MESSAGE FROM PRESIDENT & CHIEF EXECUTIVE OFFICER

We’ve Been Here for All

PRASAC has been part of Cambodia’s history for nearly three decades, playing an important role in contributing to sustainable economic development by providing access to financial services for rural communities and micro-enterprises. As the leading financial institution, we have been here for our country, our customers, our communities and our shareholders through tough times awaiting light at the end of the tunnel.

Over the course of the COVID-19 pandemic that has prolonged for over two years, PRASAC has kept providing loans and continued restructuring the loans for affected borrowers, following the guidelines from the National Bank of Cambodia (NBC). We also participated in ‘SME Co-Financing Scheme (SCFS)’, an initiative of the government to provide affordable loans to SMEs for capital expenditure and working capital. Under this loan scheme, PRASAC disbursed loans worth USD 9.6 million and USD 6.7 million for Phase 1 in 2020 and for Phase 2 in 2021 respectively.

We have acted with agility to guard against risks and have taken decisive actions to ensure the health and welfare of our people, support our clients and the community and take the necessary steps for business continuity amid lockdowns and travel restriction measures. Branches were operating as new normal (social distancing, office entrance protocols hand washing, temperature checks, mask wearing and scanning of QR Code of Ministry of Health are strictly enforced). We embraced new ways of working: applied rotating shift work schedules (meaning while a group of staff was working at office, other groups were working from home), hosted virtual meetings, arranged online trainings and adapted a work-from-home call center. This was possible thanks to the investment we’ve made in technology as well as years of developing remote leadership skills and a supportive corporate culture plus all employees’ outstanding efforts, high discipline, and flexibility to ensure continuous and uninterrupted business operations.

We strongly encourage clients and staff to do financial transactions through ATMs, mobile banking, and internet banking. To promote cashless payment, we offer PRASAC Mobile Banking services free of charge – (no monthly fee and no transaction fee) which allows customers to make self-payment on utilities, interbank fund transfers, etc. Recently, the app has received significant enhancement with new features such as Open Term Deposit Account, PIN Reset, Login by Phone Number, Share Account Information, Push Notification and other functions, allowing customers to conduct online banking securely on their smart phone at anytime, anywhere with no physical contact or branch visit.

Navigating through the pandemic, we managed to enhance and expand our products and services such as the upgrade of PRASAC Mobile Banking with all-new design and new innovative features, the launch of waste collection bill payment service of Phnom Penh Solid Waste Management Authority (PPSWMA), Metfone PINless top-up service, bill payment service of EDC of Takeo and EDC of Svay Rieng, Krong Bavet, Chiphou and Kampong Rou district, and tuition fee payment service of Asia Euro University via PRASAC Mobile Banking among other innovations etc.

Despite the raging pandemic, our commitment to corporate social responsibility (CSR) is continuous and unwavering yet more relevant, ensuring the wellbeing and sustainable development of the people, community and the country. PRASAC donated and created a fundraising campaign among its staff and customers to fund the purchase of COVID-19 vaccines to save Cambodian lives. We also donated to Cambodian Red Cross to support its social and humanitarian activities in helping vulnerable victims. We sponsored the 6th National Reading Day, organized by MoEYS. Moreover, we still managed to continue our CSR flagship library project by building one library at Prek Takov secondary school in Kandal province to promote the reading culture.

Being the first financial institution to issue the largest corporate bonds in the history of Cambodia’s capital market for the total amount of KHR 127.2 billion, PRASAC also played its crucial role in developing the securities market and promotion of the Khmer Riel.

Delivering Solid Financial Performance

Our 2021 results demonstrate that our strategies continue to deliver success in the hardest situation of the prolonged COVID-19 pandemic. Here are some key operational highlights:

  • Total assets at year-end were USD 4.32 billion, increased by 19.5% compared to the end of 2020.
  • Total loan portfolios were USD 3.75 billion, increased by 23.8% with a total of 465 thousand clients.
  • PRASAC’s Non-Performing Loan (NPL) was at 1.54%.
  • The deposits outstanding balance reached USD 2.62 billion with the total of 661 thousand depositors.
  • After-tax net profit increased by 42.89% from USD 108.8 million to USD 155.5 million in 2021.
  • Return on Equity (RoE) was 26.07% and Return on Assets (RoA) was 3.92%.
  • Registered share capital increased from USD 230 million to USD 300 million.
  • Office network covering 25 provinces and cities through 182 outlets, 141 ATMs, operating in more than 14,030 villages, equal to
    87.6% of total villages, with a total of 9,330 staff

Over the last five years, PRASAC has doubled its business size, client base and number of employees. We have learned a lot from the challenges of the past several years and these lessons have helped PRASAC successfully navigate the stormy years, demonstrating our ability to adapt with speed in response to the global pandemic and becoming a resilient strong and stable institution for 27 years of sustainable growth. Thus, we have delivered strong operational and financial performance consistent with long term shareholders’ interest.

Over the last five years, PRASAC has doubled its business size, client base and number of employees. We have learned a lot from the challenges of the past several years and these lessons have helped PRASAC successfully navigate the stormy years, demonstrating our ability to adapt with speed in response to the global pandemic and becoming a resilient strong and stable institution for 27 years of sustainable growth. Thus, we have delivered strong operational and financial performance consistent with long term shareholders’ interest.

On behalf of PRASAC Management, I would like to thank customers for the support, the management team and staff for their effort and commitment, the Board of Directors for the support and advice, the Royal Government of Cambodia and especially the National Bank of Cambodia (NBC), Securities and Exchange Regulator of Cambodia (SERC) and Cambodia Securities Exchange (CSX) for the continuous support and advice.

Oum Sam Oeun
President & Chief Executive Officer