Remark from President & CEO

PRASAC not only reaffirmed its status as a leader among MFIs in Cambodia with the largest branch networks, profitability, and loan portfolio, but also proved to be a leading sustainable financial institution. Some of the key highlights for 2011 are as follows:

• Total assets at year-end were USD 155.9 million, growing 38.5 percent from the end of 2010.
• The loan portfolio hit USD 151.2 million increased by 43.6% with the total of 125,127 borrowers.
• PRASAC maintained its leading position in loan portfolio quality in the sector with the portfolio at-risk over 30 days (PAR30) at 0.14 percent.
• Within eight months of deposit product launching, the deposit outstanding balance reached USD 5.9 million.
• After-tax net profit increased by 155% to USD 8.69 million from USD 3.39 million in 2010.
• Return on equity (RoE) was 25.04% and return on assets (RoA) was 6.5%

Shareholders comprise of local and international investors from private and international development financial institutions drawing on valuable knowledge and the leadership of representative directors with extensive experiences in financial, banking, social and microfinance areas bringing a good balance between commercial and social objectives. In July 2011 Planet Rating assigned PRASAC an A- and affirmed its outlook as stable.

PRASAC positioned itself as a leading financial institution with good and strong infrastructure and platform to offer financial services to the rural and urban clients. For instance, PRASAC has 145 office networks spread across the country, and operates in 10,170 villages which represent 72.6 percent penetration of total villages in Cambodia. There were more than 90 offices are online where the transactions are real time, along with 1,501 staff support.

PRASAC partnered with various institutions within the framework of supporting financial literacy and financial education. As part of its social objectives, PRASAC built its first library for a public primary school in a remote area. This is one of PRASAC’s programs in community involvement and it is expected that this library will help tens of thousands of children build their reading habits and have a better education and brighter future.

Although, PRASAC achieved good performance in 2011, but there are still more rooms for improvement and in order to provide better services to its clients, in 2012, PRASAC planned to:

• Expand office network, especially in the urban area.
• Continue to upgrade Management Information System in order to provide better services to clients.
• Install ATMs in all main offices in order to provide convenience to its clients, especially, depositors.
• Improve branding including the new Head Office.
• Strengthen social activities such as strengthening the implementation of client protection principles, social performance management, and contribution to the community through library project and so on.

My gratitude goes to the management team and all staff for their effort and commitment, and to the board of directors for their support and advice, especially to the government, regulatory bodies, National Bank of Cambodian, and local authorities that always have been supporting PRASAC.

The management and the entire PRASAC team express their strong commitment to the development of PRASAC and to contributing to the development of the Cambodian economy.