Message from the Chairman

“CPBank has played a humble role in reviving the economic activities from its doomed year of Covid’19 pandemics and the overall financial sector stability.”

Following two years of a global health crisis, the global economy averted a hard landing in 2023. There was a sense of restored calm. However US-China tensions, the ongoing Russia-Ukraine war, as well as the Israel Hamas conflict, added to the uncertainty and resulted in a major escalation of humanitarian and economic crises.

After hiking interest rates for seven times in 2022, the Federal Reserve – in a bid to combat the highest inflation in generations – raised short-term borrowing costs by another four times to 5.25-5.5%, the highest level in last 22 years. Elevated interest rates dampened consumer and investment demand, and stymied global trade. We have also seen turmoil in the US regional banking sector and the failure of Credit Suisse, Silicon Valley Bank (SVB), Signature Bank and First Republic Bank in 2023. However, the Cambodian economy grew although slower than expected in 2023 with growth projected at 5.6% amid weaker exports. Against this backdrop, CPBank delivered a pleasing financial performance in 2023. CPBank stands as resilient franchise in Cambodia with its growing solid balance sheet along with prudent risk management, which positioned us well to be an important partner to our customers, the community and the Cambodia’s economic progress.

The Bank’s vision – enriches lives and fulfills the growing aspirations of the people of Cambodia – conveys our fundamental optimism and the role we play in supporting economic growth, contributing to Cambodia’s prosperity, and helping customers achieve their financial goals. The Bank’s financial results have truly proven the extent of the efforts made by everyone, the relevance of our investment in the systems, security and the positive impact of our services and continuous harness on our business model. I want to acknowledge everyone’s hard work and ability to adapt. From employees to the Board and to the Shareholders and Regulators, we have all had to adapt, reviewing our business, rethinking our organization and our services, and reimagining our role in the future of the banking industry in Cambodia.

As Chairman of the Bank, I am proud of the role CPBank has accomplished in the growth journey of the nation. Through sensible and sustainable banking solutions, CPBank has played a humble role in reviving the economic activities from its doomed year of Covid’19 pandemics and the overall financial sector stability. Though we have played a major role in financial intermediation, we still have a long way to go as we prepare for the next 10 years and beyond. Our performance, resilience and ability to reinvent in adversity and the need to imagine the next 10 years and beyond is in my opinion deeply rooted in the Bank’s culture. The Bank is always ready for the future and serving customers is in the DNA. The Bank has always been able to innovate various financial products to meet the customer’s need. In this historic milestone of 10 years of CPBank, I’m sure our shareholders would have imagined the size, scale and influence of the Bank today and would have encouraged us to do more.

I am happy that CPBank has maintained a balance sheet of US$1.46B asset where our loan portfolio grew 7.3%, deposit portfolio grew 14.6% and US$ 23M net profit for the year 2023. We have efficiently managed to maintain a comfortable liquidity and capital position throughout the year. Bank’s subsidiary Funan Microfinance also managed the profitability well during 2023. Bank also enhanced the partnership with Asian Development Bank (ADB) which helps us to expand Micro, Small, and Medium-Sized Enterprise Lending in Cambodia with an objective of accelerating progress in gender equality.

I am proud of the senior management team who works relentlessly to improve customer service experience and their commitment for the Bank. I would like express my gratitude to all our customers for their continued trust and support. I am thankful to the Royal Government of Cambodia, all regulatory bodies especially National Bank of Cambodia for their unwavering support. I am hopeful that CPBank will be here to contribute further for aspiring economic prosperity of Cambodia.