Banks see growth in Q1

Tuesday, 19 June 2012 02:55

Loans and deposits at Cambodia's 31 commercial banks grew 35 per cent and 25 per cent respectively during the first quarter of the year on what insiders called increased soundness in the Kingdom's financial sector. 

Outstanding loans at the end of March hit US$4.6 billion, according to data from the National Bank of Cambodia. 

The banks held $5.19 billion in deposits. 

"We have economic stability pushing more business activities, so the demand for loans is very high," Ngoun Sokha, the NBC's director general, said yesterday. "I noticed some improvement for loans in the real estate sector, as well as fast growing loans to the agricultural sector." Borrowing in the agriculture sector jumped by 70 per cent year on year, she added. 

New consumer loan products showed fast growth, although commercial loans – about 30 per cent of all lending in Cambodia – saw the biggest increase.

Loans and deposits are growing in step with an awareness of banking services among Cambodians, vice president of Acleda Bank So Phonnary said yesterday.

Loans at Acleda hit $1.103 billion at the end of March, up from $1 billion in December. Deposits stood at $1.368 billion in May. 

"Small and medium enterprises are growing as economic activity is improving. We have high demand for loans," she said.

Smaller, foreign-owned banks also reported strong Q1 growth. 

Korean-owned Kookmin Bank saw a 50 per cent year-on-year jump in deposits, chief executive and president Jang Ki-sung said yesterday. 

Loans at the bank increased by 20 per cent. Kookmin's lending primarily targeted small- and medium-sized enterprises, although the bank planned to expand its presence in the construction sector, he added.

The NBC's Nguon Sokha said she expected Cambodia's banking sector to maintain its current growth rate despite economic turbulence in Europe. 

The Cambodia Post (CP) plans to expand its domestic service by the end of June with an increase to the number of vehicles in its fleet, after revenue rose 10 per cent or about US$1 million in the first quarter of the year, an official told the Post yesterday.

"Revenue from domestic services accounts for only one per cent of total revenue as we rely on foreign revenue. Now, we are trying to diversify our domestic revenue," said Ork Bora, CP's general director.

"We're buying three new vehicles to add to the existing four in order to increase our domestic delivery to some main cities along national roads numbers 4, 5 and 6. We plan to run two times per day," Ork added.

Ork also said that the increase is in a bid to compete with unlicensed taxis that provide the same service as the CP. "In other countries, a taxi cannot operate a delivery service unless it it licensed." 

Presently, Cambodia has more than 20 licensed delivery companies including DHL, TNT, UPS and U Express.

"It is a bit slow as we just came through the second year of the company’s structural reform. We are changing and preparing our structure as we develop from state-owned to a private enterprise," he said. 

CP has been privatised since January 2011, after which its revenue went up about 60 per cent to $3.75 million in 2011 compared to 2010. Now, CP sends post to 192 countries around the world. 

Source: Phnom Penh Post 12 June 2012