“The Preparation of AEC Integration-Opportunities and Challenges …€¦ · Foreign Trade Bank of Cambodia Other developments in the past 5 years within the banking sector of Cambodia

Internal

“The Preparation of AEC Integration-Opportunities and Challenges for Business”

Mean Channarith, Senior Manager of Credit Department

“Access to finance”-How to easily obtain capital for business: Start-up and operation?

23-24 Feb 2015

Foreign Trade Bank of Cambodia

Content

i. Overview of Banking Sector

ii. FTB Profile

iii. Lending Facilities

iv.Bank Products and Services

v. Others


i. Overview of Banking Sector


Number of Financial Institutions In Cambodia:

36 commercial banks

9 specialized banks

7 Microfinance Deposit Taking Institutions

30 Microfinance Institutions

3 Leasing Companies

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Overview of Banking sector in Cambodia at end of 2014



Total assets: USD12.7b (+17%)

Total Deposit: USD 7.5b (+12%)

Total Loan: USD 7.46b (+25%)

NPL: 2.5% to 2.7% range

Loan to Deposit ratio: 97.2%

Local funding:

- Fixed deposit rate of 4%-5% for one year

- Lending rate of 9%-14% per annum

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Total assets to gross GDP reached 93% in 2014 from 63% in 2011.

Total credits and total deposits to GDP both increased to 47% and 52% respectively.

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Source: NBC


Other developments in the past 5 years within the banking sector of Cambodia

An increase in the number of banks in the market. There were 36 commercial banksand 9 specialized banks (total 45) at end of 2014 vs 27 commercial banks and 6specialized banks (total 33) in December 2009.

Several new players, including regional Asian banks (CIMB, Hong Leong Bank, etc.)entered the market.

We also saw some acquisitions – Hwang DBS, Union Commercial Bank, and SingaporeBanking Corporation sold off to other players.

(NBC) raised the minimum capital requirement for commercial banks to $37.5 millionfrom $13 million at end of 2010.

The Cambodia Credit Bureau (CBC) was launched in March 2012 providing analyticaltools and credit reporting services to banks and MFIs.

The Association of Banks in Cambodia (ABC) formed in 1994 continues to representthe country’s private banking sector, promoting constructive dialogue amongstmember banks, and also serve as an industry voice to the public and the Government.

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ii. FTB Profile


Foreign Trade Bank of Cambodia (FTB)

Our Head Office in Phnom Penh

First and foremost bank in Cambodia – established in 1979 (over 33 years of experience)

Provides full ranges of banking services and products to SMEs, corporations, and retail customers

Grown from a single bank branch to 10 branches in Phnom Penh, Siem Reap, Battambang, Sihanoukville and has plan to expand to other major provinces

Specializes in all types of trade and payment financing

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1979

2000

20052009 Today

Establishment

State-owned Commercial Bank

Canadia Bank: 46%ING Holdings:44%

MEF: 10%

Canadia Bank: 15.22%ING Holdings:44%

Individuals: 30.78%MEF: 10%

ING Holdings:44%Individuals: 46%

MEF: 10%

ING Holdings Co., Ltd.

44%

Mrs. Kim Tiek 23%

Mrs. Chhay

Kimbuoy23%

MEF10%

Our History

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Our Board Members

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Summary Balance Sheet Figure

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Summary Net Profit Figure

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iii. Lending Facilities


Loan Products


Business / Corporate Loan:

Overdraft

Term Loan

Housing Loan

Market Loan

Personal Loan

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Loan Products-Business/Corporate Loan


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Loan Products-Business/Corporate Loan


Loan Purpose Financing inventories/Stocks Expanding existing business Merges and Acquisitions Purchase commercial assets Sub-Contract of project etc.,

Loan size $100,000 to 20% of FTB’s net worth

Loan term 12-36 Months

Loan approval fee ≤ 6 Ms = 0.5% , > 6 Ms & ≤ 12 Ms = 1% , >12 Ms = 2%(One time charge)

Documents required Referred to standard legal documents required.

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Loan Products-Housing Loan


Loan Purpose Purchasing House/Flat value max $250,000 Bank loan 60% of the house/flat value Salary income earner Business income earner

Loan size $20,000 to $150,000

Loan term Up to 240 months or 20 years

Interest rate Fixed and floating rate

Loan approval fee 1% (One time charge)


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Loan Products-Market Loan


Loan Purpose Financing Inventory / Stock Expanding existing business Mergers and acquisition Store in the market as collaterals

Loan size $10,000 to $100,000

Loan term 12 to 36 months (1-3 years)



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Loan Products-Personal Loan


Loan Purpose(Conditions)

Personal need/family support Payroll staff with FTB, salary range min. $600 per

month

Loan size $10,000 to $30,000

Loan term Up to 48 months or 4 years



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Foreign Trade Bank of CambodiaForeign Trade Bank of Cambodia

Loan Assessment and approval Process

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Credit Assessment Criteria

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Loan Portfolio for Agriculture Sector

Agriculture, 81,648,027 ,

22%

Others, 293,185,507 ,

78%

LOAN TO AGRICULTURE SECTOR

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iv. Bank Products and Services

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Our Products and Services

CO

RP

OR

AT

E - Deposits

- Business Loan- Market loan- Syndicated loan- Trade Finance - Bank guarantee- Clearing &

payment- Remittance- Cash management- Currency exchange- Payroll, Etc.

PE

RSO

NA

L - Deposits

- Personal loan- Housing loan- Internet Banking- ATM- Visa CashCard- Remittance- Money Transfer- Cheque collection- Etc.

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Trade Finance ៖

Payment In Advance

Documentary Collection

Open Account

Letter of Credit

Bank Guarantee

Local and International Transfer

Our Products and Services

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Our ATM and “Easy Cash Member” network

Easy Cash

Member

ATM that does not retain your card

ATM that provides voice instruction

ATM that accepts your finger print

ATM that dispenses currency at your

choice Khmer Riel and USD

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37 FTB ATM machines

and growing

600 Local ATMs &

2 Million overseas ATMs

600 Local ATMs &

2 Million overseas ATMs

FTB E-Banking Access

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Our Services & Products – ATM and VISA Cash Cards

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Our Services & Products – Deposits and Lending

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v. Others

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With our solid foundation, your money is always safe with FTB

FTB is a join private/government venture with the Ministry of Economy and Finance owning 10% of the shares.

FTB was the least affected during the financial crisis and the recent election event – no restriction on withdrawals

Very strong relationship with both government and private entities

Business partners with a number of State Owned Enterprises (SOEs) including Electricite Du Cambodge (EDC), Phnom Penh Water Supply Authority (PPWSA), and Phnom Penh and Sihanoukville Port Authorities.

Disciplined strategy of balancing risk and return and therefore have the ability to provide cash back to clients (in case of turmoil) than any other banks

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Our Branch Network... And more to come…

Sihanoukville Branch

Tuol Kork Branch

BattambangBranch

Phar Thom Thmey Branch

Battambang Branch

Phnom Penh Port BranchToul Kok Branch 32


CIO award


Outstanding E-Banking award

Our Awards

Outstanding Innovative Product & Service

Banking award

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Our Partners

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Our ContactPhone: +855 23 862 111

www.ftbbank.comEmail: [email protected]

Thank you

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