AMK, Amret see profits soar during third quarter

via CAAI

Wednesday, 20 October 2010 15:01 Nguon Sovan

THE Kingdom’s fifth-largest micro-lender, AMK, reported yesterday that its net profit increased by 76 percent quarter on quarter.

Profits at the microfinance institution in the third quarter climbed to US$567,415, up from $322,611 in the second quarter.

AMK Chief Executive Officer Pete Power, said yesterday that the rise was the result of a 12 percent increase in outstanding loans.

Loan value rose to $31.81 million in the third quarter, from $28.34 million at the end of the second, and non-performing loan ratios fell to 2.29 percent from 2.52 percent.

“During quarter three farmers need cash to inject into their farming activities, so the demand for credit is increasing,” he said.

“We expect that loans outstanding will hit $33 million, and the NPL rate will decline to below 2 percent by the end of this year.”

Chairman of Cambodian Microfinance Association Chea Phalarin, who is also general manager of the second largest MFI Amret, said yesterday that his firm also saw the net profit rise by around 20 percent to $1.2 million over the last quarter.

Lending grew 9 percent in quarter three, while the number of borrowers increased to 230,000 from 215,000.

“There is a better business environment, more customers approached us for loans in Q3,” he said, and added that the bad loan rate dropped to 1.2 percent from 1.9 percent.

With statistics for the whole industry due to be released late this week, Chea Phalarin was optimistic about the forthcoming results.

“In general, it’s expected that better profit would be experienced among all the micro-lenders in Q3,” he said.

Last week, the Kingdom's largest micro-lender Prasac reported a 99 percent increase in net profit over the last quarter.