COVID-19 has been teaching us a lot especially the new way of living and doing the business. Managing the spread in the work place and business continuity in case of outbreak are the key agendas for FUNAN in 2020. FUNAN have been placing the Business Contingency Plan (BCP) in to implementation to ensure business operation still be usual and support to its client without any disruption and ensuring the staff well-being. Staffs and clients are introducing to conduct temperature scan, hand sanitizing before access to FUNAN offices. 14days quarantine have been introduced to high-risk employee who joined big gathering of any religious or social events through the working from home. FUNAN have been implementing strictly to the authority instructions on the COVID-19 fighting campaign. Through our social media, sanitizing or basic methods of self-protection from COVID-19 have been posting and sharing by our staffs and FUNAN fans. Every time, there is a community outbreak announcement by the authority, splitting team is exercised to work from home or other stations, this is well-assured that we will have another team in case of one team is in quarantine. With minimizing for big gathering, we are experiencing and familiar with tele-conference for meeting and training even we have a big team and big branch network of 51 branches countrywide. Paying attention to the authority announcement and actions are the key topics for our senior management discussion for a proper instruction to our staffs and client following new norms compliantly. And my philosophy here is—joining with Government to stop COVID-19 is not about the big fund we donate; but just ensure we are a good citizen and following the Government’s instructions—.
For the year of 2020, our FUNAN financial position is positive even our profitability dropped around 12 percent comparing to last year performance, but we still follow our 2020 budget plan. In the same year, with our conservative plan, our asset slightly grew just around 5 percent while our compound annual growth rate (CAGR) with 50 percent (Y-o-Y) in the last five years since the acquisition. So the total asset reached to USD62 million. The ROE and ROA were 18.4 percent and 4.4 percent respectively. The portfolio at risk (DPD30+) benchmarking to industry for and Bank and Microfinance was 1.64% and 1.63% respectively, FUNAN still maintained its portfolio at risk at 1.56 percent (DPD30+).
While FUNAN’s segment is targeting to low income people for both self-employed person and salaried person, freezing their income cause from COVID-19 would be challenging to our clients to follow their loan obligation. To ensure the sustainable of our clients that were affected by the crisis—our Boards have approved procedures to support affected clients through loan restructuring. Within the year, around 14.8% of clients received loan restructuring scheme per the circulation of National Bank of Cambodia (NBC).
In 2020, to be aligning with the Parents Company, the Cambodia Post Bank plc., uplifting public awareness and reputation—FUNAN rebranded especially changing its cooperate color. We exercised the new branding with all our branch offices and marketing materials within the year.
For the year of 2021, prolonging the outbreak would make income constrain of clients and the uncertainty in Cambodian economy. Even though, we are still optimistic about Government’s actions against the pandemic especially the Vaccination Champaign in which would be stabilized the local business activities. FUNAN is ready to support its clients to be resilient from the situation. Within this year, we plan to launch our Loan Origination System (LoS) to improve service turnaround with fast response to our clients as per the mission statement—To provide innovative financial products and services, that are simple, convenient, and fast; and comply with regulations. Franchises development is still being prioritized to enlarge our channels and customer convenience.
To the end, we are grateful to have the immense support of our customers, regulators, shareholders, partners, management team, staffs; and would like to acknowledge them for their encouragement, dedication and being a part success and growth of FUNAN.
Stay safe and take care.
Mr. Khou Buntry
Chief Executive Officer