Annual Report 2007-11-07-08.qxp - Canadia Bank Plc.

Canadia Bank Plc. 1 Annual Report 2007


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CHAIRMAN/CHIEF EXECUTIVE OFFICER'S REPORT 

Dear valued shareholders, customers and friends of Canadia Bank Plc, 

Based on the stable and secure political climate and social stability, Cambodia's economy of 2007 has 

been developing remarkably well, with an annual GDP growth rate of approx. 10.1%, a high inflow of 

foreign investments, an increase in national reserves and 22% increase in public revenues. The overall 

performance reflects the underlying strengths of Cambodia's economy with steady growth of the four 

pillars of economical development: agriculture, garment exports, tourism and the financial sector. 

Despite strong economical growth, Cambodia had to face an average inflation rate of around 6.5% in 

2007 with an increasing trend for 2008. Like other nations in the region and in the world, the Royal 

Government of Cambodia has promptly taken measures to address the issue of high inflation, which 

was and is driven by high commodity and food prices. 

Notwithstanding the sub-prime financial crisis and increasing inflation, the macroeconomic outlook for 

2008 and medium-term are in general positive. The World Bank estimates GDP growth to be around 

7.2% - 7.5% for 2008 and 2009 respectively. 

Our achievements 

Driven by our vision, mission and core values anchored deeply in our mind and taking advantage of 

Cambodia's respectable economic development, Canadia Bank Plc performed again exceptionally well in 

2007. Net profit increased by 61% to US$20.1million with earnings per share (EPS) of US$0.50. The 

return on total equity (RoE) reached 25.17% and the return on assets (RoA) increased 3.6% compared 

to 2006. Total assets grew by 50% to US$552 million backed by a strong growth in deposits by 56% to 

US$458 million. Loans increased by 62% to US$332 million. During 2007 we employed 142 new staffs 

to assure our customer service quality requirements. Çanadia Bank's human resource capital stands at 

602 employees at the end of 2007. We kept our position as leading bank in Cambodia and intend to do 

so in the future notwithstanding growing competition in the financial sector. 

Canadia Bank has stabilized its market share and steadily increased the number of customers, with their 

loyalty and trust in our services providing sustainable income growth. The internal risk control measures 

were strengthened and fine tuned. In 2007 the bank's loan policy focused especially on mortgage and 

real estate development as well as small and medium enterprises (SME) product development. In the 

second half of 2007 the bank has launched a "Consumer loan product" in order to enable especially the 

Cambodian middle class to purchase their car and/or equip their home with furniture and home 

equipments. 

Canadia Bank's private banking arm with its tailor made services and products for VIP customers has 

been very well received by its respective customers and continues to go from strength to strength. 

The Bank continues to give emphasis to develop its human resource capacity, thus building the 

necessary operating infrastructure in order to ensure sustainable growth. 

The new core IT banking system, "T24", which has been bought and installed in 2007, will be put step 

by step into full operation in 2008. This new system will allow the bank to run its operation as well as 

MIS more efficiently, thus increasing our strength in the more and more competitive financial sector. 


During 2007 the bank has donated approximately US$343,000 to various charity Projects, 

non-governmental organizations, community and village improvements. Providing internships to 171 

university students to lead them to a better understanding of values of team spirit in a corporate world, 

helping them at the same time to evaluate their own career plans, was another contribution to our social 

responsibility. 

Our Outlook 

Canadia Bank's business strategy plan for 2008 calls for the expansion of its country wide presence to 

28 branches. Intensive skills training provided on management and staff level is another priority. In this 

regard the bank is developing in-house training and specific staff development programs. We will 

continue to promote our already successful "Junior Account" project through public awareness activities 

like TV spots, newspaper advertising, participating in trade fairs, leaflets etc. with the focus on parents 

awareness to save for their child's educational expenses. We plan to increase our ATM network to 50 

machines in 2008. The bank will further extend and improve its national and international transfer 

network with the cooperation of its partner MoneyGram International. In addition the Bank has 

recently entered into an agreement with China Union Pay to become the sole acquirer of CUP card or 

Chinese Credit Card, scheduled to go live during 2008. This challenging new service will lead our bank 

into a bigger share of the credit card market given increasing number of Chinese tourists and investors 

in Cambodia. 

Acknowledgements 

On behalf of the board of directors, the bank management and myself, I would like to thank all 

customers and friends of Canadia Bank for their support and loyalty. My best wishes also go in the 

direction of shareholders, regulators and suppliers. 

Once again it is also my pleasure to thank our employees at all levels for their dedication and hard work 

during the past year. Without our staffs and their teamwork we would not have achieved such 

outstanding results. I am looking forward to an even stronger human resource development in order to 

face future challenges and goals. 

Pung Kheav Se 

Chairman and Chief Executive Officer 

25 June 2008 


VISION 

To be a premier and a well-rounded local financial services group, dedicated to creating the highest 

levels of value for our clients, shareholders and employees, and at the same time producing long-term 

levels of industry-leading profitability and growth. 

MISSION 

We work as a unified team to understand our client's ever-changing requirements and exceeding their 

expectations by providing solutions to their business needs in this dynamic environment. 

CORE VALUE 

Doing the right thing - We have the responsibility of being ethical ambassadors for our 

shareholders, communities and one another. 

customers, 

customers' satis- 

Trust and teamwork - We succeed together, taking collective responsibility for our 

faction. 

Inclusive meritocracy - We care about one another, value one another's differences, focus on results and 

strive to help all associates reach their full potential and get reward as well as recognition. 

Winning - We have a passion for achieving results and winning, for all our stakeholders and for one 

another. 

Leadership - We will be decisive and accountable leaders, taking action to help build a better future. 


FINANCIAL HIGHLIGHTS 

Year ended 31 December 2007 2006 2005 2004 2003 

(US$ million) 

PROFITABILITY 

Gross Revenue 43.63 30.93 23.48 17.67 13.86 

Net profit 20.11 12.52 6.03 3.78 3.47 

Total Assets 552.51 368.09 293.78 248.76 195.55 

Shareholders' Equity 73.17 60.14 43.67 27.55 21.47 

Loans (net) 332.40 205.41 157.73 129.50 96.52 

Deposits 458.31 293.33 237.68 214.42 165.54 

FINANCIAL RATIOS 

Return on Shareholders' Equity (RoE) 25.17% 20.80% 13.75% 13.29% 15.77% 

Return on Assets (RoA) 3.64% 3.40% 2.04% 1.49% 1.73% 

Interest margin to gross income 61.99% 61.59% 76.62% 67.56% 58.37% 

Expense to income ratio 42.37% 49.29% 67.89% 73.07% 74.89% 

Loans to Deposits 76.79% 74.13% 71.36% 66.22% 58.28% 

Solvency Ratio 16.71% 18.81% 15.94% 16.52% 18.00% 

Liquidity Ratio 61.05% 72.95% 71.60% 68.24% 85.00% 

Net worth (USD's million) 68.50 49.56 33.07 27.52 21.41 

Capital adequacy ratio 19.52% 22.83% 21.05% 16.54% 10.95% 

Earnings per share (US$/share) 0.50 0.30 0.23 0.16 0.19 



CONTRIBUTION TO THE COMMUNITY AND SOCIETY 

Overall good business performance in all sectors, contributes to the healthy development of community 

and society. For this purpose, we recognise the importance of our mission to serve as a crucial part 

of the public infrastructure and also our social responsibilities. With such recognition, we undertake 

business operations that contribute to the steady development of Cambodia, and endeavor, as a good 

corporate citizen, to make a positive contribution to society. Major activities undertaken include: 

• Assisting the development of human resources in Cambodia, the Bank has provided 

171 internships for university students. 

• Donating total approximately US$343,000 to communities such as Cambodian Red 

Cross, Non-Profit Organizations and other communities. 

HUMAN RESOUCE DEVELOPMENT 

In 2007, the Bank's internal and external training programs were proactively implemented. The Bank has 

provided financial support for 31 staff members to undertake the ACCA training program both in 

Cambodia and overseas, and other staff are studying their MBA, and general English and Chinese language 

programs. In addition, the Bank has organised internal related training courses to enhance its staff 

capacity in skills of banking, accounting and stock exchange. 

The quality of training has been further improved in order to meet the requirements of business 

practices as well as development, modernization, competition and integration steps in line with the 

overall Bank's business growth strategy. 

CORPORATE GOVERNANCE 

Although there is presently no code on corporate governance in Cambodia, the Board is fully committed 

to maintaining high standards of corporate governance as a matter of sound business practice to 

ensure the sustainable growth of the Bank and to protect the interest of various stakeholders. 

The composition of the Board has been changed to strengthen its capacity for setting the direction of 

the Bank and exercising oversight over management. Two executive directors and one independent 

director were appointed in 2007. The independent director has banking and auditing experience. Board 

members actively participated in the Board Meetings in 2007 and are functioning effectively. 

The Audit Committee, who reports directly to the Board of Directors, reviews the audited financial 

statements to ensure that it conforms with accepted accounting principles and to give their judgments 

on items that might affect the financial position of the Bank. The Committee has the power to conduct 

or authorise investigations into any matter within its terms of reference. 

RISK MANAGEMENT 

Being fully aware of the important role of risk management, the Bank's Board of Directors has been 

particularly focused on this issue during the year. The Risk Management Committee (RMC) of the 


Board, including two independent directors as member, has hold periodic meetings among members in 

order to assess risks of the bank and provide oversights about managing significant risks based on 

various sources of information and data with help of analytical and methodological framework. On the 

operational level, we have the Internal Audit that regularly performs the checking overview of the 

operations and transactions of the bank and then gives promptly corrective actions based thereon. We 

also have a head of Risk Management, also as Head of Credit Committee, who is also responsible for 

evaluating and monitoring risks exposed to granted credits. Moreover, each head of operating units has 

regularly been kept well informed of risks potentially or actually affecting the bank, especially their 

responsible unit. 

CODE OF CONDUCT 

The Bank's staff are required to perform their work diligently and honestly, always placing first, the 

interests of the Bank. In addition, all staff are deemed to have understood and accepted the duty to 

strictly abide by the Bank's Code of Conduct which stipulates the following: 

• Not to solicit or to receive on an unsolicited basis gifts, commissions, kickbacks or valu 

ables of any kind from customers; 

• Not to use their position to conduct private business; 

• Not to conduct in any illegal or immoral activities acting in the capacity of the Bank's staff; 

and 

• Not to engage in any acts, behaviors or arrangements causing a damage to the Bank's repu 

tation and/or financial interest. 

Canadia Bank Plc. 11 Annual Report 2007

No. 265 - 269 

Ang Duong Street 

Phnom Penh, Cambodia 

PñMeBj-km

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 the making of provisions 

for doubtful loans, and satisfied themselves that all known bad loans had been written off and that 

adequate provisions have been made for bad and doubtful loans.At the date of this report, the directors 

are not aware of any circumstances which would render the amount written off for bad loans or the 

amount of the provision for bad and doubtful loans in the financial statements of the Bank inadequate 

to any material extent. 

CURRENT ASSETS 

Before the financial statements of the Bank were drawn up, the directors took reasonable steps to ensure 

that any current assets, other than loans, 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. 

At the date of this report, the directors are not aware of any circumstances which would render the 

values attributed to the current assets in the financial statements of the Bank misleading in any 

material respect. 

VALUATION METHODS 

At the date of this report, the directors are not aware of any circumstances 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. 

CONTINGENT AND OTHER LIABILITIES 

At the date of this report, there does not exist: 

(a) any charge on the assets of the Bank which has arisen since the end of the financial year 

which secures the liabilities of any other person, or 

(b) any contingent liability in respect of the Bank that has arisen since the end of the financial 

year 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 year which, in the opinion of the 

directors, will or may have a material effect on th e ability of the Bank to meet its obligations as and 

when they fall 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 year were not, in the opinion of the directors, 

materially affected by any items, transaction or event of a material and unusual nature. There has 

not arisen in the interval between the end of the financial year and the date of this report any item, transaction 

or event 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 year in which this report is made. 

THE BOARD OF DIRECTORS 

The members of the Board of Directors holding office during the year and as at the date of this report are: 

Mr Pung Kheav Se, General Manager (Executive) 

Mrs Lim Sophany, Director (Executive) 

Mr Pung Way, Director (Executive) 

Mr Jimmy Leow Min Fong , Chairman of Audit Committee (Non-executive) 

Mr Charles Vann, Deputy General Manager (Executive) 

Mrs Pung Carolyne, Assistant to General Manager (Executive), 

(appointed on 10 February 2007) 

Mr Chen Lee Yiaw Hui, Senior Manager (Executive) (appointed on 10 February 2007) 

Mr Shen Jie Qing, (Non-executive) (appointed on 23 March 2007) 

Dr Sam Ghanty (resigned on 28 February 2007) 

The appointment of Mr Shen Jie Qing as a Director of the Bank is pending approval from the Central 

Bank as at the date of this report. 

DIRECTORS' INTERESTS 

The Bank's directors who hold shares in CIHP, the ultimate parent company of the Bank are: Mr Pung 

Kheav Se, Mr Pung Way and Mrs Lim Sophany. 

DIRECTORS' BENEFITS 

During and at the end of the financial year, no arrangements existed, to which the Bank was a party, with 

the object of enabling directors of the Bank to acquire benefits by means of the acquisition of shares 

in or debentures of the Bank or any other body corporate; and 

No director of the Bank has received or become entitled to receive any benefit by reason of a contract 

made by the Bank with the directors or with a firm of which the director is a member, or with a 

company which the director has a substantial financial interest other than those disclosed in the 

financial statements. 

RESPONSIBILITIES OF THE DIRECTORS IN RESPECT OF 

THE FINANCIAL STATEMENTS 

The Board of Directors is 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 2007 

and of its financial performance and cash flows for the year then ended. In preparing these financial 

statements, the Board of Directors are required to: 


i) adopt appropriate accounting policies which are supported by reasonable and prudent judge 

ments and estimates and then apply them consistently; 

ii) comply with the disclosure requirements and guidelines issued by the Central Bank and 

Cambodian Accounting Standards or, if there have been any departures in the interests of 

true and 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. 

The Board of Directors confirm that the Bank has complied with the above requirements in preparing 

the financial statements. 

Signed in accordance with a resolution of the Board of Directors. 

Mr Pung Kheav Se 

Gerneral Manager 

Date: 24 March 2008 

Mr Charles Vann 

Deputy General Manager 


Approval of Financial Statements 

The accompanying financial statements, present fairly, in all material respects, the financial position of 

the Bank as at 31 December 2007, and of its financial performance and its cash flows for the year then 

ended in accordance with the guidelines issued by the Central Bank and Cambodian Accounting 

Standards, were approved by the Board of Directors. 

Mr Pung Kheav Se 

Gerneral Manager 


Mr Charles Vann 

Deputy General Manager 



Independent Auditor’s Report 

PricewaterhouseCoopers (Cambodia) Ltd 

124 Norodom Boulevard, Chamkarmon 

Phnom Penh 

Kingdom of Cambodia 

Tel : (855) 23 218 086 

Fax : (855) 23 211 594 

To the Shareholders of Canadia Bank Plc. 

We have audited the accompanying financial statements of Canadia Bank Plc. ("the Bank") which 

comprise the balance sheet as of 31 December 2007 and the income statement, statement of changes in 

equity and cash flow statement for the year then ended and a summary of significant accounting 

policies and other explanatory notes on pages 18 to 57. 

Board's Responsibility for the Financial Statements 

The Board of Directors is responsible for the preparation and fair presentation of these financial 

statements in accordance with guidelines issued by the Central Bank and Cambodian Accounting 

Standards. This responsibility includes: designing, implementing and maintaining internal control 

relevant to the preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and 

making accounting estimates that are reasonable in the circumstances. 

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 International Standards on Auditing. Those Standards require 

that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 

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 controls 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 accompanying financial statements present fairly, in all material respects, the fin ancial 

position of the Bank as of 31 December 2007, and of its financial performance and its cash flows for 

the year then ended in accordance with the guidelines issued by the Central Bank and Cambodian 

Accounting Standards. 


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BALANCE SHEET 

AS AT 31 DECEMBER 2007 

2007 2006 

Note US$ Riel Million US$ Riel Million 

(Unaudited) 

(Unaudited) 

Assets 

Cash on hand 27,501,166 110,087 25,141,461 101,998 

Balances with the Central Bank 3 71,056,749 284,440 52,690,857 213,767 

Balances with other banks and 

financial institutions 4 79,785,657 319,382 55,998,868 227,187 

Loans and advances to customers - net 5 332,403,990 1,330,613 205,407,545 833,338 

Other assets 6 5,853,530 23,432 3,609,634 14,644 

Investment in the Foreign Trade Bank 7 10,580,000 42,352 10,580,000 42,924 

Property and equipment 8 19,643,894 78,634 10,363,807 42,046 

Computer software 9 1,172,275 4,693 99,522 404 

Properties foreclosed 10 4,512,741 18,065 4,198,690 17,035 

Total assets 552,510,002 2,211,698 368,090,384 1,493,343 

Liabilities and Shareholder’s equity 

Liabilties 

Deposits and balances of other banks 11 6,739,404 26,978 3,872,609 15,711 

Deposits from non-bank customers 12 451,570,063 1,807,635 289,458,459 1,174,333 

Current tax liabilities 13 4,421,143 17,698 2,786,518 11,305 

Other liabilities 14 5,143,666 20,590 4,524,432 18,356 

Borrowings 15 4,379,241 17,530 7,306,669 29,643 

Subordinated debt 16 7,080,000 28,341 7,080,000 28,724 

Total liabilities 479,333,517 1,918,772 315,028,687 1,278,072 

Shareholder’s equity 

Share capital 17 40,545,000 162,302 40,545,000 164,491 

Retained earnings 32,631,485 130,624 12,516,697 50,780 

Total shareholders' equity 73,176,485 292,926 53,061,697 215,271 

Total liabilities and shareholders' equity 552,510,002 2,211,698 368,090,384 1,493,343 

The accompanying notes on pages 30 to 57 form an integral part of these financial statements. 


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cMNUlkMér nigeCIgsar 20 5>523>652 22>111 4>403>523 17>865 

cMNaykMér nigeCIgsar ¬528>071¦ ¬2>114¦ ¬370>931¦ ¬1>505¦ 

cMNUlkMér nigeCIgsarsuT§ 4>995>581 19>997 4>032>592 16>360 

cMNUlepSg² 1>690>935 6>768 1>171>273 4>752 

cMNayrdæ)alTUeTA 21 ¬7>449>198¦ ¬29>819¦ ¬6>313>951¦ ¬25>616¦ 

cMeNjRbtibtiþkarmunkarxatbg;elIvisalPaB\NTan 26>284>161 105>215 17>935>586 72>764 

sMviFanFnsMrab;karxatbg;\NTan - suT§ 22 ¬1>140>676¦ ¬4>566¦ ¬2>254>535¦ ¬9>146¦ 

cMeNjsuT§munbg;Bn§ 25>143>485 100>649 15>681>051 63>618 

Bn§elIR)ak;cMeNj 23 ¬5>028>697¦ ¬20>130¦ ¬3>164>356¦ ¬12>838¦ 

cMeNjsuT§ 20>114>788 80>519 12>516>695 50>780 




INCOME STATEMENT 

FOR THE YEAR ENDED 31 DECEMBER 2007 


Note US$ Riel Million US$ Riel Million 

(Unaudited) 

(Unaudited) 

Interest income 18 36,414,584 145,768 25,350,490 102,847 

Interest expense 19 (9,367,741) (37,499) (6,304,818) (25,579) 

Net interest income 27,046,843 108,269 19,045,672 77,268 

Fee and commission income 20 5,523,652 22,111 4,403,523 17,865 

Fee and commission expense (528,071) (2,114) (370,931) (1,505) 

Net fee and commission income 4,995,581 19,997 4,032,592 16,360 

Other operating income 1,690,935 6,768 1,171,273 4,752 

General administrative expenses 21 (7,449,198) (29,819) (6,313,951) (25,616) 

Operating income before extensions of credit 26,284,161 105,215 17,935,586 72,764 

Provision for loan losses - net 22 (1,140,676) (4,566) (2,254,535) (9,146) 

Profit before income tax 25,143,485 100,649 15,681,051 63,618 

Income tax expense 23 (5,028,697) (20,130) (3,164,356) (12,838) 

Net income 20,114,788 80,519 12,516,695 50,780 



)aykarN_sþIBIkarERbRbYlmUlniFiPaKTunik 


edImTun cMeNjrkSaTuk srub 

duløarGaemrik duløarGaemrik duløarGaemrik 

smtulüenAéfTI 01 Ex mkra qñaM 2006 26>000>000 10>585>002 36>585>002 

cMeNjsuT§kñúgqñaM - 12>516>695 12>516>695 

cMNayCUnRkumRbwkSaPi)al - ¬40>000¦ ¬40>000¦ 

bEnßmTunCasac;R)ak; 4>000>000 - 4>000>000 

cMNayPaKlaP - ¬10>545>000¦ ¬10>545>000¦ 

TunbénßmBIkarvinieyaKeT,IgvijénPaKlaP 10>545>000 - 10>545>000 

smtulüenAéfTI 31 Ex FñÚ qñaM 2006 40>545>000 12>516>697 53>061>697 

smmUlCalanerol ¬mineFVIsvnkmμ¦ 164>491 50>780 215>271 

smtulüenAéfTI 01 Ex mkra qñaM 2007 40>545>000 12>516>697 53>061>697 

cMeNjsuT§kñúgqñaM - 20>114>788 20>114>788 

smtulüenAéfTI 31 Ex FñÚ qñaM 2007 40>545>000 32>631>485 73>176>485 

smmUlCalanerol ¬mineFVIsvnkmμ¦ 162>302 130>624 292>926 


24 1 

Canadia Bank Plc. Annual Report 2007 2007


STATEMENT OF CHANGES IN EQUITY 


Share Retained 

capital earnings Total 

US$ US$ US$ 

Balance as at 1 January 2006 26,000,000 10,585,002 36,585,002 

Net profit for the year - 12,516,695 12,516,695 

Payment to the Board of Directors - (40,000) (40,000) 

Proceeds from issue of shares 4,000,000 - 4,000,000 

Dividends paid - (10,545,000) (10,545,000) 

Dividends reinvested in share capital 10,545,000 - 10,545,000 

Balance as at 31 December 2006 40,545,000 12,516,697 53,061,697 

In million Riel equivalents (Unaudited) 164,491 50,780 215,271 

Balance as at 1 January 2007 40,545,000 12,516,697 53,061,697 

Net profit for the year - 20,114,788 20,114,788 

Balance as at 31 December 2007 40,545,000 32,631,485 73,176,485 

In million Riel equivalents (Unaudited) 162,302 130,624 292,926 



)aykarN_lMhUrsac;R)ak; 


2007 2007 2006 2006 

duløarGaemrik lanerol duløarGaemrik lanerol 

¬mineFVIsvnkmμ¦ ¬mineFVIsvnkmμ¦ 

lMhUrsac;R)ak;)anmkBIskmμPaBRbtibtiþkar 

sac;R)ak;Edl)aneRbIR)as;kñúgRbtibtiþkar 

¬kMNt;sMKal; 24¦ 65>641>330 262>763 18>912>187 76>720 

Bn§elIR)ak;cMeNj)anbg; ¬3>394>072¦ ¬13>587¦ ¬1>635>851¦ ¬6>637¦ 

sac;R)ak;suT§)anmkBIskmμPaBRbtibtiþkar 62>247>258 249>176 17>276>336 70>083 

lMhUrsac;R)ak;)anmkBIskmμPaBvinieyaK 

R)ak;beBaØIenAFnaKarkNþal ¬11>500>017¦ ¬46>035¦ ¬7>354>516¦ ¬29>837¦ 

vinieyaKmUlb½Rt - - 2>214>014 8>982 

sac;R)ak;)anmkBIkarlk;GclnRTBü 90>146 361 735>469 2>984 

karTijGclnRTBü ¬10>079>408¦ ¬40>348¦ ¬3>638>297¦ ¬14>761¦ 

karTijkmμviFIkMuBüÚT½r ¬1>162>108¦ ¬4>652¦ ¬7>144¦ ¬29¦ 

sac;R)ak;suT§)anmkBIskmμPaBvinieyaK ¬22>651>387¦ ¬90>674¦ ¬8>050>474¦ ¬32>661¦ 

lMhUrsac;R)ak;)anmkBIskmμPaBhirBaØb,Tan 

TunbEnßm - - 14>545>000 59>009 

PaKlaP)anbg; - - ¬10>545>000¦ ¬42>781¦ 

sac;R)ak;)anmkBImUlniFikMcI - KfW - - 1>814>669 7>362 

TUTat;sgmUlniFikMcI - KfW ¬427>429¦ ¬1>710¦ - - 

TUTat;sgmUlniFikMcI -IFC ¬2>500>000¦ ¬10>008¦ - - 

sac;R)ak;)anmkBIskmμPaBhirBaØb,Tan ¬2>927>429¦ ¬11>718¦ 5>814>669 23>590 

karERbRbYlsuT§énsac;R)ak; nigsmmUlsac;R)ak; 36>668>442 146>784 15>040>531 61>019 

sac;R)ak; nigsmmUlsac;R)ak; ³ 

naedImkariybriecäT 103>219>382 413>187 88>178>851 357>742 

nacugkariybriecäT ¬kMNt;sMKal;25¦ 139>887>824 559>971 103>219>382 418>761 



30 57 


CASH FLOW STATEMENT 



US$ Riel Million US$ Riel Million 

(Unaudited) 

(Unaudited) 

Cash flows from operating activities 

Cash used in operations (note 24) 65,641,330 262,763 18,912,187 76,720 

Income tax paid (3,394,072) (13,587) (1,635,851) (6,637) 

Net cash generated from operating activities 62,247,258 249,176 17,276,336 70,083 

Cash flows from Investing activities 

Statutory deposits and reserve account 

with the Central Bank (11,500,017) (46,035) (7,354,516) (29,837) 

Investment in securities - - 2,214,014 8,982 

Proceeds from sale of property and 

equipment 90,146 361 735,469 2,984 

Purchases of property and equipment (10,079,408) (40,348) (3,638,297) (14,761) 

Purchases of computer software (1,162,108) (4,652) (7,144) (29) 

Net cash generated from investing activities (22,651,387) (90,674) (8,050,474) (32,661) 

Cash flows from financing activities 

Proceeds from issue of shares - - 14,545,000 59,009 

Dividends paid - - (10,545,000) (42,781) 

Proceed from borrowing - KfW - - 1,814,669 7,362 

Repayment of borrowed funds - KfW (427,429) (1,710) - - 

Repayments of borrowed funds - IFC (2,500,000) (10,008) - - 

Net cash generated from financing activities (2,927,429) (11,718) 5,814,669 23,590 

Net changes in cash and cash equivalents 36,668,442 146,784 15,040,531 61,019 

Cash and cash equivalents: 

At beginning of year 103,219,382 413,187 88,178,851 357,742 

At end of year (Note 25) 139,887,824 559,971 103,219,382 418,761 



NOTES TO THE FINANCIAL STATEMENTS 


1- Background Information 

Canadia Bank Plc. was incorporated in 1991 under a joint venture between the National Bank of 

Cambodia ("the Central Bank") and certain overseas Cambodians. On 4 February 1998, the Central Bank 

disposed of all its shares to private investors. 

In 2001, the Overseas Cambodian Investment Corporation ("OCIC"), a public limited company 

incorporated in the Kingdom of Cambodia, acquired 100% of the shares of the Bank and con 

sequently became the holding company of the Bank. 

During the year, OCIC conducted a corporate restructuring whereby it has transferred its investment in 

the Bank to Canadia Investment Holding Plc ("CIHP"), a newly established company. The restructuring 

was approved by the Central Bank and the Ministry of Commerce. Consequently, CIHP is now the new 

holding company of the Bank. 

The principal activities of the Bank comprise the operations of core banking business and the provision 

of related financial services through its head office and various branches in Phnom Penh and the 

provinces. The Bank holds a commercial banking license which was renewed for an indefinite period on 

18 October 2006. There have been no significant changes in the nature of these principal activities 

during the year. 

The registered office of the Bank is currently located at No. 265-269 Ang Duong Street, Phnom Penh, 

Kingdom of Cambodia. 

As at 31 December 2007, the Bank has 602 employees (31 December 2006: 460 employees). 

2- Summary of Significant Account Policies 

The significant accounting policies adopted in the preparation of these financial statements are set out 

below. These policies have been consistently applied to all the years presented, unless otherwise stated. 

2.1- Basis of preparation 

The financial statements have been prepared in accordance with the guidelines issued by the Central 

Bank and Cambodian Accounting Standards. The financial statements have been prepared under the 

historical cost convention, as modified by the revaluation of properties foreclosed. The accompanying 

financial statements are prepared for jurisdiction of Cambodia and are not intended to present the 

financial position, financial performance and cash flows in accordance with generally accepted 

accounting principles and practice in other countries and those who are not informed about Cambodia's 

accounting principles, procedures and practices. 

For the sole purpose of complying with Announcement No. B795-139-AN dated 5 December 1995 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 year ended 31 December 2007 using the official rate of exchange regulated by the Central 

Bank as at the reporting date, which was US$1 to Riel 4,003 (31 December 2006: US$1 to Riel 4,057). 

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- Summary of Significant Account Policies (Continued) 

2.2- Foreign currency transactions 

Items included in the financial statements of the Bank are measured using United States dollars (US$). 

The financial statements are presented in US$, a widely accepted currency in Cambodia. 

Transactions in currencies other than US$ are translated into US$ at the exchange rate prevailing at the 

date of transaction. Foreign exchange gains and losses resulting from the settlement of such transactions 

and from the translation at the year end exchange rate from monetary assets and liabilities denominated 

in currencies other than US$, are recognised in the income statement. 

The principal rates used to translate monetary assets and liabilities at the balance sheet date are: 


Khmer Riel RIEL 4,003 4,057 

Euro EUR 0.68 0.76 

Canadian dollars CAD 0.97 1.16 

Great British Pound GBP 0.50 0.51 

Hong Kong dollars HKD 7.69 7.69 

Japanese Yen JPY 100.00 125.00 

Thai Baht THB 40.00 40.00 

Australian dollars AUD 1.12 1.27 

2.3- Cash and cash equivalents 

Cash and cash equivalents includes cash on hand and deposits and placements with the Central Bank, 

other banks and other financial institutions with original maturities of three months or less. 

2.4- Statutory deposits with the Central Bank 

Statutory deposits represent mandatory reserve deposits and cash maintained with the Central Bank in 

compliance with the Law on Banking and Financial Institutions and are not available to finance the 

Bank's day-to-day operations. These statutory deposits are not considered as part of cash and cash 

equivalents for the purpose of the cash flow statement. 

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. Short term loans are those with a repayment 

date within one year of the date the loan was advanced. Long term loans are those with a final repayment 

date of more than one year of the date the loan was advanced. 

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 is required to follow the mandatory credit classification and provisioning as required by Prakas 

B7-02-145 dated 7 June 2002 issued by the Central Bank. The Prakas requires commercial banks to 

classify their loan portfolio into four classes and the mandatory level of specific provisioning is 

provided, depending on the classification concerned and regardless of the assets (except cash) pledged 

as collateral as following: 

Rate of provision 

Standard 0% 

Substandard 10% 

Doubtful 30% 

Loss 100% 

2.7- Foreclosed properties 

Foreclosed properties are carried at the lower of the outstanding balance of the related loan or advance 

and the estimated net realisable value of the property at the date of foreclosure. Gains/losses are 

recognised in the statement of income at the date of disposal. 

2.8- Investment in Foreign Trade Bank of Cambodia 

The Bank entered into a sale and purchase agreement on 28 October 2005 with the Privatisation 

Committee (acting on behalf of the Royal Government of Cambodia), to acquire 46% of the share 

capital of Foreign Trade Bank of Cambodia ("FTB"). This investment was recognised at cost and 

accounted for using the accounting for investments in accordance with the Cambodia Accounting 

Standard ("CAS") 25. The dividend income received from the investment in FTB is credited to the 

income statement. 

2.9- 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 guarantees. 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. 

2.10 -Interest Income and Expenses 

Interest earned on loans and advances to customers, deposits with the Central Bank and other banks are 

recognised on a daily accruals basis, except where serious doubt exists as to the collectibility of loans and 

advances to customers, 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 bad and doubtful debts. 

Interest expense on deposits of customer and settlement accounts of other banks and borrowings are 

recognised on a daily accruals basis. 

2.11- Fee and Commission Income 

Fee and commission income is generally recognised on an accruals basis when the service has been 

provided. Fee and commission income comprises income received from inward and outward bank 

transfers, bank guarantees, letters of credit, ATM/Visa and Mastercard charges. Loan commitment fees 

are deferred and recongised as other income in the income statement over the loan term. Unamortised 

loan commitment fees are presented as a deduction to loan.In previous reporting periods, loan 

commitment fees were recongised as income when incurred. No restatement of prior year's accounts 

was made as the amount was immaterial. 





2.12- Property and Equipment 

Property and equipment is stated at cost less accumulated depreciation, except freehold land which is 

not depreciated. Repairs and maintenance costs are charged to the income statement during the 

financial year in which they are incurred. The following rates and method of depreciation are used to 

allocate their cost to income statement: 

Buildings - straight-line 5% 

Renovations - straight-line 5% 

Motor vehicles - declining 25% 

Office equipment and furniture - declining 25% 

Computers and IT equipment - declining 50% 

2.13- Operating Lease 

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor 

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. 

2.14- Computer Software 

Acquired computer software licenses are capitalised on the basis of cost incurred to acquired the specific 

software and bring it to use. These costs are amortised over two-year period using declining balance 

method. Costs associated with developing or maintaining computer software programmes are 

recognised as an expense as incurred. 

2.15- Income Tax 

Income tax is calculated on the basis of taxable profit, which is calculated by adjusting the financial 

result for certain expense items in accordance with Cambodian regulations. Taxes other than on income 

are recorded within operating expenses. 

Deferred income tax will be provided in full, using the liability method, on temporary differences 

arising between tax bases of assets and liabilities and their carrying amounts in the financial statements. 

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be 

available against which the temporary differences can be utilised. 

2.16- Subordinated Debts 

Subordinated debts are treated as financial liabilities for financial reporting purpose and included as a 

Tier II line item in the calculation of the Bank's net worth in accordance with the guidelines of the 

Central Bank. Subordinated debts are interest-free with no fixed terms of repayment. 

2.17- Related Party Transactions 

Parties are considered to be related if one party has the ability to control the other party or can exercise 

significant influence over the other party in making financial and operating decisions. 

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 or voting rights and includes any individual 

who participates in the administration, direction, management or internal control of the Bank. 

Transactions with related parties and related account balances are disclosed in note 27 to the financial 

statements. 

2.18- Comparative Figures 

Certain comparative figures have been reclassified to conform with the current year's presentation of the 

financial statements. 




3. Balances with Central Bank 



(Unaudited) 

(Unaudited) 

Current accounts, non-interest bearing 8,601,000 34,430 7,735,124 31,381 

Term deposits, Interest bearing 25,000,000 100,075 19,000,000 77,083 

Statutory capital deposit, non-interest bearing 4,054,500 16,230 4,054,500 16,449 

Reserve deposits, non interest bearing 33,401,249 133,705 21,901,233 88,854 

71,056,749 284,440 52,690,857 213,767 

Term deposits with the Central Bank will mature within one month and earn interest at the rates 

ranging from 4.00% to 4.19% per annum (2006: 3.79% to 4.06% per annum). 

Under Prakas No. B7-01-136 dated 15 October 2001; the Bank is required to maintain a statutory 

deposit of 10% of its registered capital. This statutory deposit is interest bearing at 1/2 of the six-month 

period refinancing rate set by the Central Bank for statutory deposits maintained in Riel and 3/8 

six-month SIBOR rate for statutory deposits maintained in US$. 

Reserve accounts represent the minimum reserve requirement which is calculated at 8% of the total 

deposits from customers and settlement accounts of other banks. 

4- Balances with other banks and financial institutions 



(Unaudited) 

(Unaudited) 

In Cambodia: 

hhhCurrent accounts, non-interest bearing 740,862 2,966 427,210 1,733 

Outside Cambodia: 

hhhCurrent accounts 78,044,795 312,413 50,915,586 206,564 

hhhFixed deposits 1,000,000 4,003 4,656,072 18,890 

79,785,657 319,382 55,998,868 227,187 

Analysis by maturity: 

hhhWithin one month 78,785,657 315,379 51,342,796 208,297 

hhhOne to three months 1,000,000 4,003 4,656,072 18,890 

79,785,657 319,382 55,998,868 227,187 

Current accounts with banks outside Cambodia earn interest at the rate from 0% to 5.14% (2006: 0% to 

5.21%). Fixed deposits earn interest at 5% per annum (2006: 5% per annum). 




5- Loans and Advances to customers 



(Unaudited) 

(Unaudited) 

Commercial loans: 

nnnOverdrafts 79,924,839 319,939 57,814,259 234,552 

nnnShort term loans 134,021,723 536,489 82,428,900 334,414 

nnnLong term loans 87,452,221 350,071 51,307,270 208,153 

nnnMicro-financing loans 147,507 590 145,398 592 

301,546,290 1,207,089 191,695,827 777,711 

Consumer loans: 

nnnMortgage loans 43,778,017 175,243 25,215,490 102,299 

nnnCredit cards 1,028,354 4,117 530,043 2,150 

nnnOther consumer loans 385,501 1,544 - - 

45,191,872 180,904 25,745,533 104,449 

Total loans (gross) 346,738,162 1,387,993 217,441,360 882,160 

Provisions for loan losses - specific (*) (13,176,166) (52,744) (12,033,815) (48,822) 

Unamortised loan commitment fees (1,158,006) (4,636) - - 

(*) Movements on the provisions for loan losses are as follows: 

332,403,990 1,330,613 205,407,545 833,338 



(Unaudited) 

(Unaudited) 

At beginning of the year 12,033,815 48,171 9,856,220 39,987 

nnnExchange differences 2,235 9 1,962 8 

nnnCharges for the year 16,772,419 67,140 8,719,679 35,376 

nnnAmount written off (560) (2) (78,902) (320) 

nnnRecovery during the year (15,631,743) (62,574) (6,465,144) (26,229) 

At end of the year 13,176,166 52,744 12,033,815 48,822 

Further classification of loans and advances to customers (gross) is as follows: 



(Unaudited) 

(Unaudited) 

Standard loans: 

nnn- Secured 322,512,095 1,291,016 178,366,178 723,632 

nnn- Unsecured 432,311 1,731 557,837 2,263 

Substandard loans: 

nnn- Secured 6,824,523 27,319 15,054,774 61,077 

nnn- Unsecured - - - - 

Doubtful loans: 

nnn- Secured 6,393,600 25,593 18,471,762 74,939 


Loss loans: 

nnn- Secured 10,575,633 42,334 4,990,809 20,249 


346,738,162 1,387,993 217,441,360 882,160 




5- Loans and Advances to customers (Continued) 

Further analysis of the above loans and advances to customers (gross) is provided below: 



(Unaudited) 

(Unaudited) 

(a) Analysis by maturity 

nnn1 - 3 months 6,938,627 27,775 2,851,888 11,570 

nnn4 - 6 months 8,251,982 33,033 1,728,232 7,011 

nnn7 - 12 months 192,375,703 770,080 126,829,723 514,548 

nnnOver 1 year but within 3 years 87,303,867 349,477 55,640,688 225,735 

nnnOver 3 years but within 5 years 12,594,433 50,415 9,533,679 38,678 

nnnOver 5 years 39,273,550 157,213 20,857,150 84,618 

346,738,162 1,387,993 217,441,360 882,160 

(b) Analysis by currency 

nnnUS Dollar 345,465,486 1,382,898 215,609,730 874,729 

nnnKhmer Riel 147,508 591 247,590 1,004 

nnnThai Baht 1,125,168 4,504 1,584,040 6,427 

346,738,162 1,387,993 217,441,360 882,160 

(c) Analysis by residence 

nnnResidents 346,738,162 1,387,993 217,441,360 882,160 

346,738,162 1,387,993 217,441,360 882,160 

(d) Analysis by relationship 

nnnNon-related parties 346,502,898 1,387,051 217,422,159 882,082 

nnnRelated parties 235,264 942 19,201 78 

346,738,162 1,387,993 217,441,360 882,160 

(e) Analysis by industry 

nnnManufacturing 32,429,041 129,813 17,392,828 70,563 

nnnBuilding and construction 87,297,636 349,452 56,645,481 229,811 

nnnMortgage 43,782,506 175,261 25,215,490 102,299 

nnnWholesale and retail 70,570,455 282,494 33,971,257 137,821 

nnnImport and export 13,850,276 55,443 6,391,476 25,930 

nnnTransportation, storage and communication 11,293,512 45,208 5,307,483 21,532 

nnnServices 75,747,889 303,219 66,310,152 269,020 

nnnAgriculture 4,220,175 16,893 2,192,795 8,898 

nnnProfessional and private individuals 1,028,354 4,117 553,236 2,244 

nnnOthers 6,518,318 26,093 3,461,162 14,042 

346,738,162 1,387,993 217,441,360 882,160 




5- Loans and Advances to customers (Continued) 

(f) Interest rates 

The annual interest rates that applied during the year are as follows: 


Overdrafts 6% - 18% 6% - 18% 

Short term loans 7.2% - 21.6% 6.0% - 24% 

Long term loans 7.2% - 16.8% 7.2% - 18.0% 

Venture capital loans 5%-6.5% 4%-6% 

Micro-financing loans 12% - 21.6% 12% - 21.6% 

Mortgage loans 7.2% - 12% 7.2% - 18% 

Credit card facilities 18% - 22% 18% - 22% 

6- Other Assets 



(Unaudited) 

(Unaudited) 

Deposits with companies outside Cambodia 234,890 940 259,066 1,051 

Accrued interest receivable 1,475,025 5,905 729,654 2,960 

Prepaid expenses 44,663 179 46,095 187 

Advances to constructors - - 728,226 2,954 

Other advances 734,152 2,939 564,005 2,288 

Travelers cheques purchased 36,517 146 135,028 548 

Guarantee deposits for MasterCard and Visa 940,119 3,763 900,878 3,655 

Foreclosed property receivable 900,000 3,603 - - 

Other debtors 1,488,164 5,957 246,682 1,001 

7- Investment in Foreign Trade Bank Of Cambodia 

5,853,530 23,432 3,609,634 14,644 

On 28 October 2005, the Bank entered into a sale and purchase agreement with the Privatisation 

Committee (acting on behalf of the Royal Government of Cambodia), to acquire 46% of the share 

capital of Foreign Trade Bank of Cambodia ("FTB") for a consideration of US$ 10,580,000. 




8. Property and Equipment 

Assets 

Computer 

Freehold under Furniture Office and IT 

land Building construction and fixtures equipment equipment Vehicles Total 

US$ US$ US$ US$ US$ US$ US$ US$ 

At 1 January 2006 

Cost 4,114,764 2,914,195 978,010 267,672 1,272,810 1,234,706 871,121 11,653,278 

Accumulated depreciation - (988,954) - (210,945) (1,130,404) (832,197) (455,506) (3,618,006) 

Net book amount 4,114,764 1,925,241 978,010 56,727 142,406 402,509 415,615 8,035,272 

Year ended 31 December 2006 

Opening net book amount 4,114,764 1,925,241 978,010 56,727 142,406 402,509 415,615 8,035,272 

Additions 100,900 26,515 3,119,193 61,590 158,005 85,494 86,600 3,638,297 

Disposals/transfers (730,874) - - - (495) - (25,571) (756,940) 

Depreciation charge - (146,153) - (18,659) (60,122) (221,300) (106,588) (552,822) 

Closing net book value 3,484,790 1,805,603 4,097,203 99,658 239,794 266,703 370,056 10,363,807 

At 31 December 2006 

Cost 3,484,790 2,940,710 4,097,203 244,960 642,211 1,080,852 925,921 13,416,647 

Accumulated depreciation - (1,135,107) - (145,302) (402,417) (814,149) (555,865) (3,052,840) 

Net book amount 3,484,790 1,805,603 4,097,203 99,658 239,794 266,703 370,056 10,363,807 

In million Riel (unaudited) 14,138 7,325 16,622 404 973 1,082 1,502 42,046 

Year ended 31 December 2007 

Opening net book amount 3,484,790 1,805,603 4,097,203 99,658 239,794 266,703 370,056 10,363,807 

Additions 360,000 322,691 7,583,811 170,844 374,665 777,914 489,483 10,079,408 

Disposals - net - - - (2,025) (1,148) - (85,599) (88,772) 

Depreciation charge - (150,122) - (38,397) (100,998) (297,587) (123,445) (710,549) 

Closing net book value 3,844,790 1,978,172 11,681,014 230,080 512,313 747,030 650,495 19,643,894 

At 31 December 2007 

Cost 3,844,790 3,261,401 11,681,014 413,330 1,008,039 1,733,515 1,314,813 23,258,902 

Accumulated depreciation - (1,285,229) - (183,250) (495,726) (986,485) (664,318) (3,615,008) 

Net book amount 3,844,790 1,978,172 11,681,014 230,080 512,313 747,030 650,495 19,643,894 

In million Riel (Unaudited) 15,391 7,919 46,759 921 2,051 2,989 2,604 78,634 




9- Computer Software 

Work in 

Software progress Total 

US$ US$ US$ 

At 1 January 2006 

Cost 478,251 - 478,251 

Accumulated amortisation (296,850) - (296,850) 

Net book amount 181,401 - 181,401 

Year ended 31 December 2006 

Opening net book amount 181,401 - 181,401 

Additions 7,144 - 7,144 

Allocations (14) - (14) 

Amortisation charge (89,009) - (89,009) 

Closing net book amount 99,522 - 99,522 

At 31 December 2006 

Cost 485,395 - 485,395 


Net book amount 99,522 - 99,522 

In million Riel equivalents (unaudited) 404 - 404 

Year ended 31 December 2007 

Opening net book amount 99,522 - 99,522 

Additions 106,483 1,055,625 1,162,108 

Amortisation charge (89,355) - (89,355) 

Closing net book amount 116,650 1,055,625 1,172,275 

At 31 December 2007 

Cost 591,878 1,055,625 1,647,503 


Net book amount 116,650 1,055,625 1,172,275 

In million Riel equivalents (unaudited) 467 4,226 4,693 

10- Properties Foreclosed 

These represent the collaterals held for loans which are in default and have been foreclosed in the 

ordinary course of banking operations. Foreclosed properties are accounted for in accordance with note 

2.7. These assets are not held for operational purposes and will be disposed of in order to recover the 

outstanding amount within the maximum allowable period of twelve months as per the guidelines issued 

by the Central Bank. 




11- Deposits and Balances of other banks 



(Unaudited) 

(Unaudited) 

Current accounts 3,996,884 16,000 2,361,292 9,580 

Saving accounts 2,742,520 10,978 1,511,317 6,131 

6,739,404 26,978 3,872,609 15,711 

Current accounts are non interest bearing. Saving accounts of other banks earn interest rate at 0.75% 

per annum (2006: 0.75% per annum). 

12- Deposits from Non-Bank Customers 



(Unaudited) 

(Unaudited) 

(a) Analysis by category 

nnnCurrent accounts 29,873,554 119,584 17,895,055 72,600 

nnnSaving accounts 255,969,220 1,024,645 142,029,873 576,215 

nnnFixed deposits 165,151,846 661,103 128,033,027 519,430 

nnnMargin deposits 575,443 2,303 1,500,504 6,088 

451,570,063 1,807,635 289,458,459 1,174,333 

Margin deposits represent the aggregate balance of required non-interest bearing cash deposits from 

customers for letters of credit and guarantee outstanding at year end (note 26) 



(Unaudited) 

(Unaudited) 

(b) Analysis by maturity 

nnnWithin 1 month 285,842,774 1,144,229 162,227,805 658,158 

nnn1 to 3 months 28,957,230 115,916 47,392,359 192,271 

nnn4 to 6 months 20,805,476 83,284 20,830,920 84,511 

nnn7 to 12 months 35,514,774 142,166 46,057,776 186,856 

nnnOver 1 year but within 3 years 80,449,809 322,040 12,949,599 52,537 

451,570,063 1,807,635 289,458,459 1,174,333 




12- Deposits from Non-Bank Customers (Continued) 



(Unaudited) 

(Unaudited) 

(c) Analysis by resident status 

nnnResidents 447,114,874 1,789,801 286,172,351 1,161,001 

nnnNon-residents 4,455,189 17,834 3,286,108 13,332 

451,570,063 1,807,635 289,458,459 1,174,333 

(d) Analysis by relationship 

nnnRelated parties 514,751 2,061 646,302 2,622 

nnnExternal customers 451,055,312 1,805,574 288,812,157 1,171,711 

451,570,063 1,807,635 289,458,459 1,174,333 

(e) Analysis by currency 

nnnUS dollar 445,153,522 1,781,950 282,835,562 1,147,463 

nnnKhmer riel 4,282,805 17,144 4,766,953 19,340 

nnnThai baht 2,022,745 8,097 1,614,990 6,552 

nnnGold 110,991 444 240,954 978 

451,570,063 1,807,635 289,458,459 1,174,333 

(f) Analysis by customer 

nnnGovernment and state enterprises 17,890,792 71,617 18,672,525 75,754 

nnnBusiness enterprises 168,892,526 676,077 90,118,252 365,610 

nnnOther financial institutions 170,582 683 - - 

nnnIndividuals 253,650,445 1,015,363 173,682,961 704,632 

nnnNot-for-profit organisations 5,733,000 22,949 2,730,421 11,077 

nnnOther 5,232,718 20,946 4,254,300 17,260 

(g) Interest rates 

451,570,063 1,807,635 289,458,459 1,174,333 

The current accounts and margin deposits are not interest bearing. The saving and fixed deposits bear 

the following interest rates per annum: 


nnnSaving deposits 0.75 - 2.00 0.75 - 2.00 

nnnFixed deposits 3.00 - 9.60 3.00 - 6.50 




13- Current Tax Liabilities 



(Unaudited) 

(Unaudited) 

Balance at beginning of the year 2,786,518 11,154 1,258,013 5,104 

Charge for the year 5,028,697 20,130 3,164,356 12,838 

Income tax paid during the year (3,394,072) (13,586) (1,635,851) (6,637) 

4,421,143 17,698 2,786,518 11,305 

Provision for income tax is calculated by applying accounting net income before tax to the corporate tax 

rate. No effect has been taken into account on items deemed not deductible by the Law on Taxation. 

The Bank has obtained tax clearance up to the fiscal year 2004. The remaining tax years are currently 

being reassessed by the Tax Department and accordingly its tax for these years are not considered final. 

The outcome of a tax audit cannot, at present be determined. 

14- Other Liabilities 



(Unaudited) 

(Unaudited) 

Accrued interest payable 3,641,960 14,579 2,523,841 10,239 

Provision for L/C claim - - 862,360 3,499 

Suspense account remittance - - 192,767 782 

Tax payable 100,716 403 67,731 275 

Accounts payable 42,288 169 5,079 21 

Accrued expense 152,697 611 107,516 436 

Amount due to MasterCard International 538,050 2,154 333,059 1,351 

Staff bonus payable 251,658 1,007 185,324 752 

Other liabilities 416,297 1,667 246,755 1,001 

5,143,666 20,590 4,524,432 18,356 

15- Borrowings 



(Unaudited) 

(Unaudited) 

Borrowed funds from IFC - - 2,500,000 10,143 

Borrowed funds from KfW through MoEF 4,379,241 17,530 4,806,669 19,500 

4,379,241 17,530 7,306,669 29,643 




15- Borrowings (Continued) 

The US$2,500,000 borrowed from the International Finance Corporation ("IFC") was the result of a 

Loan Agreement between the Bank and the IFC dated 20 September 2004 whereby IFC agreed to lend 

the Bank US$2,500,000 to be loaned out to eligible sub-borrowers to finance acquisition of residential 

property in Cambodia. On 22 January 2007, the Bank fully settled IFC's loan. 

The US$4,592,955 borrowed from KfW through the Ministry of Economy and Finance ("MoEF") is 

the result of loan and finance agreements between the Bank, KfW and MoEF dated 23 April 2003 for 

SME term-lending I and dated 18 October 2005 for SME term-lending II. The agreements stipulate that 

the funds borrowed from KfW, through MoEF shall be sub-lent to Small and Medium Enterprises 

("SME") to build SME capacity in Cambodia. The sub-loans are classified as an asset of the Bank. 

During the year, the Bank repaid US$427,428 to MoEF. 

The interest rates during the year were as follows: 


IFC 8.67% - 9.36% 6.67% - 8.67% 

KfW 5.01% - 6.00% 4.34% - 4.88% 

16- Subordinated debt 

On 28 October 2005, the Bank entered into an agreement with Mr Pung Kheav Se (a main shareholder 

of the Bank through CIHP) to provide the Bank with a subordinated loan of US$ 7,080,000 for the purpose 

of acquiring shares in the Foreign Trade Bank of Cambodia. This subordinated debt is interest free 

with no fixed terms of repayment. This subordinated debt was approved in principle by the Central Bank 

on 28 December 2005. 

This subordinated debt is treated as a liability for financial reporting purpose and included as capital Tier 

II for the Bank's Net Worth calculation in accordance with Guidelines of the Central Bank. 

17- Share Capital 



(Unaudited) 

(Unaudited) 

Canadia Investment Holding Plc (CIHP) 40,545,000 162,302 - - 

Overseas Cambodian Investment 

nnnCorporation (OCIC) - - 40,545,000 164,491 

40,545,000 162,302 40,545,000 164,491 




17- Share Capital (Continued) 

During the year, OCIC conducted a corporate restructuring whereby it has transferred its investment in 

the Bank to Canadia Investment Holding Plc ("CIHP"), a newly established company. The restructuring 

was approved by the Central Bank and the Ministry of Commerce. Consequently, CIHP is now the 

new holding company of the Bank. 

The total authorised amount of share capital as at 31 December 2007 was 40,545,000 shares (2006: 

40,545,000 shares) with a par value of US$ 1 per share. 



(Unaudited) 

(Unaudited) 

At beginning of the year 40,545,000 162,302 26,000,000 105,482 

Increase during the year - - 4,000,000 16,228 

Dividends paid and re-invested - - 10,545,000 42,781 

At end of the year 40,545,000 162,302 40,545,000 164,491 

On both 29 April 2006 and 26 June 2006, the Board of Director approved a US$2 million increase in 

paid up capital through the issuance of 2,000,000 ordinary shares at a par value of US$1 per share 

resulting in an overall increase in paid up capital of US$4 million. 

A directors resolution was passed on 12 June 2006 which specified that the US$10,545,000 declared as 

a dividend was to be reinvested in the share capital of the Bank. 

The capital increase in aggregate of US$14,545,000 was approved by the Central Bank on 21 July 2006. 

18- Interest Income 



(Unaudited) 

(Unaudited) 

Loans and advances to customers 31,713,930 126,952 21,697,042 88,025 

Placements with banks 3,478,277 13,923 2,843,760 11,537 

Placements with the Central Bank 1,222,377 4,893 809,688 3,285 

19-Interest Expense 

36,414,584 145,768 25,350,490 102,847 



(Unaudited) 

(Unaudited) 

Deposits from customers 9,101,653 36,434 5,890,144 23,896 

Borrowings - KfW and IFC 266,088 1,065 414,674 1,683 

9,367,74 137,499 6,304,818 25,579 




20- Fee and Commission Income 



(Unaudited) 

(Unaudited) 

Commissions from remittance Service 1,789,023 7,161 1,366,507 5,544 

Loan commitment fees 1,326,735 5,311 745,001 3,022 

Fees for telex, fax and phone 436,734 1,748 592,003 2,402 

Other fees and commissions 807,485 3,232 528,296 2,143 

Income from letters of credit 204,336 818 221,086 897 

Miscellaneous loan fees and service charges 727,905 2,914 537,135 2,179 

Fees for credit card advances and late charge 109,623 439 181,743 738 

ATM/Credit card annual fees 121,811 488 231,752 940 

21- General Administrative Expense 

5,523,652 22,111 4,403,523 17,865 



(Unaudited) 

(Unaudited) 

Payroll and other staff cost 3,373,229 13,503 2,720,967 11,039 

Depreciation and amortisation expenses 799,904 3,202 654,359 2,655 

Repair and maintenance 92,252 369 86,333 350 

Building rental 166,020 664 135,440 549 

Utilities 237,128 949 200,568 814 

Loss on foreign exchange currency 309,098 1,237 504,547 2,047 

Charitable donations and gifts 523,824 2,097 304,276 1,234 

Travel, accommodation and food 249,106 997 274,478 1,114 

Advertising and public relations 337,173 1,350 217,578 883 

Legal and professional fees 172,122 689 177,933 722 

Taxes and duties 272,510 1,091 164,344 667 

Communication 229,280 918 152,791 620 

Motor vehicles 96,460 386 79,453 322 

Furniture, fixture and equipment expenses 42,456 170 5,251 21 

Stationery and supplies 32,639 131 71,162 289 

Printing and forms 58,878 236 31,758 129 

Insurance 18,672 75 17,808 72 

Loss on disposal of property and equipment 235 1 21,431 87 

Other operational costs 438,212 1,754 493,474 2,002 

7,449,198 29,819 6,313,951 25,616 




22- Provision For Loan Losses - NET 



(Unaudited) 

(Unaudited) 

Provision for loan losses (16,772,419) (67,140) (8,719,679) (35,375) 

Recovery of loan losses 15,631,743 62,574 6,465,144 26,229 

23- Income Tax Expense 

a)- Income tax expense 

(1,140,676) (4,566) (2,254,535) (9,146) 



(Unaudited) 

(Unaudited) 

Current 4,421,143 17,698 2,786,518 11,305 

Deferred tax - - - - 

4,421,143 17,698 2,786,518 11,305 

In accordance with Cambodian tax laws, 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 Minimum Tax at 1% of 

turnover inclusive of all taxes except Value Added Tax. 

b)- Reconciliation between income tax expense and accounting profit: 



(Unaudited) 

(Unaudited) 

Accounting profit before income tax 25,143,485 100,649 15,681,051 63,618 

Non-deductible expenses for tax purposes - - 140,730 571 

Taxable income 25,143,485 100,649 15,821,781 64,189 

Income tax calculated at the rate of 20% 5,028,697 20,130 3,164,356 12,838 

c)- Other tax matter 

The Bank's tax returns are subject to periodic examination by the Tax Department. 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 determination by the Tax Department. 




24- Cash Used in Operation 



(Unaudited) 

(Unaudited) 

Cash flows from operating activities 

Profit before income tax 25,143,485 100,649 15,681,051 63,618 

Adjustments for: 

nProvision for loan losses - net 1,140,676 4,566 2,254,535 9,146 

nDepreciation and amortisation 799,904 3,202 654,358 2,655 

nGain on disposals of property and equipment (1,373) (5) 21,481 87 

Operating profit before changes in 

nworking capital 27,082,692 108,412 18,611,425 75,506 

Increase/(decrease) in cash attributable 

nto the change in operating assets and 

nliabilities: 

nPayment to the Board of Directors - - (40,000) (161) 

nDeposits and placements with banks 3,656,072 14,635 (2,156,072) (8,747) 

nLoans and advances to customers, net (128,137,122) (517,568) (49,930,573) (202,568) 

nOther assets (2,243,895) (8,982) (674,547) (2,737) 

nForeclosed properties (314,051) (1,257) (1,391,486) (5,645) 

nDeposits and balances from banks 2,866,795 11,476 1,038,955 4,215 

nDeposits from non-bank customers 162,111,604 648,933 54,611,643 221,559 

nOther liabilities 619,234 7,114 (1,157,158) (4,702) 

Cash generated from operations 65,641,330 262,763 18,912,187 76,720 

25- Cash and Cash Equivalents 



(Unaudited) 

(Unaudited) 

Cash on hand 27,501,167 110,087 25,141,461 101,999 

Deposits and placements with the 

Central Bank 33,601,000 134,505 26,735,124 108,464 

Deposits and placements with banks 78,785,657 315,379 51,342,797 208,298 

139,887,824 559,971 103,219,382 418,761 




26- Commitments and Contingencies 

(i) Loan commitment, guarantee and other financial liabilities 

At 31 December 2007 and 2006, 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: 



(Unaudited) 

(Unaudited) 

Documentary credits 6,926,989 27,741 2,637,587 10,701 

Bankers' acceptance 3,286,418 13,156 2,020,180 8,196 

Performance and bankers' guarantees 759,482 3,040 855,779 3,472 

Tender bonds - - 51,901 211 

Unused portion of approved credit facilities 39,748,989 159,115 25,502,232 103,463 

Other 108,190 433 102,007 414 

No material losses are anticipated as a result of these transactions. 

(ii) Lease commitments 

50,833,068 203,485 31,169,686 126,457 

Where the Bank is the lessee, the future minimum lease payments under non-cancelable operating leases 

of its branches in Phnom Penh and provinces are as follows: 



(Unaudited) 

(Unaudited) 

Not later than one year 176,080 705 129,600 526 

Later than one year and not later than three years 294,580 1,179 326,380 1,324 

Over three years 2,446,352 9,793 2,574,372 10,444 

2,917,012 11,677 3,030,352 12,294 




26- Commitments and Contingencies (Continued) 

(iii) Capital commitments 

At 31 December 2007, the Bank had capital commitments in respect of new office buildings, new core 

banking software and other related services. 



Authorised and contracted for: (Unaudited) (Unaudited) 

Not later than one year 1,425,464 5,706 1,777,650 7,212 

Later than one year and not later than three years 559,753 2,241 2,281,185 9,254 

1,985,217 7,947 4,058,835 16,466 

The estimated total capital expenditures of the Bank's new head office building are approximately 

US$18.7 million of which costs incurred and capitalised under the property and equipment to date is 

US$11.7 million. Out of the US$7 million of outstanding capital expenditure, an amount of US$1.9 

million has been contracted for. 

27- Related Party Balance and Transactions 

The Bank is controlled by Canadia Investment Holding Plc (2006: Overseas Cambodian Investment 

Corporation) which owns 100% the Bank's share. 

The following transactions were carried out with related party: 

(a) Loans and advances to directors and key management 



Authorised and contracted for: (Unaudited) (Unaudited) 

Loans and advances to directors and key management 

Beginning of year 19,201 77 - - 

Loans advanced during the year 223,673 895 185,227 751 

Loan repayments received 7,610 30 1,026 4 

Interest received 13,858 56 787 3 

End of the year 235,264 942 187,040 758 

The loans to directors and key management carry interest ranging from 10% to 12% (2006: 10% to 12%). 




27- Related Party Balances and Transactions (Continued) 

(b) Deposits with related parties 



(Unaudited) 

(Unaudited) 

Deposits with FTB 188,582 755 172,537 700 

The Bank has correspondence account with FTB. This account is non-interest bearing. 

(c) Deposits from related parties 



(Unaudited) 

(Unaudited) 

Saving deposits from 

Canadia Investment Holding Plc 66,413 266 153,729 624 

Directors and key management 448,338 1,795 492,573 1,998 

514,751 2,061 646,302 2,622 

Interest paid 3,307 13 1,881 8 

The saving deposits from Canadia Investment Holding Plc, directors and key management bear 

interest at 0.75% (2006: 0.75%). 

(d) Borrowings 



(Unaudited) 

(Unaudited) 

Loans from directors, interest free - - 185,227 751 

Subordinated debt from Mr Pung Keav Se 7,080,000 28,341 7,080,000 28,724 

7,080,000 28,341 7,265,227 29,475 

The subordinate debt is interest free with no fixed term of repayment. This subordinate debt was 

to finance the acquisition of FTB. The proceed from the future disposal of FTB's shares is to pay 

back this subordinate debt. 

(e) Key management compensation 



(Unaudited) 

(Unaudited) 

Salaries and short term benefits 383,725 1,536 108,335 440 

(f) Other 



(Unaudited) 

(Unaudited) 

Rental income 1,200 5 1,200 5 

The Bank provides office space to CIH 




28- Financial Risk Management 

(a)- Credit risk 

The Bank assumes exposure to credit risk which is the risk that a counterparty will be unable to pay 

amounts in full when due. The Bank structures the levels of credit risk it undertakes by placing limits on 

the amount of risk accepted in relation to one borrower, or group of borrowers, and the geographical 

and industry segments. Procedures of risk limit setting, monitoring, usage, and control are governed by 

internal regulations. Such risks are monitored on a regular basis. 

Exposure to credit risk is managed through regular analysis of the ability of the borrowers and 

potential borrowers to meet interest and capital repayment obligations and reviewing these lending 

limits where appropriate. Exposure to credit risk is also managed in part by obtaining collateral and 

corporate or personal guarantees as well as by providing for loan losses. 

Commitments to extend credit represent unused portions of approved loans, guarantees or letters of 

credit. In general, all of the Bank's guarantees and letters of credit are collateralised with cash deposits 

or collateral pledged to the Bank, and accordingly the Bank normally assumes minimal risks. 

(b)- Market risk 

(i)-Interest rate risk 

Cash flow interest rate risk is the risk that future cash flows of a financial instrument will 

fluctuate because of changes in market interest rates. Interest margins may increase as a result 

of such changes but may reduce or create losses in the event that unexpected movements arise. 

The Bank's interest rates are generally fixed on a short term basis. Interest rates that are contrac 

tually fixed on both assets and liabilities are often renegotiated to reflect current market conditions. 

The management is satisfied that the Bank's position is such that exposure to movements 

in interest rates is minimised. 

The table in note 29-1 summarises the Bank's exposure to interest rate risks. Included in the table 

are the Bank's assets and liabilities at carrying amounts, categorised by the earlier of contractual 

re-pricing or maturity dates. 

(ii)- Foreign currency exchange risk 

Foreign currency exchange risk refers to the adverse exchange rate movements on foreign 

currency exchange positions taken from time to time. 

The Bank has no material exposure to currency risk as it transacts essentially in US$. Significant 

presence of US$ is the normalpractice of banks operating in Cambodia. 

(c)-Liquidity risk 

Liquidity risk is defined as the risk when the maturity of assets and liabilities do not match. Liquidity risk 

management at the Bank is performed on the basis of measuring liquidity surplus/deficit and liquidity 

ratios that are calculated using scenario analysis. 

The matching and/or controlled mismatching of the maturities and interest rates of assets and liabilities 

is fundamental to the management of the Bank. It is unusual for banks ever to be completely 

matched since business transactions are often of an uncertain term and of different types. 

An unmatched position potentially enhances profitability, but can also increase the risk of losses. 

The table in note 29-2 analyses the assets and liabilities of the Bank into relevant maturity based on the 

remaining period at the balance sheet date to the contractual or estimated maturity dates. 




29- Interest Rate, Liquidity, Currency and Credit Risks 

29.1 Interest Rate risk 

Up to 1-3 4-6 7-12 1 to 5 Over 5 Non-interest 

1 month months months months years years bearing Total 


As at 31 December 2007 

Assets 

Cash on hand - - - - - - 27,501,166 27,501,166 

Balances with the 

Central Bank 25,000,000 - - - - 4,054,500 42,002,249 71,056,749 

Balances with other banks 

and financial institutions 69,789,926 1,000,000 - - - - 8,995,731 79,785,657 

Loan and advances to 

customers - net 1,083,354 5,855,272 8,251,982 189,351,329 97,957,720 31,062,339 (1,158,006) 332,403,990 

Other assets - - - - - 1,175,009 4,678,521 5,853,530 

Investment in FTB - - - - - - 10,580,000 10,580,000 

Properties foreclosed - - - - - - 4,512,741 4,512,741 

Total assets 95,873,280 6,855,272 8,251,982 189,351,329 97,957,720 36,291,848 97,112,402 531,693,833 

Liabilities 

Deposits and balances of 

banks 2,742,520 - - - - - 3,996,884 6,739,404 

Deposits from non-bank 

customers 255,969,220 28,957,230 20,805,476 35,514,774 80,449,809 - 29,873,554 451,570,063 

Current tax liabilities - - - - - - 4,421,143 4,421,143 

Other liabilities - - - - - - 5,143,666 5,143,666 

Other borrowings - 213,714 - 213,714 3,951,813 - - 4,379,241 

Subordinated debt - - - - 7,080,000 - - 7,080,000 

Total liabilities 258,711,740 29,170,944 20,805,476 35,728,488 91,481,622 - 43,435,247 479,333,517 

Interest sensitivity gap (162,838,460) (22,315,672) (12,553,494) 153,622,841 6,476,098 36,291,848 53,677,155 52,360,316 

In million Riel equivalents 

(Unaudited) (651,842) (89,330) (50,252) 614,952 25,924 145,276 214,870 209,598 




29- INTEREST RATE, LIQUIDITY, CURRENCY AND CREDIT RISKS (continued) 

29.1 Interest rate risk (continued) 

Up to 1-3 4-6 7-12 1 to 5 Over 5 Non-interest 

1 month months months months years years bearing Total 


As at 31 December 2006 

Assets 

Cash on hand - - - - - - 25,141,461 25,141,461 

Balances with the Central 

Bank 19,000,000 - - - 4,054,500 - 29,636,357 52,690,857 


and financial institutions 51,342,796 4,656,072 - - - - - 55,998,868 


customers- net 2,851,887 1,728,232 120,388,519 60,795,307 19,643,600 - - 205,407,545 

Other assets - - - - - 1,711,565 1,898,069 3,609,634 


Properties foreclosed - - - - - - 4,198,690 4,198,690 

Total assets 73,194,683 6,384,304 120,388,519 60,795,307 23,698,100 1,711,565 71,454,577 357,627,055 

Liabilities 

Deposits and balances of 

other banks 1,511,316 - - - - - 2,361,293 3,872,609 


customers 146,000,954 47,392,359 20,830,920 46,057,776 12,949,599 - 16,226,851 289,458,459 

Current tax liabilities - - - - - - 2,786,518 2,786,518 

Other liabilities - - - - - - 4,524,432 4,524,432 

Other borrowings 2,500,000 213,714 - 213,714 3,524,383 854,858 - 7,306,669 

Subordinate debt - - - - 7,080,000 - - 7,080,000 

Total liabilities 150,012,270 47,606,073 20,830,920 46,271,490 23,553,982 854,858 25,899,094 315,028,687 

Interest sensitivity gap (76,817,587) (41,221,769) 99,557,599 14,523,817 144,118 856,707 45,555,483 42,598,368 

In Riel Million equivalent 

(Unaudited) (311,649) (167,237) 403,905 58,923 585 3,476 184,818 172,822 




29- Interest Rate, Liquidity, Currency and Credit Risks (Continued) 

29.2 Liquidity risk 

Up to 1-3 4-6 7-12 1 to 5 Over 5 No Fixed 

1 month months months months years years maturity date Total 


As at 31 DECEMBER 2007 

Assets 

Cash on hand 27,501,166 - - - - - - 27,501,166 

Balances with Central Bank 33,601,000 - - - - - 37,455,749 71,056,749 


and financial institutions 78,785,657 1,000,000 - - - - - 79,785,657 


customers - net 903,875 5,548,506 7,871,659 189,059,891 97,957,720 31,062,339 - 332,403,990 

Other assets 4,678,521 - - - - - 1,175,009 5,853,530 


Properties foreclosed - 4,512,741 - - - - - 4,512,741 

Total assets 145,470,219 11,061,247 7,871,659 189,059,891 97,957,720 31,062,339 49,210,758 531,693,833 

Liabilities 

Deposits and balances 

of banks 6,739,404 - - - - - - 6,739,404 

Deposits from nonbank 

customers 285,842,774 28,957,230 20,805,476 35,514,774 80,340,309 109,500 - 451,570,063 

Current tax liabilities - 4,421,143 - - - - - 4,421,143 

Other liabilities 4,403,921 739,745 - - - - - 5,143,666 

Other borrowings - 213,714 - 213,714 3,951,813 - - 4,379,241 


Total liabilities 296,986,099 34,331,832 20,805,476 35,728,488 91,372,122 109,500 - 479,333,517 

Net liquidity surplus 

/ (gap) (151,515,880) (23,270,585) (12,993,817) 153,331,403 6,585,598 30,952,839 49,210,758 52,360,316 


(Unaudited) (606,518) (93,152) (51,774) 613,785 26,362 123,904 196,991 209,598 





29.2 Liquidity risk (Continued) 

Up to 1-3 4-6 7-12 1 to 5 Over 5 No Fixed 

1 month months months months years years maturity date Total 


As at 31 December 2006 

Assets 

Cash on hand 25,141,461 - - - - - - 25,141,461 

Balances with Central Bank 26,735,124 - - - - - 25,955,733 52,690,857 


and financial institutions 51,342,796 4,656,072 - - - - - 55,998,868 


customers 2,851,888 1,728,232 120,388,518 60,795,307 19,643,600 - - 205,407,545 

Other assets 1,169,843 - - 728,226 - - 1,711,565 3,609,634 


Properties foreclosed - - - 4,198,690 - - - 4,198,690 

Total assets 107,241,112 6,384,304 120,388,518 65,722,223 19,643,600 - 38,247,298 357,627,055 

Liabilities 

Deposits and balances 

of banks 3,872,609 - - - - - - 3,872,609 


customers 162,227,805 47,392,359 20,830,920 46,057,776 12,949,599 - - 289,458,459 

Current tax liabilities - 2,786,518 - - - - - 2,786,518 

Other liabilities 4,524,432 - - - - - - 4,524,432 

Other borrowings 2,500,000 - - - - 4,806,669 - 7,306,669 


Total liabilities 173,124,846 50,178,877 20,830,920 46,057,776 20,029,599 (4,806,669) - 315,028,687 

Net liquidity surplus 

/ (gap) (65,883,734) (43,794,573) 99,557,598 19,664,447 (385,999) (4,806,669) 38,247,298 42,598,368 

In Riel Million equivalent 

(Unaudited) (267,290) (177,675) 403,906 79,779 (1,566) (19,501) 155,169 172,822 

55 

Canadia Bank Plc. Annual Report 2007




29.3 Currency Analysis 

US$ KHR EUR THB GOLD OTHER TOTAL 

US$ US$ US$ US$ US$ US$ US$ 

equivalents equivalents equivalents equivalents equivalents equivalents equivalents 

As at 31 DECEMBER 2007 

Assets 

Cash on hand 24,642,650 1,534,355 7,725 1,177,053 130,673 8,710 27,501,166 

Balances with the central bank 70,669,355 387,394 - - - - 71,056,749 


and financial institutions 75,008,275 4,084 1,903,474 - - 2,869,824 79,785,657 

Loan and advances to customers 330,622,806 147,507 - 1,633,677 - - 332,403,990 

Other assets 4,945,104 857,447 5,744 - - 45,235 5,853,530 

Investment in FTB 10,580,000 - - - - - 10,580,000 

Property foreclosed 4,512,741 - - - - - 4,512,741 

Total assets 520,980,931 2,930,787 1,916,943 2,810,730 130,673 2,923,769 531,693,833 

Liabilities 

Deposits and balances of banks 6,734,292 5,112 - - - - 6,739,404 

Deposits from non-bank customers 445,153,522 4,282,805 - 2,022,745 110,991 - 451,570,063 

Current tax liabilities - 4,421,143 - - - - 4,421,143 

Other liabilities 4,959,737 34,225 - - 4,323 145,381 5,143,666 

Other borrowings 4,379,241 - - - - - 4,379,241 

Subordinated debt 7,080,000 - - - - - 7,080,000 

Total liabilities 468,306,792 8,743,285 - 2,022,745 115,314 145,381 479,333,517 

Net Balance Sheet Position 52,674,139 (5,812,498) 1,916,943 787,985 15,359 2,778,388 52,360,316 


(Unaudited) 210,855 (23,267) 7,673 3,154 61 11,122 209,598 





29.3 Currency Analysis (Continued) 

US$ KHR EUR THB GOLD OTHER TOTAL 

US$ US$ US$ US$ US$ US$ US$ 

As at 31 December 2006 equivalents equivalents equivalents equivalents equivalents equivalents equivalents 

ASSETS 

Cash on hand 21,610,912 2,299,532 12,619 513,104 240,954 464,340 25,141,461 

Balances with central bank 51,473,847 1,217,010 - - - - 52,690,857 

Balances with banks and OFIs 52,958,442 29,989 1,983,021 686,018 - 341,398 55,998,868 

Loans and advances to customers 203,721,313 102,192 - 1,584,040 - - 205,407,545 

Other assets 3,061,816 496,701 24,140 26,305 - 672 3,609,634 

Investments in FTB 10,580,000 - - - - - 10,580,000 

Properties foreclosed 4,198,690 - - - - - 4,198,690 

TOTAL ASSETS 347,605,020 4,145,424 2,019,780 2,809,467 240,954 806,410 357,627,055 

LIABILITIES 

Deposits and balances of banks 2,920,881 951,728 - - - - 3,872,609 

Deposits from non-bank customers 282,835,562 4,766,953 - 1,614,990 240,954 - 289,458,459 

Current tax liabilities - 2,786,518 - - - - 2,786,518 

Other liabilities 4,280,002 217,322 - 27,108 - - 4,524,432 

Other borrowings 7,306,669 - - - - - 7,306,669 

Subordinated debt 7,080,000 - - - - - 7,080,000 

TOTAL LIABILITIES 304,423,114 8,722,521 - 1,642,098 240,954 - 315,028,687 

Net Balance Sheet Position 43,181,906 (4,577,097) 2,019,780 1,167,369 - 806,410 42,598,368 


(Unaudited) 175,189 (18,569) 8,194 4,736 - 3,272 172,822 





Sovanna 

# 307-309, St. 271, Sangkat Tumnup Teuk, Khan Chamkarmon, 

Phnom Penh City, Cambodia. 

Tel : (855-23) 214 129 / Fax : (855-23) 214 125 

Kbal Thnal 

# 480, National Road 2, Sangkat Chak Angre Loeu, Khan Meanchey, 

Phnom Penh City, Cambodia. 

Tel : (855-23) 720 238, 720 239 / Fax : (855-23) 720 292 

Siem Reap Phsar Leu 

#107-108, Banteaychas Village, Slorkram Commune, Siem Reap District, 

Siem Reap Province. 

Tel : (855-63) 966 806, 63-966 807 / Fax : (855-63) 760 542 

Neak Loeung 

No.255-257, Village 4, Break Ksay Commune, Peamro District, Prey Veng Province. 

Tel : (855-43) 750 221, 43-750 222 / Fax : (855-43) 750 223

Annual Report 2007-11-07-08.qxp - Canadia Bank Plc.

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