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Three bond-listed companies post solid Q4 recovery

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Cambodia Securities Exchange (CSX). Hean Rangsey

Three bond-listed companies post solid Q4 recovery

Three cooperate-bond-listed firms on February 15 reported solid business-performance recovery in the fourth quarter of last year resulting from proactive government measures that kept economic activities afloat despite the spread of the Covid-19 pandemic.

In its filing to Cambodia Securities Exchange (CSX), Advanced Bank of Asia Ltd (ABA) reported that 11,331 loans worth $724.2 million were disbursed in the fourth quarter. Its gross loan portfolio grew by 12 per cent quarter-on-quarter to $3.8 billion.

ABA said its deposit portfolio continued to grow in the fourth quarter, surging nine per cent quarter-on-quarter to $4.9 billion. Its client base climbed 12 per cent quarter-on-quarter to 1.4 million.

Its chairman Yves Jacquot said in the filing that the bank restructured 10,768 loans worth $551 million in the fourth quarter, with the share of restructured loans in the total portfolio dropping two percentage points quarter-on-quarter to 14 per cent.

He said: “ABA continues to implement its business strategy, focusing on digital finance products and productive loans to businesses in real sectors of the economy.

“While continuously innovating for banking solutions, the bank applies a robust risk management culture strengthened by audit and compliance functions.”

Leading automobile company RMA (Cambodia) Plc (RMAC) said in its filing that it closed out its fiscal 2020 year with solid fourth-quarter sales and net profit, which surged 20.7 per cent and 154.0 per cent year-on-year, respectively.

It said: “This strong performance needs to be highlighted and again demonstrates the power of our brands and the success of our teams in the automobile, agricultural and heavy-equipment industries in Cambodia.”

Sales grew 55.2 per cent year-on-year in the first quarter, but tempered in the second quarter with a 40.9 per cent year-on-year contraction due to Covid-19 restrictions, RMAC said. Third-quarter sales were still 0.4 per cent lower than the corresponding 2019 figure, even after showing “a promising turn-around”.

Its chairman Kevin Whitcraft said in the filing that RMAC maintained “healthy fundamentals” throughout last year by lowering its inventory level and working capital, while taking a cautious approach to spending. The product pipeline was kept at a healthy level as of the end of the fourth quarter.

He said: “The company continues to launch products from our suppliers focusing on the needs of Cambodian consumers and ensuring that we are providing products with latest technology features, focusing on lowering fuel consumption and with a constant view toward the safety of our customers in the products we sell.”

Meanwhile, Hattha Bank Plc (HKL) reported in its filing that the bank restructured more than 13,000 loans worth close to $140 million in the fourth quarter.

It said its loan portfolio grew 16 per cent quarter-on-quarter to $1.323 billion in the fourth quarter, while deposits ended 17 per cent higher quarter-on-quarter to set an all-time record of $793 million.

Its PAR30+ ratio reduced from 1.44 to 0.70 per cent as “we continued to strengthen asset quality management and customers improved their financial position”, it added.

PAR30+ is the percentage of the gross loan portfolio for all outstanding loans that are overdue by more than 30 days.

HKL chairman Dan Harsono said in the filing: “In the last quarter of 2020, [the] Cambodian economy continued to recover although the global situation of Covid-19 was still prolonged and affected all countries.

“Local businesses and domestic consumption, a vital engine of Cambodian economic growth, where severely impacted.

“I appreciated the proactive measures from the government and NBC [National Bank of Cambodia] in addressing the need of businesses, individuals and financial institutions. These efforts enabled business activities to continue [despite] challenges from the pandemic.”

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