Logo of Phnom Penh Post newspaper Phnom Penh Post - Top-level view: bad times over for banks

Top-level view: bad times over for banks

Top-level view: bad times over for banks

THE head of Cambodia’s Bank of India says he believes "the worst is over" for the banking sector, hit hard by the economic crisis last year, after showing strong growth in the second quarter of 2010.

Cambodia’s commercial banking sector saw growth in loan disbursements and profits in its second-quarter results, reported by Acleda, the Bank of India, the Foreign Trade Bank of Cambodia and Angkor Capital Bank yesterday.

Acleda Bank reported US$5.6 million in second-quarter profit, up 46.5 percent from $3.82 million in the first three months. Deposits grew 7.7 percent to $793.17 million from $736.2 million, while outstanding loans increased by 5 percent to $614.48 million in the second quarter from $585.5 million in the first.

“We have seen that economic situation has gradually been going well, and demand for loans has been picking up, especially in the trade, tourism and agriculture sectors,” In Channy, president and CEO of Acleda, said yesterday.

“We expect to see profit approaching $20 million for the whole year.”

The rate of non-performing loans at the bank has decreased to 0.6 percent as of June this year, from 0.8 percent at the end of last year.

The Bank of India, which opened in Phnom Penh in May last year, said that its loans had grown by 25.54 percent in the second quarter compared
to the first, because of its low interest rates and quick turnaround time.

“It appears the worst is over in Q2,” Ramesh Chandra Baliarsingh, chief executive of the Bank of India, said yesterday. “The economy and the banking sector of the country is again back into a growth trajectory.”

FTB reported quarterly lending growth of 7.6 percent from $105 million to $113 million, while deposits increased by 6.5 percent to $245 million from $230 million.

Angkor Capital Bank saw lending growth of 20 percent to $18 million in the second quarter, from $15 million in the first, and deposits up 9 percent to $24 million from $22 million.

“We expect to see the profit of around $0.7 million this year,” said Alex Ng, Anchor's general manager.

According to a recent banking supervision report compiled by the National Bank of Cambodia, net profit at Cambodia’s commercial banks was down 47.5 percent in 2009, compared to 2008.

MOST VIEWED

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Governor: Covid subsides in capital

    Phnom Penh municipal governor Khuong Sreng said the Covid-19 situation in the capital’s 14 districts has eased, with only two districts still recording a high number of infections. “Transmission cases in all districts are dropping, though they are relatively higher Meanchey and Por Sen Chey.

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided