Phnom Penh Commercial Bank, a subsidiary of South Korea JB Financial Group, has shown a strong market performance generating almost $8 million in net profit during the first half of the year.
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During the period, the Group said PPCBank’s net profit increased about 28 percent compared to the corresponding period last year, South Korean media reported on Tuesday.
PPCBank’s asset has reportedly experienced a steady growth since began its operation in the country. The bank’s assets, as of June, stood at 944.8 billion won (about $776 million) – a 20.4 percent hike.
During the period, loans issued were up 32.5 percent while deposits rose 15 percent in comparison to the corresponding period last year.
“The bank has continuously demonstrated its strong growth despite the country’s heated competition in the sector,” the Group was quoted as saying.
In an exclusive interview in April, PPCBank’s president Shin Chang Moo told Khmer Times that PPCBank’s standpoint was that there is room for growth in the banking sector without any need for commercial banks to compete in a cut-throat manner.
“There’s much room to grow in the sector (and) we don’t have to compete head-to-head with other banks,” he said.
Mr Shin noted that there’s a growing middle class in Cambodia, which is a positive sign, and when this segment grows there will be a greater demand for banking and financial services. “The middle class and small medium enterprises (SMEs) are our major target,” he said.
Mr Shin acknowledged that one of the biggest obstacles when entering a new market is adapting to the culture of human resources.
“Here in Cambodia, we found the people to be very friendly to foreigners and foreign investors. The Cambodian culture is very flexible and accepting,” he noted.