Cambodia’s largest microfinance institution has posted an after-tax-profit of $49.3 million in the first quarter of 2022 an increase of 37% from $35.9 million over the same period last year as overdue loans remained very low at only 1.24%.
PRASAC posted an annual net profit of $155.5 million in 2021, increasing 42.9% from $108.8 million in 2020. To read more about Prasac’s 2021 annual results click here
The profit is a large turnaround after concerns were raised in the MFI’s 2020 half-yearly financials that the company “had been considered as being in default of more than $800 million in liabilities to funders due to the quality of its assets”.
In a statement Chairman Kwi Sang Jun commented with the favorable macroeconomic conditions, PRASAC once again has demonstrated a strong growth on all main parameters, including the total assets, deposits and loans, profit as well as financial technology.
Registered capital hits $400 million
“We have learned a lot from the challenges of the past several years that made PRASAC become a strong and stable institution for 27 years of sustainable growth. As results of the end of Q1 of 2022, the total assets were $4.5 billion, growing 21.33% compared to same quarter of 2021.
The deposit balance increased to $2.7 billion, and the gross loan portfolio amounted up to $4 billion. The shareholder’s equity also grew and reached $724 million. The registered capital was $300 million in the reporting period, but was expected to increase to $400 million in the upcoming quarter.
These results are fuelled by the institution’s successful implementation of its sound business strategy, the offer of tailored financial products and service to target customers with excellent customer service, sound risk management, strong internal control, and effective compliance and enforcement, delivered by all of our committed staff.
Being the first financial institution to issue the largest corporate bonds in the history of Cambodia’s capital market for the total amount of KHR 127.2 billion, PRASAC also played its crucial role in developing the securities market and promotion of the Khmer Riel,” Chairman Kwi Sang Jun said.
Change in leadership
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.
To read more about the KB Financial Group takeover click here.
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).