Prasac, Cambodia’s largest microfinance institution, reported yesterday that its loan portfolio increased by 21 percent to US$88.2 million at the end of quarter three, from $72.9 million at the second quarter’s end.
Its client numbers increased by 16 percent to 105,900 nationwide.
“The loan portfolio and number of borrowers grew due to increased demand in the agricultural sector and in small and micro-enterprise sector,” Sim Senacheert, general manager of Prasac, said yesterday.
“We expect to grow 10 to 15 percent in the last quarter of this year,” he added.
Prasac earned a net profit after tax of $728,000 in the third quarter, an increase of 99 percent from $365,000 at the end of second.
This was partially due to its increased portfolio and a drop in the rate of non-performing loans.
NPLs decreased from 1.44 percent to 1.14 percent during the last quarter.
The loan portfolio grew due to increased demand in the agricultural sector ...
Microlender Hattha Kaksekar Limited saw oustanding loans increase by around 14 percent to $39 million at the end of the third quarter.
Hout Ieng Tong, its general manager, said yesterday: “Business activities seem to be stronger because loan demand is increasing.”
HKL's net profits increased by 20 percent as loan repayments improved. The rate of bad loans continued to drop to 2.3 percent, from 2.6 percent in quarter two.
Hout Ieng Tong forecast that for 2010, HKL expected its loan portfolio to reach $40 million, 30 percent up on last year.
The Kingdom’s third-largest MFI, Sathapana Limited, also reported better performance during the quarter. Lending rose by around 13 percent to $50 million and the MPL rate dropped to 1.56 percent, from 1.84 percent.
“Economic improvement can reflect that business activity is getting better, clients can generate sufficient income to repay the debts,” chairman Bun Mony told the Post yesterday.
Quarter on quarter, Sathapana saw the value of construction loans increase by 22 percent, household consumption loans rose 21 percent, services and transportation were up 25 percent, small trades were up 13 percent, and agricultural loans rose by 11 percent.
The lending growth was also experienced among smaller MFIs.
Cambodia Business Integrated In Rural Development Agency, reported that its lending increased by 2 percent increase to $1 million in the third quarter.
Customers increased by 5 percent to 2,100. The institution provides the interest rate between 2 and 3 percent per month.
“We saw from one quarter to another, lending has gradually increased. It could reflect the recovery of the economy,” Prom Mary, CBIRD board director, said yesterday.
Tal Nay Im, director general of the National Bank of Cambodia, said yesterday: “In general, we saw that the demand for loans is pertinent to the situaton of the economy, and since late last year, the recovery has started, and lending has gradually increased.”
(source from the Phnom Penh post newspaper, Thursday, 14 October 2010 15:01 Nguon Sovan)