Cambodia Investment Review
KB PRASAC Bank Plc., Cambodia’s fourth-largest commercial bank by loan portfolio, reported a solid financial performance in 2024, bolstered by digital transformation initiatives and steady deposit growth, even as asset quality pressures emerged across the banking sector.
Backed by South Korea’s KB Kookmin Bank, the institution closed the year with USD 5.64 billion in total assets and USD 5.18 billion in gross loans, up 2.17% year-on-year, according to its 2024 annual report. Deposits climbed 13.5% to reach USD 3.53 billion, driven by new product launches and customer acquisition through digital channels.
After-tax net profit rose to USD 95.76 million, a 10% increase from the previous year. Return on equity (ROE) stood at 8.69%, while return on assets (ROA) reached 1.69%, signaling stable profitability despite macroeconomic volatility.
Rising NPLs Reflect Sector Headwinds
While financials remained strong, KB PRASAC’s Non-Performing Loan (NPL) ratio increased from 3.75% to 5.95%, reflecting challenges faced by borrowers amid a sluggish recovery in real estate and consumer demand. The rise in NPLs tracks closely with overall banking sector trends in Cambodia, which saw moderated loan growth and credit tightening across key segments.
Still, the bank emphasized that it remains below industry averages and continues to apply “rigorous asset quality management and oversight,” aided by an upgraded Oracle FLEXCUBE 14.7 core banking system.
Digitalization at the Core of Growth Strategy
A major part of the bank’s growth story in 2024 was its digital push. It rolled out a full suite of apps—KB PRASAC Mobile, Merchant, and Corporate—to strengthen its position in Cambodia’s increasingly cashless economy.
The bank also introduced cross-border QR payments with neighboring country under the initiative of the National Bank of Cambodia and plans to have QR payments across region and including South Korea as well.
Currently, both individuals and corporate clients are able to perform the international fund transfer services faster via KB PRASAC Mobile and KB PRASAC Corporate because KB Kookmin Bank has a strong platform worldwide.
As part of efforts to boost transaction volumes and digital engagement, the bank promoted zero-fee SWIFT transfers, discounted exchange rates at Incheon Airport, and a KHQR merchant lucky draw to incentivize QR payment adoption.
“Our 2024 strategy was anchored in convenience, speed, and security for customers—across all channels,” said OUM Sam Oeun, President and CEO of KB PRASAC Bank. “From core systems to digital front-ends, we’ve made significant investments that are now showing results in usage and retention.”
Expanding Nationwide Footprint, Supporting Financial Inclusion
KB PRASAC maintained a strong nationwide presence, operating 188 branches, 288 ATMs and CDMs, and reaching more than 14,000 villages. The number of KB PRASAC Mobile users jumped to over 562,000, and the bank issued more than 205,000 new ATM cards in 2024 alone.
Read More: KB PRASAC Bank Donates 40 million Riels to Cambodia Kantha Bopha Foundation
Loans in Khmer Riel grew 12.15%, signaling a continued shift toward de-dollarization and support for national monetary policy goals. The bank also extended financial services to migrant workers through a loan partnership with the Ministry of Labor and Vocational Training.
Other notable developments included support for the NSSF Enterprise Contribution Payment system, Tax Payment services to the General Department of Taxation (GDT), sponsorship of the National Career and Productivity Fair, and community initiatives such as school and library construction, heart surgery funding for children, and donations to the Cambodian Red Cross.
Outlook for 2025: CASA Growth and IT Investment
Looking ahead, KB PRASAC said it will focus on improving its Current Account and Savings Account (CASA) balances to lower funding costs and strengthen long-term stability. It also plans to deepen digital investments, particularly in card systems, cross-border remittances, and cybersecurity.
“We are confident that our vision and strategic positioning will allow us to navigate economic challenges and continue delivering strong, sustainable value for all stakeholders,” OUM Sam Oeun added.
