NongHyup Finance (Cambodia) Plc. (the “Company” or “We”) managed to close the FY2022 with many milestones and splendid performance in the face of daunting challenges.
With a long-term and sustainable mindset, the working offices were modernized and new branches were expanded in 2022.
After rigorous preparation and negotiations, the Company secured the long-term lease of a modern and comfortable headquarters, located in the heart of Phnom Penh Capital. Also, we undertook relocations of 8 branches and had them completely modernized. Additionally, 2 new branches located in potential areas were established. We believe that relocating the headquarters and branches (the “offices”) to potential places, modernizing the offices, and expanding operating outreaches, will boost the Company’s trust and image to the public, and attract untapped clients.
We achieved a decent financial performance notwithstanding the economic pressures of Covid-19 recovery, rising inflation, and the Russia-Ukraine war.
The following are financial metrics, achieved during 2022:
Total assets skyrocketed 45.70% to USD 96.85 million from USD 66.47 million at the year prior.
Gross loan portfolio grew 32.56% to USD 73.93 million from USD 55.77 million last year.
Net profit after tax rose 3.90% to USD 3.04 million from USD 2.92 million last year.
Corporate Social Responsibility (“CSR”)
We always take CSR as important as business activities grounded on the belief that a business has a responsibility to the society that exists around it. In 2022, we donated materials and budgets with a total amount of USD45,090 to various NGOs and public stakeholders to promote education, health, and woman’s protection.
2023 Outlook and Strategy
Risk management is on the top of the agenda for 2023 (asset quality over asset quantity)
With uncertain circumstances (the co-existence of unprecedented interest rate hikes, prevailing inflations, and unforeseeable Russia-Ukraine war), the Company is braced for increased funding costs and non-performing loans (the “NPL”). In response, we devised a tight budget plan and set up NPL Settlement Strategies to address the upcoming challenges. The executive and senior managers will go the extra mile to manage and control the NPL, and bring it to as lowest as practicable in the industry average.
Harnessing technology for operational efficiency, flexibility, and speed
To improve operational efficiency and serve clients with flexibility and speed, the Company has embarked on a technology-based lending platform, dubbed Loan Origination System (the “LOS”). The LOS is being developed in-house and is anticipated to go live by mid-2023. We’re strongly convinced that the LOS will serve as a powerful channel to serve prospective clients at ease.
Ushering in meritocracy-based Key Performance Indicators (“KPIs”), enhancing manpower
Technology alone is not a panacea to all challenges, but if it is combined with highly motivated and brilliant manpower, it will unleash potential growth for the Company. Having understood that, the Company invented the brand-new KPIs for branches and headquarters’ staff which put great emphasis on the meritocracy-based reward scheme to motivate the staff and unlock their full potential. With regard to staff development, our Training Unit is actively intensifying the Learning Management System (the “LMS”) enhancement and making it available for our staff to choose for his/her training course, as wished.
Finally, we would like to thank our Board of Directors for their tireless efforts in guiding the Company’s strategies, and we are grateful to our regulatory authorities, esteemed shareholders, and valued customers for their continued support.
Sincerely yours!
