Expanding Presence in Cambodia
KB Kookmin Bank announced on Oct. 20 that it has secured a 100 percent stake in Prasac Microfinance by acquiring the remaining stake in Cambodia's No. 1 microloan bank.
Kookmin Bank acquired a 70 percent stake in Prasac Microfinance in April 2020, becoming its largest shareholder. The acquisition of the remaining stake was originally scheduled to take place next year, but it was moved up in recognition of the bank’s ability to overcome the COVID-19 crisis.
KB Kookmin Bank responded to the crisis by establishing a joint management system with the existing management of Prasac Microfinance in 2020. In particular, it supported Prasac Microfinance in overseas financing and risk management. As a result, Prasac Microfinance posted US$199 million in net profit in 2020, a year on year increase of 5 percent. What’s more, it ranked first in the microfinance institution (MFI) market with a 44.6 percent share and fourth in the entire loan market.
KB Kookmin Bank plans to expand Prasac Microfinance’s business scope as Cambodia's economic recovery is on a sharp rise. Cambodia's economic growth rate is expected to reach only 1.9 percent in 2021, but 5.5 percent in 2022, according to the Asia Development Bank (ADB).