audit expected next week, Gui Anvanith said.

“We have not finished the audit, but we know that NPL and profit are much better than a year earlier,” he said.

The FTB posted a massive non-performing loan ratio of 32 percent for the end of 2008, by far the largest in the country. By comparison, Canadia Bank, which retains a stake in the FTB, is aiming for a 4 percent NPL ratio this year. The 2008 NPL ratio for ANZ Royal Bank was 2.6 percent.

Nevertheless, Gui Anvanith said the FTB would continue to grow as the global and Cambodian economies recover.

The bank had not decided whether to make loans in the real-estate sector, he said, but “will support any customers who have a solid business background”.

The new branch in Preah Sihanouk province will also help the bank, he added. The port branch will provide a “one-stop service” for port activities and will offer banking services to traders and investors, he said.

FTB’s port branch is part of a strategy to differentiate FTB from other banks in the coastal province, which typically operate near markets in Sihanoukville town.

“Where is the heart of the economic activity of Sihanoukville?” he said. “The answer is the port.”

Port Director General Lou Kim Chhun said the facility was “the main economic gateway for the country”, the site of many companies and of trade activities, but that it needed a bank.

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Famed US collector family return artefacts to Cambodia

    In the latest repatriation of ancient artefacts from the US, a total of 33 pieces of Khmer cultural heritage will soon return home, according to the Ministry of Culture and Fine Arts. In a September 12 press statement, it said the US Attorney’s Office for the

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Manet touches down in Beijing for high-level meetings

    Prime Minister Hun Manet arrived in Beijing on September 14 for his first official visit to China, where he is slated to attend the 20th China-ASEAN Expo and meet other leaders including Chinese President Xi Jinping. Upon his arrival, Manet laid a wreath at the Monument