Acleda Bank posted a 100 percent increase in profits in the first half of 2008 despite efforts from the National Bank to curb lending, Acleda President In Channy said Tuesday.
An independent audit from PriceWaterhouseCoopers, to be released next week, shows that Acleda accrued $10 million in profits during the first six months of 2008, compared with the $9.7 million in profits over the entirety of 2007, In Channy said by telephone.
“This year is a good year. And next year will be better,” he said.
In the first half of this year, Acleda saw 50 percent growth in outstanding loans from $310 million at the end of 2007 to $456.6 million as of June 31, In Channy said, adding that deposits also grew from $344.5 million to $466 million.
And had the National Bank of Cambodia not doubled commercial bank reserve requirements from 8 percent to 16 percent in May, In Channy said, Acleda’s outstanding loans would be in excess of $500 million with an even greater profit margin.
Nevertheless, In Channy said growth in the first half of 2008 came thanks to an increase in interest revenue on outstanding loans and also to increased use of Acleda’s money transfer services for remittances and domestic wire transfers.
“The more you lend, the more you get interest. Because we have more loans, we have more interest,” In Channy said, adding that Acleda’s portfolio will face a minimal hit if a housing price crisis hits Phnom Penh since only 12 percent of total Acleda loans are in real estate.
In addition, In Channy said Acleda’s depositors grew from 247,000 to 359,000, while borrowers grew from 185,000 to 200,000.