Phillip Bank, Kredit merger OK
Phillip Bank, Kredit merger OK
The National Bank of Cambodia and the Ministry of Commerce have approved the merger of Phillip Bank and Kredit Microfinance Institution, making the resulting entity one of the largest banks in the Kingdom.The new entity, which will operate under the name Phillip Bank, boasts 89 branches in the Kingdom – 83 Kredit branches and six Phillip Bank branches.
The bank has 2,000 employees and, according to a press release, no staff from either Phillip Bank or Kredit has been retrenched.
Phillip Bank director and shareholder representative Ong Teong Hoon said: “We are delighted to have received this final approval for the merger process, which has been in the works for many months now.
“On behalf of the shareholders and all of us at Phillip Bank, I would like to extend my sincere thanks to the National Bank of Cambodia and the Ministry of Commerce for their support during this major consolidation in a very competitive domestic banking sector,” he said.
The sole shareholder of the merged entity is Singapore’s PhillipCapital, an integrated financial services firm that operates in 15 countries across the globe, with more than $35 billion of assets under management.
PhillipCapital chairman Lim Hua Min said: “We are extremely excited to be bringing together the deep Cambodian roots of Kredit MFI with the international knowledge and best practices of Phillip Bank to create a nationwide financial services provider that will serve Cambodia’s evolving financial needs with best in class banking and insurance products and a deep commitment to customer service.”
PhillipCapital’s investment in Cambodia has grown from a $100,000 stake in First Finance in 2009 to an investment of over $110 million today. PhillipCapital was the sole shareholder in both Kredit and Phillip Bank before the merger and retains its 100 per cent stake in the merged entity.
Following the merger, Kredit customers have gained access to Phillip Bank’s savings and loans products and mobile banking app.
They will soon enjoy an upcoming online banking portal. Phillip Bank customers, on the other hand, will be able to use existing Kredit ATMs across the country with no additional fees, according to the announcement.
The first phase of a major rebranding exercise will see the remodelling of 12 Kredit branches in Phnom Penh, Siem Reap, Battambang, Kampot, Takeo, Banteay Meanchey, Kampong Chhnang, Kampong Speu, Prey Veng and Kratie.
The remodelled branches will boast a sleek, modern look that was revealed last November at the grand opening of Phillip Bank branch on Kampuchea Krom Boulevard in Phnom Penh.
As of December last year, consolidated financial reports for the merged Phillip Bank showed assets of $623 million, a deposit balance of $400 million and a loan portfolio of $490 million.
