A Member of PhillipCapital Group, Singapore

Standard Building of KREDIT Microfinance Institution Plc.

ANNUAL REPORT 2013

 Contents
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4 Vision, Mission, and Core Values

5 Performance Highlights

7 Operating Provinces

8 Business Environment Review

9 KREDIT's Overview

10 Message from Chairman

11 Message from CEO

12 Organization Chart

13 Shareholders

14 Board of Director's Profiles

17 Committees at Board Level

20 Executive Committee

23 Staff Capacity Development

26 New Core Banking System

27 Our Products and Services

32 Operational Performance

36 Social Performance Management and KREDIT

39 Our Lenders, Partners, and Network

41 Listen to Our Staff, Partners, and Clients Talking about KREDIT

43 Awards Received Within 2013

44 External Audit Report

61 Contact Us
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Vison, Mission and Core Value Performance Highlights

INDICATORS YEARS
Vision
Operational Performance 2011 2012 2013
Number of branches 10 12 13

To contribute to the social and economic development of communities by Number of sub branches/units 48 56 66

enabling the economically active poor to improve their lives. Number of districts covered 90 101 110

Number of communes covered 661 745 857

Number of villages covered 4,216 4,631 5,402

Mission Loan outstanding (in mil USD) 44.59 53.498 74.202

Active borrowing accounts 56,519 60,905 73,115

PAR 30+ 0.33% 0.26% 0.28%

To be a reliable and well known financial institution that provides diverse and Active saving accounts 1,254 3,358 9,023

innovative financial solutions to communities, serving and protecting our Values of deposit collected (in mil USD) 3.43 8.952 16.217

clients while maintaining organizational sustainability with a commitment Total staff 717 848 1,014
to the poor. Financial Performance 2011 2012 2013
Total assets (in mil USD) 49.03 64.55 87.38

Total equity (in mil USD) 9.79 11.26 16.78

Core Values Return on equity (includes grant) 21.04% 16.37% 18.65%

Return on equity (excludes grant) 17.80% 13.91% 16.90%

Commitment: Working hard to achieve service excellence Return on assets (includes grant) 4.12% 3.03% 3.44%

Return on assets (excludes grant) 3.5% 2.58% 3.12%

Integrity: Doing what is right Net profit after tax (in mil USD) 1.76 1.72 2.61

Operational self-sufficiency 123% 118% 123%

Team work: Working together to achieve one goal Social Performance 2011 2012 2013
Borrowers from rural areas 71.32% 93% 91%

Average loan size compared to GDP per capita 86.80% 94.6% (or USD894) 98%
Responsibility: Being accountable for our actions
Women borrowers 91.93% 91.96% 90.42%

Unsecured borrowers (without collaterals) 22.99% 29.61% 32%

Dignity: Showing mutual respect for all
Voluntary savers with value below and equal GDP per capital 71.18% 55.84% 83%

Women savers 47.53% 74.44% 58%

Transparency: Working clearly and ethically
Client’s retention rate 88.09% 86% 89%

Communication: Relating in an open and friendly way to all

With the direction from the board, KREDIT has put more focus on poor clients by making increases on their
percentage from one year to another: 22.99%, 29.61%, and 32% for 2011, 2012, and 2013 respectively. This
Christian faith: Acting in accordance with Christ’s love market share is big and they are a group who really need micro financial services.

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 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Performance Highlights (Continued) Operating Provinces

SOCIAL PERFORMANCE TOOLS AND MECHANISMS

Poverty Targeting and Monitoring
Bi-Annually produce and share with BoD, shareholders, lenders, and
Social performance reporting
others through different channels.
Customer Care and Product Enhancement
Prices, terms and conditions of all financial products are fully disclosed
to the customer, including interest charges, insurance premiums, Laos
minimum balances , all fees, penalties, linked products, 3rd party fees,
and whether those can change over time. Staff are well trained to inform
and explain these to clients. Multiple channels for disclosing clear and Oddor Meanchey
accurate information: brochures, orientation sessions, meetings, posting
Transparent pricing
information in the branch, websites, etc. Loan contracts (1) show an Preah Vihear
amortization schedule that separates principal, interest, fees; (2) define Banteay
the amount, number and due dates of installment payments; and (3) Meanchey Steung Ratanakiri
include fees and conditions for early repayment, late payments and Siem Reap Treng
default. Debt collection practices are revealed to the borrowers prior to
the time of sale. Battambang To
Client satisfaction survey Conduct yearly or every 2 years. nl
e
Sa
Staff are assigned to receive complaints via telephone and resolve issues Pailin p Kampong Thom
Client feedback system
that are being raised by clients.
Client satisfaction, clients’ exit, competitor matrix survey regularly Modolkiri
Market research for product development conducted to provide better products and more convenient services for Pursat
Kratie
the clients.
Non-Financial Services Kampong
Kampong Cham
- 4,533 clients received special agriculture training. Chhnang
- 8,751 clients received child education training along with 6,766 of
educational reading books given.
Koh Kong
Phnom Penh
- About 4,000 units of helmet produced and given to saving clients Kampong
Prey Veng
and staff. Daily radio program on safe traffic program is continued with Speu Kandal Vietnam
Social responsibility activities National Radio. Become the single Cambodia MFI.
- 5% of the yearly net income is set aside to the community development Takeo Svay Rieng
programs.

Th
- Outstanding loans from VSU Clients are written off when the borrower

ai
passes away; and KREDIT also gives grants to the family to assist in Sihanouk Ville Kampot

la
nd
funeral arrangements. Kep
Financial literacy program
20,404 clients received finance related training from KREDIT which includes Operating Provinces
saving, budgeting, and household income and expense management.
Potential Provinces
- Endorsement with Smart Campaign and selected by Cambodia
Microfinance Association (CMA) and Agency French Development (AFD)
to enhance client protection principles (CPP).
- Received 2 Awards from Kiva: Facilitation of Savings and Client Voice
Others
- Have just become a member of Banking With The Poor (BWTP).
- Got “Most Innovative Non - Profit / Social Enterprise” Awards from
Singapore Venture Capital and Private Equity Association (SVCA) 21st
Anniversary Gala & Awards Dinner for the year 2013.
Personnel Policies
- Conducted & updated yearly.
- Good HR policy in place and yearly updated based on industry study
Employees satisfaction survey
making sure that our benefits are competitive at the market.
- Staff turn- over rate for the last 6 months 7.18%.
Other policies Whistle blowing policy and environmental and social policy.

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 ANNUAL REPORT 2013
Business Environment Review
In 2013, Cambodia's economy achieved commendable
result with a GDP growth of 7% as forecast by the IMF
and the World Bank and 7.2% by ADB even some
political issues has yet been solved since the national
election in July 2013. However, the ruling and opposition
parties have continued talking for solutions. Despite
forecasting strong growth for Cambodia this year and
7.2% for 2014, IMF also warned of risks posed to the
country's economy by the anticipated winding down
of the US Federal Reserve's quantitative easing. The
total GDP of the countries about USD15.191 bil or
USD1, 036 per capita. The inflation rate in Cambodia
was recorded at 4.18 percent in October of 2013 by the
National Institute of Statistics of Cambodia.
Cambodia's trade reached a total of USD15.9 billion in
2013, equaling an 18% rise from 2012. Exports were
valued at USD6.9 billion, up from USD5.5 billion, with
garment and textiles accounting for more than 80% of
the whole. Meanwhile, Cambodian spending on imports
such as petrol, vehicles and construction materials
topped exports, increasing from USD7.9 billion in 2012
to USD9 billion in 2013.
The Cambodian Ministry of Commerce had granted
operating licenses to 2,223 new companies in the first
nine months of 2013, downed 14.6% compared with
2,606 new firms over the same period last year. The
Ministry had registered 1,118 foreigner-owned firms,
downed 9% year-on-year, and 1,105 local Cambodian-
owned companies, downed 20%.
In 2013, numbers of visitor's arrival to the country
was recorded increased 17% from the last year or 4.2
mil. The estimation of construction investment was
USD1.52 bill or 50.20% up from the last year.
Cambodia approved domestic and foreign investment
projects worth USD4.9 bill in 2013, up 69% from
USD2.9 bill.
Cambodia exported rice with a total amount of 378,856
tons which was 84% increased and 2013 was the
second year in a raw that Cambodian rice got "the
world best rice award" and become attractive by foreign
countries; however, the chair of Cambodian rice export
association raised that there are still challenges for
1- million ton goal in 2015 such as transportation, rice
seed, and loan from the bank.
The value of Cambodia's garment and footwear exports
topped USD5.07 billion in the first 11 months of 2013,
an increase of 22% over the same period last year, four
subcommittees formed to begin establishing a new
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ANNUAL REPORT 2013
KREDIT Microfinance Institution Plc.
KREDIT Overview
minimum wage rate for garment workers that will go
into effect next year. The Cambodia's manufacturers
has also started shifted to higher-value clothing by KREDIT, since its humble beginning in 1993, has grown on the clients lives. KREDIT has continued expansion
moving away from producing the most basic clothing to be one of the largest microfinance institutions in of Vulnerable Service Unit (VSU) by working through
items and diversifying to manufacture more intricate Cambodia. With more than 23 years of experiences, integrated approach with development partners to
products for international buyers. KREDIT still focuses on its vision and mission to help provide our clients other complimentary services,
poor unbanked families ready access to financial help some services provided directly by KREDIT’s staff
The total weight of cargo transported through Sihanouk to improve their lives. This includes free non- financial while some by our partners based on topics and their
Ville Autonomous Port in the first 10 months of the year service such as cash flow and money management and specializations. You will find our complimentary services
increased 16% compared to the same period last year. starting micro business know-how training under our in below point talking about KREDIT’s social report.
About 2.48 million tons of goods passed through the
integrated approach with many different development The complimentary services is provided not only to our
port to the end of October compared with 2.15 million
organizations and partners. clients but to non- clients, local authorities, and staff of
tons during the same period in 2012, was due largely
our partners.
to an increase in rice exports and construction material
As of Dec 2013, with a total asset of more than
imports.
USD87.65 millions, KREDIT has provide loans to Under the partnership approach, KREDIT has
more than 70,000 families, collected savings from innovative products and services that allow our rural
Banks and MFIs Performance
7,800 depositors in 16 out of 25 provinces and cities of clients to have better access to basic necessities for
Cambodian bank and microfinance market has
continued its growth with more increase in their Cambodia. daily uses such as loan for latrine, loan for water filter,
performance and covering more geographic areas of and loan for education, etc.
Cambodia allowing our people to experience with many Our shareholders are Phillip Capital Singapore
more different financial services and technologies. and World Relief USA. KREDIT with its dynamic Having seen the commitment and real programs and
and pragmatic board and management teams and activities done, KREDIT got very high appreciation
According to the report of the National Bank of committed employees have achieved triple- bottom from clients, local authorities, national and international
Cambodia (NBC), lending at the kingdom's 34 lines embracing sustainability and enabling its clients partners, lenders, and also won recognition awards
commercial banks rose from USD5.88 billion in 2012 to achieve socio-economic development by following from different partners.
to USD7.4 billion, receiving deposits totaling USD7.74 and practicing Christian beliefs to maximize the impact
billion, up 14% from USD6.8 billion a year earlier. Last
year, the banks lent USD712 million to agriculture, up
29% from USD552 million a year earlier.
The pool of outstanding loans held by Cambodia's
microfinance institutions (MFIs) grew to more than
USD1.325 billion in 2013, marking a 49% industry-wide
increase from 2012, when the figure stood at USD890
million. Consumer deposits grew more than 59% to
reach USD444.98 million last year, up from USD280
million in 2012.
Non-performing loans accounting for less than 1%.
Even though most banks are only available in the cities
and provincial towns but a few MFIs have now operated
nationwide with many more physical offices.
Commercial banks have likely gone down market to
smaller while a few MFIs have started to go upmarket
their products to serve higher level market. More
than that some local banks are eyeing on expanding
oversea. Transfer service, ATM, mobile banking, E-
banking have been introduced and used by our people.
Some foreign parties have also entered into the market
with partial or complete acquisitions of local banks.
Cake-cutting ceremony during KREDIT’s 20 year anniversary.
ANNUAL REPORT 2013
 ANNUAL REPORT 2013
Message from Chairman
I bring you warm greetings and best wishes for success
on behalf of the Board of Directors and Shareholders of
KREDIT Microfinance Institution Plc.
On behalf of the Board of Directors of KREDIT MFI,
it is my honor to once again greet you and present to
you this 2013 Annual Report of KREDIT’s performance
during the past year.
In this past year we have observed significant shifts
in momentum and responses in Cambodia’s political
landscape. We have seen the hopes and aspirations of
the Cambodian people rise as they seek new ways of
responding to entrenched societal problems. We have
seen changes in the response of government – both
positive and negative – as they recognize the impact of
these political shifts. All of these political developments
remind us that politics cannot be separated from the
economic, social, and physical needs and aspirations
of the Cambodian people. They desire and deserve
justice in all aspects of life. Cambodia will prosper as a
nation and as a people only insofar as there is justice
and fair treatment for all.
KREDIT is committed to these same principles of
justice and fair treatment, as well as compassion,
empowerment, and sustainability of Cambodian
families and communities. It is these values that drive
our goals and priorities as a microfinance institution.
As a result, the Board of Directors of KREDIT has
given particular attention during this past year not only
to the economic empowerment of our clients, but also
to their social welfare and community empowerment.
Just as the current political environment reminds us
of the interdependence of all aspects of life, KREDIT
recognizes that the economic progress of families must
be rooted in a commitment to justice and empowerment
in the social and physical needs of the families and
communities that it serves.
These values and priorities are the focus of the Social
Performance Committee of the Board of Directors
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ANNUAL REPORT 2013
Mr. TIMOTHY MARK AMSTUTZ
Chairman
of KREDIT. We are fully committed to the financial
and social protection of our clients, and are further
strengthening our standards for client protection. We
have established a Community Development Fund
within KREDIT to complement our financial services
and help meet the social, health, educational, and
developmental challenges in the communities we
serve. We have funded several village infrastructure
improvement projects such as digging wells and
renovation of a canal to provide a sustainable
source of water to rice paddies. We have provided
enhanced financial literacy training to 87% of our most
economically vulnerable clients so that they equipped
to succeed as small scale entrepreneurs. We are
working in partnership with Handicap International to
provide specialized outreach and services to clients
with disabilities.
Fulfilling KREDIT’s social mandate requires a strong
financial foundation. The Board of Directors is therefore
proud to present to you the results of KREDIT’s
financial and economic empowerment performance in
this Annual Report. We continue to see steady year on
year growth in KREDIT’s portfolio of loans outstanding,
registering a growth in portfolio of nearly 39% in 2013,
to more than USD 74 million. KREDIT’s Operating Self
Sufficiency was 123% in 2013, providing needed funds
to expand its reach to new areas of service.
Please join me in congratulating the CEO, Senior
Management, and all the staff of KREDIT who have
worked tirelessly in 2013 to achieve KREDIT’s mission
and strengthen the economic and social framework of
Cambodian society.
With best wishes for continued success and fulfillment
of the hopes of the Cambodian people,
Message from CEO
Despite some political issues after national election in
2013, the businesses in all sectors have made good
growths. Farmers and micro-business people still
need more capital for expansion of their businesses
allowing KREDIT to grow and serve many more clients
in broader coverage areas.
So today I would like to bring all stakeholders and readers
to pay attention and recognize our achievements for
the year as below:
In the year, our loan outstanding grew for 39% from
53.49million to $74.20 million, the borrowers growth
about 20% and saving collection also increased by
81% from $8.95million to $16.21million.
The existing lenders and new lenders have continued
supporting us with their loans; more than that, our
shareholders strongly supported by making more
capital injection to support our growth and investments.
With this great support, guidance from BoD, and
commitment from all levels of staff and management,
KREDIT made a good net profit after tax up 52.36%
(amounting $2.62 million) compared to 2012 which was
only $1.72 million.
To enhance our core banking capacity and to better
serve the clients, KREDIT decided to equip with the
World top core banking system “Oracle Flexcube”. The
project has started since August 2013, and with support
from implementation team from BFSI, India and the
commitment from management and staff at all levels,
we have moved as timeline and sound manageable,
did go lives for 3 sub branches and HQ and plan to go
live fully by end of 2014.
Regarding risk management, after being established in
2012 and with support from the board risk advisor and
some of our partners, we have enhanced this function
KREDIT Microfinance Institution Plc.
Mr. CHAN MACH
CEO
starting from the development of policy, procedure,
risk threshold and report regularly to the board risk
committee.
As an MFI originally moved from an NGO lending
project, we have never forgotten our social vision and
mission. Our finance and non-financial services have
been continuously studied, adjusted or developed to fit
to the need of our target clients. Social Performance
Management Committee at the BoD level was also
successfully established with clear charter and run
smoothly. Environmental and social policy already
approved by the BoD. Training on social performance
management and client protection principle have been
also trained some of our staff and will be continued
for the following years. Partnership with development
NGOs have been strengthen and expanded to provide
more complimentary services to the clients. More
than that, with 5% to 10% of our yearly net profit after
tax from the shareholders, in year 2013, KREDIT
has supported a lot of projects such as digging well
for villagers, channel renovation, and building village-
based kindergarten, etc.
With the achievements, I would like to express my
sincere appreciation and thanks to our shareholders,
board of directors, regulators, creditors, management
and staff; especially clients and other business partner
that always support us. On behalf of management
and staff, we commit providing better services with
varieties of products and services which are the needs
of our clients by using the top technology so that
we can contribute to the community and economic
development of Cambodia.
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 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Organization Chart Shareholders

As of Dec 2013, KREDIT has 2 shareholders:
PhillipCapital Group and World Relief Corporation.
Phillip MFI Pte Ltd, A member of PhillipCapital
Group
Since 1975, the PhillipCapital network has grown into an
integrated Asian financial house with a global presence
that offers a full range of quality and innovative services
to retail and high net worth individuals, family offices,
corporate and institutional customers.
Our comprehensive suite of financial products and
services includes broking in securities, futures, foreign
exchange, bonds, precious metals and commodities,
unit trusts, contracts for difference, exchange traded
funds; fund management, managed accounts,
insurance planning, regular savings plan, investment
research, equity financing and property consultancy*.
Institutions can also benefit from our corporate finance
and advisory services as well as information technology
solutions.
With more than 3,500 employees and over 900,000
clients worldwide, our assets under custody/
management totals to more than USD 24 Billion with
shareholders' funds in excess of USD 1 Billion.
PhillipCapital (with headquarters in Singapore) operates
in the financial hubs of 16 countries, including offices in
Malaysia, Cambodia, Indonesia, Thailand, Hong Kong,
China, Japan, India, Sri Lanka, Australia, UAE, UK,
France, Turkey and USA.
World Relief Corporation
World Relief works alongside local churches and
communities on four continents to serve the most
vulnerable. Partnering with like-minded organizations,
World Relief extends its reach into many of the
poorest and least developed nations on earth. We
empower and assist 2.8 million people annually. World
Relief focuses on Maternal & Child Health, HIV & AIDS,
Child Development, Human Trafficking, Agriculture and
Food Security, Disaster Response, and Microfinance
in countries such as Burundi, India, Nicaragua,
Cambodia, Indonesia, Rwanda, China, Kenya, South
Sudan, Congo, Kosovo, Zambia, Sudan, Malawi, Haiti,
and Mozambique.
And as agreement from the shareholders, another
shareholder of KREDIT is planned to be established
soon, named KREDIT’s Staff Association (KSA). KSA’s
Board of Directors have already elected through clear
voting process from all eligible KREDIT’s staff and the
drafted Article of Association (AOA) of KSA was also
done and waiting to be finalized from KSA’s BoD. So,
we hope that KREDIT will have 3 shareholders in the
near future.

2013 2012
67.43% 58.15%
Shares 67,034 Shares 44,984

2013 2012
32.57% 41.85%
Shares 32,380 Shares 32,380

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ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013
Board of Directors' Profiles
TIMOTHY MARK AMSTUTZ, Chairman
Mr. AMSTUTZ has been KREDIT’s Chairman since he joined the Board
in 2003. He is an American citizen who was born and raised in India. He
returned to the U.S. to complete his university degree at Wheaton College in
Illinois, USA. Mr. Amstutz has worked for World Relief in a number of positions
since 1982, including various U.S-based positions. He was responsible for
launching and leading a number of ground-breaking programs for World Relief
in Chicago, including its Legalization and Immigration programs, its Education
Services program, and ultimately World Relief’s National Immigration Resource
Network of which he was the Founding Director. During this time he also served
as Midwest Regional Director for World Relief’s U.S. operations. Mr. Amstutz
moved with his family to Cambodia in 2001 to serve as Country Director for
World Relief Cambodia. Since 2007, he has served as Asia Regional Director,
overseeing World Relief’s work in Cambodia, Indonesia, India, and China, and
has recently transitioned back to serving as World Relief’s Cambodia Country
Director. Mr. Amstutz’s broad management and leadership experience
has provided a platform for him to speak and lead seminars at numerous
conferences and events on topics ranging from non-profit board development
and non-profit management, to leadership development and microfinance. Mr.
Amstutz lives with his family in Phnom Penh, Cambodia
ONG TEONG HOON, Shareholder Representative and Board Member
Mr. ONG started working in the financial sector in 1977, first as a Money
Broker and then, after a year, with Standard Chartered Bank, as a
Management Trainee. For 25 years with the Bank, he had been through all
aspects of Commercial Banking, apart from Treasury function and he ended,
his banking career as Country Manager for the Bank in Cambodia in 2002.​​
This was after being the Bank's Chief Representative in Myanmar and before
that, Regional Manager, Asia Pacific Region covering Financial Institutions.
Almost immediately after that, he joined Phillip Securities Pte Ltd and had
covered various functions, including a stint in Phillip Securities Thailand PLC
as its Ag CEO and was last, the Director OTC Capital prior to being assigned
to KREDIT PLC in 2012.
Mr. Ong is a graduate from the University of Singapore with a Bachelor of
Business Administration and an Associate of the Chartered Institution of
Bankers since 1978.
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ANNUAL REPORT 2013
KREDIT Microfinance Institution Plc.
Board of Directors' Profiles (Continued)
TAN TECK KEONG MICHAEL, Board member
Mr. TAN is currently Director, Corporate Development at PhillipCapital. Prior
to joining PhillipCapital and championing microfinance initiatives within the
Group, he previously held positions in both industry and academia including
stints as Assistant Professor at University of Nevada, Reno, United States,
Lecturer at National University of Singapore, and various IT management and
consultancy positions in Singapore. He holds a PhD in Information Systems
from the National University of Singapore, a Certified SAP Consultant (Project
Systems) certification from SAP Germany and a CDipAF (Accounting and
Finance) qualification from ACCA (UK).
SREYHEM ROBERTS, Board member
Mrs. ROBERT is a Cambodian/Canadian national with over 20 years of
experience working and consulting with NGOs and businesses in Cambodia.
Her professional activity in the non-profit and business worlds includes
administration, human resources management, accounting, business
development, and project management. She is working as a General Manager
for First Trust Co;Ltd, a property holding company.
ING VARONY, Board member
Ms. ING is a Cambodian national holding master in Public Administration
from the University of North Texas, Denton, USA and University of
Cambodia in 2005. She has twenty five years of experience working with
NGOs/International organizations, especially the United States Agency for
International Development (USAID) where microfinance institutions were
her main responsibility. Prior to that, she worked in the Poverty Reduction
and Economic Management Unit (PREM) a World Bank program where the
financial reform program was introduced to the Ministry of Economy and
Finance and Councils of Minister. She has six years work experience with
the Cambodian government, Ministry of Industry, Mine and Energy, where she
helped in developing the manufacturing public sector. Varony has spent with
Hagar International for five years as Programming Manager who managed two
main programs. She is currently Senior Manager, The Harpswell Foundation
(HF).
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ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Board of Directors' Profiles (Continued) Committees at Board​Level

TEA CHANSOTHEARY, Board member
Mrs. TEA is a Cambodian national who has been involved in the Cambodia
microfinance sector since its infancy more than 20 years ago. She has a broad
wealth of experience having worked for a number of institutions covering
nearly every level of operations including training, human resource, finance
and audit and various senior management positions. She also served as a
board member for various institutions and as a shareholder representative.
Beside microfinance, Sotheary have served as finance manager for Hagar
international; country manager for the Ratanak Foundation which is based in
Vancouver, Canada.
She has done consulting work in Finance, Audit, Development and
Microfinance both within Cambodia and internationally for organizations such
as World Vision, Child fund, World Relief, PACT, JICA and UNDP. Currently
she resides in Yangon, Myanmar where she takes care of her family and does
freelance consulting.
FONG KIM CHOY (PHILIP), Board member
Mr. FONG currently the Managing Director and Principal Trainer of JM_Asia
Cambodia) Pte.,Ltd a marketing and branding consultancy and soft skill
training firm with offices in Singapore, Malaysia, China and New York. He is
business consultant, personal mentor & coach to several wealthy business
owners and businesses.
He has positions of Country Manager for Kristlite Cambodia, Chief Marketing
Officers for Hagar International and OnLine.Com, besides other corporate
experience with American MNCs and Singapore companies listed in the SGX
and HKSE. Philip has more than 35 year experience in a variety of senior
management positions across industries: IMPEX Trading, F&B, Marketing &
Branding Consultancy, furniture manufacturing and distribution, and managing
large scale events.
There are 3 committees at the BoD level including: Audit
Committee, Risk Committee, and Social Performance
Management Committee.
Audit Committee
Responsibilities of Audit Committee
The Audit Committee is the responsibility of the Board
of Directors and is required to perform the following
general functions:
- Establish and monitor compliance with a corporate
code of conduct;
- Monitor procedures for compliance with government
regulation;
- Review the findings of audits or examinations
conducted by other agencies;
- Discuss disagreements between internal or external
auditors and management;
- Inquire about the external auditor’s opinion on the
competence of financial and accounting personnel and
the internal auditors;
- Review the adequacy of internal control structures
over financial reporting;
- Oversee the company’s internal controls for
safeguarding its assets;
- Evaluate the internal auditor’s objective;
- Review the internal auditor’s work and assess their
performance and capacity building;
- Ensure that the internal auditor’s involvement in
auditing of the financial/IT and operational scopes are
well-coordinated and implemented;
Activities and Achievements of the audit committee
for the year 2013
- The Audit Committee met four times during the year in
Board Level
Mar, May, Aug and Nov 2013;
- The Audit Committee has approved the annual internal
audit plan for the year 2014;
- Internal audit department reports directly to the
Board Audit Committee;
- All key operational, business and management process
are audited according to risk-based methodologies
which provide independent and objective assurance
over the adequacy, sustainability, and effectiveness of
the company’s governance, internal controls and risk
management process;
- Internal Audit examines the strategies of the company
the adequacy and effectiveness of the relevant policies,
procedures and regulatory guidelines;
- Internal Audit discusses the result of all assessments
with management and reports its observation/findings,
recommendations and opinions, via a structured
process, to the Board Audit Committee;
It is the opinion of the Committee that the internal
controls, audit procedures and risk management
processes are adequate to safeguard the company
and to provide sufficient assurance and integrity of the
financial accounts;
In 2013, the Internal Audit Department conducted
137 assessments in which (134 assessments are the
operational scopes, 2 assessments as financial scopes
and 1 assessment as the IT scope)
Risk Committee
Risk Management Structure
Step by step, the risk management structure becomes
full and stronger consisting of 1 board risk committee
and 3 committees at management level.
Risk Management Board Risk
Committee Advisor

DANIEL JOHN BROSE, Board member

Operational &
Mr. BROSE is the Africa Regional Director for World Relief. Dan has previously Assets & Liability Credit Risk
Management Level Compliance Risk
Committee (ALCO) Committee (CRC)
served World Relief as Country Director in Rwanda and Burundi, Africa Great Committee (OCRC)
Lakes Regional Director, and Sr. Program Advisor. Dan graduated with an
MS in Chemical Engineering at Stanford University, and he worked for 15 Financial Risk Credit Risk Operational Risk
years in the pharmaceutical research industry before joining World Relief in - Liquidity Risk - Credit Policy - Process Transaction Risk
- Interest Rate Risk - Credit Approval - System Risk
2001. Under Dan's leadership, World Relief's activities in the Africa Great Covering Risks - FX Risk - Portfolio Management - Fraud Risk
Lakes region grew from one country program in Rwanda to significant country - Product Risk - Collateral - Business Contingency
- Others - Others Plan (BCP)
programs in Rwanda, Burundi, and Congo; microfinance institutions were
- Etc
grown and launched in Rwanda, Burundi, and Congo; and Ikirezi Natural
Products, SA was launched in Rwanda to pioneer the sustainable production
of high quality essential oils to benefit poor rural farmers. Dan currently serves
Reputation and Regulatory
on the board of directors of Urwego Opportunity Bank in Rwanda.

16 17
ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013
Committees at Board Level (Continued)
Roles of Risk Management Committee
Overall function of Risk Management Committee
(RMC) is to identify, understand and assess risks that
can lead to server impact on the organization and their
likelihood of occurrences.
1. Assets and Liability Committee (ALCO)
ALCO committee meets on monthly basic to discuss
and make decision on various aspects of financial risk
management, particularly, liquidity risk, interest rate
risk, FX risk, and other concerned financial risks. In
every meeting, financial performances and financial risk
indicators (liquidity ratio, solvency ratio, Debt covenant,
market risk ratio, etc) were reported and discussed
with some action taken as needed. As a result, most of
those indicators are well managed and risk position is
in a safe zone.
2. Credit Risk Committee (CRC) or Credit Committee
(CC)
Besides the daily loan approval, Credit Risk Committee
has met in quarterly basic to discuss and take action on
some potential credit risks. In the meeting, some issues
were discussed and reported such as Portfolio at Risk,
loan trend, loan procedure update, issues on lending,
and some actions taken.
Generally, credit risk remains the most fundamental risk
to which the lending industry in general and microfinance
industry. Portfolio at Risk (PAR) especially PAR>30 is
closely monitored on continuous basis. At the end of
2013, the overall performance of loan portfolio quality
MICHAEL GOH
Board Risk Advisor has
25 years of experience in
financial institutions across
Asia Pacific with expertise in
Credit, Risk Management
& Corporate Governance.
He held Senior Management
positions in global financial
institutions: Chief Risk Officer
- Asia Pacific Region for AIG Group, Chief Credit &
Risk Officer for the JV between global technology group
and Standard Chartered Bank and Senior Regional
Head, Credit & Risk Management, for European and
Hong Kong banks.
He is a CPA, has Masters in Finance, Baruch College,
NY and is an adjunct Senior Lecturer for UOL LSE
International banking programs. He is a Member of
18
ANNUAL REPORT 2013
was in a good position at 99.78%.
3. Operational and Compliance Risk Committee
(OCRC)
Operation risk is just approved by Risk Management
Committee. This new committee focuses on
managing all operational risks such as Fraud Risk,
Process Transaction Risk, System risk, HR risk,
Business Contingency Plan (BCP), etc. In addition
to implementation of existing internal control more
effectively and efficiency, the committee has decided
to test and roll out Risk Control Self- Assessment
(RCSA) to branch and department level. Also, Business
Contingency Plan (BCP) is in priority of Operation and
Compliance Risk Committee.
Achievement of Risk and Compliance Department
for year 2013
- Risk Management policy was approved by Board risk
Committee
- Some risk indicators were added into Risk appetite
and reported
- Operational Risk committee was approved by Board
risk committee
- Quarterly report to Risk management committee
- AML and Combating Financing to terrorists (CFT)
policy was updated and approved by Board
- Cash Transaction Report and Suspicious Transaction
Report were regularly reported to Financial Intelligent
Unit (FIU).
Singapore Institute of Directors and Board Member
of Risk Management Association. His commercial
business experience are wide ranging including
Corporate
Development Director for PE investments, Risk Advisory
Consultancy Services and delivering Banking & Risk
Management Training Courses in Asia. He is also
currently an Independent Director/Chairman of Board
Risk Committee of MFI in Cambodia.
Michael joint KREDIT as Board Risk Advisor Joint in
July 2012 and resigned May 2014
During the mission with KREDIT, Michael injected
insights to the start- up of this new functions and other
fields. We would like to take this chance to thank for his
valued inputs to the start- up. We hope that this function
will implement well in the near future.
Committees at Board Level (Continued)
Social Performance Management Committee
(SPMC)
Roles of SPM committee
Even though the committee has just established in
2013, but it has functioned well and actively in the
following authorities:
- Sets clear goals and objectives and creates strategy
to ensure that the Board of Directors, Management, and
Employee are aware of the goals and objectives and
committed to achieving them and in line with universal
standard report of SP of social performance task force
(SPTF) and best practices in community development
principles;
- Creates and reviews Social Performance Indicators
to ensure they remain relevant to the strategic growth
of KREDIT;
- Studies, initiates, proposes and implements relevant
and impactful initiatives and projects or programs to
achieve both the short- term and long- term social
performance goals of KREDIT;
- Comes up with some measurements tools to measure
and track the social performance activities of KREDIT
approved by the BoD;
- Establishes working groups with a specific task and is
authorized to take any independent professional advice
as it considers necessary to assist the Committee;
- Manages the budget, current year and accumulated
funds, approved by the Board and set aside by
management of KREDIT to ensure the various strategic
KREDIT’s CEO gave helmets and funds to Cambodian Red Cross to contribute to road traffic accidence in Cambodia.
KREDIT Microfinance Institution Plc.
program's and initiatives are carried out professionally
and prudently; and to ensure the results and impact of
these funds disbursements are an integral part of the
management report to the Board regularly;
- Validates action plans and budgets related to SPM,
and monitors their implementation of the activities and
program;
- Monitors the trend of the endorsed indicators in the
context of market and country developments, and to
report to the Board on any significant changes, analysis
of the causes of key changes as well as to recommend
appropriate plans and actions to ensure KREDIT keeps
to the core of these social performance expectations
and achievements;
Achievement of Social Performance Management
Committee
- Created social performance and community
development fund away from KREDIT’s account and
the clear charter in using the fund;
- Approved the support 5 water pumps: 4 in Sa Ang
District under partnership with World Relief Cambodia
and 1 in a primary school in Samakimean Cheuy
district, Kampong Chhnang province;
- Supported a channel renovation in Tik Pos district,
Kampong Chhnang province
- Support the repairing of kindergarten at Kampong
Tralach Sub-Branch, Kampong Chhnang Branch
- Approve Environmental and Social Policy
- 2 times meeting to see the social reports and proposal
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ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Executive Committee Executive Committee (Continued)

Being led by the CEO, KREDIT’s Ex- Com consists of
the CEO, CFO, COO, Head of HR Department, Head of
Marketing Department, Head of Business Development
Department, Head of Branch Support Department,
Head of Finance Department, Head of Internal Audit
Department, Head of IT Department, Head of Treasury
Department, and Head of Logistic and Administration
Department.
With the direction from the BoD, KREDIT’s Ex-Com
is responsible for preparing the annual strategic
plan (strategic framework) and making sure that the
institution achieve the plan. The team is also a unit that
draft policies and strategies for BoD to have a review,
make comments and approval. The team also has a SOUNG ENG CHHAY , Head of Internal Audit Department
role to provide leadership to KREDIT’s staff as whole to
BBA in Management and MBA in Management. 18 years of experience with
meet the institutional goals.
MFI in Accounting, Branch Management and Auditing.
Ex-Com will hold meetings one a month and special
meeting can be held at any times as needed.

HUY BUNHUOT, Head of HR Department

CHAN MACH, Chief Executive Officer (CEO) - 2 Bachelors: in Law and in Education
- Master in Development Management
MBA in Management, MFB, and Bachelor in Mathematic. 18 years of 14 years of experience with MFI in Admin and Human Resources Management
experience with 15 years in MFI in Audit and Training as well as Branch
Management and Operations Management and Math teaching.

HEANG KIM, Head of Marketing Department

HIM VIBOL, Chief Finance Officer (CFO) BBA in Marketing and MBA in Management. 12 years of experience with MFI
Bachelor in Economics, MBA in Finance and Accounting, pursuing ACCA. 11 including work in Management of Marketing, Research, Customer Service,
years of experience with MFI in Audit, Accounting and Finance Management. Fund Mobilization and Partnership Relation.

PO YORT, Chief Operations Officer (COO) SOK KIMCHHAY, Head of IT Department

Bachelor in Accounting and Finance, MBA in Management. About 16 years Bachelor in Computer Science, MSIT, and pursuing a Certified Accounting
of experience in Accounting, Admin, Training and Human Resources, and Technician (CAT) from UK. 10 years of experience in IT management with
Operations Management. MFI.

20 21
ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Executive Committee (Continued) Staff Capacity Development

ROM VANARA, Head of Branch Support Department
High Diploma of Accounting & Finance, B. ED in English, MBA in Finance and
Banking. 12 years of experience with MFIs in Micro Credit Lending, as well as
Branch and Operations Management.
Within the year, KREDIT has continued its training
provision with a clear training curriculum set. All new
staff is required to be trained clearly and carefully before
they start performing the jobs while some refresher
training provided to old staff. This is to make sure that
staff is competent enough to perform their job with high
quality of service. Some training is provided by our
training unit team and some provided by professional
trainers outside the organization. In addition to the
short course training, degree schooling is also provided
to our staff who have a long-term commitment with
KREDIT.
Internal Training – refers to the internal training
courses designed and provided by training and capacity
building unit and others department of KREDIT based
on the institutional training need analysis, the internal
training program includes (orientation course, basic
course, short course, and specialized course)

Orientation and Refresher Training

HAY VANHOM, Head of Finance Department

Nº Course titles # of courses # of participants
Bachelor in Accounting and Master in Auditing. 11 years of experience with
1 Staff orientation round 1 9 175
MFI in Bookkeeping, Auditing, and Accounting and Finance Management.
2 Staff orientation round 2 3 107
3 VSU loan product orientation 5 57
4 Field promotion orientation 1 9
5 Orientation for CSO transfer OT 1 24
6 Refresher on loan policy 3 184
KER MAKTHURA, Head of Treasury Department
Total 22 556
Bachelor in Finance and Banking and pursuing MBA. 12 years experiences
in MFI starting from Credit Operations, Cashiering, Accounting, and Treasury
Management. Internal Short Course Training

Nº Course titles # of courses # of participants

1 Help desk system 2 36
2 Customer care training 19 587
EAR NHAR, Head of Logistic and Administration Department 3 Unit online 1 13

- Bachelor in Accounting 4 Make-up class 21 233

- Master in Finance 5 Banking products 1 32
11 years experiences in administration with NGOs and 5-years with MFI,
including insurance for staff. 6 Anti-money laundering 6 334
Social performance management and client
7 6 222
protection principle
8 SME loan training course 1 18
9 Saving policy for loan and saving officers 6 223

HONG RY, Deputy Head of Risk and Compliance Department 10 Education loan 1 41
11 Saving product for new MDI sub branch 3 46
Master of Business Administration and Bachelor in Accounting. Over 3 years
of experience with private company in bookkeeping and accounting and 6 12 New promotion staff training (HT & SBM) 2 36
years of experience with MFI in Auditing and Risk Management. 13 Training of trainer 3 98
Total 22 556

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ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Staff Capacity Development (Continued) Staff Capacity Development (Continued)

External Training Course Degree Scholarship Program

External Training Course – refers to the training course conducted by outside Training Service Providers outside
KREDIT MFI and leads to a certificate of completion or a certificate of participation from those Training Service Local Degree Scholarship refers to the Degree Scholarship that is locally provided by any institutions within
Providers. Cambodia that leads to a Diploma/Associate Degree, a Bachelor Degree, a Master Degree, ACCA/CPA Degree,
and CFA, COB Degree.
Orientation and Refresher Training
Nº Description Male Staff Female Staff Total Staff
Nº Course # of Staff 1 MBA 9 1 10
1 Accounting 1 2 BBA 0 1 1
2 Advance excel II 1 3 ACCA 1 0 1
3 Advance risk management 1 Total 10 2 12
4 ATM concept training 20
5 Behavioral base interviewing skill 2 Internship and Research Scholar Program
6 Business risk management 3 Internship and Research Scholar Program refers to the university student (Bachelor, Master or Doctor Degree)
7 CAS and CIFRS 2
who is approved to do internship through research in KREDIT MFI for a period of less than 6 months.
8 Child development and parenting skill 2
9 Effective telephone handling skill 1
Nº Offices / Branches # of interns
10 Excel 2010 1
1 Head Office 9
11 Financial risk management 2
2 Siem Reap 17
12 How to determine cost covering interest rate 1
3 Prey Veng 10
13 Internal audit writing 3
4 Soung 13
14 IT assurance & security audit 2
5 Kratie 3
15 Loan contract laws and land laws 6
6 Kampong Cham 67
16 Make-up class 26
7 Phnom Penh 12
17 Managing branch for bank and MFI 2
Total 126
18 Market research 1
19 Market research and financial product development 2
20 Mobile payments and banking 2
21 MS Lync 4
22 Oracle 11 g database administration level 1 4
23 Public relation strategy 4
24 Strategy saving mobilization 2
25 The successful closing sales by personality 3
26 Understanding agriculture production 10
27 English language 23
Total 556

International Training Program

For courses that match with the higher level training need of KREDIT and mostly do not exist or cannot be found
in Cambodia or are deem compulsory.

Nº Description # of country # of Staff

1 Oversea Training 1 4

KREDIT’s professional staff waiting to serve clients.

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ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013
New Core Banking System
To keep and sharpen its competitiveness at the market,
KREDIT seeks and employs many different strategies
so that we can provide products and services preferred
by the market. One of core strategies selected in 2013 is
new core banking system. KREDIT, with the support of
a member of the BoD who is an IT Specialist carefully
studied to select a new core banking system. A
consultant who had a long- term experience in this
field was partnered to help in the detailed process.
A taskforce at management level was set up. Many
different software venders came and made presentation
of their products and costs. Shortlist was done to select
the top 3 and finally we got the finalist. The new core
banking that KREDIT selected is “Oracle Flexcube”,
which is the worldwide-used core banking system
and now is being used by National Bank of Cambodia
(NBC) and some Cambodian financial players.
It is really a big investment for the company costing
about USD1.8 million. KREDIT has carefully moved with
guidance from BFSI experts of the selected system.
Server room prepared for the new core banking system.
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ANNUAL REPORT 2013
Another core banking team was later on set up to work
with the experts of the selected system. More staff,
mainly at IT department have been added to make sure
that we have sufficient internal staff to work out with the
experts. Training on the new core banking system was
carefully provided by the experts to our internal team. A
clear timeline was set and followed strictly. Our internal
staff has devoted their times for this new core banking
system despite night time and weekends. So far,
KREDIT has already gone live this new core banking
system with 3 sub branch offices plus Head Office and
plans to fully go live by the end of year 2014.
With the powerful new core banking system, KREDIT
commits to providing even higher qualities of services
with many varieties of products and services to our
clients. We hope our clients will enjoy great experiences
with this world latest technology leading KREDIT to
grow and serve more clients.
Our Products and Services
At KREDIT, we believe that financial service alone is
not enough to help the poor clients who are a big part of
our market from the poverty cycle. With this believe and
to contribute to the social and economic development
of communities, KREDIT has provided and continue
providing diverse and innovative finance and non-
finance services to their clients; with majority living in
the rural community using integration approaches with
different development organizations.
For all of our services, we study and address real needs
of our target clients with clear assessment with clients,
staff, and local authorities.
For financial services, KREDIT is providing loan,
saving, local money transfer, and currency exchange.
For non- financial service, KREDIT has two main
programs: permanent and need- based services which
will be detailed in the social performance part below.
Loan Products
To satisfy client’s preference and market competition,
KREDIT continuously modifies its existing loan
products, studys and also introduces some more new
loan products.
KREDIT provides small and micro business and
agricultural loans of a variety of sizes to meet the needs
of poor Cambodians and their families for livelihood
development. KREDIT also offers the opportunity for
clients to borrow in either KHR or USD denominations.
Payments can be made at the office or at the village
level.
KREDIT’s core loan product is an individual loan, which
allows clients to structure around their personal needs
and ability to repay.
KREDIT is currently providing four different types of
loan methodologies: Individual Loan, Small Group
Solidarity Loan, Community Bank Loan, and Large
Group Solidarity Loan (Trust Bank).
KREDIT Microfinance Institution Plc.
Individual Loan
This loan requires physical collateral and aims at
supporting any individual who will use the loan to
start up or expand businesses, invest in agricultural
production, purchase household goods or personal
items, or improve their accommodations.
The individual loan represents up to around 91% of
the loan portfolio. KREDIT offers the individual loan
in both KHR and USD currencies. This loan targets
the economically active poor clients as well as micro
small and medium enterprises who can present legal
collateral. The loan amount varies from KHR200,000 or
USD 100 to KHR 40,000,000 or USD 50,000 (for loan
from USD 10,000 to USD 50,000, KREDIT requires
clients to invest at least 60% for investment or business
expansion) with a maximum length up to 48 months.
The interest rate varies from 3% to 1.4% per month,
depending on the loan amount, type of currencies,
repayment location, and also clients’ risk perspective.
The interest is calculated by using a declining balance
repayment. Clients are offered with different payment
options: monthly principle and interest for business
loan and for agriculture loan clients can be: (1) interest
monthly and principal at the end of loan term, or (2)
interest monthly and principal pay by every 3, 4, 5, or
6 months)
Our current individual loan product is classified
into different categories depending on the clients’
consumption purposes: business, consumption,
housing improvement, real estates, and agriculture.
Under the Individual Loan, we have developed specific
loan products to target specific customers, like SME
loan, education loan, and staff housing loan.
SME Loan
Loan for small and medium-sized businesses is a
type of individual loan to promote small and medium
enterprises related to production and business services.
This Loan require collateral and aim at supporting the
financial resources for expansion or starting up new
27
ANNUAL REPORT 2013
 ANNUAL REPORT 2013
Our Products and Services (Continued)
business. They can use this loan to pay or manage
daily operations, such as working capital, for medium
and long- term investment expansion of the business.
The target clients of this SME loan are individual and
entity/companies. The loan size is from USD 20,000
- USD 50,000 (available only in USD currency), loan
term is 04 - 48 months, and monthly interest rate is
1.4% - 1.6%.
Education Loan
Education is one of the most important investments that
can be made in life. Higher studies and specialization
in certain fields call for additional financial support from
time to time.
The educational loan scheme aims at providing financial
support to deserving/ meritorious students for pursuing
higher education in Cambodia. The main emphasis
is that every meritorious student is provided with an
opportunity to pursue education with financial support
with unique characteristics that include affordable
conditions and tailored terms. To prevent risk with
longer loan term, we also require physical collateral
with value of total collateral is 100% of loan request
(primary collateral value covered at least 75%). In
addition, to encourage student clients who has secure/
permanence job, we also offer special education loan
without collateral requirement. This product aims at
academic or vocational students who are from poor/
low/medium income families and have good academic
performance and a strong commitment in pursuing
higher, professional or technical education that need
financial support for accomplishing their dream
academic or vocational skills to increase their income
and to improve the future living standard. This loan is
for all skill development including vocational training,
professional academic, Higher Education Program. Our
loan size is from USD 200 to USD 6,000 (Only USD
currency), loan term from 06 months to 84 months with
allow grace period to pay principal up to 84 months,
and interest rate ranging from 1.6% - 1.3%.
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ANNUAL REPORT 2013
Staff Housing Loan
Staff housing loan is one specific product developed for
our internal KREDIT’s staff who need cash to purchase
a new house/ land, construct new house, repair house
and/ or house improvement. Loan Size ranges from
USD10,000 to USD70,000 or equal to 70% of total
price of the house or land to be bought (USD Currency
only), loan term is from 12 - 180 months, and interest
rate 9% per annum.
Small Group Solidarity Loan
It is a joint-liability group loan of 3-5 members, and it is
targeted to supporting the economically active poor in
the rural area who commits to use the loan to improve
their standard of living. We do not require the collateral,
but client must have own total asset to proof when
credit officer conduct loan assessment. This solidarity
group loan product is designed for poorer client in rural
areas with willingness to uplift the quality of their lives
and their experiences in household activities such as
trading, farming, animal raising, palm sugar production,
and services related businesses among others.
A joint liability group loan of 3 to 5 people that guarantee
each other in loan repayment can avail a maximum loan
amount of KHR2,000,000 or USD 500 per member,
with monthly interest rate of 3% to 2.6% depending on
currencies and repayment locations with a maximum
term of 12 months. The interest is calculated by using a
declining balance. Clients can pay interest monthly and
principal at the end of loan term.
Community Bank Loan (VSU Loan)
It is a micro loan that does not require physical collateral,
but a joint liability group of 4-6 persons formed to act as
a community bank. It aims at serving the poor, poorest
and vulnerable in the rural community who will use the
loan for upgrading the economics of their household.
This loan product is being implemented through
a special project of KREDIT called the Vulnerable
Services Unit (VSU).
Our Products and Services (Continued)
Several groups (with a maximum of 20 groups) form
a Community Bank Committee. The Community
Bank Committee is headed by an elected Chief which
is being assisted by the specialized credit officer/
loan and saving officer. The loan amount in the 1st
cycle is KHR1,200,000 (around USD300), the 2nd
KHR1,400,000 (USD350), and the 3rd and so on
KHR1,600,000 (USD400). The maximum loan term
is 12 months, but determined by the majority vote in
the group. The interest rate is charged at 2.9% per
month, using declining balance calculation method
with monthly interest repayment. To help the vulnerable
poor people and their family, the loan will be written off
in case client died; in addition, some amount of money
from KREDIT is also given to clients for arrangement of
funeral ceremony.
To encourage loan discipline and cooperation among
the community bank members, KREDIT provides
a benefit of 3% on interest collected to the Chief of
each community bank who is supporting KREDIT to
meet community bank objectives. This supports and
maintains help collection rates of 100%.
Large Group Solidarity Loan (Trust Bank Loan)
To support the VSU Program, KREDIT has developed
another product which is called the Trust Bank product.
Getting more success with loan from KREDIT.
KREDIT Microfinance Institution Plc.
It is a joint-liability group loan that does not require
collaterals of the 10-20 members, and it is targeted
the economically active poor VSU clients who have
shown their commitment to use of loans to improve
their standard of living. A group leader is elected by
members and being assisted by KREDIT’s specialized
CO. The loan amounts are offered differently from cycle
to cycle, for the 1st cycle KHR500,000 to KHR1,200,000
(USD125 - USD300), 2nd cycle from KHR500,000 -
KHR1,400,000 (USD125 - USD350), and 3rd cycle from
KHR500,000 - KHR1,600,000 (USD125 - USD400).
Note: To build up clients’ awareness on cash flow and
finance management, child-related issues, as well as
improvement of agriculture skill, some training provided
to Community Bank Loans (VSU Loan) and Large Group
Solidarity Loans (Trust Bank Loan): children education
training, finance- related training, and agriculture skill
training.
Also under partnership with other development
organizations, KREDIT has provided these Community
Bank Loans (VSU Loan) and Large Group Solidarity
Loans (Trust Bank Loan) some loans for latrine and for
water filter with hope that the rural community sanitation
and hygiene will be improved.
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ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Our Products and Services (Continued) Our Products and Services (Continued)

Savings Products
KREDIT is currently providing a variety of savings
products to customers: savings account, term deposit
account, and partnership savings account. KREDIT
ensures the liquidity safety and convenience for the
depositors and charges no account keeping fees.
Interest on deposits is daily calculated and at the
highest rate in the market.
Savings Account
Savings account targets both KREDIT’s staff and the
public who wishes to keep their money in a secure
and accessible place and allows them to withdraw at
any time. With this type of saving, clients can open an
account with a minimum balance of only KHR20,000
or USD5 with 4.5% interest rate per annum on KHR
currency and 3.5% interest per annum for USD
currency. The interest is compounded monthly. No
account keeping fee is charged.
Balance Annual Interest
Term
Minimum Maximum KHR
KHR20,000 KHR100,000,000
Everyday
$5 $50,000
4.5%
Term Deposit Account
Term Deposit Account is a contracted saving with a
certain amount of money, terms, and interest rate
agreed upon between KREDIT and the clients.
We have two types of Term Deposit a) Wealthy Return:
with it, the depositor can withdraw the interest every
month and the principal at the maturity date, b)
Wealthy Growth, the interest and principal can be
transacted at the maturity date. The term can be 1
month, 3 months, 6 months, 9 months, 12 months, 18
months, 24 months, and 36 months. The yearly highest
interest rate is 12% for saving in local currency (KHR)
and 8.5% for USD currency.
Partnership Savings Account
KREDIT provides affordably professional services to
partner organizations by streamlining savings and
credit facilities through the NGO’s normal administration
operations. Partnership Savings targets companies
or institutions that want to save for staff in their own
personal saving account, and/or for future expenses
and investment. Only USD5 is needed as a minimum
deposit to open a partnership savings account with
5% per annum interest rate on saving being provided
to clients. The interest is calculated daily on the
USD
outstanding balance and added to the principal at the
3.5% end of each month.
Balance Annual Interest
Term
Minimum Maximum USD
3% of
Everyday $5 KREDIT’s Net 5%
Worth
Local Money Transfer
Local Money Transfer is another service that KREDIT
is providing. With this new service, KREDIT can allow
clients to repay loans to KREDIT at any of our offices in
our operational areas. This service is with an affordable
fee, fast and secure. Till now, we have found that our
clients enjoyed much with this service.
Starting with only $1, you can send money nationwide
with KREDIT.
Currency Exchange
With the MDI license, we are yet to have authorities to
provide currency exchange to the public but we can do
with our existing clients. However, it also helps ourclients
to solve exchange problem that usually requires them
to go to the market, make currency exchange and come
to KREDIT's office for loan repayment.
To serve the market movement and the capacity of
new core banking system (Oracle Flexcube), KREDIT
has also studied and developed some new financial
services and planned to introduce in the near future. We
hope that the product modifications and development
will help provide our clients with more convenience and
choices.
Market Study for Modifications
Development
KREDIT is really careful with products and services
provision to the clients. We want to provide them
convenient and more innovative products and services
as their preference. To see satisfactory levels on
our products and services as well as their potential
preference, in early 2014, KREDIT also conducted
client’s satisfaction survey with 607 clients who
have been with KREDIT at least for 13 months from
12 offices in 8 provinces using the random method. We
also conducted clients’ exit survey with 217 voluntarily
exited clients from 7 offices.
Below are some findings from the survey:
- 99% of ID clients and 96% of VSU clients satisfied
with loan sizes providing by KREDIT;
- 97% of clients satisfied with our current repayment
modes;
- 95% of VSU and 92% of ID clients satisfied with loan
term;
- Compared with the last exit survey study in Feb
2013, reasons of exit related to KREDIT’s policy was
down from 33% to 27% while issues of group loan is
still similar. The main reasons of exit are personal and
occupations which are external factors.
With the findings, we can see that our current loan
conditions are mostly satisfied by the clients; however,
we also found a few points needed to be improved.
With the findings, the management has taken actions
and
to enhance them and hopefully we can serve our clients
much better.

Start saving with us now...! Starting with only $1, you can send money nationwide with KREDIT.

30 31
ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Operational Performance Operational Performance (Continued)

Despite good economic growth of the country for the
year of about 7.2%, KREDIT has carefully expanded
by keeping focus on quality of work while maintaining
good services provision to the clients within the
operations areas. To enhance the quality of the service
provided to the clients; as normal, KREDIT in 2013 also
arranged a workshop so called “management level 2
workshop” at where all branch managers, sub branch
managers, and other branch management staff come
to join with presences of all Ex Com members. During
the workshop, we discussed and we did reflection what
we are doing in different offices, challenges and issues,
and comments from the field levels. Responsible
departments and units who also attended the workshop
clarified points raised by the participants. Comments
from staff and also findings from the research help the
management in decision making for any adjustments
to the products and services. With good coordination
and commitment of management and staff at all levels,
KREDIT has continued its growth with quality for year
2013.
Operational Area and Office Outreach
At the end of the year 2013, KREDIT operates
through 60 branch / sub-branch offices and 6 unit
offices, in 15 provinces, 110 districts, 857 communes
and 5,402 villages. The increase of numbers of offices
and coverage area is really beneficial to clients as the
services are closer to their hands so that they can easily
access when needed.
Notes:
After the implementation of Cambodia Credit Bureau
(CBC), KREDIT decided classifying loan purposes as
below to fit to CBC:
- Social loan includes latrine loan, community bank
loan, trust bank loan, emergency loan, and water filter
loan;
- Consumption loan covers complete house loan,
loan for buying motor for renting to KREDIT by staff,
agr- assets acquisition loan, and other consumption-
purpose loan;
- Business loan covers production loan, trade and
commerce, and services;
- Mortgage loan includes real estate loan, loan for
buying land and house;
- Agriculture loan covers loan for cropping and animal
husbandry
Disbursement of the Loan for the Year
In 2013, KREDIT disbursed loan totaling $ 91,890,128.71
to 76,337 clients. It is increased $ 25,098,694 (27.31%)
and 12,673 (16.60%), in term of loan and clients
compared to 2012. The most percentage disbursed to
client are social loan 35.53%, agriculture loan 25.45%,
consumer loan 18.28%, and business loan 17.52%.
Amount Disbursement by Loan Purposes

Descriptions 2010 2011 2012 2013

Education Loan 0.01%
Branches 9 10 12 13 Mortgage 6.28%
Sub Branches 38 44 51 60 Social Loan 7.67%
Unit Offices 2 4 5 6
Provinces 10 11 13 15
Districts 75 90 101 110 Business Loan 35.93%
Communes 656 661 745 857 Consumer Loan
Villages 3,986 4,216 4,631 5,402 23.67%

Loan Portfolio
Compared to 2012, the portfolio outstanding and clients have grown to 39% and 20% respectively reaching $ Agriculture 26.45%

74.20 million and 73,115 clients from $ 53.49 million and 60,905 clients. The most percentage sectors of loan
utilization are business loan 37.19%, agriculture loan 25.52%, and consumer loan 22.76%.
Loan Outstanding by Purposes

Education Loan 0.01%

Mortgage 6.25%

Social Loan 8.27%

Business Loan 37.19%

Consumer Loan
22.76%

Agriculture 25.52%

Borrowers by Purposes
Education Loan 0.01%
Mortgage 3.40%

Business Loan 20.05%

Social Loan 33.84%

Agriculture 23.61%

Consumer Loan
19.09%

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ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Operational Performance (Continued) Operational Performance (Continued)

Loan Quality Structure Staff Productivity and Workload

The portfolio at risk (Par 30+) ratio as of Dec 2013 was 0.28% which is a bit higher compared to 2012, 0.26%.
However, the percentage of write-off loan was decreased from 0.15% in 2012 to 0.10% in 2013.
The average number of borrowing accounts per credit officer/loan and saving officer (CO/LSO) was increased
from 171 clients to 175 clients, per front line was increased from 114 clients to 116 clients; however, average
number of borrowing accounts per total staff was decreased from 76 clients to 71 clients. The reason for the
decrease of productivity ratio to total staff is because numbers of our support staff have been increased; mainly at
IT department which is currently so busy with the new core banking system.

For average loan outstanding per CO or LSO, per front line, and to total staff were all increased.

Productivity 2010 2011 2012 2013

Loans/CO&LSO (in USD) 125,502 143,382 152,851 184,123
Borrowers/CO&LSO 194 186 171 175
Loans/Front line staff (in USD) 100,172 113,465 101,513.83 121,443
Borrowers/Front line staff 155 147 114 116
Loan/Total staff (in USD) 55,898 62,192 63,087.02 74,649
Borrowers/Total staff 86 79 76 71

Deposit
With different activities employed for this new service, we have found that saving performance of KREDIT for
the year 2013 is also good. At the end of 2013, KREDIT has 9,023 depositing accounts with deposit amount of
USD16, 217,004. To ensure bigger growth for next year, KREDIT also held special workshops with all related staff
from all saving-collection offices to identify some challenges so that we can address. We are looking forwards to
hug growth for the year 2014 as we planned to do many different activities after the workshops.

34 35
ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013
Social Performance Management and KREDIT
Our Progress with SPM
No too long after having clear social performance
and community development unit; in 2013, KREDIT
successfully established the social performance
committee at BoD level with clear charter. The committee
set up a Term of Reference (TOR), so-called “Social
Performance and Community Development Fund” to give
clear nature of the social fund, to set out some criteria for
eligible projects or activities to be supported, and also
to provide general process to use the fund. 5%- 10% of
yearly net profit from the company is also flew in to this
account after the audit report issued and BoD approved.
Within the year 2013, the environmental and social policy
had been also presented to the BoD and got approval.
The partnership with our development NGOs, school,
and vocational training have been smoothly expanded
allowing our clients can get many more benefits from our
services.
Training on social performance management (SPM) and
client protection principles (CCP) has also been provided
to some of staff within the year 2013 and will be provided
more in 2014. From the training, staff can understand
the concept of SPM, its benefits to KREDIT, to staff,
to clients, etc. The staff will also understand what are
activities or programs that KREDIT will do and what are
their contributions and involvement in the activities and
programs.
Within the year, KREDIT has also continued working
with CMA and Agency France Development (AFD) on an
assessment about the current implementation of client
protection principles (CPP) in KREDIT. Now, the report
form the assessment issued, points to be improved
have been identified, and actions plan set with clear
responsible departments and units and deadline. As
planned, 2014 will be the year that most gaps in CPP
be filled.
Our Social Performance Programs/ Projects
KREDIT addresses the real needs of their targeted
clients. This means that before starting a project/
program, KREDIT conducts assessments based on the
needs of the clients, working closely with staff, villagers
36
ANNUAL REPORT 2013
and local authorities to ensure that they offer products
that are truly wanted in the communities.
KREDIT categorized the social performance programs/
projects in to 2: permanent and need- based programs /
projects:
Permanent Programs
KREDIT will sharpen these programs from one time to
another so that in the future KREDIT will become a main
player to these selected issues.
Here are permanent programs of KREDIT:
▪ Vulnerable Services Unit (VSU)
A special program which is specially designed to address
the need of rural poor household by providing them
with finance and non- financial services. Some of non-
financial services provided by KREDIT and some by our
partners. This is to ensure that the service providers
are expertise by their own field. The VSU operations
have been expanded to cover many more coverage
areas. The financial service is still special in terms
of: lower interest rate, without collateral and village-
based service. Non-financial services have also been
continued and described in next points. In addition
when clients in this project died, their family no need to
repay the balanced loan and they will also get a package
of money to arrange the funeral ceremony from KREDIT.
As of Dec 2013, VSU project is handing 23,395 (32% of
total KREDIT borrowers) poor and poorest families with
loan outstanding USD 5.53 mil in 174 communes of 41
districts.
▪ Finance-Related Training
Financial-related training is specially designed and
provided directly by KREDIT's staff to poor clients with
an aim at increasing their knowledge and good practice
on family financial management. The training topics
include saving, budgeting, and debt management.
The training is provided directly by our credit officers/
loan and saving officers.
From an assessment conducted by external consultant,
it revealed a majority of clients that attended the training
were highly appreciative of the sessions. Training
communicates to clients the importance of savings, ways
to increase their daily income, decrease unnecessary
expenses, cash flow projection and management, also
Social Performance Management and KREDIT (Continued)
smart ways to select financial partners when needed. As
of Dec 2013, a total of 20,404 clients already received
such necessary training from our staff. Besides the
clients, KREDIT also provides this training to normal
villagers and staff of our partners. KREDIT with support
from our partners planned to update the financial training
tools making sure that it is easier understood by clients
and more beneficial for them. Early 2014, KREDIT was
selected by National Bank of Cambodia and CMA to
produce a documentary about financial training to clients
for Global Money Week, arranged by Child and Youth
Finance International.
▪ Agriculture Training
Special agriculture training is designed to equip rural
poorest and poor clients with their most preferred
agriculture skill. The training is very special because
the group members discuss and select a topic
that they mostly like to learn while trainers are experts
from KREDIT's development partners. The training
conducted on both ways: theory and on-hand practice
with demonstration farm and usually it takes 2 days
at their villages. During the on-hand training, all
members are getting involved in all activities on the
field so they can not only hear from trainer, but they can
see and they practice themselves. In addition, follow up
program is also arranged to give trainers and trainees
an opportunity to talk about their experiences when
putting theories in to their own practice. As of the same
date, 4,533 families of clients already received such
training from our expert NGO partners.
▪ Child Education Training
To promote child education and development, KREDIT
and its partners developed child education training to be
provided to our staff and poor clients so that they can
provide better education and better care to their children
which is a basic need and the right of all children.
We want to see perceptions of poorest and poor
clients changed by investing more resources towards
education and welfare of their children instead of
sending them to work field. The training topics include
good parents, needs of children, building a happy family,
child protection, child abuse, and child labor. 8,751
clients have received this good training along with
educational reading books containing different topics
without return. However, the clients are also advised to
KREDIT Microfinance Institution Plc.
swap the books among the group after their reading so
that they can get more knowledge from it. This training
is also provided to normal villagers, staff of our partners
and our own staff by a special group of staff who are
specialized in this field. Education loan is also another
new product already tested for a year. Even though
the performance of this loan for the year is still low, but
we have learnt much more from this new product and
we have identified points for improvements. We hope
to get higher performance for upcoming years. Along
with our activities at the field with clients, KREDIT is
also a member of Cambodia child welfare group
which is formed by organizations working with children
affair in Cambodia. We have a monthly meeting to talk
about child issues and also we have a weekly program
on Friday, 5:30-6:30pm on a radio in which experts in
children are invited as speakers.
▪ Contribution to Reduction of Traffic Accident
KREDIT has continued getting even more involvement
in this intervention. Radio program to build awareness
of people about traffic law still continued and many more
helmets produced and given to staff. More programs
planned to work out more with Cambodian Red Cross
includes workshop with high schools and universities to
build awareness about traffic law, banner at each traffic
light, and other promotional leaflets.
▪ Contribution to Improvement of Hygiene and
Since late 2012, KREDIT has partnered with some
development partners to lend small loans to poor rural
families to buy a simple set of latrine and water filter for
their daily uses. As of Dec 2013, 1,012 families bought
latrines and 33 bought water filter from our promotion
in which some got loans from KREDIT and some used
their own saving. This intervention aims at contribution to
hygiene and sanitation improvement at rural community.
Need-based program
Besides permanent program, KREDIT also has another
program called “Need- Based Program” to respond
to the real needs of the clients and communities we
are working with. Under this programs, we have done
some activities: supporting pump well, canal renovation,
kindergarten building, etc. We will study other real needs
of people in different areas by working with the local
commune council using community development plan.
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ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Social Performance Management and KREDIT (Continued) Our Lenders, Partners, and Network

Our Lenders to MFIs by Cambodian commercial banks have been

Special thanks to KREDIT’s shareholders for their commitment to help
Cambodia rural community by allocating
Despite positive trend of saving mobilization in the
country, the main funding sources of MFIs in Cambodia
are still from loans lent by oversea lenders. However,
we have observed that the saving collection trend will
be continuing its positive path and will become very
good local fund for Cambodian MFIs in the near future
or we can say that the Cambodian MFIs will cut down
dependency on outside fund from year to year. Lending
continued and expanded.
Despite no official data about lending by international
lenders to Cambodian MFIs but KREDIT has continued
getting much more supports from our lenders. More
loans with bigger amounts and better deals have been
continued lending to KREDIT. Below are names of
KREDIT’s current lenders:

5-10% of their yearly net profits LENDER NAMES

1 Developing World Market 18 MicroFinance Enhancement Facility

for social programs and activities in this country ! 2 Conzorio Etimos 19 responsibility Global Microfinance Fund

3 Etimos Fund 20 responsAbility SICAV (LUX) Mikrofinanz-Fonds

4 Calvert Foundation 21 responsAbility SICAV (LUX) Microfinance Leaders

responsAbility SICAV (Lux) Financial Inclusion

5 Triple Jump 22
Fund

6 MicroCredit Enterprise 23 Oikocredit

7 BlueOrchard MicroFinance Fund 24 World Hope International

8 Microfinance Initiative Fund for Asia 25 ICO (Spain)

9 GoodDeed Company 26 Partner For Development

10 Wallburge Invest S.A 27 VDK Spaarbank

11 Finethic Microfinance S.C.A.,SICAV-SIF 28 Impulse

12 IC Fund SICAV 29 BANK IM BISTUM ESSEN e.G

13 Dual Return Fund S.I.C.A.V 30 Commerzbank A.G

14 GoodDeed Company 31 HwangDBS

15 Symbiotic SICAV 32 Maruhan

16 responsAbility SICAV (LUX) 33 ACLEDA Bank

17 Credit Suisse Microfinance Fund Management 34 Kiva

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ANNUAL REPORT 2013 ANNUAL REPORT 2013
 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Our Lenders, Partners, and Network (Continued) Listen to Our Staff, Partners, and Clients Talking about KREDIT

Partners
KREDIT believes that our financial service alone is not
enough to move our poor and poorest clients from the
poverty because they usually need many more basic
supports from many different interventions. Having
seen this, KREDIT has worked with many different
Clients
development players to equip our poor and the poorest
clients with other complimentary services. We are
together to provide many different services needed by
CHUON CHEAR, 40, and her husband CHHOEM CHHOEU, 45, are
our clients based on specializations of each individual
farmers, growing cassava and corn. They are living with their two
organization.
children in Battambang Province. Describing her future goals, Chuon
Chear says “in the future I want my children to study in the University
and get a good job, while I have nothing to pass on to them I want them
to be knowledgeable.”

SIE CHANLY, 33 years old, is a resident of Ratanak Modul district,

Battambang province, where she lives with her husband, NHOEM
NOU, and her son. “Before the loan from KREDIT, my family’s life was
terrible because I only work at a corn and soybean farm for a daily
wage. Now we own land for growing cassava and corn”, she says. “I
thank KREDIT for the loan and the many training courses in finance,
agriculture and child education that changed my family’s life. Now I
believe that my son will go for a higher education and my husband and
I will help him to achieve his dream.”

CHOEM MOUN, 54, lives with his wife SOEUN SEAR, 50, and four
Networking Partners children in Kilomet village, Battambang province north of Phnom Penh.
- A member of Cambodian Microfinance Association,
- A permanent and active member of Cambodia Child Warfare Group He is a farmer who loves to take care of his crop and is eager to
- A member of Social Performance Task Force develop his business. When KREDIT came to the village he saw his
- The oldest active partner of Kiva in their partner’s list chance of starting a business from having nothing and he made a plan
- A members of Banking With The Poor (BWTP) for the future. “People in the village take the loan without a plan and
- A member of Mix Market that is why they are still poor, Choem Moun says, I always had a plan
- A partner of AFD and CMA project to enhance Client Protection Principles for my family”. In the future he wants to expand his chicken farm and
- A partner of “road traffic program” of Cambodia Red Cross, the only one Cambodian MFI to be invited to continue to do what he loves the most so the children can in heritage
endorse with joint statement “Motorcycle passengers, including children, must wear helmets” issued by Asia Injury his business and take care of it.
Prevention Foundation, Coalition for Road Safety, and Handicap International
- One of 6 Cambodian MFIs got support from PlaNet Finance on FinIncAsia and 2 of staff were certified as SPM
trainers and mentors from the project
- An institution who endorsed with Smart Campaign on client protection principle
- An institution who got certification from Transparent Pricing Initiative by MFTransparency Organization
- An institution who got 2 times of Merit Award from CGAP on Finance Transparency;

40 41
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 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

Listen to Our Staff, Partners, and Clients Talking about KREDIT (Continued) Awards Received Within 2013

Village Leader

With a smiling face, Mr. CHEA PECH, village leader of Bos Ty,
Kok Commune, Ponhea Krek District, Thbaung Khmum commune,

1
expressed his delight in attending the parenting training conducted by
“MOST INNOVATIVE NON - PROFIT SOCIAL
KREDIT. He believes the villagers who came for the training got more
ENTERPRISE” from Singapore Venture Capital and
knowledge and they will practice it in the future. As a leader, he will
Private Equity Association (SVCA) 21st Anniversary
continue to share such good knowledge to those who did not attend by
Gala & Awards Dinner for the year 2013.
talking to young mothers whenever he gets the chance.

Village Bank Leader

Mrs. En Yei who declared that she has five grandchildren showed
great appreciation towards KREDIT for providing the training to the
families in her village. She was very interested in the role of parents
also being teachers and she practices this herself. She said, “everyday

2
Seal of Pricing Transparency 2013
I share the knowledge gained from parenting training to other villagers
and I always bring with me the materials provided by KREDIT to show This is a widely recognized guarantee of our efforts
to abide by the best international practices. The
them.”
award was given to KREDIT by Transparent Pricing
Initiative in Cambodia and it certifies that KREDIT is
transparent in its product pricing.

Message from Board Chairman and Shareholder Representative

On behalf of KREDIT's shareholders, Phillip Capital and World Relief, we wish to

thank the CEO, management and staff for the hard work that you have all put in

3
to produce such good results for 2013. I am sure all our customers are blessed
2 awards from KIVA for:
by the loans that we have extended to them and we must all be very pleased
Facilitation of Savings and Client Voice
to have made a difference in their lives. Once again thank you and we shall all
continue to put forth our best efforts together and be an even greater blessings to Visit: www.kiva.org/partners

our borrowers in the years to come.

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 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

External Audit Report External Audit Report (Continued)

DIRECTORS’ REPORT BAD AND DOUBTFUL LOANS

The Board of Directors (“the Directors”) hereby submits its report together with the audited financial statements
of KREDIT Microfinance Institution Plc., formerly known as CREDIT Limited (“the Company”) for the year ended
31 December 2013.
PRINCIPAL ACTIVITY
The principal activity of the Company is to provide credit to local customers through its head office in Phnom Penh
and its various provincial and district offices in the Kingdom of Cambodia.
Before the financial statements of the Company were drawn up, the Directors took reasonable steps to ascertain
that actions had been taken in relation to the writing off of bad loans and the making of allowance for bad
and doubtful loans, and satisfied themselves that all known bad loans had been written off and that adequate
allowance had been made for bad and doubtful loans.
At the date of this report, the Directors are not aware of any circumstances that would render the amount written off
for bad loans or the amount of allowance for doubtful loans in the financial statements of the Company inadequate
to any material extent.

On 29 December 2010, the Company received a licence from the National Bank of Cambodia (“the Central Bank”)
to conduct a deposit-taking business.
FINANCIAL PERFORMANCE AND DIVIDENDS
The financial performance for the year ended 31 December 2013 is set out in the income statement on page 8.
ASSETS
Before the financial statements of the Company were drawn up, the Directors took reasonable steps to ensure
that any assets that were unlikely to be realised in the ordinary course of business at their values as shown in
the accounting records of the Company have been written down to an amount which they might be expected to
realise.

On 3 May 2013, dividends amounting to US$409,338 were declared and paid in respect of the Company’s profit At the date of this report, the Directors are not aware of any circumstances that would render the values attributed
for the year ended 31 December 2012 (2012: US$334,915). to the assets in the financial statements of the Company misleading in any material respect.

SHARE CAPITALS VALUATION METHODS

On 19 September, 2012, the Central Bank approved the increase of the authorised and registered share capital At the date of this report, the Directors are not aware of any circumstances that have arisen that would render
by Riel 4,410 million (approximately US$ 1,102,500). adherence to the existing method of valuation of assets and liabilities in the financial statements of the Company
misleading or inappropriate in any material respect.
The revised share structure was registered in the Ministry of Commerce on 21 May 2013.
CONTINGENT AND OTHER LIABILITIES
The details of authorised and registered shareholding are as follows:
At the date of this report, there is:
2012 2013
% of Number of Amount % of Number of Amount (a) no charge on the assets of the Company that has arisen since the end of the year that secures the
ownership shares US$ ownership shares US$
liabilities of any other person; and
Phillip MFI Pte Ltd 67.43 67,034 3,351,700 58.15 44,984 2,249,200
(b) no contingent liability in respect of the Company that has arisen since the end of the year other than in the
ordinary course of business.
World Relief Corporation 32.57 32,380 1,619,000 41.85 32,380 1,619,000

100 99,414 4,970,700 100 77,364 3,868,200 No contingent or other liability of the Company has become enforceable, or is likely to become enforceable within
the period of 12 months after the end of the year that, in the opinion of the Directors, will or may have a material
effect on the ability of the Company to meet its obligations as and when they become 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 Company that would render any amount stated in the financial statements
misleading in any material respect.

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 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

External Audit Report (Continued) External Audit Report (Continued)

ITEMS OF AN UNUSUAL NATURE The Directors confirm that the Company has complied with the above requirements in preparing the financial
statements.
There were no items, transactions or events of a material and unusual nature that, in the opinion of the Directors,
materially affected the financial performance of the Company for the year ended 31 December 2013.  
APPROVAL OF THE FINANCIAL STATEMENTS
There has not arisen in the interval between the end of the 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 affect substantially the results of The accompanying financial statements, together with the notes thereto, present fairly, in all material respects,
the operations of the Company for the current year. the financial position of the Company as at 31 December 2013 and its financial performance and cash flows for
the year then ended in accordance with the guidelines issued by the National Bank of Cambodia and Cambodian
THE BOARD OF DIRECTORS Accounting Standards, were approved by the Board of Directors.

The members of the Board of Directors during the year and as at the date of this report are:
On behalf of the Board of Directors.
• Mr. Timothy Mark Amstutz, Chairman
• Mr. Daniel John Brose; Member (appointed on 25 January 2012)
• Mr. Ong Teong Hoon, Member
• Mr. Tan Teck Keong Michael, Member
• Ms. Srey Hem Roberts, Member
• Ms. Ing Varony, Member
• Ms. Tea Chansotheary, Member
• Mr. Fong Kum Choy, Member

RESPONSIBILITIES OF THE BOARD OF DIRECTORS IN RESPECT OF THE FINANCIAL STATEMENTS

The Directors are responsible for ensuring that the financial statements are properly drawn up so as to present
fairly, in all material respects, the financial position of the Company as at 31 December 2013 and its financial
performance and cash flows for the year then ended. In preparing these financial statements, the Directors are
required to:

i) adopt appropriate accounting policies that are supported by reasonable and prudent judgements and estimates,
and then apply them consistently;

ii) comply with the disclosure requirements and the guidelines issued by the National Bank of Cambodia and
Cambodian Accounting Standards or, if there has been any departure from such standards in the interest of
fair presentation, ensure that this has 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
Company will continue operations in the foreseeable future; and

v) effectively control and direct the Company and be involved in all material decisions affecting its operations and
performance and ascertain that such matters have been properly reflected in the financial statements.

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 ANNUAL REPORT 2013 KREDIT Microfinance Institution Plc.

External Audit Report (Continued) External Audit Report (Continued)

Independent auditor’s report

To the Shareholders of KREDIT Microfinance Institution Plc.

We have audited the accompanying financial statements of KREDIT Micorfinance Institution Plc. (the Company),
which comprise the balance sheet as at 31 December 2013, and the income statement, the statement of changes in
equity and the cash flow statement for the year ended, and notes, comprising a summary of significant accounting
policies and other explanatory information.

Management’s responsibilities for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance
with the Cambodian Accounting Standards and guidelines of the National Bank of Cambodia, and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.

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 Cambodian International Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 judgement, including 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 control 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 financial statements present fairly, in all material respects, the financial position of the Company
as at 31 December 2013, and its financial performance and its cash flows for the year ended in accordance with
the Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia.

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External Audit Report (Continued) External Audit Report (Continued)

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External Audit Report (Continued) External Audit Report (Continued)

APPENDIX: NOTES ON COMPLIANCE WITH THE CENTRAL BANK’S PRAKAS

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External Audit Report (Continued) External Audit Report (Continued)

APPENDIX: NOTES ON COMPLIANCE WITH THE CENTRAL BANK’S PRAKAS LOAN CLASSIFICATION, PROVISIONING, AND DELINQUENCY RATIO, Prakas No. B7-02-186
FOR THE YEAR ENDED 31 DECEMBER 2013
Licensed microfinance institutions shall classify their loan portfolios into the following four classes, depending on
the financial situation of the borrower and the timeliness of principal and interest payments.

Loan term of one year or less than one year

SOLVENCY RATIO, Prakas No. B7-07-163 • Standard: good financial condition and punctual payment of principal and interest
• Sub-standard: some payments of principal and/or interest are overdue by 30 days or more
A licensed deposit-taking microfinance institution shall at all times maintain a solvency ratio of more than 15%. As • Doubtful: some payments of principal and/or interest are overdue by 60 days or more
at 31 December 2013, the solvency ratio of the Company was 20.96%. • Loss: some payments of principal and/or interest are overdue by 90 days or more

The net worth and solvency ratio calculation are detailed in Schedule 1. Loan term of more than one year

• Standard: good financial condition and punctual payment of principal and interest
2. LIQUIDITY RATIO, Prakas No. B7-07-163 • Sub-standard: some payments of principal and/or interest are overdue by 30 days or more
• Doubtful: some payments of principal and/or interest are overdue by 180 days or more
A licensed deposit-taking microfinance institution shall at all times maintain a liquidity ratio of at least 50%. As at • Loss: some payments of principal and/or interest are overdue by 360 days or more
31 December 2013, the liquidity ratio of the Company was 268.68%.
Mandatory provisions on the loans are classified as follows:
The liquidity ratio calculation is detailed in Schedule 2.
• Sub-standard: 10% regardless of the collateral value except cash
• Doubtful: 30% regardless of the collateral value except cash
3. NET OPEN POSITION IN FOREIGN CURRENCY, Prakas No. B7-07-134 • Loss: 100%

A licensed microfinance institution shall at all times maintain a net open position in foreign currencies in either any As at 31 December 2013, the provision provided by the Company was KHR 829,290 which is in compliance with
foreign currency or an overall net open position in all foreign currencies, whether long or short, which shall not the Central Bank’s Prakas.
exceed 20% of the Company’s net worth. As at 31 December 2013, the net open position in Khmer Riel was short
7.84% and in Euro was long 0.24%. Loan classification, provision and delinquency ratio calculation are detailed in Schedule 5.

The net open position calculation is detailed in Schedule 3.

4. RESERVE REQUIREMENT, Prakas No. B7-07-163

A licensed deposit-taking microfinance institution shall deposit 8% of its deposits into an account maintained with
the Central Bank. On 29 December 2010, the Company received a licence from the Central Bank to conduct a
deposit-taking business. As at 31 December 2013, the Company’s reserve requirement was KHR 64,786,931
which is greater by KHR 59,603,977 than the Central Bank’s requirement.

The reserve requirement calculation is detailed in Schedule 4.

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External Audit Report (Continued) External Audit Report (Continued)

SCHEDULE 1 KHR ‘000

NET WORTH AND SOLVENCY RATIO AS AT 31 DECEMBER 2013

I- Numerator (A)
KHR ‘000

I- Sub-total A: Items to be added Net worth 66,661,381

- Capital or endowment 19,857,947
- Reserve, other than revaluation reserves 3,741,565 II- Denominator (B)
- Premium related to capital (share premium) 5,583,013 Assets * KHR ‘000 Weighting
- Provision for general banking risks, with the prior agreement of the -
Central Bank - Cash 12,739,136 0% -
- Retained earnings 18,862,220 - Gold - 0% -
- Audited net profit for the latest financial year 6,212,621 - Claims on the Central Bank 17,900,732 0% -
- Other items approved by the Central Bank - - Assets collateralised by deposits - 0% -
- Claims on sovereigns rated AAA to AA- - 0% -
54,257,366 - Claims on sovereigns rated A+ to A- - 20% -
- Claims on banks rated AAA to AA- - 20% -
II- Sub-total B: Items to be deducted
- Claims on sovereigns rated BBB to BBB- - 50% -
- For shareholders, directors, managers and their next of kin 359,614
- Claims on or guaranteed by banks or corporation 232,580 50% 116,290
> Unpaid portion of capital -
- All other assets 317,857,358 100% 317,857,358
> Advances, loans, security and the agreement of the persons -
concerned as defined above 348,729,806 317,973,648
- Holding of own shares at their book value -
- Accumulated losses - III- Solvency ratio (A/B) 20.96%
- Formation expenses -
- Losses determined on dates other than the end of the annual * The denominator of the ratio shall comprise the aggregate of the assets (net amount after deduction of provision
accounting period (including provisions to be made for doubtful debt and and depreciation) and off-balance sheet items, weighted to their degree of risk. It excludes the items that are
securities) - deducted in calculating the net worth according to the provisions of the Prakas on the calculation of microfinance
institutions’ net worth.
359,614

III- Total C: BASE NET WORTH = A – B 53,897,752

IV- Sub-total D: Items to be added

- Revaluation reserves, with the prior agreement of the Central Bank -
- Subordinated debt, with the prior agreement of the Central Bank, up to 7,990,000
100% of base net worth
- Other items, with the prior agreement of the Central Bank, could be
included in the calculation of net worth and shall not be more than the
base net worth 4,773,629

12,763,629

V- Sub-total E: Items to be deducted

- Equity participation in banking and financial institutions -
- Other items -

VI- Total F: TOTAL NET WORTH = C + D - E 66,661,381

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External Audit Report (Continued) External Audit Report (Continued)

SCHEDULE 2 SCHEDULE 3
LIQUIDITY RATIO AS AT 31 DECEMBER 2013 NET OPEN POSITION IN FOREIGN CURRENCY AS AT 31 DECEMBER 2013

KHR ‘000 Liabilities Net open NOP/

Currency Assets and capital position (NOP) Net worth Limit
1- Numerator: Liquid assets
KHR ‘000 KHR ‘000 KHR ‘000 % %

- Cash on hand 12,739,135 US$ 278,560,017 (273,495,495) 5,064,522 7.60% 20%

- Balances with the Central Bank 10,877,126 KHR 70,366,387 (75,593,925) (5,227,538) (7.84%) 20%
- Balances with banks 9,380,480 EUR 163,016 - 163,016 0.24% 20%

Sub-Total (A) 32,996,741 Total 349,089,420 (349,089,420) - -%

Less: Net worth 66,661,381

- Amount owed to the Central Bank -
- Amount owed to banks 2,663,562

SCHEDULE 4
Sub-total (B) 2,663,562 RESERVE REQUIRMENT AS AT 31 DECEMBER 2013

Net liquidity (A – B) 30,333,179

Plus: KHR ‘000

- Portion of loans outstanding maturing in less than one month 13,183,684

1- Voluntary
1-1 Demand -
Liquid assets (L) 43,516,863 1-2 Savings (3.5%-6% per annum) 11,859,205
1-3 Term 52,927,726
2- Denominator: Adjusted amount of deposits (A) 1-4 Other -
Category of deposits KHR ‘000 %
1-5 Total reservable deposits 64,786,931
- Voluntary savings 64,786,931 25%
16,196,733 2- Compulsory
2-1 Program (3% per annum) -
LIQUIDITY RATIO (L/A) 268.68% 2-2 Program -
2-3 Program -

2-4 Total compulsory savings -

3- Total savings mobilised 64,786,931

8% Reservable deposits 5,182,954

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External Audit Report (Continued) Contact Us

SCHEDULE 5
LOAN CLASSIFICATION, PROVISIONING, AND DELINQUENCY RATIO HEAD OFFICE
AS AT 31 DECEMBER 2013
Building Nº 71, St. 163, Sangkat Toul Svay Prey I, Khan Chamkarmorn, Phnom Penh, Cambodia.
Phone: (855) 23 217 942 / (855) 89 989 818, Fax: (855) 23 217 942, E-mail: info@kredit.com.kh
Mandatory
1. PHNOM PENH BRANCH
Amount Rate Provision
1.1 Phnom Penh Branch and Sub Branch Office
Loan classification KHR ‘000 % KHR ‘000
Building Nº 71, St. 163, Sangkat Toul Svay Prey I, Khan Chamkarmorn, Phnom Penh.
Phone: (855) 23 638 0003
1-Loans of one year or less
1-1 Standard 52,467,198 0% - 1.2 Meanchey Sub Branch Office

1-2 Substandard past due ≥ 30 days 21,529 10% 2,153 House Nº 694, St. 271, Group 41, Village 7, Sangkat Phsar Doeum Thkov, Khan Chamkarmorn,
1-3 Doubtful past due ≥ 60 days 11,805 30% 3,544 Phnom Penh. Phone: (855) 23 638 0004

1-4 Loss past due ≥ 90 days 31,812 100% 31,812 1.3 Porthi Sencheuy Sub Branch Office
Sub-total 1 52,532,344 37,509
House Nº 113, Russian Blvd., Porprok Tbaung Village, Sangkat Ka Kab, Khan Porthi Sencheuy,
Phnom Penh. Phone: (855) 23 638 0005
2-Loans of more than one year
1.4 Toul Kork Sub Branch Office
2-1 Standard 242,054,585 0% -
Nº 115 AI, St. 273, Group 2, Toul Kok Village, Sangkat Toul Sangke, Khan Russei Keo,
2-2 Substandard past due ≥ 30 days 394,067 10% 39,402
Phnom Penh. Phone: (855) 23 638 0007
2-3 Doubtful past due ≥ 180 days 229,093 30% 68,730
1.5 Stueng Meanchey Sub Branch Office
2-4 Loss past due ≥ 360 days 140,984 100% 140,984
Sub-total 2 242,818,729 249,116 House Nº 8A, Monireth Blvd., Trea 3 Village, Sangkat Stueng Meanchey, Khan Meanchey,
Phnom Penh. Phone: (855) 23 650 5752

Grand total 1+2 * 295,351,073 286,625 2. KANDAL BRANCH

2.1 Kandal Branch and Takmao Sub Branch Office

All loans past due > 30 days (A) 829,290
House Nº 14, National Road Nº 2, Ta Kdol Village, Sangkat Ta Kdol, Krong Takmao, Kandal Province.
Phone: (855) 24 638 0001
Loans outstanding (B) * 295,351,073
2.2 Sa Ang Sub Branch Office

House Nº 322, National Road Nº 21, Prek Ron Village, Prek Kouy Commune, Sa Ang District,
Delinquency ratio (A/B) 0.28%
Kandal Province. Phone: (855) 24 638 0002

* Gross loans to customers without taking into consideration the offsetting of loans prepayments. 2.3 Koh Thum Sub Branch Office

House Nº 65, National Road Nº 21, Kampong Svay Krom Village, Prek Thmey Commune,
Koh Thom District, Kandal Province. Phone: (855) 24 638 0005

2.4 Kong Pisei Sub Branch Office

For full external audit report, please visit: www.kredit.com.kh National Road Nº 3, Tram Kna Village, Snom Kraper Commune, Kong Pisei District,
Kampong Speu Province. Phone: (855) 25 638 0004

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3. TAKEO BRANCH 4.6 Bos Knaor Sub Branch Office

3.1 Takeo Branch and Daun Keo Sub Branch Office National Road Nº71, 10 Makara Village, Bos Knaor Commune, Chamkar Leu District,
Kampong Cham Province. Phone: (855) 12 597 395
Phsar Takor Village, Sangkat Rokaknoung, Krong Doun Keo, Takeo Province.
4.7 Baray Sub Branch Office
Phone: (855) 32 638 0001
National Road Nº 6, Sala Khum Village, Triel Commune, Baray District, Kampong Thom Province.
3.2 Bati Sub Branch Office
Phone: (855) 93 555 314
National Road Nº 2, Chork Village, Trapeang Sap Commune, Bati District, Takeo Province. 4.8 Cheung Prey Unit Office
Phone: (855) 32 638 0002 National Road Nº 6, Skun Village, Sotip Commune, Cheung Prey District, Kampong Cham Province.
3.3 Tram Kok Sub Branch Office Phone: (855) 93 555 312

4.9 Bek Anloung Unit Office

National Road Nº 3, Prey Romdeng Village, Ang Tasom Commune, Tram Kok District, Takeo Province.
Phone: (855) 32 638 0007 Bek Anloung Village, Arak Tnoat Commune, Stueng Trong District, Kampong Cham Province.
Phone: (855) 93 555 313
3.4 Kirivong Sub Branch
5. SOUNG BRANCH
Kampong Village, Choun Chum Commune, Kirivong District, Takeo Province.
5.1 Soung Branch and Sub Branch Office
Phone: (855) 88 371 6737
National Road Nº 7, Choeung Lorng Village, Sangkat Soung, Krong Soung, Kampong Cham Province.
3.5 Kampong Chreuy Unit Office Phone: (855) 42 638 0005

House Nº 129, National Road Nº 2, Group 5, Kampong Chreuy Village, Smorng Commune, 5.2 Memot Sub Branch Office
Treang District, Takeo Province. Phone: (855) 32 638 0003 National Road Nº 7, Masin Tek Village, Memot Commune, Memot District, Kampong Cham Province.
Phone: (855) 42 638 0007
4. KAMPONG CHAM BRANCH
5.3 Ponhea Kraek Sub Branch Office
4.1 Kampong Cham Branch and Sub Branch Office
National Road Nº 7, Stueng Village, Koang Kang Commune, Ponhea Kraek District,
National Road Nº 7, Boeng Snay Village, Sangkat Sambourmeas, Krong Kampong Cham, Kampong Cham Province. Phone: (855) 42 638 0006
Kampong Cham Province. Phone: (855) 42 638 0001
5.4 Ou Reang Ov Sub Branch Office
4.2 Batheay Sub Branch Office Tomneap Village, Kong Chey Commune, Ou Reang Ov District, Kampong Cham Province.
Phone: (855) 42 638 0010
National Road Nº 6A, Ph’av Village, Ph’av Commune, Batheay District, Kampong Cham Province.
Phone: (855) 42 638 0003 5.5 Kraek Sub Branch Office

National Road Nº 72, Chimoin Lech Village, Kraek Commune, Ponhea Kraek District,
4.3 Prey Chhor Sub Branch Office
Kampong Cham Province. Phone: (855) 43 641 2111
National Road Nº 7, Daun Dey Village, Chrey Vien Commune, Prey Chhor District,
5.6 Rokarpor Pram Unit Office (Trapaing Russei Unit Office)
Kampong Cham Province. Phone: (855) 42 638 0002
Trapaing Russei Village, Rokarpor Pram Commune, Tbaung Khmum District, Kampong Cham Province.
4.4 Chamkar Leu Sub Branch Office Phone: (855) 42​638 0020

National Road Nº71, Thnal Bek Koeut Village, Svay Teap Commune, Chamkar Leu District, 5.7 Dambe Sub Branch Office
Kampong Cham Province. Phone: (855) 42 638 0004 National Road Nº 73, Dambe Village, Dambe Commune, Dambe District, Kampong Cham Province.
Phone: (855) 42​638 0030
4.5 Stueng Trang Sub Branch Office

Beoung Deng Village, Prek Kok Commune, Stueng Trang District, Kampong Cham Province.
Phone: (855) 42 638 0009

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6. NEAK LOEUNG BRANCH 8. KAMPONG CHHNANG BRANCH

6.1 Neak Loeung Branch and Peam Ro Sub Branch Office 8.1 Kampong Chhnang Branch and Sub Branch Office

National Road Nº 1, Village 1, Preak Khsay Khor Commune, Peam Ro District, Prey Veng Province. National Road Nº 5, Damnak Popoul Village, Sangkat Kampong Chhnang, Krong Kampong Chhnang,

Phone: (855) 43 638 0001 Kampong Chhnang Province. Phone: (855) 26 638 0001
8.2 Kampong Trolach Sub Branch Office
6.2 Leuk Dek Sub Branch Office
Kaort Village, Peany Commune, Kampong Trolach District, Kampong Chhnang Province.
Kampong Chamlorng Village, Prek Tonlaob Commune, Leuk Dek District, Kandal Province. Phone: (855) 26 638 0002
Phone: (855) 43 638 0002
8.3 Boribo Sub Branch Office
6.3 Baphnom Sub Branch Office Cheung Khnar Village, Ponley Commune, Boribo District, Kampong Chhnang Province.

House Nº 45, Chhoeur Kach Village, Chheour Kach Commune, Baphnom District, Prey Veng Province. Phone: (855) 26 638 0003

Phone: (855) 43 638 0004 8.4 Kampong Leng Sub Branch Office
Kampong Boeng Village, Kampong Hao Commune, Kampong Leng District, Kampong Chhnang Province.
6.4 Kampong Trabek Sub Branch Office
Phone: (855) 26 638 0004
Doun Tung Village, Prasat Commune, Kampong Trabek District, Prey Veng Province.
8.5 Toek Phos Sub Branch Office
Phone: (855) 43 638 0005
Sre Tachey Village, Ark Phiwat Commune, Toek Phos District, Kampong Chhnang Province.
6.5 Preah Sdach Sub Branch Office Phone: (855) 26 638 0005

Krosaing Toung Village, Ang Reach Commune, Preah Sdach District, Prey Veng Province 8.6 Oddong Sub Branch Office
Phone: (855) 43 639 0001 National Road Nº 5, Tep Pror Nom Village, Vihea Luong Commune, Pongnea Leu District,
Kandal Province. Phone: (855) 24 638 0003
7. PREY VENG BRANCH
9. SIEM REAP BRANCH
7.1 Prey Veng Branch and Svay Antor Branch Office
9.1 Siem Reap Branch and Sub Branch Office
Pou Chentam Village, Svay Antor Commune, Svay Antor District, Prey Veng Province.
House Nº 29, Group 4, Ta Phul Village, Sangkat Svay Dangkum, Krong Siem Reap,
Phone: (855) 43 638 0003
Siem Reap Province. Phone: (855) 63 638 0001
7.2 Pea Reang Sub Branch Office 9.2 Puok Sub Branch Office
House Nº 174, National Road Nº 8, Group 16, Snay Pol Village, Roka Commune, Pea Reang District, National Road Nº 6, Otaprak Village, Pouk Commune, Pouk District, Siem Reap Province.
Prey Veng Province. Phone: (855) 43 670 9666 Phone: (855) 63 638 0002

7.3 Prey Veng Sub Branch Office 9.3 Sothnikom Sub Branch Office
House Nº 8, National Road Nº 6, Domdek Phsa Village, Domdek Commune, Sothnikom District,
House 01, Group 1, Village 4, Sangkat Kampong Leav, Krong Prey Veng, Prey Veng Province.
Siem Reap Province. Phone: (855) 63 638 0003
Phone: (855) 43 639 0002
9.4 Kralanh Sub Branch Office
7.4 Kamchay Mear Sub Branch Office
House Nº 39, National Road Nº 6, Group 1, Kampong Thkov Village, Kampong Thkov Commune,
House Nº 09, National Road Nº 8, Group 10, Chhor 2 Village, Kronhoung Commune, Kralanh District, Siem Reap Province. Phone: (855) 63 638 0004
Kamchay Mear District, Prey Veng Province. Phone: (855) 43 670 9333
10. BATTAMBANG BRANCH
7.5 Kanh Chriech Unit Office
10.1 Battambang Branch and Sub Branch Office
Prongeuy Muoy village, Thma Pun Commune, Kanh Chriech District, Prey Veng Province.
House Nº 33, National Road Nº 5, Group 2, Romchek 5 Village, Sangkat Rottanak, Krong Battambang,
Phone: (855) 043 636 3345
Battambang Province. Phone: (855) 53 638 0001
7.6 Kampong Popil Unit Office
10.2 Moung Russei Sub Branch Office
House 271, Kampong Popil Village, Kampong Popil Commune, Pea Reang District,
National Road Nº 5, Group 5, Moung Village, Moung Commune, Moung Russei District,
Prey Veng Province. Phone: (855) 043 666 7121
Battambang Province. Phone: (855) 53 638 0002

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10.3 Thma Koul Sub Branch Office 13.2 Angkor Cheuy Sub Office

House Nº 76, Group 7, Thma Koul Village, Ta Mern Commune, Thma Koul District, Battambang Province. National Road 31, Bral village, Tani Commune, Angkor Cheuy District, Kampot Province.
Phone: (855) 53 638 0003 Phone: (855) 33 630 0003

10.4 Mongkol Borei Sub Branch Office 13.3 Kampong Trach Sub Office

House Nº 265, Group 15, Kouk Svay Village, Russei Kraok Commune, Mongkol Borei District, National Road Nº 33, Kampong Trach 1, Kampong Trach Khang Keut, Kampong Trach District,

Bateay Meanchey Province. Phone: (855) 54 638 0004 Kampot Province. Phone: (855) 12 453 033

10.5 Ratanak Mondul Sub Branch Office 14. PURSAT BRANCH

14.1 Pursat Branch and Sub Branch

House Nº 156, National Road Nº 57, Group 01, Sdao Village, Sdao Commune, Ratanak Mondul District,
Battambang Povince. Phone: (855) 53 638 0005 National Road Nº 5, Sathani Village, Sangket Svay At, Pursat Town, Pursat Province.
Phone: (855) 77 449 072
11. KRATIE BRANCH
14.2 Krokor Sub Branch Office
11.1 Kratie Branch and Sub Branch Office
Samrorng Village, Kbal Trach Commune, Krokor District, Pursat Province.
House Nº 541, Wat Village, Sangkat Kratie, Krong Kratie, Kratie Province.
Phone: (855) 95 633 362
Phone: (855) 72 638 0001
14.3 Bakan Sub Branch Office
11.2 Chhlong Sub Branch Office
National Road Nº 5, Group 19, Boeung Khna Village, Boeung Khna Commune, Bakan District,
Chrouy Tmor Krorm Village, Chhlong Commune, Chhlong District, Kratie Province. Pursat Province. Phone: (855) 93 555 268
Phone: (855) 72 638 0002

11.3 Sam Bo Sub Branch Office

Keang Phra Sat Village, Sam Bo Commune, Sam Bo District, Kratie Province.
Phone: (855) 72 638 0003

12. SVAY RIENG BRANCH

12.1 Svay Rieng Branch and Sub Branch Office

Rorng Bonlaer Village, Sangkat Svay Rieng, Krong Svay Rieng, Svay Rieng Province.
Phone: (855) 44 638 0001

12.2 Bavet Sub Branch Office

National Road Nº 1, Toul Ampel Village, Sangkat Chrokmtes, Krong Bavet, Svay Rieng Province.
Phone: (855) 44 638 0002

12.3 Romeas Hek Sub Branch Office

Krosang Village, Krosang Commune, Romeas Hek District, Svay Rieng Province.
Phone: (855) 44 638 0005

13. KAMPOT BRANCH

13.1 Kampot Branch and Chhouk Sub Branch

National Road Nº 3, Satv Pong Village, Satv Pong Commune, Chhouk District, Kampot Province.
Phone: (855) 33 651 4747

Get your professions and skills with KREDIT’s education loan.

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 A Member of PhillipCapital Group, Singapore

HEAD OFFICE
Building #71, St.163, Sangkat Toul Svay Prey I, Khan Chamkarmorn,
Phnom Penh, Kingdom of Cambodia.
Phone : (855) 23 217 942 / (855) 89​98 98 18, Fax : (855) 23 217 942
E-mail : info@kredit.com.kh, Website: www.kredit.com.kh