PPCBank has posted $6.8 million in after-tax-profit representing an increase of 106% from $3.3 million over the same period last year as non-performing loans have jumped to 3.64%
The bank earned $18.1 million in net profit for 2021 increasing slightly from $17.1M in 2020 as the Bank continues to focus on the local SME market. To read more about the bank’s 2021 annual results click here.
In a statement to the market PPCBank Chairman Yim Yong Taick said as of Q1 2022, our growth in assets expansions equivalently to approximately 2.4% from $986 million to $1,009 million.
In addition, a 1.9% increase in outstanding loans from $746 million to $760 million, a 3.4% increase in deposits from $744 million to $770 million, 3.9% increase in shareholder’s equity from $174 million to $181 million respectively from Q4 2021 to Q1 2022.
In addition the bank officially launched the National Social Security Fund (NSSF) fee payment service which allows customer to pay NSSF monthly fee through various channels.
PPCBank also got approval from National Bank of Cambodia for Bancassurance business (referral model) on life insurance products to Prudential (Cambodia) Life Assurance Plc. and other approval from NBC for branch managers’ appointment.
NPL ratio jumps
PPCBank recorded a large increase in non-performing loans from $1.24 to 3.64% attributed to the recent changes by the National Bank of Cambodia regarding restructuring requirements after the COVID pandemic.
The bank recorded Expected Credit Losses at $1.6 million for Stage 3 – defined as financial assets that are impaired.
In addition, the bank stated it was still in the process of getting approval from the NBC for a $1.5 million annual dividend payout approved by the board in April 2022 after the central bank required all financial institutions to have a COVID exit strategy approved.
PPCBank focuses on the SME market
Cambodia Investment Review previously spoke with PPCBank CEO Baek Jongil discussing his banking experience, Korean influence in Cambodia’s financial sector and how the Bank is distinguishing itself from the pack.
To read more about PPCBank President Baek Jongil click here.
The Bank has set its sights on focusing on Cambodia’s Small and Medium Enterprizes with plans to launch new fast-tracked loans ranging from $3,000 to $100,000.
“We have designed our SME products so that we can fast track loan approvals that will allow our customers to access funds quickly and with minimal paperwork, we are also a member of the Credit Guarantee Corporation of Cambodia,” Baek said.
PPCBank also provides a full suite of products and services, ranging from deposits and loans to modern digital mobile applications, as well as its internet-based corporate service ‘smartBiz’ and it’s Mobile Teller’ for in-branch and remote consultations.