Logo of Phnom Penh Post newspaper Phnom Penh Post - Sathapana returns to growth after merger

Sathapana returns to growth after merger

Content image - Phnom Penh Post
Mr. Kato Norihiko, Chief Executive Officer of Sathapana Bank.

Sathapana returns to growth after merger

Sathapana Bank reported a net profit of $18.58 million last year, a return to 2015-levels following a steep drop in profits in 2016, which were attributed to the bank’s merger with Japanese-owned Maruhan Bank.

As a result of that April 2016 merger, Sathapana – which holds nearly 4 percent of total assets in Cambodia’s banking sector – transitioned from a microfinance institution to a commercial bank.

“The bank made good profit recovery in 2017 from the challenging merger year of 2016, and grew faster than the market average in 2017,” said Norihiko Kato, Sathapana’s CEO.

The bank’s sheets last year were boosted by an increase in fees collected and a decline in the overall nonperforming loan ratio (NPL).

“The retail loan NPL ratio slightly increased in 2017, but the commercial loan NPL ratio decreased, which offset the banks overall NPL to be lower than 2016,” he said.

The overall NPL ratio dropped from 1.57 percent in 2016 to 1.33 percent last year, slightly better than the industry average of 1.50 percent.

The bank also pulled in $5.37 million in fees and commissions last year, a jump from just under $1 million the year before, which Norihiko said was a result of the expansion of Sathapana’s commercial banking arm.

The bank’s total assets grew by 10 percent to $1.02 billion, its total loan portfolio grew 32 percent to $794 million, and deposits grew by 6 percent to reach $618 million, while its return on equity rose to 12.05 percent, up from 6.51 percent the year before.

MOST VIEWED

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped

  • Kingdom, China rebut basis for US sanctions

    The Council for the Development of Cambodia, the Ministry of Foreign Affairs and International Cooperation, and Tianjin Union Investment Development Group Co Ltd (Tianjin) have responded to US sanctions on Union Development Group Co Ltd (UDG), a Chinese-owned company currently developing the sprawling $3.8 billion Dara

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • PM requests Russia’s Covid vaccine

    Prime Minister Hun Sen has requested that Russia provide Cambodia with its Covid-19 vaccine after the former announced it planned on mass vaccinating its population next month. The request came on Thursday through the prime minister’s Facebook page as he met with Anatoly Borovik,

  • Influenza breaks out in eight provinces

    Nearly 600 people have been infected with influenza in eight provinces in the past month, Ministry of Health spokesperson Or Vandine said. The ministry is advising extreme caution. A report released by Vandine on Saturday said the Ministry of Health observed transmissions of influenza between August 15