Statement from Chief Executive Officer

STATEMENT FROM CHIEF EXECUTIVE OFFICER

Mr. Toch Chaochek
Chief Executive Officer

CHIEF EXECUTIVE OFFICER’S MESSAGE“STRATEGICALLY POSITIONED TOWARDS THE GOAL TO BE THE MARKET LEADER IN MSME SEGMENT”

WITHIN 6 YEARS OF OPERATIONS, WE ARE WELL RECOGNIZED IN THE FINANCIAL INDUSTRY IN CAMBODIA AS BEING THE 10TH BANK IN TERMS OF BANK ASSETS AND 5TH BANK IN TERMS OF BRANCH NETWORK WITH MODEST SUSTAINABLE GROWTH AMONG THE COMMERCIAL BANKS.

I want to start by thanking everyone at CPBank for once again doing their very best, and also our Board for their continued support and guidance. Under the strategic partnership among Canadia Investment Holding, Fullerton Financial Holdings and Cambodia Post of Ministry of Post and telecommunication, we are very privileged to provide sustainable service experience to our customers.

Over recent years, we have reshaped our strategy to confront aspects regarding our identity and overall performance. To achieve this, we prepared to face the challenges that lay ahead and to reposition our business, in the quest to become the country’s leading digital bank.

Today, though we have come far, we still have a long way to go. Yet, I’m proud of the progress CPBank has achieved. With our destiny in our own hands, we will continue to use our strong foundations to invest in achieving sustainable growth in the months and years ahead.

In a little over three years, we have more than doubled our profits. Despite this, we are determined to make further progress and to achieve even more. Moreover, as a bank dedicated to its strong values, success cannot be determined by numbers only. Indeed, alongside profits, we strive to make sure that we continue to operate as a responsible and compliant bank for the wider benefit of our customers, society in general, and for the planet as a whole. And in 2019, we are especially proud of achieving steady growth despite various challenges that we faced along the way.

The Bank has expanded the branch network to 51 by the end of 2019, which can be considered as our commitment towards the country to serve our customers at their doorsteps. Bank has continued with the best practice for operational risk management and independent risk function. We have managed our operational risk well without any significant operational loss for the year 2019 as well.

During 2019, we embraced a Paradigm Shift, implementing fundamental changes across our organization. Towards this extent, we refocused on embedding technology intending to create positive disruption and fostered a culture of openness, innovation, and collaboration. All these bolstered the Bank’s solid foundations. As our strategic priority, we kept technological adoption at our forefront to provide our customers with the service experience. In 2019, we have implemented a Loan Origination System which will enable our Credit officer to bring a faster turnaround time for service delivery. Now anyone can open accounts with CPBank from anywhere using our online account opening service. We have already soft launch Visa Credit Card and awaiting full-scale launch in 2020. Our SME Banking also went live in 2019 which is in line with the initiatives to support Cambodia’s highest contributor segment for economic growth. Our subsidiary Funan Microfinance has also grown modestly and introduced different consumer products in 2019.

We have taken initiatives to improve our bench strength in 2019, which I believe is one of our core strengths. We have done a few roadshow and Career fairs to promote our brand which I believe, will keep us one of the first choice employers in Cambodia.

In 2019, our total revenue increased by 22%, net profit before tax also increased by 25% along with the cost to income improved to 25% compared to last year’s performance. These numbers also a testament to our goal to be one of the top 5 Commercial Banks and market leaders in the MSME segment in Cambodia.