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

  • Government set to slash holidays

    The private sector has welcomed the government’s move to reduce the number of public holidays in the in the Kingdom – known for having the most public holidays in the world – by seven days. However, the government had just added the “Day of Remembrance” on

  • Kith Theang being held in PJ prison

    Kith Theang, the brother of prominent businessman Kith Meng, was charged by Phnom Penh Municipal Court late on Monday and sent to the capital’s Police Judiciare (PJ) prison over the nearly 50kg of drugs found in a February 23 raid by authorities on the Rock

  • Farmers told not to plant next rice crop

    THE Ministry of Environment has told Cambodian rice farmers to refrain from planting crops in the midst of a drought heightened by record temperatures due to this year’s El Nino phenomenon. Temperatures are expected to peak in April and May. “Every year, [farmers usually]

  • Phay Siphan: Preah Sihanouk will become a second Singapore

    Government spokesman Phay Siphan said on Monday that Preah Sihanouk province will become a second Singapore, as authorities were warned that its development, fuelled largely by Chinese investment, was coming at a cost to locals. Siphan was speaking at a press conference after a seminar