Phnom Penh Commercial Bank (PPCB), a Cambodian lender under South Korea’s JB Financial Group, turned out its best net profit in the first half to become the top financial performer under Korean management in Cambodia.

JB Financial Group said Tuesday that PPCB posted a net profit of 10 billion won ($8.21 million) in the first six months of the year, up 28 percent from a year earlier and surging more than threefold in three years.

PPCB saw its total assets jump 20.4 percent on year to 944.8 billion won in late June. Loans were up 32.5 percent at 686.7 billion won and deposits 15 percent higher at 737.2 billion won, according to the company.

Its bottom line has also improved. Interest income in the first half was 19 billion won, up 32.7 percent from a year ago. Net interest margin (NIM), a key gauge of profitability that measures the difference between interests paid on deposits and earned on loans, rose from 4.81 percent to 5.38 percent.

JB Financial Group said PPCB’s localized marketing strategies and strong digital services fueled growth despite sluggishness in the country’s retail finance market from heated local competition and the central bank’s interest rate cap on microfinance loans.

PPCB’s 19 branches are run by about 300 locals, with a team of seasoned bank consultants catering to the needs of all client segments. It has also leveraged JB Financial Group’s digital capabilities to bolster its own mobile and online banking services.

In June, PPCB signed an agreement with the International Finance Corporation under the World Bank to extend a $30 million loan to Cambodia’s small businesses over the next five years, a move PPCB anticipates will help further expand its local network.

Jeonbuk Bank and JB Woori Capital, both subsidiaries of JB Financial Group, own 50 percent and 10 percent in PPCB, respectively. The remaining 40 percent is held by Korea’s Apro Financial.

By Kim Gang-rae and Kim Hyo-jin

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