One of Cambodia’s leading microfinance institutions LOLC Microfinance has posted an after-tax profit of $54.6 million for 2021 increasing 22% compared to $44 million in 2020 as overdue loans remain stable at 2.05%.
In a fourth-quarter filing to the Cambodia Securities Exchange, Sok Voeun LOLC CEO said despite the challenging operating environment for the global economy, LOLC was able to maintain good loan quality as of Q4 2021 as LOLC has conducted its operations with caution.
As of December 2021, LOLC’s deposit balance reached to $582.6 million with more than 462,000 depositors. The total loan portfolio increased to $1.03 billion with a total of more than 318,000 loan customers.
LOLC’s assets reached to more than $1.21 billion. The deposit balance reached to $582.6 billion, an increase of 9.34% compared to end of 2020. Gross loan portfolio reached to $582.6 billion, an increase of 22% compared to end of 2020, while PAR>30days was 2.05% [up from 1.27% in 2020].”
LOLC continues to offer support
According to the MFI, the negative impact of the pandemic on businesses that are outside the agriculture value chain remains substantial.
Cambodia Investment Review has previously reported that National Bank of Cambodia will continue allowing financial institutions to restructure loans until June 30 this year – but will now classify them as non-performing after multiple restructures.
In the filing LOLC said: “With regulatory support from the NBC, LOLC Cambodia was able to continue providing restructuring options to these customers, giving them with the time and space required to recommence business activities. We will continue to monitor these customers closely and are committed to providing them with the support needed.
We have fast-forwarded the uptake of Digital Financial Services to brace up to ‘living with COVID19’ under the ‘new normal’ and have provided digital banking channels such as iPay our mobile banking application, internet banking service, RFT, FAST and Bakong.
With these digital channels, our customers are able to perform banking transactions conveniently from their mobile phone at any time without having to visit branch offices.”