Children play near a branch of PRASAC Microfinance Institution Plc in the capital’s Boeung Keng Kang III commune. Heng Chivoan
Two financial institutions with corporate bonds listed on the local bourse reported relatively sound business performance in the last quarter of 2022, seen as a reflection of improvements in macroeconomic conditions.
In its February 15 filing to the Cambodia Securities Exchange (CSX), Phnom Penh Commercial Bank Plc (PPCBank) reported total revenue and net profit for the October-December quarter at 81.151 billion riel and 20.598 billion riel ($19.9 million and $5.05 million), respectively, up 1.845 billion riel (2.33%) and down 2.848 billion riel (12.1%) year-on-year.
In the report, PPCBank chairman Yim Yong Taick brought up the 5.4 per cent and 6.6 per cent economic growth figures that the Ministry of Economy and Finance had forecast for 2022 and 2023, in that order.
Yim also mentioned the National Bank of Cambodia’s (NBC) “Macroeconomic and Banking Sector Development in 2022 and Outlook for 2023” report, which he said “confirmed the actual growth to be 5.1 per cent” last year.
The central bank had said that last year’s 5.1 per cent economic growth rate “was driven by a 9.4 per cent increase in the manufacturing sector, 15.2 per cent in hotels and restaurants, 6.1 per cent in transportation and 4.5 per cent in wholesale and retail trades”.
Yim continued: “The effective integration of vaccines in Cambodia has resulted in the saving of lives, the consolidation of the health care system, and a contribution to national progress toward economic recovery.
“The rapid response of the Cambodian government, compared to other developing countries, is a successful attempt to alleviate the regional crisis caused by Covid-19. The outbreak has been well-managed, and the negative impacts resulting from the pandemic have been mitigated,” he said.
Meanwhile, in its CSX filing, PRASAC Microfinance Institution Plc reported total interest income and net profit for the same quarter at 636.739 billion riel and 194.801 billion riel, respectively, up 98.336 billion riel (18.26%) and up 31.319 billion riel (19.16%) year-on-year.
PRASAC chairman Jun Kwi-sang said in the report: “Amid the challenging business environment, PRASAC has played its essential part in contributing to sustainable economic development through continuing distributing new loans to its customers.
“PRASAC has also kept participating in providing loans under ‘Tourism Recovery Co-Financing Scheme’ after completing ‘SME Co-financing Scheme’ in 2020 and 2021, an initiative of the Royal Government of Cambodia to provide affordable loans to SMEs [small- and medium-sized enterprises] to revive the economy.
“PRASAC has demonstrated a strong growth on all main parameters, including the total assets, deposits and loans, profit as well as financial technology. We have learned a lot from the challenges of the past several years that made PRASAC become a strong and stable institution for 27 years of sustainable growth.
“These results are fuelled by the institution’s successful implementation of its sound business strategy, the offer of tailored financial products and service to target customers with excellent customer service, sound risk management, strong internal control, and effective compliance and enforcement, delivered by all of our committed staff,” he said.
