Bankers say ‘Profits are up, loan portfolios are growing at a fast tick and non-performing loans are shrinking’
Moody’s, and Standard and Poor’s, two rating agencies recently downgraded two of Cambodia’s major banks, Acleda Bank and Canadia despite increased performance of both the banks from 2010 in relation to their loan portfolio sizes and the falling percentage of non-performing loans. Mr Billmeier (vice president of Canadia Bank) commented loaning conditions allowing extra collateral other than just land titles to be used as collateral, does increase some short term risk.
Both Acleda and Canadia said that most of their profits were coming from lending to the export services and agricultural sectors. In the downgrading rating agencies cited the conditions in the USA and Europe, Cambodia’s largest export market as having the potential to be detrimental upon the banks performances.
Despite this country head of Cambodian Public Bank, Phan Ying Tong said in an e-mail
“We expect the outlook for this year and 2012 to be positive… The banking sector is expected to perform better overall as most banks reported higher growth in deposits and loans and overall improvements in their financials.”