Banking sector grew significantly in 2011. Total assets increased by 24.39% from the previous year, at the same time credit grew by 33%, or USD 1,085 million. This credit growth was made possible as a result of deposit growth of 20% or USD 880 million and growth in the capital base of 9.85% or USD 112 million. The level of intermediation increased from 75% in 2010 to 83% in 2011. Total assets to gross domestic products (GDP) reached 63% in 2011 from 56% in 2010. Total credits and total deposits to GDP both increased to 34% and 41% respectively, from 28% and 37% in previous year.
In terms of outreach, performance in the banking sector presented substantial progress. Though the number of borrowers increased slightly by only 3% to 294,533 accounts, the number of depositors jumped by 19% reaching 1,266,412 accounts by the year end 2011. The number of branches network and service posts for banks increased by 7.1% in 2011 to 421 offices country-wide. Other platforms of modern banking services such as Automated Teller Machine (ATM), Debit Card, and Credit Card also expanded rapidly. The number of ATM terminals rose by 17%, totaling of 588 terminals. New credit cards and debit cards issued in 2011 increased by 53% to 21,364 cards, and 29% to 761,876 cards respectively compared to 2010. As of year-end 2011, total number of money changers country wide was 1,296 of which 47 are licensed money-changers and 1,249 are registered counters.
The Cambodian Microfinance Sector continues to grow rapidly in terms of number, size, and operations, providing financial services to Small and Medium Enterprises as well as to people in remote areas who do not have access to financial services from commercial banks. As of year-end 2011, there are 32 licensed microfinance institutions, of which 7 are microfinance deposit taking institutions. This development was shown through the increase of total assets of the whole sector of 47.97% from KHR 2,051,484 million (USD 506.16 million) at the end of 2010 to KHR 3,025,083 million (USD 748.97 million) at the end of 2011. Microfinance sector does not only contribute to poverty reduction of the poor in rural areas through microfinance services, but also provides job opportunities to many Cambodian graduate students. As of December 2011, the total number of staff employed in the microfinance sector was 9,744, of which 2,617 were women.
With favorable business, regulatory and policy environment, the microfinance sector has gained significant confidence from the public including both debtors and creditors, particularly from the poor in rural areas and foreign investors. As of 31 December 2011, 23% and 77% of total registered capital are owned by Cambodian and foreign shareholders respectively.
Total loans increased by 50% from KHR 1,724,841 million (USD 426 million) at the end of 2010 to KHR 2,591,263 million (USD 641.53 million) at the end of 2011. The number of borrowers rose by 17% from 978,077 to 1,141,913. Aggregate amount of deposits, on the other hand, surged by 180% from KHR 164,014 million (USD 41 million) to KHR 459,473 million (USD 114 million) in the same period.
The average delinquency ratio is 0.22%, decreasing from 1.18% in 2010 despite severe flooding in the country during the third quarter. In compliance with the regulations of the National Bank of Cambodia, the average solvency ratio is 21.25 % and the liquidity ratio is 398.66%. MFIs’ profitability continues to increase. In 2011, total net profit was KHR 110,117 million (USD 27.26 million), a 63% increase from the end of 2010. Return on asset and return on equity ratios were 3.64% and 15.10% respectively.
