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.