Remarks of the CEO 

With Cambodia economic growth year on year and increase of Gross Domestic Product (GDP) per capita approximately 1,434 dollar in 2017 that is double increase comparing to the last ten years, reflecting to the income generation growth by Cambodian People, enabling financial sector remain strong and healthy. Assets of Banks and Microfinance Institution grew by 20.2 percent (y/y). Introduction of an 18 percent of interest cap in April 2017, credit growth to the private sector decelerated around 18percent comparing the average growth rate 30 percent in the last five years. These credits, 73 percent of financial source is from the local deposit.  The non-performing Loan in bank sector is decreased from 2.7 percent in 2016 to 2.3 percent in 2017 and increased from 1.5 percent to 2 percent for microfinance sector.  Banks and microfinance institutions continue to hold satisfactory level of capital and liquidity. The solvency ratio was approximately 23 percent for banks and 22 percent for microfinance deposit-taking institutions, while the liquidity ratio was 139 percent and 172 percent respectively.  Credit growth rate is projected by 17 percent in 2018 (Source by NBC).

The robust growth and opportunity in Microfinance sector, Funan has been acquired by  Cambodia Post Bank Plc. on April 2017. with the technical assistance from the parents company, Funan has been transformed, reformed the cooperate governance, developed risk management framework, placed to implementation the new policies and regularly monitoring these implementations by senior management and Boards in order to ensure the smooth and sustainable development. As a result by the end of 2017, the loan outstanding of Funan reached to US$29 million, the non-performing loan (NPL) decreased to 1.3 percent was comparable to the industry (2 percent). Funan is having its branch networks covering the potential areas countrywide including city provinces and districts. These achievement are contributed from all staff and management in carefully implementing the Funan’s strategic plan; and cooperated from all stakeholders.

In the competitive financial market, Funan needs to enhance its quality of products, services, technology and staff capacity building to gain the competitive advantages aligning to its strategic plan of becoming the leading the microfinance in Cambodia.

Particularly in 2018, Funan is having priority action plan as following –1). Staff capacity building for the successor plan especially in frontline supervisors fulfilling  the  need of company. 2). Continue to develop the new products to fit with the market target segment essentially, Salaries Mass Market (SMM). 3). Improving the office infrastructures for the security enhancement, operation risk mitigation and gaining truth from clients. 4).  Continuing  to  implement  the  risk  management framework through the risk control self-assessment (RCSA) policy 5). Synergic business cooperation to enlarge business franchises such as payment processing providers, insurance company and other suppliers.

In person and Funan, I would like to thank shareholders, customers, business patners, regulators, lenders and staffs for supporting our business with a remarkable achievement of 2017 and hope that you will continue to support us in the following years.


Sincerely yours,

Mr. Khou Buntry
Chief Executive Officer