Message from Chief Executive Officer

“When we set clear goals and navigate challenges with control, success will always follow”

As we reflect on 2024, I am proud to share that Cambodia Post Bank has demonstrated resilience and strategic focus in navigating a year filled with both opportunities and challenges. Despite a dynamic macroeconomic landscape, a stagnant real estate market, geopolitical uncertainties, and the ongoing war between Russia and Ukraine, we achieved a net profit of USD 17.7 million. This milestone reinforces our ability to adapt to evolving circumstances while delivering remarkable results. Our return on capital of 8.32% in 2024 reflects sustainable growth and the bank’s ability to manage operations with flexibility and efficiency. While our annual net profit saw a slight decrease compared to 2023, this was primarily due to the higher cost of funds resulting from a 15% increase in fixed deposits from the public—exceeding our annual plan. This growth in deposits highlights the trust and confidence our customers place in us, allowing us to continue strengthening our financial position.

In 2024, our total assets grew by 19.7%, deposit balances surged by 24%, and loan balances increased by 9%. This success was driven by our diversified range of products, the expansion of digital services, and deeper penetration into underserved markets through our 64 branches. Our commitment to financial inclusion remains steadfast. By offering a wide variety of easy-to-use and convenient products and services tailored to customers’ needs, we continue to empower individuals and businesses, fostering greater access to banking solutions.

We continue to navigate several challenges, including a stagnant real estate market and lower-than-expected economic growth, which have affected the livelihoods of some customers. These factors have impacted their repayment ability, leading to a steady rate of late payments and an increase in non-performing loans. Additionally, the rise in the U.S. federal interest rate contributed to an increase in savings rates in Cambodia at the beginning of the year, further driving up costs for banks. Despite these pressures, we remain committed to managing risks effectively and maintaining financial stability.

Looking ahead, we are doubling down on initiatives to strengthen profitability, ensuring long-term sustainability while contributing to social and environmental protection, safeguarding customers, and advancing clear sustainability goals for society, our clients, employees, and the bank itself. In our digital transformation efforts, we have accelerated investments in digital platforms to reduce operational costs, enhance customer experience, and capture opportunities within the fast-growing fintech ecosystem. Additionally, we are diversifying funding sources and introducing tiered deposit products to attract low-cost savings while rewarding customer loyalty. To navigate economic uncertainties, we have reinforced our risk management framework by enhancing credit risk assessments and liquidity management strategies, ensuring a resilient and adaptive financial foundation.

Our accomplishments in 2024 would not have been possible without the dedication of our talented team, the loyalty of our customers, and the unwavering support of our shareholders and regulators. To our employees—your relentless effort, adaptability, and commitment have been instrumental in driving our success. Thank you for your hard work and passion. To our customers—your trust in us to support your financial aspirations fuels our continuous growth and innovation. We sincerely appreciate your confidence in Cambodia Post Bank and look forward to serving you in the years to come.