JB's Cambodian bank subsidiary reports largest earnings

Head office of Phnom Penh Commercial Bank in the capital of Cambodia. Courtesy of JB Financial Group

By Lee Min-hyung

• Published Feb 18, 2020 3:46 PM KST
• Updated Feb 18, 2020 5:57 PM KST

By Lee Min-hyung

JB Financial Group's banking subsidiary in Cambodia reported the highest net profit in 2019 among Korean banks operating business there, the group said Tuesday.

Phnom Penh Commercial Bank posted 20.7 billion won ($17 million) in net profit last year, up 40.5 percent from the previous year. This is the best performance in its history despite stiffening competition, the Seoul-based financial firm said.

For the past three years, Cambodia's banking sector has been facing intensifying competition, with 10 more commercial banks starting their business during the period. Among the rivals owned by Korean firms, Phnom Penh Commercial Bank remains the only lender whose annual net profit topped 20 billion won.

The bank's total assets also increased by 21.8 percent in 2019 to reach 1.07 trillion won.

“It is very inspiring that the bank reported solid earnings last year, even if excessive competition and toughening regulations keep causing slowdown of growth in the retail banking business,” the bank's President Shin Chang-moo said.

“Despite tough market conditions, the lender expanded network channels with customers and enhanced digital services, contributing to raising the group's earnings.”

Last year, the bank established a solid foothold for sustainable growth there by signing a deal with the International Financial Corporation under the World Bank to offer $30 million in loans to Cambodian small- and medium-sized firms over the next five years.

JB said this enabled the lender to build a stronger network channel in the local territory and enhanced its corporate image.