Message from the Chairman and Chief Executive Officer
“Going forward, the bank plans to increase the number of its branches within Phnom Penh to better serve its retail customers.”
Oknha Yum Sui Sang
Chairman & CEO
Over the last 5 years, the Cambodian economy has performed remarkably well, at around 10% growth per annum. However, economic growth took a sharp decline during the year 2009, falling to a low single digit growth.
Yet, despite this downturn in the garment, construction and tourism industries, economic performance was greatly boosted by agriculture and services.
Regardless of the slowdown in economic activity during 2009, the number of commercial banks coming to Cambodia continued to grow. At the end of December 2009, the number of commercial banks totaled 29. Commercial banks continue to stream into Cambodia as they foresee increasing opportunities in the years ahead in terms of growth and profits and the opportunity to serve the region.
As at December 31, 2009 Union Commercial Bank, PLC (UCB) total assets stood at USD 147.5 million and its net profit after tax deductions for 2009 was USD 4.6 million. These audited figures were the highest in its 16 year history. Similarly, the bank’s total shareholders’ equity stood at a record USD 28.7 million.
Gross loans and advances increased to USD 75.9 million in 2009 from USD 64.4 million and customer deposits increased to USD 111.9 million in 2009 from 87.2 million. UCB continued to grow in a steady and conservative manner, carefully balancing risks against profits and liquidity, and serving the community.
The bank strengthened its corporate governance policies and practices, by establishing the Risk committee, the Audit committee and the EXCO and ALCO committees. During 2009, two independent directors were also appointed. The Chairman of the Audit and Risk committees were chaired by directors who satisfied the National Bank of Cambodia’s requirements, in terms of qualifications and experience.
UCB shareholders have unanimously approved the proposal, made by the board of directors, to lease a property along Monivong Boulevard in order to construct a 12-storey A-class building for the bank’s future headquarters.
The bank’s achievements so far could not have been possible without the dedication and commitment of its staff and support from its customers, shareholders, correspondent banks and the guidance from the NBC and the Royal Government of Cambodia, all of whom, I would like to express my sincere thanks and gratitude.