Logo of Phnom Penh Post newspaper Phnom Penh Post - Sathapana returns to growth after merger

Sathapana returns to growth after merger

Content image - Phnom Penh Post
Mr. Kato Norihiko, Chief Executive Officer of Sathapana Bank.

Sathapana returns to growth after merger

Sathapana Bank reported a net profit of $18.58 million last year, a return to 2015-levels following a steep drop in profits in 2016, which were attributed to the bank’s merger with Japanese-owned Maruhan Bank.

As a result of that April 2016 merger, Sathapana – which holds nearly 4 percent of total assets in Cambodia’s banking sector – transitioned from a microfinance institution to a commercial bank.

“The bank made good profit recovery in 2017 from the challenging merger year of 2016, and grew faster than the market average in 2017,” said Norihiko Kato, Sathapana’s CEO.

The bank’s sheets last year were boosted by an increase in fees collected and a decline in the overall nonperforming loan ratio (NPL).

“The retail loan NPL ratio slightly increased in 2017, but the commercial loan NPL ratio decreased, which offset the banks overall NPL to be lower than 2016,” he said.

The overall NPL ratio dropped from 1.57 percent in 2016 to 1.33 percent last year, slightly better than the industry average of 1.50 percent.

The bank also pulled in $5.37 million in fees and commissions last year, a jump from just under $1 million the year before, which Norihiko said was a result of the expansion of Sathapana’s commercial banking arm.

The bank’s total assets grew by 10 percent to $1.02 billion, its total loan portfolio grew 32 percent to $794 million, and deposits grew by 6 percent to reach $618 million, while its return on equity rose to 12.05 percent, up from 6.51 percent the year before.

MOST VIEWED

  • Cambodia’s image problem

    In opening remarks at a recent event, Secretary of State at the Ministry of Foreign Affairs and International Cooperation Luy David said information can be a double-edged sword. He told a European Institute of Asian Studies (EIAS) briefing seminar that the media has unfairly presented

  • PM Hun Sen says dangers averted

    Delivering a campaign speech from his home via Facebook Live on Thursday, caretaker Prime Minister Hun Sen said his Cambodian People’s Party (CPP) had carried the country through danger in its latest mandate. He was specifically referring to the threat of a “colour revolution”

  • Bumpy road for local ride apps

    Ride-hailing services seem to have grown into a dominant player in the capital’s transportation sector. Relatively unknown and little used in the Kingdom at the beginning of this year, services like PassApp, Grab and ExNet are now commonplace on Phnom Penh streets. However, the

  • Hun Sen lays out party’s platform

    Caretaker Prime Minister Hun Sen on Wednesday credited liberating Cambodia from the Khmer Rouge as among the reasons why people will vote for his ruling Cambodian People Party (CPP) in the July 29 national elections. Hun Sen, who has held the reins of power in Cambodia