Cambodia’s only Singapore-owned commercial bank, Phillip Bank PLC has posted an $11.67 million annual net profit, a 56% increase from $7.46 million net profit in 2020, marking the second year after its KREDIT Microfinance merger and embarking on its digital expansion plans.
The large net profit increase was mainly attributed to the significant increase in interest income from loans and advances to customers, on the back of significant growth in loan portfolio increasing from $481.77 million in 2020 to $524.96 million in 2021.
Phillip Bank merged with KREDIT Microfinance in early 2020, as the company continues to follow its vision of “Growing people, delighting customers and benefiting communities” using its digital transformation as the driving change.
Upon completing the merger with KREDIT in 2020, Phillip Bank is now one of the largest commercial banks in Cambodia in terms of the branch network. The bank is a member of the PhillipCapital group based in Singapore and was established in 1975 with over $35 billion in assets currently under management.
To read more about Phillip Bank’s vision click here.
Mr. Lim Hua Min Chairman of Phillip Bank and Executive Chairman of the PhillipCapital Group stated in the company’s annual report that 2021 was the second year after Phillip Bank completed its merger, and it was the second year that Cambodia went through the Covid-19 outbreak.
“It was only four months after we entered 2021 that the Cambodian government announced the two weeks national lockdown, followed by additional measures to control the spread of the virus,” he stated.
In response, the banking sector was required to follow the government’s guidance during the period including limiting staff in the workplace, setting out proper hygiene implementation, and conducting meetings and training online.
Digital footprint expansion
The National Bank of Cambodia (NBC) has been encouraging the usage of e-wallets and payment apps such as Bakong to help prevent the spread of Covid-19 among customers and retailers.
“Asides from being one of the active partners in rolling out Bakong among Cambodian consumers and moving toward cashless payment, Phillip Bank also took the opportunity to improve its products and services for the last two quarters of 2021 and the years to come,” Lim Hua Min stated.
“We achieved operating revenue of $69.63 million and a pretax profit of $14.84 million for the 2021 year compared with $69.11 million and $9.51 million (respectively) for 2020,” he added.
Phillip Bank most recently launched its new internet banking platform as Cambodia’s e-payment sector continues to grow rapidly. In 2020, the National Bank of Cambodia reported that more than 59 percent of Cambodians conducted online payment transactions.
To read more about Phillip Bank’s new internet banking platform click here.
Focusing on B2B2C through partnerships
Phillip Bank has been focusing on its digital expansion, by successfully launching various products that cater to new market segments and add-on benefits to their existing products including Retail, SME, MSME, and Corporate loans.
“We have introduced a new way to onboard customers, including off-site account opening via tablet as well as online account opening of our E-Saving account,” Lim Hua Min stated.
“We were among the top five partnered banks with the highest fund transfer transactions via Bakong. In addition, we extended our partnership with various digital payment platforms to enable payment via Phillip Bank account including pharmaceutical ordering platform, PillTech, co-branded Virtual Mastercard with payment service provider Edeel (Cambodia), and many others,” he added.
Most recently, Phillip Bank also partnered with business process outsourcing firm Massive Distributions to launch a new loyalty initiative for its customers aiming to expand the bank’s digital footprint for KHQR payments acceptance across Cambodia.
Phillip Bank is a member of the National Bank of Cambodia’s signature initiative Bakong payment application and KHQR project and is among the bank with the highest number of Bakong users.
The Bank provides the KHQR service to more than 3,000 merchants and will soon reach 6,000 merchants. Phillip Bank KHQR can accept payment from the mobile application of various banks and financial institutions.