CIMB Bank Plc, recently named ‘Cambodia’s Best International Bank’ by banking and capital market magazine Asiamoney, expects its profit before tax (PBT) to grow some 40 percent to $14 million on the back of higher loans and deposits.
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“Our estimated PBT is $14 million. The figure has yet to be finalised, but this is the minimum that we expect,” said bank CEO Bun Yin.
“Profit after tax involves the deduction of 20 percent profit tax. With good governance, our growth has remained positive year-on-year since our operation here,” he told reporters at the announcement of the award.
In 2017, the bank, a subsidiary of Malaysia-listed CIMB Group Holdings Bhd, reported a 22.92 percent rise in net profit, which reached $7.83 million, due to growth in operating income and cost-effective management. Revenue rose 21.15 percent to $27.38 million compared to $22.60 million in 2016.
For 2019, the bank has budgeted growth of between 20 and 30 percent.
“The bank’s growth has been steady and sensible. On average, our loans and deposits have expanded by 32 and 30 percent per annum, respectively, to $545 million and $700 million in 2018 from $209 million and $265 million in 2014.
“Loan asset quality has been maintained with a very low non-performing loan ratio at only 0.19 percent compared to the industry’s average of 2.4 percent. Our assets have also grown more than twice to $865 million in 2018 from $353 million in 2014,” Mr Bun added.
CIMB Bank set foot in Cambodia in 2010 and now has 13 branches, nine in Phnom Penh and one each in Siem Reap, Sihanoukville, Battambang, and Kampong Cham. It serves more than 26,000 customers, offering banking products and services in consumer, commercial, and corporate and transaction banking.
The bank has built its institution with 100 percent Cambodian talent, part of its long-term goal to develop a new generation of bankers in the nation.
“We are grateful to receive the award from Asiamoney. It is a recognition of our achievements in providing a suite of valued banking products and services in the Cambodian market by an influential and respected financial magazine,” he said.
Asiamoney, a division of Euromoney Institutional Investor PLC, which also publishes financial magazine Euromoney, considered CIMB Bank’s retail banking, credit card, priority banking operations, and services such as cash management, trade finance, and foreign exchange when deciding the winner.
The procedure of Asiamoney in selecting Cambodia’s best international bank covered both qualitative and quantitative performance during the year with evaluation conducted on various banks and views from independent analysts in the banking sector.
“Winning the award has been possible thanks to the hard work of our management and staff, followed by strong support from CIMB Group, and the continued trust from our customers. Our strong performance has enabled the bank to clinch the award from among the international banks operating here,” Mr Bun said.
In line with CIMB Group’s extensive network in 10 Asean countries with 36,000 employees serving 14 million customers, CIMB Bank offers customers banking services both locally and regionally.
CIMB Group, Malaysia’s second largest bank, is also present in China, Hong Kong, India, Sri Lanka, Korea, the United States, and the United Kingdom.
Its ATM regional link allows customers to access any of the group’s 8,000 ATMs across the region for free with competitive exchange rates for local currencies.
“With priority banking, CIMB Preferred, our customers enjoy special privileges in transacting banking services at the Preferred Centre and other exclusive benefits across Asean,” Mr Bun said.
Besides same-day telegraphic transfers to Malaysia, Indonesia, Singapore, Thailand, and Cambodia, CIMB Bank upped its product innovation by recently launching HomePro, a mortgage product with free life insurance up to $50,000.
“With low mortgage interest rate and favourable conditions, the bank has become a leading mortgage lender in the Cambodian market,” he added.