The spread of Kovit-19 has taught us a lot, especially about new lifestyles and businesses. Managing workplace outbreaks and sustaining business in the event of an outbreak is a key agenda for Funan Management in 2020. For Funan Microfinance Institution, we have been implementing the Business Continuity Plan (BCP) to ensure the normal operation of the business and continue to provide uninterrupted customer service and ensure the well-being of our employees. At each Funan office, employee and customer temperature measurements are performed and regular hand washing is performed. Isolate from the ground up for employees who are at high risk of attending social gatherings or religious services. The establishment has been actively involved in implementing the authorities’ guidelines for the prevention of communicable diseases. Through the social media of the sanitation or other defense institution, it is promoted and distributed by the staff and supporters of Funan social network.
Whenever there is an announcement by the authorities about an outbreak of Kovid 19 in the community, the separation of the team from some offices from some houses or from other designated places is carried out to prepare in advance in case Where the staff of one place is assigned to work 14 days, we have another team to operate our business. In implementing gaps and meetings, our staff gain new and familiar experience with online technology training or meetings, even though we have a team or network of 51 branches nationwide. Attention to the notice and action of the authorities is the topic of discussion in our senior management team discussions to ensure that we have implemented and guided our clients clearly and accurately. That’s right. In this sense, my view is: Contributing to the Royal Government in preventing the spread of Kovid 19 is not only that we have a lot of resources to support the government, that is, to contribute to being a good citizen who implements guidance and Prohibitions.
For 2020, Funan’s financial position is still good, although the profit margin is down 12 percent compared to 2019, but this rate is in line with the forecast. By 2020, in line with the plan, Funan’s asset growth will be only 5%, while the average annual growth rate for the last 5 years will be 50% since the share transfer. As a result, Funan’s assets have grown to $ 62 million. The return on equity (ROE) ratio was 18.4% and the return on assets (ROA) ratio was 4.4%. Comparing the credit risk ratio to the sector as a whole, the banking sector has a portfolio risk ratio (DPD30 +) of 1.64% and microfinance at 1.63%, while Funan has a portfolio risk ratio (DPD30 +) of 1. , 56 percent.
As Funan’s target market segment focuses on low-income earners, including those earning from salaries and those earning from their own businesses, blocking customer revenues from the effects of Kovid 19 is a challenge to the performance of consumer responsibilities. With the establishment as well. Therefore, in order to ensure the sustainability of our customers, the Board of Directors has approved the reorganized credit policy in support of the affected customers. In 2020, more than 14.8% of customers will receive refinancing loans in the most favorable and understanding terms.
For the year 2021, the prolongation of the Kovid 19 outbreak will reduce the source of consumer income and make the local economic situation uncertain. However, we remain optimistic about the government taking action against the epidemic, especially the Kovid 19 vaccination campaign, which will bring stability to local business activities. Funan is ready to help its customers recover from the effects of the crisis. Also in 2021, we have specific plans to launch a lending system (LOS) that can help us accelerate the response to providing loans to our clients, as stated in Funan’s mission. “Provides innovative financial products and services that are simple, easy, fast and comply with regulations.” For 2021, business development remains a priority direction to expand the network and provide a wider range of services to customers.
Finally, we would like to thank our customers, regulators, shareholders, board, management and staff of Funan, and thank you for the encouragement, dedication and dedication that are part of Funan’s success and growth.
Mr. Khou Buntry
Chief Executive Officer