Lee Yong Man
The Bank started 2018 with the joining of the DGB Financial Group Korea. Twelve months later, we are pleased to report a smooth integration with our new shareholder who has given us their unwavering financial, management and shareholder support. This together with our committed and solidly dedicated staff working in tandem, has allowed our Bank to grow to even greater heights in 2018.
Accordingly, I am pleased to report our achievement in 2018 which is commendable when considering we face the rapidly growing competition from some 150 commercial banks, specialised banks, MFIs and leasing companies in Cambodia. Strong competition from a crowded and aggressive local banking & finance industry has naturally led to active loan refinancing, narrowing interest margins and overall lower return on assets for industry players – making our job even harder.
The Bank’s net income grew spectacularly by 51.7% from US$4,281,433 (in 2017) to US$6,493,617 (in 2018) on the back of the Bank’s total assets from US$106 million (in2017) to US$140 million (in2018) a 32 % asset growth. The strong performance was achieved without sacrificing credit quality. On the contrary, with cautious risk underwriting coupled with dedicated debt recovery efforts, we sharply reduced our classified loans to a mere 0.2% of our total loan portfolio. As per the National Bank of Cambodia guidelines, we have made adequate provisions for the various classified loans.
We are ever thankful to our new shareholder for their strong financial support in providing shareholder loans of US$75 million concurrently with a substantial equity capital increase from US$20 million to US$75 million in 2018. Such solid commitment will enable the Bank to achieve sustainable business growth with respectable profit.
In spite of expected market pressures, the Bank remains focused on having high standards of lending and improving our level of operational efficiencies. Staff training and skills improvement remain our high priorities to churn out well trained staff that are highly motivated and well developed to understand customer needs and market expectations. In this regard, we conduct specific technical& vocational skill training for management and staff in the year and these initiatives will continue to be high priority as always in the future. In 2018, the following activities and training were conducted:
- All new staff undergo a mandatory minimum 3-day training
- Various in-house training courses at branch
- External banking courses
- Local workshop in Siem Reap Province for managers
- Oversea workshop in South Korea in May 2018 which was attended by 296 staff and 15 family members.
For the year 2019, we will further strengthen our risk management systems and the internal control operational procedures. The Bank will continue to enhance the adoption and implementation of good corporate governance as core values for sustainable growth.
I would like to thank all of our customers for their continued support and confidence in the Bank. Concurrently, I would also like to take this opportunity to express my deep appreciation to our dedicated Board of Directors, Management and staff for their invaluable contribution and hard work which has led to the good performance of the Bank.
Lastly, I am also grateful to the National Bank of Cambodia for their continuous guidance and support.
Lee Yong Man, CEO