Cambodia's No. 1 Microfinance Institution
KB Kookmin Bank has completed the acquisition of Prasac Microfinance, Cambodia's No. 1 microfinance deposit-taking institution (MDI).
KB Kookmin Bank announced on April 12 that it has paid US$630 million for a 70 percent stake in Prasac. As a result, Prasac became an affiliate of KB Financial Group. The bank plans to acquire the remaining 30 percent stake to make Prasac a wholly owned subsidiary.
Prasac has a sales network of 180 branches in Cambodia. As of 2018, its market share stood at 41.4 percent. Its ROE was 29.4 percent, and its net income was about US$78 million. It is ranked third among all financial institutions in Cambodia, including commercial banks, and is evaluated as one of the best financial institution in Cambodia.
Along with this, KB Kookmin Bank recently acquired a preliminary approval for the establishment of a local corporation in Myanmar. It has secured two major bases in Southeast Asian countries. In Myanmar, the Korean lender is planning to open 10 branches and engage in corporate and retail banking.