Cambodia’s largest deposit taking institution Prasac Microfinance has posted an annual after tax profit of $155.5 million in 2021, increasing 42.9% from $108.8 million in 2020 as non-performing loans remain stable at 1.54%.
The increase in profit was attributed to increased interest income rising to $505.35 million in 2021 from $430 million in 2020 from a rising number of depositor and loans the company made.
In a filing to the Cambodia Securities Exchange PRASAC Chairman Kwi Sang Jun said: “The company continues to grow in all key areas, 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 more than 25 years of sustainable growth.
As results of the end of Q4 of 2021, the total assets were $4.3 billion, growing 19.47% compared to same quarter of 2020. The deposit balance increased to $2.6 billion, and the gross loan portfolio amounted up to $3.7 billion.
The shareholder’s equity also grew and reached $674 million while registered capital was $300 million in the reporting period.”
Change in management and rebound from ‘technical default’ concerns in 2020
PRASAC has experienced a strong rebound since concerns over an $800 million “technical default” in 2020. Non-performing loans have been growing steadily but remain at a very manageable level from 0.31 in 2019, 1.37% in 2020 and now 1.54% in 2021.
Last year, KB Financial Group fully acquired the company paying $322 million for the remaining 30% of the company. The group had already purchased 70% of the company for $603.4 million last year from Sri Lankan-based non-banking lender LOLC Holdings.
Cambodia Investment Review had reported at the time Oum Sam Oeun was appointed as President and Chief Executive Officer, after long time leader Sim Senacheert stepped after the KB Kookmin takeover.
In addition, the new executive team included: Kong Sean (Chief Operations Officer), Ry Vanna (Chief Business Officer), Hoeun Honey (Chief Human Resources Officer) and Pen Sovannsoksitha (Chief Marketing Officer).