Hong Leong Bank (Cambodia) Plc.

Transcription

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Hong Leong Bank Story
The Business
Chairman’s Message
CEO’s Statement
Media Highlights
Audited Financial Statement
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1.
Hong Leong Bank Story
With a heritage of more than 100 years, Hong Leong Bank Berhad (“Hong Leong Bank”) is a major financial service
company in the region. Apart from its core domestic market, the Bank has presence in Singapore, Hong Kong,
Vietnam, Cambodia and China.
Hong Leong Bank is a public listed company on Bursa Malaysia and a member of the Hong Leong Group.
Headquartered in Kuala Lumpur, Malaysia, Hong Leong Bank has a strong heritage.
Originally incorporated as Kwong Lee Mortgage and Remittance Company in 1905 in Kuching, Sarawak and later as
Kwong Lee Bank Limited in 1934, it is the oldest local financial institution in Malaysia. Kwong Lee Bank Berhad was
acquired by the MUI Group in May 1982 and renamed Malayan United Bank Berhad on 2nd February 1983, and
subsequently renamed as MUI Bank in 1989. Under the MUI Bank banner, it grew from 11 branches to 35 branches
nationwide.
On 3rd January 1994, Hong Leong Group acquired MUI Bank Berhad through Hong Leong Credit Berhad (now known
as Hong Leong Financial Group Berhad) and renamed it as Hong Leong Bank Berhad. Hong Leong Bank was listed
on the Kuala Lumpur Stock Exchange on 17th October 1994 and, since then, it had continued to grow by leaps and
bounds both organically and through mergers and acquisitions. With the last merger with EON Bank Group in 2011,
Hong Leong Bank is today one of Malaysia’s largest banking group, with over USD 52 billion in assets.
With an extensive distribution network of over 300 branches, sales and business centres in Malaysia, Singapore,
Hong Kong, Vietnam and Cambodia along with a comprehensive range of alternate and electronic channels
including self-service terminals, Hong Leong Call Centre, Hong Leong Online Banking and Hong Leong Mobile
Banking, Hong Leong Bank reaches out to its customers in all of the communities in which it operates.
Following its commitment to stay relevant, Hong Leong Bank also launched Mach by Hong Leong Bank in 2012, a
sub-brand that brings together "bricks and clicks" to offer a range of life starter products and service targeted to
meet the needs of the Gen-Y Community.
Reaching out beyond the shores of Malaysia, in 2008, Hong Leong Bank was the first Malaysian bank to enter the
Chinese banking sector with a 20% strategic shareholding in Bank of Chengdu Co., Ltd. In December of the same
year, Hong Leong Bank became the first and only Malaysian and Southeast Asian bank to be granted a license to
incorporate and operate a 100% wholly-owned commercial bank in Vietnam. In 2013, Hong Leong Bank proudly
launched its 100% wholly-owned commercial Bank in Cambodia.
Building on the foundation of its strong entrepreneurial roots and its firm foundation of values, Hong Leong Bank is
committed to embed itself in the communities within which it operates to meet the needs of its customers. Under
the umbrella of the Hong Leong Financial Group, the Group’s ability to provide a comprehensive suite of
conventional and Islamic financial products and services under one roof makes it truly a leading integrated financial
service organization in Malaysia and in Asia.
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2012
2011
1994
Launched Mach By
Hong Leong Bank,
A Next Generation
Banking Sub-Brand
Merged with EON
Bank Group
Acquired MUI Bank
through Hong Leong
Credit Berhad (now
known as Hong
Leong Financial
Group Berhad)
1989
1905
Started In Kuching,
Sarawak, Malaysia
under the name of
Kwong Lee
Mortgage and
Remittance
Company
1934
Incorporated as
Kwong Lee Bank
Limited
Renamed MUI Bank,
Operating in 35
Branches
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2.
The Business
HLBCAM inherits the strength of its parent company, Hong Leong Bank, a leading financial services provider in
Malaysia.
We provide a full suite of products and services which includes Consumer Banking, business banking, trade
finance, treasury, branch and transaction banking. We currently operate from our first branch based at our Head
Office situated in the business centre of Phnom Penh, which comes equipped with a priority and business banking
lounge with dedicated account relationship managers and privileged customer benefits. We are committed to the
betterment of the communities in which we operate and to understand our customers’ needs as well as deliver
products and services that will help them fulfil their financial aspirations.
2.1.
The Key Business Pillars
2.1.1.
Consumer Banking
The principal activities include the provision of retail loans, deposit products, and priority banking services to
emerging affluent, affluent and high net worth individuals.
Consumer Banking has had a promising start following the opening of HLBCAM on 8 July 2013. Key business
highlights include:
Financial highlights
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Deposits grew to USD10.27 million contributed by personalized Priority Banking and branch transactional
banking services;
Mortgage loan portfolio rose to USD3.9 million. The strong growth momentum in mortgage loans was a
result of an effective marketing campaign and a highly talented and dedicated mortgage team.
Branch Network
HLBCAM inaugural branch located at its head office has been successfully launched and serves more than 300
personal and business customers. The branch is run by an experienced and diverse sales and service team,
complemented by our Priority Banking lounge and two on-site ATMs with 24/7 access. Beyond meeting its
customers’ needs, the head office branch serves as a strong foundation for HLBCAM to expand its branch
footprint in the Cambodian market over the next 12 months.
Priority Banking
Our customer centric and solution based approach has led us to an impressive early result. Priority Banking is
an integral part of Consumer Banking, having contributed a significant portion of the total deposits of the
bank.
Our 2014 Plan and Focus
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Consumer Banking continues to play an important role in supporting HLBCAM by providing the local
community with easy access to banking services that are progressive, relevant, bespoke and efficient. In
particular, we will focus on the following in 2014:
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Roll out more branches in key strategic locations in Phnom Penh;
Expand and strengthen our Priority Banking facilities and services;
Install additional ATMs;
Introduce product bundling to enhance our offerings to customers;
Work toward the launch of our digital banking services;
Build and develop our sales team’s capability and competency, and raise their profiles in the market in
order to support our growth agenda.
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2.1.2.
Business Banking
Business Banking aspires to be a leading player in the target market segment and in key select industries in line
with the Group’s aspirations to become Cambodia’s leading and preferred financial service provider which is to
be achieved through unique product offerings, as well as relationship building and earning the trust of the
community.
We provide a full range of banking products and financial services to cater for all type of businesses, including
Small-and-Medium-Sized Enterprises (SME), Commercial, and Corporate.
Our products and services are:
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Term loan
Overdraft
Bank guarantee
Letter of credit
Trade finance products and services
Current account
Fixed deposit
Foreign currency products and services
Local and international funds transfer
2013 achievements
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Strong growth in our deposit and loan portfolios
Introduction of trade and market products
Built up strong relationships as well as the set-up of a highly experienced Global Markets team to better
serve our customers
Our 2014 Plan and Focus
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2.2.
Continue to build strong growth in our loan and deposit portfolios
Continue to maintain close relationships with our customers through on-going relationship management,
and deploying our dedicated teams at branches to better serve our customers
Continue to build a strong and robust Business Banking team through on-going training and development
and continuing staff recruitment
Leverage on Hong Leong Bank’s regional banking network to capture cross border opportunities
Mission and Vision
HLBCAM’s vision is “to become Cambodia’s ‘preferred’ financial services provider amongst the leading banks .”
Our mission is “to partner with our targeted business community to create value and fulfill their financial needs,
with the highest level of integrity and professionalism, where people make the difference. ”
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2.3.
Brand Positioning
As the leading bank in Asia, we strive to remain connected to the communities we live in and deliver products
and services that meet our customers’ needs and fulfil their financial aspirations.
Our strong corporate values and brand are the foundation to deliver the right choice of products and services to
our customers.
2.4.
Customer Service
Our customer service philosophy derives from the promises as defined in our brand positioning. . It is firmly
rooted in the core needs of our customers and aimed to deliver a holistic banking experience for them.
As part of efforts to refresh customer service strategy and inculcate a stronger service culture, we adopt the
“TOUCH” initiative. Each letter of the acronym TOUCH defines the essence of our customer service philosophy and
signifies the following:
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T – customers must be able to Trust us at all times.
O – customers want us to deliver our services On Time and accurately
U – customers want us to Understand their needs; recognising and treating them as individuals
C – customers want to stay Connected and access their banking facilities at all times
H – produce Happy customers through effective products and services
Conducting business with HONOR and QUALITY (consistently providing products and services of the highest
quality at affordable prices) means we are TRUSTWORTHY (i.e. we are reliable, dependable, and honest in
everything we do.) ENTREPRENEURSHIP (pursuing management vision and foster entrepreneurship) and
PROGRESS (improving existing operations and positioning for expansion and new opportunities) lead to being
EFFECTIVE (i.e. we focus on doing the right things to generate value. HUMAN RESOURCE (enhancing the quality
of human resources as the essence of management excellence) and INNOVATION (nurturing and committed to
innovation) are translated into being RELEVANT (i.e. we are open-minded and always at the forefront of new
development. UNITY (ensuring oneness in purpose, harmony and friendship in the pursuit of prosperity for all)
and SOCIAL RESPONSIBILITY (creating wealth for the betterment of society) make us CONNECTED to the
communities we serve.
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2.5.
Corporate Social Responsibility
At HLBCAM we believe that serving our communities is not only integral to running a business successfully; it is part
of our individual responsibilities as citizens of the world. We continue to support communities in ways that enhance
the company's reputation with employees, customers, business partners and other stakeholders. On that note,
continue to proudly commit ourselves to making positive contributions to the communities in which we serve.
Guided by our company value of Social Responsibility, we are committed to meeting the highest standards of
corporate citizenship. The Bank ensures the health and safety of our employees and all who are affected by our
business operations. We are also committed to protecting the environment. We are committed as a company and
individuals to comply with the laws, respecting the cultures, and having a positive impact on the lives of the people
in the communities where we conduct our businesses.
HLBCAM sees CSR beyond its core mission. The Bank contributes significantly to the socio-economic development of
the nation by promoting education, providing aid to marginalised communities, supporting and developing local
talent, preserving the environment and practicing sustainable supply-chain in its operations. Below is our
commitment to each of the focus areas under the HLBCAM CSR:
Workplace
HLBCAM is committed to upholding the human rights of our employees and to treating them with dignity and
respect. In maintaining our leadership in delivering innovative solutions to market ahead of the competition, the
Bank consistently strives to create an inspiring and effective working environment. The Bank also ensures that the
health, safety, and welfare of our employees are well taken care of all the time. To honour this, we always fully
accept our responsibility for employees who may be affected by our activities.
Consistent with Hong Leong Bank’s Best Work Environment practices, we maintain a work environment free from
discrimination, one where employees are treated with dignity, honour and respect. We also comply with all
applicable international and local laws pertaining to non-discrimination and equal opportunity. This is evidenced by
the diverse ethnic and social backgrounds of members, staff and clients. All job applicants, employees, members,
and clients receive equal treatment regardless of race, religion, ethnic or national origins, sex, marital status, sexual
orientation, disability or age.
Employees are exposed to both internally and externally conducted development and technical training programs.
The Bank also provides a structured graduate training program on core banking business to nurture and develop a
competent workforce. Apart from the above, the Bank also conducts trainings and various structured programmes in
wealth management, management development, sales development and customer service which have significantly
increased the job knowledge and skills of the Bank’s workforce. As the Bank is committed to customer centricity, it
has stepped up efforts in many customer service training programs in meeting the changing and increasing
demands of the customers.
Environment
The importance of the relationships between HLBCAM’s use of technology, our customers and their markets is
reflected in our approach to the environment. HLBCAM endeavours to identify and minimise the negative
environmental impacts of our products, services, and business activities, right from the top to downstream.
Our objective is to achieve high standards in environmental management and preservation, by examining our
business and operations, and taking active steps to reduce environmental impact wherever possible. These include:
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minimise any adverse impact our activities may have on the environment
minimise the consumption of resources wherever possible
consider the environment when procuring goods and services
promote waste reduction, re-use and recovery
fully comply with legislation and wherever possible exceed legislative requirements
We are passionate about the environment and committed to reducing the carbon footprint of our growing global
business. We promote a culture of environmental awareness and engagement amongst our staff and our supply
base.
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Marketplace
For many years now, the Bank has had in place internally generated best practices to ensure the economic
sustainability of all its companies. Some of these best practices are:
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An established Financial Management Discipline intended to drive excellence in financial management with the
objective of preserving and enhancing the quality of business as an on-going concern.
An established Enterprise Risk Management structure to ensure that a systematic process and delegation of
responsibility is clearly set out to guide management.
A strict code of business conduct and ethics which the Group abides by in all types of transactions and
interactions.
Financial reports which contain disclosures that are fair, accurate, timely and understandable.
In choosing its directors, the Bank seeks individuals of high integrity, have shareholder orientation and a
genuine interest in their respective company’s businesses. They are tasked with the responsibility of exercising
their business judgment to act in what they reasonably believe to be in the best interest of the company and
the shareholders they represent.
The strict practice of responsible selling and marketing of products and services, in a global market that is
increasingly becoming even more aggressive and competitive.
HLBCAM has a firm commitment to the highest standards of business ethics and integrity throughout our company.
These standards are reflected in our associated policies and wherever these polices require a higher standard than
local practice or applicable laws, we adhere to the higher standards set.
2.6.
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Shareholders
It is an inherent and important responsibility of the Bank’s senior management team to undertake active
management of the Bank in the context of the industry to create superior value, i.e.:
Financial
strength
Consistent
earnings
growth
Value
proposition
of its assets
Consistent
payout to
shareholders
Investor
relations
strategy
In essence, it is the responsibility of the senior management team to ensure that the steps and initiatives taken in
our Affirmative Action Management (AAM) ultimately flow through to create Prime Value for the Bank. This
requires the senior management team to be alert to changes in the environment and to foresee the trends ahead
of the industry. It calls for entrepreneurial AAM to seize opportunities and be innovative in capitalizing on the
strengths of the Bank to create wealth.
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2.7.
Business Operations
2.7.1. Financial Perspective
For the year ended 31 December 2013, HLBCAM achieved a total loan portfolio of USD10.06 million and our
deposit book was at USD22.2.
2.7.2. Customer Perspective
Our target customers are established small-and-medium-sized enterprises and ASEAN corporates in the
Business Banking space coupled with customised services and product bundling. As for consumer banking, our
target segments include the High Net Worth (HNW) individuals, affluent and emerging affluent people who
are rising in numbers among the urban population.
2.7.3. Human Resources
HLBCAM recognizes that its continuing capacity to respond to new priorities and challenges depends on a
knowledgeable workforce. This makes on-going learning and development essential to ensure that we
continue to provide quality service in an ever-changing and highly competitive environment.
To support our business growth, training and development remains a strategic focus and HLBCAM is
committed to a competency-based approach towards learning in which skills and abilities of employees are
developed to meet the requirements for specific position functions.
At HLBCAM, we value the engagement of our employees at all levels. HLBCAM also recognizes that people
make the difference and the ability to attract and retain talent whilst maintaining a high-performance and
positive work culture are critical to our ability to drive continued business growth and attain high standards of
customer service and product excellence.
2.7.4. Significant Operations Plan for the Following Year
In light of our business operations expansion plan in the Cambodian market, HLBCAM is undertaking two
major projects in 2014 as follows:
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Branch network expansion: rolling out additional branches in Phnom Penh.
Digital banking: preparing for the launch of internet banking service to facilitate our customers’
transactions with the Bank, as well as to satisfy the needs of younger generation customers.
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3.
Chairman’s Message
ECONOMIC OVERVIEW
The strong economic performance over the recent years has laid a firm foundation for continued growth and future
progress in the banking industry. This has been the backdrop against Hong Leong Bank’s entry into the Kingdom of
Cambodia on 8th July 2013 when Hong Leong Bank (Cambodia) PLC (“HLBCAM”) was established and commenced
operations.
The Cambodian Gross Domestic Product (GDP) in 2013 grew by 7% as compared to the previous year reflecting a
strong economy and business environment. Retail and wholesale trading, construction and tourism were the key
drivers behind this growth. Foreign Direct Investment (FDI) picked up gradually from a low of USD 525 million in
2009 (post Global Financial Crisis) to USD 1.2 billion in 2013. FDI flows are expected to increase with the onset of the
ASEAN economic community integration in 2015. The continued development of Small and Medium-sized
Enterprises will also underpin the country’s economic expansion. HLBCAM’s business focus will be in Personal
Financial Services and Small and Medium Enterprises and Corporations.
PERFORMANCE REVIEW
In the banking industry, deposits and loans have increased by 12% and 25% respectively in 2013, reaching new
heights of USD 7.56 billion and USD 7.35 billion respectively. The outlook for 2014 is positive with a forecasted GDP
growth of 7.2% according to the IMF.
With the financial results for the first six months of operations ended 31st December 2013, the Board is confident
that HLBCAM will continue to build further momentum and sustain growth in the years to come. HLBCAM is
committed to develop a strong financial institution and to serve the communities in which it operates, while
making contributions to the financial aspirations of the Kingdom of Cambodia.
We remain optimistic in the financial year ahead albeit amidst a challenging global economic outlook.
Notwithstanding this, the Board believes that HLBCAM is well-positioned to grow and increase its market share by
continuing to provide relevant and efficient products and services.
With our philosophy of value creation and commitment to local embedment, we shall strive to provide the
Cambodian community with easy access to banking services that are progressive, relevant, bespoke and efficient.
APPRECIATION
I would like to take this opportunity to thank the Board of Directors, our customers, business partners and
shareholders for their support, trust and confidence. I would also like to thank the management and staff of
HLBCAM for their passion, dedication and commitment. My sincere appreciation also goes out to the National Bank
of Cambodia, the relevant authorities and Government Agencies for their invaluable assistance, guidance and
support.
CHOONG YEE HOW
Chairman
June 2014
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4.
CEO’s Statement
The world is now on a stronger footing, propelled by faster-than-expected growth in the US and Europe. Advanced
economies worldwide are gaining momentum and driving the pick-up in global growth amidst a changing external
environment that is posing some new challenges and also opportunities to emerging market and developing
economies.
Asian economies are showing signs of benefitting from the pick-up in growth in the developed world which will
help to offset any domestic slowdown. Most countries are now focusing more on export-driven growth. China's
increased focus on domestic demand would also create a market for the rest of the world.
Committed to Financial Stability and Development
Cambodia’s economic development has been fast paced. To keep growth sustainable and strong, one of the
government’s key priorities has been to further develop a prudential and supervisory framework in the financial
sector to ensure financial stability and development. This has been underscored as the overall objectives under the
government’s Financial Sector Development Strategy 2006-2015; and I am glad to say that Hong Leong Bank
(Cambodia) PLC (“HLBCAM”), together with other banks in the country, have been very supportive of this initiative.
HLBCAM has been in operations since 8th July 2013, with the official inauguration ceremony held on 23rd August
2013. As a new player in the market, we are fully committed to our philosophy of value creation and pledge to local
embedment. We aim to provide the Cambodian community with easy access to banking services that is
progressive, relevant, bespoke and efficient. We want our customers in Cambodia to grow with us as we continue
to expand our offerings, helping them with their financial needs.
Over the last ten months, we have focused our efforts in building our brand awareness. We have been leveraging
on Hong Leong Bank Group’s resources, experience, expertise and regional presence in Malaysia, Singapore, Hong
Kong, China and Vietnam. This, together with talented staff with sound local market knowledge will help us to
quickly build our customer base and grow customer deposits and loans.
Financial Performance
As illustrated in the financial performance section, our loan book has reached the USD 10 million mark by the end of
2013, rendering our total assets at USD 59 million. Meanwhile, our deposit book closed the year at a healthy USD 22
million.
Moving Forward
We aspire to be a strong and relevant player in the Cambodian banking industry, targeting high net worth
customers, affluent and emerging affluent individuals while concurrently building a differentiated digital offering
that will enable our customers to enjoy their lifestyle and undertake business. We will also partner with Small and
Medium-Sized Enterprises to help them grow their businesses and contribute to the Cambodian economy. To this
end, we are planning a growth strategy over the next three to four years. Our foremost priority in 2014 is to
establish a number of additional branches in strategic business locations in Phnom Penh to be more convenient to
our customers and facilitate business growth. All these reflect our long-term commitment to build our business in
Cambodia.
To conclude, I would like to thank our customers, the Management team and fellow colleagues, shareholders, the
Board of Directors, the National Bank of Cambodia, as well as Government agencies and other authorities, for their
continued support and confidence in HLBCAM.
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JOSEPH FARRUGIA
Chief Executive Officer
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5.
Media Highlights
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6.
Audited Financial Statement
DIRECTORS’ REPORT
The Board of Directors (“the Director”) hereby submits their report together with the audited financial statements of
Hong Leong Bank (Cambodia) PLC (“the Bank”) for the period covering 28 June 2013 to 31 December 2013.
THE BANK
Hong Leong Bank (Cambodia) PLC is registered with the Ministry of Commerce in Cambodia as a public limited
company under registration number Co. 0270 E/2013, dated 27 February 2013. The Bank obtained a licence to
operate as a commercial bank from the National Bank of Cambodia (the Central Bank) effective from 28 June 2013
and officially commenced its operations on 23 August 2013. The Bank’s licence is for an indefinite period. The Bank
is a subsidiary of Hong Leong Bank Berhad, incorporated in Malaysia.
PRINCIPAL ACTIVITIES
The principal activity of the Bank is the provision of commercial banking and related financial services in Cambodia.
There were no changes to the nature of the principal activity during the period.
RESULTS OF OPERATION AND DIVIDEND
The results of operations for the period covering 28 June 2013 to 31 December 2013 are set out in the income
statement on page 19.
SHARE CAPITAL
The registered share capital of the Bank is US$37,500,000.
BAD AND DOUBTFUL LOANS
Before the financial statements of the Bank were drawn up, the Directors took reasonable steps to ascertain that
action had been taken in relation to the writing off of bad loans and advances or making of provisions for doubtful
loans and advances, and satisfied themselves that all known bad loans and advances had been written off and that
adequate provisions have been made for bad and doubtful loans and advances.
At the date of this report and based on the best of knowledge, the Directors are not aware of any circumstances
which would render the amount written off for bad loans and advances or the amount of the provision for bad and
doubtful loans and advances in the financial statements of the Bank inadequate to any material extent.
ASSETS
Before the financial statements of the Bank were drawn up, the Directors took reasonable steps to ensure that any
assets which were unlikely to be realised in the ordinary course of business at their value as shown in the
accounting records of the Bank, have been written down to an amount which they might be expected to realise.
which would render the values attributed to the assets in the financial statements of the Bank misleading in any
material respect.
VALUATION METHODS
that have arisen which would render adherence to the existing method of valuation of assets and liabilities in the
financial statements of the Bank misleading or inappropriate in any material respect.
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CONTINGENT AND OTHER LIABILITIES
At the date of this report, there is:
(a) No charge on the assets of the Bank which has arisen since the end of the financial period which secures the
liabilities of any other person, and
(b) No contingent liability in respect of the Bank that has arisen since the end of the financial period other than in the
ordinary course of banking business.
No contingent or other liability of the Bank has become enforceable, or is likely to become enforceable within the
period of twelve months after the end of the financial period which, in the opinion of the Directors, will or may
have a material effect on the ability of the Bank to meet its obligations as and when they become due.
CHANGE OF CIRCUMSTANCES
At the date of this report, the Directors are not aware of any circumstances, not otherwise dealt with in this report
or the financial statements of the Bank, which would render any amount stated in the financial statements
misleading in any material respect.
ITEMS OF AN UNUSUAL NATURE
The results of the operations of the Bank for the financial period were not, in the opinion of the Directors, materially
affected by any items, transactions or events of a material and unusual nature. There has not arisen in the interval
between the end of the financial period and the date of this report any items, transactions or events of a material
and unusual nature likely, in the opinion of the Directors, to substantially affect the results of the operations of the
Bank for the period in which this report is made.
THE BOARD OF DIRECTORS
The members of the Board of Directors of the Bank during the period and as at the date of this report are:
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Mr. Choong Yee How (Chairman)
Mr. Quek Kon Sean
Mr. Tan Kong Khoon
Mr. Matthew Rendall
Mr. Teh Sing
RESPONSIBILITIES OF THE DIRECTORS IN RESPECT OF THE FINANCIAL STATEMENTS
The Directors are responsible to ensure that the financial statements are properly drawn up so as to present fairly,
in all material respects, the financial position of the Bank as at 31 December 2013 and of its financial performance
and cash flows for the period then ended. In preparing these financial statements, the Directors are required to:
i) adopt appropriate accounting policies which are supported by reasonable and prudent judgements and
estimates and then apply them consistently;
ii) comply with the disclosure requirements and guidelines issued by the National Bank of Cambodia and
Cambodian Accounting Standards or, if there have been any departures in the interests of fair presentation,
these have been appropriately disclosed, explained and quantified in the financial statements;
iii) maintain adequate accounting records and an effective system of internal controls;
iv) prepare the financial statements on a going concern basis unless it is inappropriate to assume that the Bank will
continue operations in the foreseeable future; and
v) effectively control and direct the Bank in all material decisions affecting the operations and performance and
ascertain that such have been properly reflected in the financial statements.
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The Directors confirm that the Bank has complied with the above requirements in preparing the financial
statements.
APPROVAL OF THE FINANCIAL STATEMENTS
The accompanying financial statements, which present fairly, in all material respect, the financial position of the
Bank as at 31 December 2013, and of its financial performance and its cash flows for the period then ended in
accordance with the guidelines issued by the National Bank of Cambodia and Cambodian Accounting Standards,
were approved by the Board of Directors.
Signed in accordance with a resolution of the Board of Directors.
__________________
______________________
Mr. Choong Yee How
Mr. Tan Kong Khoon
Chairman
Director
Phnom Penh, Kingdom of Cambodia
Date: 31 March 2014
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Independent auditor’s report
To the Shareholder of Hong Leong Bank (Cambodia) PLC
We have audited the accompanying financial statements of Hong Leong Bank (Cambodia) PLC (“the Bank”) which
comprise the balance sheet as at 31 December 2013 and the income statement, the statement of changes in equity
and the statement of cash flows for the period then ended, and notes, comprising a summary of significant
accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with the guidelines of the National Bank of Cambodia and Cambodian Accounting Standards, and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Cambodian International Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, of the financial position of the Bank
as of 31 December 2013, and of its financial performance and its cash flows for the period then ended in accordance
with the guidelines issued by the National Bank of Cambodia and Cambodian Accounting Standards.
For PricewaterhouseCoopers (Cambodia) Ltd.
By Kuy Lim
Partner
Phnom Penh, Kingdom of Cambodia
Date: 31 March 2014
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BALANCE SHEET
AS AT 31 DECEMBER 2013
2013
Note
US$
KHR'000
ASSETS
Cash on hand
4
637,794
2,547,987
Balances with the Central Bank
5
20,181,248
80,624,086
Balances with the other banks
6
23,690,237
94,642,497
Loans and advances to customers
7
10,062,232
40,198,618
Other assets
8
396,224
1,582,915
Property and equipment
9
1,733,288
6,924,486
Intangible assets
10
2,425,813
9,691,123
59,126,836
236,211,712
LIABILITIES
Deposits from customers
11
22,299,487
89,086,451
Other liabilities
12
804,384
3,213,515
Provision for income tax
17
1,365
5,453
23,105,236
92,305,419
37,500,000
149,812,500
(1,478,400)
(5,906,207)
36,021,600
143,906,293
59,126,836
236,211,712
EQUITIES
Share capital
Retained earnings
13
19
INCOME STATEMENT
FOR THE PERIOD COVERING 28 JUNE 2013 TO 31 DECEMBER 2013
2013
Note
US$
KHR'000
Interest income
14
326,019
1,302,447
Interest expense
14
(46,277)
(184,876)
279,742
1,117,571
(101,639)
(406,048)
Net interest income after provision for loan losses
178,103
711,523
Fee and commission income
95,858
382,953
Fee and commission expense
(13,874)
(55,427)
81,984
327,526
2,901
11,588
Net interest income
Provision for loan losses
7
Net fee and commission income
Other income
Personnel expenses
15
(679,259)
(2,713,640)
General and administrative expenses
16
(597,667)
(2,387,679)
Depreciation charge
9
(190,708)
(761,878)
Amortisation charge
10
(269,521)
(1,076,736)
(1,734,254)
(6,928,345)
(1,474,167)
(5,889,296)
(4,233)
(16,911)
(1,478,400)
(5,906,207)
Loss before income tax
Income tax expense
Loss for the period
17
20
STATEMENT OF CHANGES IN EQUITY
Share Capital Retained Earnings
Total
US$
US$
US$
-
-
-
37,500,000
-
37,500,000
-
(1,478,400)
(1,478,400)
As at 31 December 2013
37,500,000
(1,478,400)
36,021,600
In KHR'000 equivalent
149,812,500
(5,906,207)
(143,906,293)
For the period covering 28 June 2013 to 31 December 2013
As at 28 June 2013
Paid-up capital
Loss for the period
21
STATEMENT OF CASH FLOWS
2013
Note
US$
KHR'000
6,295,658
25,151,154
Capital guarantee with the Central Bank
(3,750,000)
(14,981,250)
Reserve requirement with the Central Bank
(3,588,633)
(14,336,589)
Purchases of property and equipment
(1,916,187)
(7,655,167)
Purchases of intangible assets
(2,370,192)
(9,468,917)
(11,625,012)
(46,441,923)
Paid-up capital
37,500,000
149,812,500
Net cash generated from financing activities
37,500,000
149,812,500
Net increase in cash and cash equivalents
32,170,646
128,521,731
-
-
32,170,646
128,521,731
Cash flows from operating activities
Net cash generated from operating activities
19
Cash flows from investing activities
Net cash used in investing activities
Cash flows from financing activities
Cash and cash equivalent at the beginning of the period
Cash and cash equivalent at the end of the period
18
22
NOTES TO THE FINANCIAL STATEMENTS
1.
BACKGROUND INFORMATION
Hong Leong Bank (Cambodia) PLC is registered in Cambodia with the Ministry of Commerce as public limited company
under the registration number Co. 0270 E/2013, dated 27 February 2013. The Bank obtained a license from the
National Bank of Cambodia (“the Central Bank”) to operate as a commercial bank with effect from 28 June 2013 and
officially commenced its operations on 23 August 2013. The Bank’s license is for an indefinite period. There was no
operations from the period covering 18 February 2013 to 28 June 2013. The Bank is a subsidiary of Hong Leong Bank
Berhad, incorporated in Malaysia.
The principal activities of the Bank are the provision of commercial banking and related financial services in
Cambodia.
The registered office of the Bank is currently located at No. 28, Samdech Pan Avenue (St. 214), Sangkat Boeung
Raing, Khan Daun Penh, Phnom Penh, Cambodia.
As at 31 December 2013, the Bank has 40 employees.
The financial statements were authorised for issue by the Board of Directors on 31 March 2014.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of these financial statements are set out below.
2 .1 Basis of preparation
The financial statements of the Bank has been prepared using historical cost convention except other disclosed and
in accordance with the guidelines issued by the Central Bank and Cambodian Accounting Standards (CAS). In
applying CAS, the Bank also applies the Cambodian Financial Reporting Standard (CFRS) CFRS 7: Financial
Instruments: Disclosures. The accounting principles applied may differ from generally accepted accounting principles
adopted in other countries and jurisdictions. The accompanying financial statements are therefore not intended to
present the financial position and results of operations and cash flows in accordance with jurisdictions other than
Cambodia. Consequently, these financial statements are addressed to only those who are informed about Cambodia
accounting principles, procedures and practices.
This is the first set of the financial statements covering from 28 June 2013 to 31 December 2013.
The preparation of financial statements in accordance with CAS requires the use of estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
financial statements and the reported amounts of revenues and expenses during the reporting period. Although
these estimates are based on management’s best knowledge of current event and actions, actual results ultimately
may differ from those estimates. The areas involving a higher degree of judgment or complexity, or areas where
assumptions and estimates are significant to the financial statements are disclosed in Note 3 to the financial
statements.
For the sole regulatory purpose of complying with the Prakas No. B7-07-164 dated 13 December 2007 of the Central
Bank, a translation to Khmer Riel is provided for the balance sheet, the income statement, the statement of
changes in equity, the cash flow statement and the notes to the financial statements as of and for the period ended
31 December 2013 using the official rate of exchange regulated by the Central Bank as at the reporting date, which
was United States dollars (US$) 1 to Khmer Riel (KHR) 3,995. Such translation amounts are unaudited and should not
be construed as representations that the US$ amounts represent, or have been or could be, converted into Khmer
Riel at that or any other rate.
2 . 2 Financial reporting framework
On 28 August 2009, the National Accounting Council of the Ministry of Economy and Finance announced the
adoption of Cambodian International Financial Reporting Standards (CIFRS) which are based on all standards
published by International Accounting Standard Board including other interpretation and amendment that may
23
occur in any circumstances to each standard by adding “Cambodian”. Public accountable entities shall prepare their
financial statements in accordance with CIFRS for accounting period beginning on or after 1 January 2012.
The National Accounting Council of the Ministry of Economy and Finance through Circular No. 086 MoEF.NAC dated
30 July 2012 approves banks and financial institutions to delay adoption of CIFRS until the periods beginning on or
after 1 January 2016.
The first financial statement of the Bank which will be prepared under CIFRS is the year ending 31 December 2016.
CAS, the current accounting standard used, is different to CIFRS in many areas. Hence, the adoption of CIFRS will
have significant impact on the financial statements of the Bank.
2 . 3 Foreign currency translation
i) Functional and presentation currency
Items included in the financial statements of the Bank are measured using the currency of the primary economic
environment in which the Bank operates (the functional currency). The financial statements are presented in US$,
which is the Bank’s functional and presentation currency.
ii) Transactions and balances
Transactions in currencies other than US$ are translated into US$ at the exchange rates prevailing at the dates of
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at the period-end exchange rates from monetary assets and liabilities denominated in currencies other
than US$, are recognised in the income statement.
2 .4 Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise balances with original maturity of
three months or less from the date of acquisition, including cash on hand, non-restricted balances with the Central
Bank, and balances with other banks.
2 .5 Loans and advances to customers
All loans and advances to customers are stated in the balance sheet as the amount of principal, less any amounts
written off and the provision for loan losses.
Loans are written off when there is no realistic prospect of recovery. Recoveries of loans and advances previously
written off or provided for decrease the amount of the provision for losses on loans and advances in the income
statement.
2 .6 Provision for loan losses
The Bank follows the mandatory loan classification and provisioning as required by the Central Bank’s Prakas No.
B7-09-074, dated on 25 February 2009, on assets classification and provisioning for banks and financial institutions.
It applies for loans and advances or other assets with similar nature. The minimum mandatory loan loss provision is
made depending on the classification concerned, regardless of the assets (except cash) pledged as collateral, unless
other information is available to indicate worsening.
The table below shows loan classifications and minimum provisioning requirements:
Rate of provision
General provision:
Normal
1%
Specific provision:
Special mention
Substandard
Doubtful
3%
20%
50%
Loss
100%
Both past due and qualitative factors shall be taken into account for loan classification and provisioning.
24
2 .7 Other credit related commitments
In the normal course of business, the Bank enters into other credit related commitments including loan
commitments, letters of credit and guarantee. The accounting policy and provision methodology are similar to
those for originated loans as noted above. Specific provisions are raised against other credit related commitments
when losses are considered probable.
2 .8 Property and equipment
Property and equipment is stated at cost less accumulated depreciation and impairment loss. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that the future economic benefits associated with the item will flow to the Bank and cost of the
item can be measured reliably. All other repairs and maintenance are charged to income statement during the
financial period in which they are incurred.
Depreciation of property and equipment is charged to the income statement on a straight-line basis over the
estimated useful lives of the individual assets as follows:
Leasehold improvement
Office equipment
Computer equipment
5 years
5 years
3 - 5 years
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds within the carrying amount and are
recognised in the income statement.
2 .9 Intangible assets
Intangible assets, which comprise acquired computer software licenses and related costs, are stated at cost less
accumulated amortisation and impairment loss. Acquired computer software licenses are capitalised on the basis of
the cost incurred to acquire the specific software and bring it to use. These costs are amortised over five years
using the straight-line method.
Costs associated with maintaining intangible assets are recognised as an expense when incurred.
2 . 10 Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment.
Assets that are subject to amortisation or depreciation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. Impairment loss is recognised for the
amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use.
Any impairment loss is charged to income statement in the period in which it arises. Reversal of impairment loss is
recognised in the income statement to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation and amortisation, had no impairment loss been
recognised.
2 .11 Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lesser are classified
as operating leases. Payments made under operating leases are charged to the income statement on a straight-line
basis over the period of the lease.
25
2 .12 Deferred and current income tax
The current income tax charge is calculated on the basis of the tax law enacted or substantively enacted at the
reporting date in country where the Bank operates and generates taxable income.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured at the tax rates expected to be applied to temporary differences when they
reverse, based on laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets
and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they
relate to income taxes levied by the same tax authority on the same taxable entity.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
2 .13 Interest income and expense
Interest on loans and advances to customers, balances with the Central Bank and balances with other banks are
recognised on an accruals basis, except where serious doubt exists as to the collectability, in which case, no interest
income is recognised. The policy on the suspension of interest is in conformity with the Central Bank’s guidelines on
the suspension of interest on non-performing loans and provision for loan losses.
Interest expense on deposits from customers is recognised on an accruals basis.
2 .14 Fee and commission income
Fee and commission income is recognised on an accruals basis when the service has been provided. Fee and
commission income comprise income received from inward and outward bank transfers, bank guarantees, letters of
credit, and others. Loan processing fees are recognised as income when loan is disbursed.
2 .15 Provision
Provisions are recognised when the Bank has a present legal or constructive obligation as a result of past events; it
is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably
estimated.
When there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
2 .16 Related-parties
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or
exercise significant influence over the other party in making financial and operating decisions, or where the
Company and the other party are subject to common control or significant influence. Related parties may be
individuals or corporate entities and include close family members of any individual considered to be a related
party.
In accordance with the Law on Banking and Financial Institutions, related parties are defined as parties who hold,
directly or indirectly, at least 10% of the capital of the Bank or voting rights and include any individual who
participates in the administration, direction, management or internal control of the Bank.
26
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Bank makes estimates and assumptions that affect the reported amounts of assets and liabilities. Estimates and
judgements are continually evaluated and based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances.
a) Impairment losses on loans and advances
The Bank follows the mandatory assets classification and provisioning as required by Prakas No. B7-09-074 dated 25
February 2009 on asset classification and provisioning in the banking and financial institutions issued by the Central
Bank. The Central Bank requires commercial banks to classify their loans, advances and similar assets into five
classes and the minimum mandatory level of provisioning is provided, depending on the classification concerned
and regardless of the assets pledged as collateral. For the purpose of loan classification, the Bank takes into account
all relevant factors which may affect the counterparties’ repayment abilities.
b) Taxes
Taxes are calculated on the basis of current interpretation of the tax regulations. However, these regulations are
subject to periodic variation and the ultimate determination of tax expenses will be made following inspection by
the General Department of Taxation.
Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences
will have an impact on the income tax and deferred tax provisions in the period in which such determination is made.
4.
CASH ON HAND
2013
US$
KHR'000
625,914
2,500,526
11,880
47,461
637,794
2,547,987
Cash on hand:
US Dollar
Khmer Riel
5.
BALANCES WITH THE CENTRAL BANK
2013
US$
KHR'000
Current accounts
12,842,615
51,306,247
Capital guarantee (i)
3,750,000
14,981,250
Reserve requirement (ii)
3,588,633
14,336,589
20,181,248
80,624,086
i)
Capital guarantee
Under the Central Bank’s Prakas No. B7-01-136 on Capital Guarantee dated 15 October 2001, banks are required to
maintain a statutory deposit of 10% of paid-up capital. This deposit is refundable should the Bank voluntarily cease its
operations in Cambodia and it is not available for use in the Bank’s day-to-day operations.
27
ii) Reserve requirement
The reserve requirement represents the minimum reserve which is calculated at 8% and 12.50% of customers’
deposits in Khmer Riel (KHR) and other currencies respectively. The 4.5% reserve requirement on customers’ deposits
in currencies other than KHR earns interest while the remaining 8% of the reserve requirement on customers’
deposits in other currencies and KHR bears no interest.
iii) Interest rates
The current accounts are non-interest bearing. Annual interest rates on other balances with the Central Bank are
summarised as follows:
2013
Capital guarantee
Reserve requirement
6.
0.11%
0.00% - 0.10%
BALANCES WITH OTHER BANKS
2013
US$
KHR'000
21,000,000
83,895,000
709,576
2,834,756
21,709,576
86,729,756
1,980,661
7,912,741
1,980,661
7,912,741
23,690,237
94,642,497
Balances with local banks:
Fixed deposits
Current accounts
Balances with overseas banks:
Current accounts
By interest rate
2013
Balances with local banks:
Fixed deposits
Current accounts
1.00% - 3.75%
Nil
Balances with overseas banks:
Current accounts
Nil
28
7.
LOANS AND ADVANCES TO CUSTOMERS
2013
US$
KHR'000
Business and commercial loans
3,970,404
15,861,764
Residential home loans
2,225,320
8,890,153
Home investment loans
1,034,300
4,132,029
Home equity loans
650,096
2,597,134
Invoice financing
662,679
2,647,403
1,621,072
6,476,183
10,163,871
40,604,666
(101,639)
(406,048)
10,062,232
40,198,618
Overdrafts
General
a) Provision for loan losses
Movements of provision for loan losses are as follows:
2013
US$
KHR'000
-
-
Provision for the period – General provision
101,639
406,048
End of the period
101,639
406,048
At beginning of the period
b) By classification
2013
US$
KHR'000
10,163,871
40,604,666
-
-
10,163,871
40,604,666
Normal loans
Secured
Unsecured
29
c) By industry
2013
US$
KHR'000
Wholesale trade
3,254,250
13,000,729
Mortgages
2,225,320
8,890,153
Personnel lending
1,684,396
6,729,162
Manufacturing
1,561,146
6,236,778
Retail trade
969,519
3,873,228
Others
469,240
1,874,616
10,163,871
40,604,666
d) By exposure
2013
Non-large exposure
Large exposure
US$
KHR'000
10,163,871
40,604,666
-
-
10,163,871
40,604,666
Large exposure is defined as overall credit exposure to any single beneficiary that exceeds 10% of the net worth. The
exposure is higher of the outstanding loans or commitments and the authorised loans or commitments.
e) By Relationship
2013
Non-related parties
Related parties
US$
KHR'000
10,163,871
40,604,666
-
-
10,163,871
40,604,666
30
f) By maturity
2013
US$
Not later than 1 year
Later than 1 year and no later than 5 years
Later than 5 years
KHR'000
2,860,757
2,868,393
4,434,721
11,428,724
11,459,230
17,716,712
10,163,871
40,604,666
g) Interest rate
2013
Business and commercial loans
Residential home loans
Home investment loans
Home equity loans
Invoice financing
Overdrafts
8.
7.25% - 10.00%
6.99%
6.99%
6.99%
7.50% - 8.00%
7.00% - 9.25%
OTHER ASSETS
2013
US$
KHR'000
Accrued interest receivables
169,916
678,814
Prepayments
146,123
583,761
80,185
320,340
396,224
1,582,915
Others
31
9.
PROPERTY AND EQUIPMENT
Computer
Leasehold
Office
equipment
improvements
equipment
Total
US$
US$
US$
US$
-
-
-
-
Additions
898,636
828,119
197,241
1,923,996
898,636
828,119
197,241
1,923,996
-
-
-
-
Charge for the period
94,939
76,208
19,561
190,708
94,939
76,208
19,561
190,708
803,697
751,911
177,680
1,733,288
3,210,770
3,003,884
709,832
6,924,486
Cost
As at 28 June 2013
Less: Accumulated depreciation
As at 28 June 2013
Net book value as at 31 December 2013
32
10.
INTANGIBLE ASSETS
Computer
software
US$
Cost
As at 28 June 2013
-
Additions
2,695,334
2,695,334
Less: Accumulated amortisation
As at 28 June 2013
-
Charge for the period
269,521
269,521
Net book value as at 31 December 2013
2,425,813
9,691,123
11.
DEPOSITS FROM CUSTOMERS
2013
Current accounts
Fixed deposits
Savings deposits
US$
KHR'000
14,505,665
57,950,132
7,767,053
31,029,377
26,769
106,942
22,299,487
89,086,451
Deposits from customers are expected to be settled within not more than 12 months after the date of the balance sheet.
33
a) By relationship
2013
Non-related parties
Related parties
US$
KHR'000
22,232,994
88,820,811
66,493
265,640
22,299,487
89,086,451
b) By interest rate
2013
Current accounts
0.00% - 1.50%
Fixed deposits
1.75% - 3.75%
Savings deposits
12.
0.00% - 0.75%
OTHER LIABILITIES
2013
US$
KHR'000
239,863
958,253
Accrued interest payable
20,032
80,028
Accrued bonuses
93,674
374,228
351,602
1,404,650
99,213
396,356
804,384
3,213,515
Amounts due to related parties (Note 21 (c))
Accrued tax payables
Others
34
13.
SHARE CAPITAL
As at 31 December 2013, the authorised share capital comprised 37.5 million shares at par value of US$1 each. All
issued shares are fully paid by Hong Leong Bank Berhad, a bank incorporated under the laws of Malaysia.
14.
NET INTEREST INCOME
2013
US$
KHR'000
136,034
543,456
2,847
11,374
184,268
736,151
2,870
11,466
326,019
1,302,447
Fixed deposits
24,808
99,108
Current accounts
21,361
85,337
Savings accounts
108
431
46,277
184,876
279,742
1,117,571
Interest income:
Balances with other banks:
-
Local banks
-
Overseas banks
Interest expense:
Net interest income
15.
PERSONNEL EXPENSES
2013
US$
KHR'000
Salaries
574,435
2,294,868
Bonuses
93,674
374,228
Other benefits
11,150
44,544
679,259
2,713,640
35
16.
GENERAL AND ADMINISTRATIVE EXPENSES
2013
US$
KHR'000
165,088
659,527
Marketing expenses
93,317
372,801
Repair and maintenance
68,970
275,535
Travelling expenses
43,346
173,167
License fees
38,057
152,038
Legal and professional fees
32,973
131,727
Utilities
14,526
58,031
Security expenses
13,180
52,654
Office supplies
9,359
37,389
Communication expenses
5,890
23,531
112,961
451,279
597,667
2,387,679
Rental expenses
Others
17. INCOME TAX EXPENSE
a) Provision for income tax
2013
At the beginning of the period
Income tax expense
Income tax paid
At the end of the period
US$
KHR'000
-
-
4,233
16,911
(2,868)
(11,458)
1,365
5,453
b) Income tax expense
2013
Current income tax
36
US$
KHR'000
4,233
16,911
c) Reconciliation between income tax expense and accounting loss
2013
US$
KHR'000
(1,474,167)
(5,889,296)
(294,833)
(1,177,859)
78,871
315,090
Temporary differences
(130,312)
(520,595)
Tax on Profit at 20%
(346,274)
(1,383,364)
4,233
16,911
Accounting loss before tax
Tax on Profit calculated at 20%
Expenses not deductible for tax purpose
Minimum tax
In accordance with Law on Taxation, the Bank has an obligation to pay corporate income tax on the higher of either the
tax on profit at the rate of 20% of taxable profit or 1% minimum tax.
No deferred income tax asset was recognised for the tax losses of the Bank.
d) Other tax matter
The Bank’s tax returns are subject to periodic examination by the General Department of Taxation (GDT). Some areas of
tax laws and regulations may be open to different interpretation; therefore tax amounts reported in the financial
statements could be changed at a later date, upon final determined by the GDT.
37
18.
CASH AND CASH EQUIVALENTS
2013
Cash on hand
US$
KHR'000
637,794
2,547,987
12,842,615
51,306,247
2,690,237
10,747,497
16,000,000
63,920,000
32,170,646
128,521,731
Balances with the Central Bank:
Current accounts
Balances with other banks:
Current accounts
Fixed deposits with maturity three months or less
38
19.
CASH FLOWS FROM OPERATING ACTIVITIES
2013
Note
US$
KHR'000
(1,474,167)
(5,889,296)
Cash flows from operating activities
Loss before income tax
Adjustments for:
Depreciation charge
9
190,708
761,878
Amortisation charge
10
269,521
1,076,736
7
101,639
406,048
Net interest income
14
(279,742)
(1,117,571)
(1,192,041)
(4,762,205)
(10,163,871)
(40,604,666)
(5,000,000)
(19,975,000)
(226,308)
(904,100)
22,299,487
89,086,451
451,402
1,803,351
6,168,669
24,643,831
156,103
623,631
(26,246)
(104,850)
(2,868)
(11,458)
6,295,658
25,151,154
Change in working capitals
Balances with other banks
Other assets
Other liabilities
Net cash generated in operations
Interest received
Interest paid
Income tax paid
Net cash generated from operating activities
7
39
20. COMMITMENTS AND CONTINGENCIES
a) Loan commitment and guarantee
The Bank had the contractual amounts of the Bank’s off balance sheet financial instruments that commit it to extend
credit to customers, guarantee and other facilities as follows:
2013
US$
KHR'000
Term loan commitments
3,042,768
12,155,858
Unused portion of overdrafts
1,128,928
4,510,067
Credit related commitments
1,050,000
4,194,750
400,000
1,598,000
5,621,696
22,458,675
Bank guarantees
No material losses are anticipated as a result of these transactions.
b) Operating lease commitments
The Bank has operating lease commitments in respect of its offices with third party as follows:
2013
US$
KHR'000
No later than 1 year
128,400
512,958
Later than 1 year and no later than 5 years
426,850
1,705,266
555,250
2,218,224
40
21. RELATED-PARTY DISCLOSURES
The Bank is wholly owned by Hong Leong Bank Berhad, incorporated in Malaysia. The ultimate parent of the Bank is
Hong Leong Financial Group Berhad, incorporated in Malaysia.
A number of transactions were entered into with related parties in the normal course of business. The related-party
transactions, outstanding balances at the period-end, and related expenses and income for the period are
summarised as follows:
a) Balances with other banks
2013
Immediate parent
US$
KHR'000
3,377
13,492
b) Deposits from related parties
2013
US$
Key management personnel
As at 28 June
Deposits during the period
Withdrawals during the period
As at 31 December
Interest expense on deposits
KHR'000
402,719
(336,226)
1,608,862
(1,343,223)
66,493
265,639
89
356
c) Amount due to related parties
2013
Immediate parent
US$
KHR'000
239,863
958,253
d) Key management compensation
2013
Salaries and other benefits
US$
KHR'000
342,833
1,369,618
41
22. FINANCIAL RISK MANAGEMENT
The Bank’s activities expose it to a variety of financial risks: credit risk, market risk (including currency risk, interest
rate risk and price risk), and liquidity risk. Taking risk is core to the financial business, and the operational risks are an
inevitable consequence of being in business.
The Bank does not use derivative financial instruments such as foreign exchange contract and interest rate swaps to
manage its risk exposures.
The Bank holds the following financial assets and liabilities:
2013
US$
KHR'000
Financial assets
Cash on hand
Loans and advances to customers*
Other assets
Total financial assets
637,794
16,431,248
23,690,237
10,163,871
234,934
51,158,084
2,547,987
65,642,836
94,642,497
40,604,666
938,561
204,376,547
Financial liabilities
Other liabilities
Total financial liabilities
22,299,487
439,612
22,739,099
89,086,451
1,756,250
90,842,701
Net financial assets
28,418,985
113,533,846
(*) exclude provision for loan losses
22.1 Credit risk
The Bank takes on exposure to credit risk, which is the risk that counterparty will cause a financial loss to the Bank by
failing to discharge an obligation. Credit risk is the most important risk for the Bank’s business. Credit exposures arise
principally in lending activities that lead to loans and advances. There is also credit risk in off-balance sheet financial
instruments, such as credit commitments.
a) Credit risk measurement
The Bank has established the Core Credit Risk Policy which is designed to govern the Bank’s risk undertaking
activities. Extension of credit is governed by credit programs which set out the plan for a particular product or
portfolio, including the target market, terms and conditions, documentation and procedures under which a credit
product will be offered and measured.
The Bank also ensures that there is a clear segregation of duties between loan originators, evaluators and approving
authorities.
b) Risk limit control and mitigation policies
The Bank operates and provides loans and advances to individuals or enterprises within the Kingdom of Cambodia.
The Bank manages limits and controls concentration of credit risk whenever they are identified. Large exposure is
defined by the Central Bank as overall credit exposure to any individual beneficiary which exceeds 10% of the Bank’s
net worth.
The Bank is required, under the conditions of Prakas No. B7-06-226 of the Central Bank, to maintain at all times a
maximum ratio of 20% between the Bank’s overall credit exposure to any beneficiary and the Bank’s net worth. The
aggregation of large credit exposure must not exceed 300% of the Bank’s net worth.
42
The Bank employs a range of policies and practices to mitigate credit risk. The most traditional of these is the taking
of security in the form of collateral for loans and advances to customers, which is common practice. The Bank
implements guidelines on the acceptability of specific classes of collateral or credit risk mitigation. The principal
collateral types to secure for loans and advances to customers are:
 Mortgages over residential properties (land, buildings and other properties); and
 Charges over business assets such as land and buildings.
c)
Impairment and provisioning policies
The Bank is required to follow the mandatory credit classification and provisioning in accordance with the relevant
Prakas, as stated in Note 2.6.
Loans and advances less than 90 days past due are not considered impaired, unless other information available
indicates otherwise.
d) Maximum exposure to credit risk before collateral held or other credit enhancements
2013
US$
Credit risks exposure relating to on-balance sheet assets:
Other assets
Credit risks exposure relating to off-balance sheet assets:
Term loan commitments
Bank guarantees
As at 31 December
KHR'000
23,690,237
10,163,871
234,934
34,089,042
94,642,497
40,604,666
938,561
136,185,724
3,042,768
1,128,928
1,050,000
400,000
5,621,696
12,155,858
4,510,067
4,194,750
1,598,000
22,458,675
39,710,738
158,644,399
The above table represents a worst case scenario of credit risk exposure to the Bank at 31 December 2013, without
taking account of any collateral held or other credit enhancement attached. For on-balance sheet assets, the
exposures set out above are based on net carrying amounts excluding general and specific provision.
As shown above, 25,59% of total maximum exposure is derived from loans and advances to customers.
Management is confident in its ability to continue to control and sustain minimal exposure of credit risk to the Bank
resulting from its loan and advance on the followings:
 100% of the loans and advances to customers of the Bank is collaterised. Loans and advances granted by the
Bank are at approximately 12% to 70% of the collateral value.
 The Bank has a credit evaluation process in place for granting of loans and advances to customers.
43
e) Loans and advances
As at the balance sheet date, exposures of the Bank to credit risk arising from loans and advances to customers
(without taking into account of any collateral held or other credit enhancements and provision for loan losses) are as
follows:
2013
US$
KHR'000
Loans and advances to customers:
Neither past due nor impaired
Past due but not impaired
Individually impaired
Gross loans and advances to customers
10,163,871
10,163,871
40,604,666
40,604,666
(101,639)
(406,048)
10,062,232
40,198,618
Less: Provision for loan losses
Net loans and advances to customers
i)
Loan and advances neither past due nor impaired
Loans and advances not past due is not considered impaired, unless other information is available to indicate the
contrary.
ii) Loans and advances past due but not impaired
Loans and advances less than 90 days past due are not considered impaired unless other information is available to
indicate the contrary.
There is no loan and advance that are past due but not impaired as at 31 December 2013.
iii) Loans and advances past due and individually impaired
In accordance with Prakas No. B7-09-074 dated 25 February 2009 on the classification and provisioning for loan
losses, loans and advances past due more than 90 days are considered impaired and a minimum level of specific
provision for impairment is made depending on the classification concerned, unless other information is available to
indicate the contrary.
There is no loan and advance that is individually impaired as at 31 December 2013.
iv) Loans and advances renegotiated
Restructuring activities include extended payment arrangements, modification and deferral of payments. Following
restructuring, the loan is still kept in its current classification unless there is strong evidence of improvement in the
customer’s financial condition.
There is no renegotiated loan and advance at 31 December 2013.
f) Repossessed collateral
Repossessed properties have to be sold within one year as required by the Central Bank. Repossessed property is
classified in the balance sheet as foreclosed properties if any.
During the period, the Bank did not obtain assets by taking possession of collateral held as security.
44
g) Concentration of financial assets with credit risk exposure
i. Geographical sector
The following table breaks down the Bank’s main credit exposure at their carrying amount, as categorised by
geographical region as at 31 December 2013. For this table, the Bank has allocated exposure to countries based on
the country of domicile of its counterparties.
Cambodia
USA
Germany
Thailand
Others
Total
US$
US$
US$
US$
US$
US$
21,709,576
1,921,641
35,594
9,374
14,052
23,690,237
10,163,871
-
-
-
-
10,163,871
234,934
-
-
-
-
234,934
32,108,381
1,921,641
35,594
9,374
14,052
34,089,042
In KHR'000 equivalents
128,272,982
7,676,956
142,198
37,449
56,139
136,185,724
Loans and advances to
customers*
Other assets
ii. Industry sector
The following table breaks down the Bank’s main credit exposure at their carrying amounts, as categorised by the
industry sectors of our counterparties.
Financial Wholesale
Personnel Manufacinstitutions
trade Mortgages
lending
turing
US$
US$
US$
US$
US$
Balances with other
banks
customers*
Other assets
-
Others
US$
Total
US$
-
-
-
23,690,237
23,690,237
-
129,461
3,254,250
14,293
2,225,320 1,684,396 1,561,146
7,332
8,158
3,330
969,519
4,980
469,240
67,380
10,163,871
234,934
23,819,698
3,268,543
2,232,652 1,692,554 1,564,476
974,499
536,620
34,089,042
In KHR'000 equivalents
95,159,694 13,057,829
-
Retail
trade
US$
8,919,445 6,761,753 6,250,082 3,893,124 2,143,797 136,185,724
45
22.2 Market risk
The Bank takes on exposure to market risk, which is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risk arises from open positions in interest
rates, currency and equity products, all of which are exposed to general and specific market movements and changes
in the level of volatility of market rates or prices such as interest rates, credit spreads, foreign exchange rates and
equity prices.
As of 31 December 2013, the Bank did not have financial instruments carried at fair value. The Bank does not use
derivative financial instruments such as foreign exchange contract and interest rate swaps to hold its risk exposures.
a) Foreign exchange risk
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated
in a currency that is not the Bank’s functional currency.
The Bank mainly transacts in US$, which is the Bank’s functional currency and the Bank does not have significant
exposure to foreign exchange risk.
The table below summarises the Bank’s exposure to foreign currency exchange rate risk at 31 December 2013.
Included in the table are the Bank’s financial instruments at carrying amount by currency in US$ equivalent.
US$
KHR
EUR
THB
AUD
Others
Total
Cash on hand
Other assets
625,914
16,429,961
23,631,217
10,163,871
234,934
11,880
1,287
-
35,594
-
9,374
-
5162
-
8,890
-
637,794
16,431,248
23,690,237
10,163,871
234,934
51,085,897
13,167
35,594
9,374
5,162
8,890
51,158,084
Other liabilities
22,299,487
439,612
-
-
-
-
-
22,299,487
439,612
22,739,099
-
-
-
-
-
22,739,099
Net on-balance sheet position
28,346,798
13,167
35,594
9,374
5,162
8,890
28,418,985
113,245,458
52,602
142,198
37,449
20,622
35,517
113,533,846
5,621,696
-
-
-
-
-
5,621,696
22,458,675
-
-
-
-
-
22,458,675
Credit commitments
b) Price risk
The Bank is not exposed to securities price risk because it does not hold any investment held and classified on the
balance sheet either as available for sale or at fair value through profit or loss.
46
c) Interest rate risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will
fluctuate because of changes in the market interest rates. Interest margins may increase as a result of changes but
may reduce losses in the event that unexpected movements arise. The management at this stage does not have a
policy to set limits on the level of mismatch of interest rate repricing that may be undertaken, however, the
management regularly monitors the mismatch.
The table below summarises the Bank’s exposure to interest rate risks. It includes the Bank’s financial instruments at
carrying amounts, categorised by the earlier of contractual repricing or maturity dates.
1 to 3
months
US$
3 to 12
months
US$
1 to 5
years
US$
Over 5
years
US$
Noninterest
bearing
US$
Total
US$
14,134,523
17,690,237 6,000,000
-
-
-
637,794
2,296,725
-
637,794
16,431,248
23,690,237
151,223
-
451,914 2,257,620
-
2,868,393
-
4,434,721
-
234,934
10,163,871
234,934
31,975,983
6,451,914 2,257,620
2,868,393
4,434,721
3,169,453
51,158,084
Other liabilities
5,782,423
-
2,191,193 1,531,000
-
-
-
12,794,871
439,612
22,299,487
439,612
5,782,423
2,191,193 1,531,000
-
-
13,234,483
22,739,099
4,434,721 (10,065,030)
28,418,985
Up to 1
month
US$
Cash on hand
customers*
Other assets
Total interest rate repricing gap
26,193,560
4,260,721
726,620
2,868,393
104,643,271 17,021,581 2,902,848 11,459,230
17,716,712 (40,209,796) 113,533,846
22.3 Liquidity risk
Liquidity risk is the risk that the Bank is unable to meet its payment obligation associated with its financial liabilities
when they fall due and to replace funds when they are withdrawn. The consequent may be the failure to meet
obligations to repay depositors and fulfil commitments to lend.
a) Liquidity risk management process
The management monitors balance sheet liquidity and manages the concentration and profile of debt maturities.
Monitoring and reporting taking the form of daily cash position and project for the next day, week and month
respectively, as these are key periods for liquidity management. The management monitors movements of main
depositors and projection of their withdrawals.
b) Funding approach
The Bank’s main sources of liquidities arise from shareholder’s paid-up capital and customers’ deposits. The sources
of liquidity are regularly reviewed daily through management’s review of maturity of term deposits and key
depositors.
47
c) Non-derivative cash flows
The table below presents the cash flows payable the Bank under non-derivative financial liabilities and assets held
for managing liquidity risk by remaining contractual maturities at the balance sheet date. The amounts disclosed in
the table are the contractual undiscounted cash flows, whereas the Bank manages the inherent liquidity risk based
on expected undiscounted cash flows.
Up to 1 month
US$
1 to 3
months
US$
3 to 12
months
US$
1 to 5 years
US$
Over 5 years
US$
Total
US$
Other liabilities
18,582,227
28,543
2,197,359
239,863
1,539,933
57,500
93,674
-
22,319,519
419,580
(expected maturity dates)
18,610,770
2,437,222
1,597,433
93,674
-
22,739,099
74,350,026
9,736,702
6,381,745
374,228
-
90,842,701
Assets held for managing
liquidity risk (expected
maturity dates)
31,482,157
6,461,597
2,257,620
2,932,756
8,023,954
51,158,084
125,771,217
25,814,080
9,019,192
11,716,360
32,055,696
204,376,545
d) Off-balance sheet items
The dates of the contractual amounts of the Bank’s off-balance sheet financial instruments that commit it to extend
credit to customers and other facilities (Note 20), are summarised in table below.
No later
Over
than 1 year
1-5 years
5 years
Total
US$
US$
US$
US$
-
610,000
2,432,768
3,042,768
1,128,928
-
-
1,128,928
1,050,000
-
-
1,050,000
400,000
-
-
400,000
2,578,928
610,000
2,432,768
5,621,696
Term loans commitments
Bank guarantees
Total loan commitments
22.4 Fair value of financial assets and liabilities
As at the balance sheet date, the fair values of financial instruments of the Bank approximate their carrying amounts.
The estimated fair values are based on the following methodologies and assumptions:
48
i. Balances with other banks
Balances with other banks include current accounts which are non-interest bearing, saving deposits and shortterm deposits. The fair value of deposits and placements with other banks approximates the carrying amount.
ii. Loans and advances to customers
Loans and advances are net of provision for loan losses. The provision of loan losses is made under the
requirements of the Central Bank’s Prakas.
iii. Deposits from customers
The fair values of deposits payable on demand (current and savings accounts), or deposits with remaining
maturity of less than one year are estimated to approximate their carrying amounts. The estimated fair value of
deposits with no stated maturities, which includes non-interest bearing deposits, is the amount repayable on
demand.
The Bank’s fixed interest bearing deposits are not quoted in active market and are short-term. Their fair value
approximates the carrying amount.
iv. Other assets and other liabilities
The carrying amounts of other financial assets and liabilities are assumed to approximate their fair values as these
items are not materially sensitive to the shift in market interest rates.
22.5 Capital management
The Bank’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of balance sheet,
are:
 To comply with the capital requirement set by the Central Bank;
 To safeguard the Bank’s ability to continue as a going concern so that it can continue to provide return for
shareholders and benefits for other stakeholders; and
 To maintain a strong capital base to support the development of business.
The Central Bank requires all commercial banks to i) hold minimum capital requirement, ii) maintain the Bank’s net
worth at least equal to minimum capital and iii) comply with solvency and liquidity ratios.
The table below summarises the composition of regulatory capital:
2013
US$
Tier 1 capital
Share capital
Retained earnings
Less: Intangible assets
Tier 2 complementary capital
General provision
KHR'000
37,500,000
(1,478,400)
(2,425,813)
149,812,500
(5,906,207)
(9,691,123)
33,595,787
134,215,170
101,639
406,048
33,697,426
134,621,218
As at 31 December 2013, the Bank’s net worth of US$34,028,151 is lower than its minimum capital of US$37,500,000 by
US$3,471,849. According to an approval letter from the Central Bank dated 1 November 2013, the Bank has been granted
an exemption from the net worth requirement until the year ending 31 December 2015.
49
7.
Corporate Information
50
8.
Organization Chart
51
9.
Corporate Governance, Risk Management and Internal Control
9.1 Board of Directors (“Board”)
Roles and Responsibilities of the Board
The roles and responsibilities of the Board are set out in the Memorandum and Article of Associations and broadly
cover formulation of corporate policies and strategies; overseeing and evaluating the conduct of the Bank’s
businesses; identifying principal risks and ensuring the implementation of appropriate systems to manage those
risks; and reviewing and approving key matters such as financial results, investments and divestments, acquisitions
and disposals and major capital expenditure and such other responsibilities that are required of them by the
National Bank of Cambodia (“NBC”) as specified in guidelines, Prakas and circulars issued by NBC from time to time.
There is a clear division of responsibilities between the Chairman and the Chief Executive Officer (“CEO”), which are
distinct and separate. Although the Chairman is not an independent director, this segregation of responsibilities
between the Chairman and the CEO ensures an appropriate balance of roles, responsibilities and accountability.
The Chairman ensures the smooth and effective functioning of the Board.
CEO is responsible for implementing the policies and decisions of the Board, overseeing the day-to-day operations,
setting the plan and direction, tracking compliance and business progress, initiating innovative business ideas to
create competitive edge and development of business and corporate strategies with the aim of enhancing
shareholder wealth.
Re-election of Directors
Every year at Annual General Meetings, one-third of the Directors or if their number is not a multiple of three then
the number nearest to one-third with a minimum of one shall retire from office.
The Directors to retire in every year shall be those who have been longest in office since their last election
but as between persons who become Directors on the same day, the Directors to retire shall unless they otherwise
agree among themselves be determined by lot.
A retiring Director shall be eligible for re-election.
Board’s Code of Ethics
The Board observes the Code of Ethics established by the NBC. In addition, the Bank also has a Code of Ethics that
sets out sound principles and standards of good practice which are observed by the employee.
Board Composition
The Board comprises five (5) directors of all whom are non-executive. Of the non-executive directors, two (2) are
independent. The profiles of the members of the Board are provided in section 10.
The Bank adheres to NBC’s Guidelines and Law on Commercial Enterprise in determining its board composition. The
Board shall determine the appropriate size of the board to enable an efficient and effective conduct of board
deliberation. The Board shall have a balance of skills and experience commensurate with the complexity, size, scope
and operations of the Bank. Board members should have the ability to commit time and effort to carry out duties
and responsibilities effectively.
The Board recognises the merits of Board diversity in adding value to collective skills, perspectives and strengths to
the Board. The Board will consider appropriate targets in Board diversity including gender balance on the Board and
will take the necessary measures to meet these targets from time to time as appropriate.
The Board is of the view that the current size and composition of the Board are appropriate and effective for the
control and direction of the Bank’s business. The composition of the Board also fairly reflects the investment of
shareholders in the Bank.
52
The members of the Board of Directors during the financial year and at the date of this report are:
Mr Choong Yee How
(Chairman, Non-Independent, Non-Executive Director)
Mr Quek Kon Sean
(Non-Independent, Non-Executive Director)
Mr Tan Kong Khoon
Mr Matthew Nicholas Rendall
(Independent Non-Executive Director)
Mr Teh Sing
The Board met three (3) times during FYE 2013 with timely notices of issues to be discussed. Details of attendance of
each director are as follows:Director
Attendance
Mr Choong Yee How
YBhg Datuk Yvonne Chia
3/3
(1)
1/3
Mr Quek Kon Sean
3/3
Mr Tan Kong Khoon
1/3
(3)
2/3
(3)
Mr Teh Sing
2/3
(2)
Note:
(1)
Resigned on 30 June 2013.
(2)
Appointed on 20 November 2013.
(3)
Appointed on 3 July 2013.
9.2 Board Audit Committee (BAC)
The BAC is established to give additional assurance to the Board regarding the reliability of the internal control
system in operation, including the operational and financial information prepared by Management.
The BAC has been established since 23 August 2013 and the members are as follows:Mr Matthew Nicholas Rendall
(Chairman, Independent Non-Executive Director)
Mr Teh Sing
Mr Tan Kong Khoon
The BAC’s functions and responsibilities are set out in the Term of Reference (“TOR”) as follows:







To nominate and recommend for the approval of the Board, the external auditor(s).
To review the external audit fees.
To review, with the external auditors, the audit plan.
To review, with the external auditors, the audit report and audit findings and the Management’s response
thereto.
To consider the provision of non-audit services by the external auditors.
To review the assistance given by the officers of HLBCAM to the external auditors.
To review the quarterly reports and annual financial statements of HLBCAM prior to the approval by the Board.
To review the adequacy of the internal audit scope and plan, functions, competency and resources of the
Internal Audit Department.
53






To review the report and findings of the Internal Audit Department, including any findings of internal
investigations and the Management’s response thereto.
To review the adequacy and effectiveness of internal controls and risk management.
To review any related party transactions as defined in Article 49 of the Law on Banks and Financial Institutions
of Cambodia and any changes thereto from time to time that may arise within HLBCAM.
To approve any credit transactions and exposure with connected parties.
To decide on the appointment, remuneration, appraisal, transfer and dismissal of the Head, Internal Audit
Department.
Other functions as may be agreed to by the BAC and the Board.
During the FYE 2013, two (2) BAC meetings were held and the attendance of the BAC members was as follows:
Member
Attendance
Mr Teh Sing
Mr Tan Kong Khoon
2/2
2/2
2/2
9.3 Board Risk Management Committee (BRMC)
The BRMC is established to oversee senior management’s activities in managing risk exposures and to ensure
alignment with the risk strategy and policies approved by the Board of Directors (“Board”).
The BRMC has been established since 23 August 2013 and the members are as follows:Mr Teh Sing
(Chairman, Independent Non-Executive Director)
Mr Tan Kong Khoon
The BRMC’s functions and responsibilities are set out in the TOR as follows:









To oversee senior management’s activities in managing credit, market, liquidity, operational, compliance and IT
risks and to ensure that the risk management process is in place and functioning.
To review and report to the Board on measures taken to identify and examine principal risks faced by the Bank.
To review, recommend and/or endorse the Bank’s major risk management strategies, policies and risk tolerance
for Board’s approval.
To review periodic reports on risk appetite, risk exposure, risk portfolio composition, stress testing and risk
management activities.
To review and assess adequacy of risk management and compliance policies and framework in identifying,
measuring, monitoring and controlling risk and the extent to which these are operating effectively.
To ensure infrastructure, resources and systems are in place for risk management functions and that the staff
responsible for implementing risk management systems perform those duties independently of the Bank’s risk
taking activities.
To provide oversight of the Bank’s compliance activities with the view to ensuring that the Bank is in
compliance to all established policies, guidelines and external regulations.
To review all non-compliance incidences and recommend corrective actions where necessary.
To review and consider the impact of new laws, regulations, guidelines affecting the Bank’s operations and
ensuring adequate resources are committed and realistic action plans are carried out within the stipulated
deadline set.
Other risk management and compliance functions as may be agreed to by the BRMC and the Board.
54
During the FYE 2013, two (2) BRMC meetings were held and the attendance of the BRMC members was as follows:
Member
Mr Teh Sing
Mr Tan Kong Khoon
Attendance
2/2
2/2
2/2
9.4 Management Committee (MC)
The MC has been established on 22 May 2013 and the members are as follows:Mr Joseph Farrugia
(Chairman, Chief Executive Officer)
Mr Bin Devin
(Head of Operations)
Ms Hong Sreynoun
(Head of Finance)
Mr Christopher John Harris
(Head of Credit)
Mr Ith Vithou
(Head of Human Resources)
Mr Krourch Sathya
(Head of Business Banking)
Mr Rath Sophoan
(Head of Consumer Banking)
The MC’s functions and responsibilities are set out in the TOR as follows:






To track the financial performance of the Bank and consider action plans to address any shortcomings.
To monitor the achievement of key result areas and action plans of each Division to ensure Bank’s business
plans and budget is on track.
To track and review the operations of each of the Division of the Bank.
To discuss strategic business plans and resolve critical operational issues of the Bank.
To review and resolve critical risk and compliance issues escalated from the periodical risk and compliance
review report which include reviewing new products or new activities, operational risk, outsource activities and
non-compliance risk.
To review and recommend to the HLBG Management, General Circulars and Operational Manuals of the various
Divisions for approval.
To escalate and recommend to HLBG Product Evaluation & Approval Committee (“PEAC”), the new product /
variations to existing product of the Bank for approval.
55
During the FYE 2013, five (5) MC meetings were held and the attendance of the MC members was as follows:
Member
Attendance
Mr Joseph Farrugia
Mr Bin Devin
Ms Hong Sreynoun
Mr Ith Vithou
5/5
5/5
5/5
5/5
5/5
Mr Krourch Sathya
Mr Rath Sophoan
2/5
5/5
(1)
Note:
(1)
Joined HLBCAM on 23 September 2013.
9.5 Asset and Liabilities Management Committee (ALCO)
The ALCO was established to ensure appropriate strategies and policies are developed and implemented for assets,
liabilities and capital management of HLBCAM.
The ALCO has been established since 22 May 2013 and the members are as follows:Mr Joseph Farrugia
(Chairman, Chief Executive Officer)
Ms Hong Sreynoun
(Head of Finance)
(Head of Credit)
Mr Krourch Sathya
(Head of Business Banking)
Mr Rath Sophoan
(Head of Consumer Banking)
The ALCO’s functions and responsibilities are set out in the TOR as follows:Asset-Liability Management and ALM Strategy:


Managing the size and structural composition of the balance sheet for efficient allocation and utilization of
resources;
Managing the sensitivity of the Balance Sheet positions and P & L under different interest rates and
macroeconomic scenarios.
Capital Management and Profitability Management:
18
Enabling better risk-adjusted return on capital through:
 Promoting consistent growth in HLBCAM’s assets and liabilities contributing to profit growth with close
monitoring of the rate sensitive assets and liabilities;
 Enhancing the HLBCAM’s profitability through improving Fund Based / Interest Income and Non-Fund Based Fee
Income;
 Managing the relative profitability between different businesses and product segments;
 Managing the HLBCAM’s regulatory capital and economic capital.
56
Risk Management:
Managing HLBCAM’s market / liquidity risks exposures, via formulation and implementation of appropriate risk
management strategies, tolerance limits, and policies. The policies, in particular, will cover, among others,
interest rate risk, foreign exchange risk, liquidity risk and equity risk. These policies would require the
endorsement of HO-ALCO and the approval of HLBCAM-BAC and BRMC.
Identify market opportunities and manage hedging activities.
Assess HLBCAM’s ability to accommodate risks under normal and stress scenario and explores risk mitigating
solutions.
Periodically reviews compliance by the business units with limits or constraints set.




Funding and Liquidity Management:
Formulating funding strategies, measures, triggers and contingency plans to ensure that HLBCAM has an
appropriate mix of deposits and sufficient access to the interbank market, to meet liquidity requirements and
funding shortfalls at appropriate cost, under normal business circumstances and stressed market situations.

Member
Attendance
Mr Joseph Farrugia
5/5
Ms Hong Sreynoun
5/5
5/5
(1)
Mr Krourch Sathya
2/5
Mr Rath Sophoan
5/5
Note:
(1)
Joined HLBCAM on 23 September 2013.
9.6 Statement on Internal Control
Introduction
This Statement on Internal Control is made pursuant to the Prakas B7-010-172 Pro-Kor on Internal Control of Bank
and Financial Institutions issued by NBC which requires HLBCAM to produce a Statement of Internal Control each year
as a part of its Annual Report.
Responsibility Of The Board
The Board recognises the importance of a sound system of internal controls which covers risk management,
financial, organisational, operational, and compliance controls. The Board acknowledges its overall responsibility for
the Bank’s system of internal controls which includes the establishment of an appropriate control environment and
framework as well as reviewing the effectiveness, adequacy and integrity of this system. The system is also
designed to ensure the Bank’s key areas of risks are managed within an acceptable risk profile in order to increase
the likelihood that the Bank’s policies and business objectives will be achieved. The Bank has in place an on-going
process for identifying, evaluating, monitoring and managing the principal risks affecting the achievement of its
business objectives throughout the period. This process is embedded in the conduct of the day-to-day business
operations and is regularly reviewed by the Board to ensure the adequacy and integrity of the system.
The Board is of the view that the system of risk management and internal control in place for the year under review
and up to the date of issuance of the annual report and financial statements is sound to safeguard shareholders’
interest in the Bank, interest of customers, regulators, employees and the Bank’s assets. However, it should be
noted that such a system is designed to manage rather than eliminate the risk that may impede the achievement of
the Bank’s business objectives. Accordingly, this system can only provide reasonable, and not absolute, assurance
against the occurrence of any material misstatement or loss.
57
Types Of Risks
The Bank is principally engaged in all aspects of banking business and provision of related financial services. There
were no significant changes to this principal activity during the financial year.
The risk exposure faced by the Bank during the financial year can be broadly categorised into credit, market,
liquidity, and operational risks as follows:




Market Risk – is the risk that the value of on and off-balance sheet positions of the Bank will be adversely
affected by movements in market rates or prices such as interest rates, foreign exchange rates, equity prices,
credit spreads and/or commodity prices resulting in a loss to earnings and capital.
Liquidity Risk – is the risk of potential loss to the bank arising from either its inability to meet its obligations or
to fund increases in assets as they fall due without incurring unacceptable cost or losses. Liquidity risk is
considered a major risk for banks.
Credit Risk – is the risk arises from the potential that an obligor is either unwilling to perform on an obligation or
its ability to perform such obligation is impaired resulting in economic loss to the bank. In a bank’s portfolio,
losses stem from outright default due to inability or unwillingness of a customer or counter party to meet
commitments in relation to lending, trading, settlement and other financial transactions.
Operational Risk – is the risk of loss resulting from inadequate or failed internal processes, people and system or
from external events. Operational risk is associated with human error, system failures and inadequate
procedures and controls. It is the risk of loss arising from the potential that inadequate information system;
technology failures, breaches in internal controls, fraud, unforeseen catastrophes, or other operational problems
may result in unexpected losses or reputation problems. Operational risk exists in all products and business
activities.
Risk Management Framework
The Board has established an organisational structure with clearly defined lines of accountability and delegated
authority as part of its Risk Management Framework. This is achieved through a clearly defined operating structure
made up of lines of responsibility and delegated authority. Written policies and procedures have been issued with
clearly defined limits of delegated authority and provide a framework for management to deal with areas of
significant risk.
The key elements and processes that have been established in reviewing the adequacy and effectiveness of the risk
management and internal control system include the following:
BAC
The BAC was established by the Board to give additional assurance to the Board regarding the reliability of the
internal control system in operation, including the operational and financial information prepared by Management.
The BAC comprises independent non-executive directors. It is authorised by the Board to review any activity of the
Bank, to seek any information it requires from any Director or member of Management and all employees are
directed to co-operate with any request made by the BAC. It is also authorised to obtain independent legal or other
professional advice if it considers necessary.
BRMC
The BRMC was established by the Board to oversee management’s activities in managing risk exposures and to
ensure alignment with the risk strategy and policies approved by the Board. The BRMC comprises independent nonexecutive directors. It is authorised by the Board to review any activity of the Bank, to seek any information it
requires from any Director or member of Management, and to obtain independent legal or other professional advice
if it considers necessary.
MC
The MC was established by the Board to manage day-to-day operational issues. The MC comprises of all head of
Divisions of the Bank. It is responsible for ensuring that the Bank is effectively managed, delivering the outcome as
per business and budget plans, and resolving critical operational, risk management and compliance issues.
Furthermore, the MC is also ensure that appropriate strategies and policies were developed and implemented for
assets, liabilities and capital management of the Bank.
58
Internal Audit Department (“IAD”)
The IAD provides an independent appraisal of all activities of the Bank with the aim to add value as well as to
improve the efficiency and effectiveness of operational processes, information systems, risk management and
internal controls. The IAD is a vital part of the Bank’s systems and functions in accordance with the policies
established by the Board, BAC, and Regulations under the Law on Banking and Financial Institution Act administered
by the NBC. The BAC obtains, reviews and reports to the Board on all audit reports; approves the internal audit
plans; and transmits to the Management of the Bank, such instructions as it deems necessary for the
implementation of recommendations arising from the internal audit reports.
Other Key Elements of Internal Control
The other key elements of the Bank’s internal control system that are regularly reviewed and are in accordance with
the Guidance described below:

Clearly defined delegation of responsibilities to Committees of the Board and to Management Committees and
business operating units, including authorisation levels for all aspects of the business.

Disaster Recovery and Business Continuity Plans have been established to cover key operations and business
activities. The plans are tested from time to time and enhanced whenever required.

Reviewing the financial performance and consider action plan to address any shortcoming, review the
operations of each Division and discuss strategic business plans and resolve critical operational issues.
Monitoring the achievement of key result areas and action plans of each Division to ensure that the Bank’s
business plans and budget are on track.

Reviewing and resolve critical risk and compliance issues escalated from the periodical risk and compliance
review reports which include reviewing new products or new activities, operational risk, outsource activities and
non-compliance risk.

The BRMC oversees management’s activities in managing credit, market, liquidity, operational, compliance, and
IT risks to ensure that the risk management process is in place and functioning, and ensuring that infrastructure,
resources and systems are in place for risk management functions and that the staff is responsible for
implementing risk management systems perform those duties independently of the Bank’s risk taking activities.

The BRMC provides an oversight of the Bank’s compliance activities with the view to ensure that the Bank is in
compliance to all established policies, guidelines and external regulations. The BRMC also considers the impact
of new laws, regulations and guidelines affecting the Bank’s operations and ensuring that adequate resources
are committed and realistic action plans are carried out within the stipulated deadline set.

The BRMC reviews and assesses adequacy of risk management and compliance policies and framework in
identifying, measuring, monitoring and controlling risk and the extent to which these are operating effectively.
The BRMC also reviews periodic reports on risk appetite, risk exposure, risk portfolio composition, stress testing
and risk management activities as well as all non-compliance incidences and recommend corrective actions
where necessary, and/or endorse the Bank’s major risk management strategies, policies and risk tolerance for
Board’s approval.

The IAD independently reviews the effectiveness of the risk identification, measurement, monitoring,
management, limitation and mitigation procedures and processes implemented by management, and reports to
the BAC on regular basis. The IAD provides assurance over the operation and validity of the system of internal
control in relation to the level of risk involved using Risk-Based-Auditing methodology.

The BAC regularly convenes meetings to deliberate on the findings and recommendations for improvement by
the IAD, external auditors as well as regulatory authorities. The BAC reviews the actions taken to rectify the
findings in a timely manner, and to evaluate the effectiveness and adequacy of the Bank’s internal control
systems.
MATTHEW NICHOLAS RENDALL
Independent, Non-Executive Director
20 February 2014
59
10. Board of Directors’ Profiles
Mr Choong Yee How
Chairman, Non-Independent, Non-Executive Director
Aged 57, Mr Choong Yee How, a Malaysian, obtained a Bachelor of Science in Biochemistry (Honours) degree in
1979 and a Master of Business Administration in 1981 from the University of Otago, New Zealand. Mr Choong has
over 28 years of experience in banking, of which 23 were with Citibank in Malaysia. Mr Choong started his career
with Citibank Malaysia as a Management Associate and was promoted to assume various senior positions within
the Citibank Group; the last being President and Chief Executive Officer of Citibank Savings Inc, Philippines. Mr
Choong is currently the President & Chief Executive Officer of Hong Leong Financial Group Berhad (“HLFG”).
Mr Choong was appointed to the Board of HLBCAM on 11 January 2013.
Mr Choong is also a Director of Hong Leong Bank, HLFG and Hong Leong Capital Berhad (“HLCB”), companies listed
on the Main Market of Bursa Malaysia Securities Berhad and Hong Leong Assurance Berhad, Hong Leong Asset
Management Bhd, Hong Leong MSIG Takaful Berhad and Hong Leong Investment Bank Berhad, all public
companies.
Mr Quek Kon Sean
Non-Independent, Non-Executive Director
Aged 33, Mr Quek Kon Sean, a Malaysian, obtained a Bachelor of Science degree and Master of Science in
Economics from the London School of Economics and Political Science. He started his career in investment banking
prior to assuming the role of Executive Director of HLFG. He is currently Managing Director, Centre for Business Value
of HL Management Co Sdn Bhd.
Mr Quek was appointed to the Board of HLBCAM on 11 January 2013.
Mr Quek is also a Director of HLB, HLFG and HLCB, companies listed on the Main Market of Bursa Malaysia Securities
Berhad and Hong Leong Assurance Berhad, a public company.
Mr Tan Kong Khoon
Non-Independent, Non-Executive Director
Aged 56, Mr Tan Kong Khoon, a Singaporean, holds a Bachelor of Business Administration degree from Bishop’s
University, Canada and is an alumnus of the Harvard Business School Advance Management Program.
Mr Tan was the Group Executive, Consumer Banking Group of Development Bank of Singapore (“DBS”) from 1
December 2010 to 15 April 2013 where he led and managed strategy formulation and execution for consumer
banking globally across the DBS Group.
Mr Tan began his banking career with DBS in 1981. Since then, he had successfully built consumer banking
franchises across multiple markets in Asia for Citibank, Standard Chartered Bank and ANZ Bank.
From March 2007 to December 2009, Mr Tan was President and Chief Executive Officer of Bank of Ayudhya, the fifth
largest bank in Thailand listed on the Thailand Stock Exchange. Under his leadership, Bank of Ayudhya had
expanded rapidly in its business and turnover.
Mr Tan was appointed to the Board of HLBCAM on 20 November 2014 and is a member of the BAC and BRMC of
HLBCAM.
Mr Tan is also the Group Managing Director/Chief Executive Officer of HLB.
Matthew Nicholas Rendall
Aged 49, Mr Matthew Nicholas Rendall, is British by birth and has Australian and Cambodian citizenship as well.
60
Mr Rendall is a lawyer by profession and is currently the Senior Partner of Zicolaw and its affiliate Cambodia office,
Soksiphana & associates, a large law group headquartered in Kuala Lumpur with offices in 8 of the ASEAN countries
plus Australia. Before joining Zicolaw, he was the Managing Partner for 12 years of Sciaroni & Associates, a leading
legal and professional services firm based in Cambodia, providing advice and business insight to Cambodia to
corporations.
Mr Rendall has been working in the legal sector in Cambodia since 1994 and was an Associate of Sciaroni &
Associates from 2002 to 2004, and assumed the position as Managing Partner since 2004. He had held office as coChair of the government working group sub-committee on land law, served as a professor of law at Cambodia’s
national law school, Royal University of Law, and was a legal trainer for the Municipality of Phnom Penh and
Ministry of Land Management.
Mr Rendall was appointed to the Board of HLBCAM on 3 July 2013 and is a member of the BAC and BRMC.
Mr Teh Sing
Age 62, Mr Teh Sing, a Malaysian, obtained a Diploma in Management in 1987.
Mr Teh Sing initially came to Cambodia in 1992 as Sales Director with Cambrew Limited, the manufacturer and
distributor of Angkor Beer and Pepsi products who incidentally is still the number one company in Cambodia today
in terms of beer market share ahead of the likes of Tiger beer. He retires as the Chief Operating Officer of Cambrew
Ltd in 2006.
Mr Teh Sing is also one of the Founding members of the Cambodian Federation of Employers and Business
Associations (CAMFEBA), which also help to found the Association of Cambodian Recruiting Agencies. CAMFEBA is
the only and largest federation of employers, which represents the rights and industrial interests of employers in
term of labour matters in the country.
Mr Teh Sing is the President of the Malaysian Business Council of Cambodia (MBCC), which connects Malaysian
nationals and Malaysian companies operating in Cambodia and enhances networking opportunities and information
sharing between Malaysia and Cambodia.
Mr Teh Sing was appointed to the Board of HLBCAM on 3 July 2013 and is a member of the BAC and BRMC.
61
11. Management Committee’s Profiles
Mr Joseph Farrugia
Chief Executive Officer
Aged 50, Mr Joseph Farrugia, an Australian, has 33 years’ experience working in Banking Industry. Mr Farrugia
joined Hong Leong Bankon 30 July 2012 as CEO of HLBCAM.
Mr Farrugia previously worked for the ANZ Banking Group Ltd where he spent nearly 31 years. His last 6 years have
been in South East Asia where he was instrumental in building the Retail Bank for ANZ in Cambdia for almost five
years.
Mr Farrugia’s most recent appointment was Head of Retail Banking for Vietnam and the Greater Mekong Region
which incorporates Cambodia and Loas where he drove the Retail agenda to build up the Franchise model.
In July 2012, Mr Farrugia joined HLBCAM as Chief Executive Officer and is a member of ALCO and MC.
Mr Devin Bin
Head of Operations
Aged 35, Mr Devin Bin, a Cambodian national, obtained dual Master's Degrees in 2002 through a study exchange
program (Master of Business Administration from the Asian Institute of Technology, Thailand, and a Specialized
Master in International Project Management from ESCP Europe, France) as well as a postgraduate degree in
Management Science in 2003 from the University of Paris II, France.
After over 3 years of working at management level in international organizations in Cambodia, Mr Bin started his
banking career at ANZ Royal Bank (Cambodia) Ltd in 2007 as Assistant Electronic Banking Services Manager in
Operations Department, and was promoted to various roles including Service Quality/Branch Operations, Credit Card
Issuing and Acquiring, and Branch Network Management.
In May 2011, he was appointed as Chief of Mail Operations/Deputy Chief of Operations Support Unit at the United
Nations Office in Geneva, Switzerland, following his success in a National Competitive Recruitment Examination.
Passionate in banking career, Mr Bin returned to Cambodia in September 2012 and was appointed as Head of
Operations working on the setup project to incorporate Hong Leong Bank in Cambodia. He is also a member of MC.
Ms Sreynoun Hong
Head of Finance
Aged 30, Ms Sreynoun Hong obtained her Master of Accounting from the University of Melbourne- Australia and
Bachelor of Business Administration in Accounting from the National University of Management (Cambodia).
From 2004-2010, Ms Hong was the Financial Controller in the Financial Affair Department of the Ministry of Economy
and Finance, and the Finance Analyst for ANZ Royal Bank. In 2010, she joined CIMB Bank PL and thereafter carrying
the role as Head of Treasury until April 2013, member of Management Committee, Risk Committee, and ALCO.
In April 2013, Ms Hong joined HLBCAM as the Head of Finance and is a member of ALCO and MC of HLBCAM.
She is currently pursuing a further degree to join the global body for professional accountants;
ACCA (the Association of Chartered Certified Accountants).
Head of Credit
Aged 64, Mr Christopher John Harris, a British/Australian, is a long-term seasoned banker. After 6 years in banking
in the UK, Mr Harris joined the ANZ Banking Group, Australia in 1972 and worked for that bank continuously for 40
years, before commencing semi-retirement during 2012.
62
His career has spanned many streams in banking, but has focused on lending and credit risk for the major period.
He has held numerous risk related senior roles throughout ANZ Australia, as well as a large number of Pacific
Countries.
Prior to finishing with ANZ, Mr Harris worked for 6 years in Cambodia, where he was the Chief Risk Officer for the
Bank’s operations.
In early 2013 he joined HLBCAM as the Head of Credit of HLBCAM and is a member of ALCO and MC.
Mr Vithou Ith
Head of Human Resources
Aged 34, Mr Vithou Ith, a Cambodian, obtained dual Master Degrees in 2003 through a study exchange program
(Master of Business Administration from the Asian Institute of Technology, Thailand, and Master of Human
Resources from Centre Franco-Vietnamien de Formation à la Gestion, Vietnam) as well as two bachelor degrees in
Accounting from Norton University and Enterprise Management from Royal University of Law and Economic,
Cambodia.
Mr ith has been in his HR career for 11 years in 5 different organizations including PRASAC MFI, Vattanac Bank, ANZ
Royal Bank, Manulife and HLBCAM. He has held various positions from a junior role as HR Administration Officer and
moved to management roles as Personnel Manager, Remuneration & Benefits Manager, Human Resources
Consultant and Head of Human Resources.
In February 2013, Mr Ith was appointed as Head of Human Resources at HLBCAM.
Mr Sathya Krourch
Head of Business Banking
Aged 42, Mr Sathya Krourch, a Cambodian, obtained a Bachelor of Business of Administration major in Finance and
Accounting from National University of Management in Phnom Penh and further received Master Degree of
Business Administration and Finance from Charles Sturt University in Phnom Penh.
Mr. Krourch has over 16 years of banking experience and has been working in 4 different banks including of CCB,
UCB, ANZR and HLBCAM. Mr Krourch has held various roles including as payment officer of international payment
department, then moved to work in Business Banking as assistant relationship, relationship manager, senior
relationship manager, and senior relationship manager of Lending Services mainly managed the collection and high
risk account in Risk Department. Mr Krourch’s most recent job was Senior Credit Manager with ANZ Royal
(Cambodia) Ltd.
In Sept 2013, Mr Krourch left ANZ Royal (Cambodia) Ltd and joined HLBCAM as Head of Business Banking. He is also
a member of ALCO and MC.
Mr Sophoan Rath
Head of Consumer Banking
Aged 40, Mr Sophoan Rath, a Cambodian, obtained a Bachelor of Laws in Phnom Penh and got Master of Laws from
the National University of Singapore as a NUS ASEAN Fellow. Mr Rath has almost 20 years of professional
experience of which 7 years were in banking and life insurance. Mr Rath started and spent his early 13 years
working in translation, administrative, financial and grant and project management fields with United Nations,
Australian and American diplomatic missions in Cambodia.
Mr Rath took on a challenge to enter a banking career with ANZ Royal Bank mid-2006 and spent 5.5 years in various
managerial roles within Retail Banking such as Branch Manager, Regional Manager and Head of Products. He also
spent a year at ANZ Head office in Melbourne, working as a Strategy Analyst with Consumer and Small Business
Banking. Mr Rath left ANZ Royal Bank to join a Prudential Cambodia in Oct. 2011 as Director of Operations and IT,
responsible for the setting up of the infrastructures including IT and life insurance operations functions.
In March 2013, Mr Rath left Prudential Cambodia and joined HLBCAM as Head of Consumer Banking. He is also a
member of ALCO and MC of HLBCAM.
63
12. Group Network of Branches
HLBCAM was incorporated on 18 February 2013 and commenced business on 8th July 2013 with a branch located at
its Head Office in Phnom Penh. HLBCAM is a fully-owned subsidiary of HLB based in Kuala Lumpur, Malaysia. Today
HLB has over 300 branches, Sales and Business Centres in Malaysia, Singapore, Hong Kong and Vietnam.
Below are the addresses of our key representations:
Cambodia
Head Office and Main Branch
No. 28, Samdech Pan Avenue, Sangkat Boeung Raing
Khan Daun Penh, Phnom Penh
Malaysia Head Office
Wisma Hong Leong, 18 Jalan Perak
50450 Kuala Lumpur
Vietnam Head Office
Ground Floor, Centec Tower
72-74 Nguyen Thi Minh Khai, District 3
Ho Chi Minh City
Singapore
20 Collyer Quay # 01-02
Singapore 049319
Hong Kong
12F The Center,
99 Queen's Road,
Central, Hong Kong

Hong Leong Bank (Cambodia) Plc.

Transcription

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