Corporate bond-listed Phnom Penh Commercial Bank (PPCB) reported a sharp increase in business performance in the second quarter ended June 30, 2023.
According to the bank’s filing with Cambodia Securities Exchange (CSX) last week, PPCB’s total revenue for the quarter was more than 104 billion riel, rising 33.4 per cent year-on-year, while net profit grew 43.1 per cent to over 31 billion riel compared to the second quarter in 2022.
As of June 30, 2023, total assets climbed 8.6 per cent to more than 4.4 trillion riel with total equity up 5.8 per cent at over 852 billion riel.
PPCB chairman Yim Yong Taick said Cambodia’s economy is on the path of recovery, led by manufacturing exports and growth in services and agriculture, with 5.2 per cent real growth recorded in 2022.
He said a strong rebound in services, especially trade, travel, and hospitality on the back of international arrivals during the Southeast Asian Games and ASEAN Para Games, helped to bring Cambodia back to pre-Covid growth levels.
“The revival is also boosted by easing domestic prices as global oil and food prices stabilised. With the agriculture sector expanding due to improved access to regional markets following newly ratified trade agreements, economic growth is forecast to accelerate to 5.5 per cent in 2023,” Yim said.
The banking industry has played an important role as a major source of funds to power economic activities, he added.
Yim shared that PPCB has provided loans to the private sector, especially small and medium enterprises, which have created job opportunities and increased people’s income.
He said with continued commitment and hard work, PPCB would continue to grow and deliver a better performance in 2023 as well as achieve its goals.
A latest report by Mekong Strategic Capital revealed that Cambodia’s finance sector presented a reasonable performance in 2022 with strong balance sheet growth, offset by higher expenses and credit costs, although credit costs are expected to remain high in 2023.
Cambodia has 58 commercial banks, nine specialised banks, five microfinance deposit-taking institutions, 82 microfinance institutions, and 16 leasing companies.
The report showed that total loans rose to $53.2 billion in 2022 from $45.4 billion in 2021. Total deposits grew to $41.9 billion from $38.8 billion while NPL ratio was 3.1 per cent last year compared to up 2.1 per cent in 2021.
Total revenue increased to $4.1 billion from $3.5 billion as net profit dropped to $1.2 billion from $1.3 billion, with return on equity shrinking to 8.4 per cent in 2022 from 10.2 per cent in 2021.
The report pointed out that system liquidity tightened in 2022, driving up funding costs, which is expected to continue into 2023, but fortunately, the system remains very well capitalised.