Message from Chief Executive Officer

“Bank has set a solid foundation for long-term sustainability”

Macroeconomic and geopolitical uncertainties remain. The World Bank and International Monetary Fund’s projections are for the Cambodia economy to grow at 6.1% in 2024 and 6.4% in 2025 which are still below the historical (2000 – 2019) average of 7.7%. We have observed slightly lower credit growth (~14.8%) in 2023 which is the lowest growth rate in the last five years, mostly due to the weak recovery of some sectors. However, the Financial Institutions are actively playing a pivotal role for overall economic recovery of the country.

As a Bank for Mass Market, we look ahead and continue to invest in cementing our digital banking capability, particularly strengthening our technology resiliency, so we can deliver seamless and personalized banking services. We also understand our need to strengthen our existing competencies and invest in new capabilities for future to respond to any unexpected changes in the external environment. Our Mobile Banking users increased by 31% and Mobile Banking Transactions increased by 117% and customer accounts increased by 27% during 2023. We will always keep our mission to design and provide innovative financial solutions and deliver best in class services to our customers in order to build a purpose-driven bank to build a sustainable future.

Although overall Banking market observed comparatively lower interest rate for the loan, deposit rates have increased and there were challenges on overall margin. Moreover, the challenges remain to manage the non-performing loan which has shown an upward trend. I am thrilled to announce that our bank has achieved stable acceptable growth and success in the face of uncertainty. Despite the challenging times we have navigated, I am proud to share that our bank has set a solid foundation for long-term sustainability. In 2023, the Bank’s total asset grew by 13.6% year on year to US$ 1.46 billion, a loan portfolio grew by 7.3% to US$ 1.09 billion, and a savings balance grew by 14.6% to US$ 1.05 billion. Despite increase interest hike in the market, we have managed our net profit at US$ 23million for the year 2023. We have also grown our QR merchants by 74% in 2023 and this will be our focus for 2024 to enhance our overall payment eco-system.

In the midst of economic turbulence and market volatility, our dedicated team has worked tirelessly to steer our bank through strategic planning, prudent risk management, and unwavering commitment to serving our customers. Our success can be attributed to a combination of factors that have positioned our bank for sustainable growth in the long run. By focusing on efficiency, diversification, innovation, and customer-centricity, we have fostered a culture of resilience and adaptability that has served us well in uncertain times.

We have increased our footprint and expanded our branch network to 62 branches by 2023, moreover our subsidiary, Funan Microfinance, has also have their 51 branches across Cambodia. We have also shifted our new Head office along with our Main branch in a spacious newly built purpose driven “CPBank Tower”. We believe that this change has not only improved our people’s motivation but also delighted our customers to get served in a beautifully designed Banking premises. The Bank has prioritized to cooperate with the Agricultural and Rural Development Bank (ARDB) under the Cambodia Agricultural Sector Diversification project (CASDP) to take part in the development of diversified agribusiness and agriculture value chains in selected geographical areas in Cambodia. We have also continued our co-operation with CGCC and co-financing scheme of SME Bank in order to support overall economic growth initiatives from Royal Government of Cambodia.

All the achievement in 2023 resulted from contribution from all our CPBank’s staff, guidance from the Chairman, Vice-Chairman and all Board members. We want to thank everyone at CPBank for going extra miles, our Board & Shareholders, Royal Government of Cambodia, and regulatory bodies, especially the National Bank of Cambodia for their continued support. We would like to take this opportunity to extend our gratitude to the National Bank of Cambodia, the regulatory authority that has set out a timely strategy to maintain the stability of the Cambodian economy as a whole. We would also like to thank all our customers for their unwavering trust and support our products and services. Our on-going commitment is to provide our best in class service experience and innovative financial products to all our customers.