CORPORATE MISSION

1

. . CONTENTS

1 CORPORATE MISSION

4 CORPORATE INFORMATION

6 BRANCH NETWORK

14 CORPORATE PROFILE

15 FINANCIAL HIGHLIGHTS

16 SIMPLIFIED BALANCE SHEET

17 SUMMARY OF THREE-YEAR GROWTH

18 BOARD OF DIRECTORS

2 20 BOARD OF DIRECTORS’ PROFILE

26 CHAIRMAN’S STATEMENT

31 POLICY AND PRACTICE GUIDELINES FOR CORPORATE GOVERNANCE

37 BUSINESS OPERATION TARGET

40 ANALYSIS OF THE FINANCIAL STATEMENTS

42 REPORT OF THE BOARD OF DIRECTORS

48 REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS

50 CONSOLIDATED BALANCE SHEET

51 CONSOLIDATED INCOME STATEMENT

52 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

53 CONSOLIDATED STATEMENT OF CASH FLOWS

54 SEPARATE BALANCE SHEET

55 SEPARATE INCOME STATEMENT

56 SEPARATE STATEMENT OF CHANGES IN EQUITY

57 SEPARATE STATEMENT OF CASH FLOWS

58 NOTES TO THE FINANCIAL STATEMENTS

131 CALENDAR OF SIGNIFICANT EVENTS 2014

3 CORPORATE INFORMATION

Tan Sri Dato’ Sri Dr. Teh Hong Piow

Tan Sri Datuk Seri Utama Thong Yaw Hong

Mr. Phan Ying Tong

Dato’ Sri Lee Kong Lam 4 Dr. Ghanty Sam Abdoullah

Mr. Quah Poh Keat

Dato’ Chang Kat Kiam

!" Dato’ Chia Lee Kee Mr. Ong Ming Teck

# KPMG Ltd. 4th Floor, Delano Centre No. 144, Street No. 169 Sangkat Veal Vong Khan 7 Makara Kingdom of Cambodia $% Campu Bank Building No. 23, Kramuon Sar Avenue (Street No. 114) Sangkat Phsar Thmey 2 Khan Daun Penh Phnom Penh Kingdom of Cambodia Telephone : (855) 23 222 880 / 222 881 / 222 882 Fax : (855) 23 222 887 SWIFT : CPBLKHPP E-mail : [email protected] Website : www.campubank.com.kh

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BRANCH NETWORK

BRANCHES IN PHNOM PENH

& Ground & 1st Floor, Campu Bank Building No. 23, Kramuon Sar Avenue (Street No. 114) Sangkat Phsar Thmey 2 Khan Daun Penh Phnom Penh Kingdom of Cambodia Telephone : (855) 23 214 111 / 217 686 / 223 182 Fax : (855) 23 217 655 E-mail : [email protected]

6 '() No. 432, Preah Monivong Boulevard (Street No. 93) Sangkat Tonle Basak Phnom Penh Kingdom of Cambodia Telephone : (855) 23 989 310 / 989 311 / 989 312 / 989 313 Fax : (855) 23 989 314 E-mail : [email protected]

# No. 16, National Road No. 1 Sangkat Chbar Ampov 1 Phnom Penh Kingdom of Cambodia Telephone : (855) 23 997 976 / 997 977 / 997 978 Fax : (855) 23 997 975 E-mail : [email protected] !' No. F01 & F02, National Road No. 6 Sangkat Chroy Changvar Phnom Penh Kingdom of Cambodia Telephone : (855) 23 432 301 / 432 302 / 432 303 / 432 304 Fax : (855) 23 432 305 E-mail : [email protected]

&((' No. 294, Mao Tse Toung Boulevard (Street No. 245) Sangkat Tomnoubteouk Khan Chamkarmon Phnom Penh Kingdom of Cambodia 7 Telephone : (855) 23 987 293 / 987 294 / 987 295 / 987 297 Fax : (855) 23 987 296 E-mail : [email protected]

&' No. 419 E0, Preah Monivong Boulevard (Street No. 93) Sangkat Khan 7 Makara Phnom Penh Kingdom of Cambodia Telephone : (855) 23 992 630 / 992 631 / 992 632 Fax : (855) 23 992 633 E-mail : [email protected]

%! No. 267, Preah Sihanouk Boulevard Sangkat Veal Vong Khan 7 Makara Phnom Penh Kingdom of Cambodia Telephone : (855) 23 222 860 / 222 861 / 222 862 Fax : (855) 23 222 863 E-mail : [email protected] %!&) No. 370 E0, Street No. 193 Sangkat Olympic Khan Chamkarmorn Phnom Penh Kingdom of Cambodia Telephone : (855) 23 988 560 / 988 561 / 988 562 Fax : (855) 23 988 563 Email : [email protected]

"* No. A2, National Road No. 4 Phnom Penh Special Economic Zone Sangkat Kantok Khan Posenchey 8 Phnom Penh Kingdom of Cambodia Telephone : (855) 23 729 311 / 729 312 / 729 313 Fax : (855) 23 729 315 E-mail : [email protected]

) No. 281, Mao Tse Toung Boulevard (Street No. 245) Sangkat Phsar Doeumkor Khan Toul Kork Phnom Penh Kingdom of Cambodia Telephone : (855) 23 996 118 / 996 119 Fax : (855) 23 996 120 E-mail : [email protected]

+ No. 129, 131 & 133, Street No. 144 Sangkat Phsar Kandal 2 Khan Daun Penh Phnom Penh Kingdom of Cambodia Telephone : (855) 23 988 300 / 988 301 / 988 302 / 988 303 Fax : (855) 23 988 304 E-mail : [email protected] ") No. 128 E0, Preah Sihanouk Boulevard (Street No. 274) Sangkat Boeung Keng Kang 1 Khan Chamkarmon Phnom Penh Kingdom of Cambodia Telephone : (855) 23 998 091 / 998 092 / 998 093 Fax : (855) 23 998 094 E-mail : [email protected]

"'&! No. 6A & 7A, Chom Chao Street (Veng Sreng) Damnak Thom Village Sangkat Steung Meanchey Khan Meanchey Phnom Penh 9 Kingdom of Cambodia Telephone : (855) 23 969 601 / 969 602 / 969 603 / 969 604 Fax : (855) 23 969 606 Email : [email protected]

",-/ No. 26, Street No. 271, Trapaing Chhouk Village Sangkat Tek Thla Phnom Penh Kingdom of Cambodia Telephone : (855) 23 969 610 / 969 611 / 969 612 / 969 613 Fax : (855) 23 969 614 E-mail : [email protected]

()( No. 7.9.11 E0-E4, Street No. 110A Sangkat Tek Thla Khan Sen Sok Phnom Penh Kingdom of Cambodia Telephone : (855) 23 995 202 / 995 203 / 995 204 Fax : (855) 23 995 205 E-mail : [email protected] (+) No. 150 F2A, 150 F2B, 150 F2C, Street No. 289, Group 52 Sangkat Boengkak 1 Khan Toul Kork Phnom Penh Kingdom of Cambodia Telephone : (855) 23 992 481 / 992 482 / 992 483 Fax : (855) 23 992 484 E-mail : [email protected]

((' No. 25 CE0, Street No. 155 Sangkat Toul Tom Poung 1 Khan Chamkarmon Phnom Penh 10 Kingdom of Cambodia Telephone : (855) 23 996 940 / 996 941 / 996 942 Fax : (855) 23 996 943 Email : [email protected] BRANCHES IN PROVINCE

' No. 102, Group 38, Street No. 3 (½) Phum 20 Ousaphea Sangkat Svay Pao Krong Battambang Kingdom of Cambodia Telephone : (855) 53 953 801 / 953 802 / 953 803 Fax : (855) 53 953 804 E-mail : [email protected]

National Road No. 1, Phum Bavet Kandal Sangkat Bavet 11 Krong Bavet Kingdom of Cambodia Telephone : (855) 44 946 100 / 946 101 / 946 104 / 946 105 Fax : (855) 44 946 103 E-mail : [email protected]

+' Kosamak Neary Roit Street Sangkat Kampong Cham Krong Kampong Cham Kingdom of Cambodia Telephone : (855) 42 942 180 / 942 182 / 942 888 Fax : (855) 42 942 183 E-mail : [email protected] + No. 45, National Road No. 3 Phoum Kampong Bay Kang Tboung Khum Kampong Bay Srok Kampong Bay Kingdom of Cambodia Telephone : (855) 33 932 760 / 932 761 / 932 762 / 932 763 Fax : (855) 33 932 764 Email : [email protected]

++' Village 1, Sangkat Dorngtung Khan Smach Meanchey Krong Khemarakphoumin 12 Kingdom of Cambodia Telephone : (855) 35 936 600 / 936 601 / 936 602 / 936 603 Fax : (855) 35 936 604 Email : [email protected]

") Sopheak Mongkol Road, Sangkat No. 2 Krong Preah Sihanouk Preah Sihanouk Province Kingdom of Cambodia Telephone : (855) 34 934 130 / 934 131 / 934 132 Fax : (855) 34 934 133 E-mail : [email protected]

National Road No. 5, Phum Kbal Spean Sangkat Poi Pet Krong Poi Pet Banteay Meanchey Province Kingdom of Cambodia Telephone : (855) 54 967 356 / 967 357 / 967 358 Fax : (855) 54 967 359 E-mail : [email protected] " No. 39-41, Sivutha Street Phum Mondul 2 Sangkat Svay Dangkum Krong Siem Reap Kingdom of Cambodia Telephone : (855) 63 964 777 / 964 889 Fax : (855) 63 963 899 E-mail : [email protected]

"' No. 263, National Road No. 7 Cheung Lang Village Sangkat Suong Krong Suong 13 Cambodia Telephone : (855) 42 218 380 / 218 381 / 218 382 / 218 383 Fax : (855) 42 218 384 E-mail : [email protected]

() Street No. 203 Corner Street No. 106 Khum Takhmao Krong Takhmao Kingdom of Cambodia Telephone : (855) 24 985 001 / 985 002 / 985 003 Fax : (855) 24 985 011 E-mail : [email protected] CORPORATE PROFILE

#9

Cambodian Public Bank (“The Bank” or “Campu Bank”) was incorporated in Cambodia on 20 February 1992 and commenced its business on 25 May 1992. The parent company of the Bank is Public Bank Berhad, a bank licensed and incorporated in Malaysia. Public Bank is a top-tier bank and well-reputed for its prudent management, superior customer service, uncompromising service delivery standards, strong corporate governance and corporate culture.

The Bank is principally engaged in all aspects of banking business and provision year. The branch network has been expanded to 27 branches.

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business By being innovative in the development of new banking products and services :! By promoting the well-being of its staff through attractive remuneration By promoting good staff morale through proper staff training and development, and provision of opportunities for career advancement

:! By assuming its role as a socially responsible corporate citizen in a tangible manner By adhering closely to national policies and objectives thereby contributing towards the progress of the nation

G<='!> FINANCIAL HIGHLIGHTS YEAR ENDED 31 DECEMBER 2014 2013 2012 %#(=?"9@("D9"RQQQU 50,579 37,060 35,158 40,161 29,445 27,974

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Total assets 1,464,569 1,251,405 1,184,736 Loans and advances 835,466 723,252 659,919 Total liabilities 1,152,889 979,886 942,662 Deposits from customers 1,129,171 940,422 906,582 15 Paid-up capital 90,000 90,000 90,000 Shareholder’s equity 311,680 271,519 242,074 Commitments and contingencies 209,121 235,770 222,056

:=#=#@#(=%"DYU Non-performing loans to total loans 1.29 1.81 3.04 and advances Net return on assets 2.74 2.35 2.36 Net return on equity 12.89 10.84 11.56 Interest margin to gross income 56.65 60.53 58.33 Non-interest expenses to gross income 22.92 22.71 23.01 Liquidity ratio 71.14 68.53 64.98 Solvency ratio 17.42 19.91 22.21 Gross Loan/Deposit ratio 75.49 77.00 74.29

%9(=Z=(X#(=%"D9"RQQQU Gross loans per employee 1,184 1,108 1,130 Deposits from customers per employee 1,564 1,406 1,508 70.05 55.40 58.50 "=&@=:=#@#"$(

# 2014 2013

18.8%57.0% 20.0% 57.8%

10.8% 8.8%

1.6% 1.9%

10.6% 1.2%10.1% 1.4% 16

Cash and Bank Balances Other Assets

Deposits and Placements with Banks Statutory Deposits

Loans and Advances - net Property and Equipment

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2014 2013

12.4%2.7%77.1% 11.3% 3.2% 75.2%

6.2% 7.2% 1.4% 1.4% 0.2% 1.7%

Deposits from Customers Share Capital

Deposits by Banks Retained Earnings

Other Liabilities Non-Distributable Reserve "9&&#X%:($X#?%]($ (# : USD’ 000 USD’ 000 1,500,000 1,200,000 1,400,000 1,100,000 1,300,000 1,000,000 1,200,000 900,000 1,100,000 1,000,000 800,000 900,000 700,000 800,000 600,000 700,000 940,422 500,000 906,582

600,000 1,184,736 1,251,405 1,464,569 1,129,171 500,000 400,000 400,000 300,000 300,000 200,000 200,000 100,000 100,000 0 0 `12 `13 `14 `12 `13 `14 17 @[# "R\! USD’ 000 USD’ 000 900,000 320,000 300,000 800,000 280,000 700,000 260,000 240,000 600,000 220,000 200,000 500,000 180,000 160,000 311,680 400,000 659,919 723,252 835,466 242,074 271,519 140,000 300,000 120,000 100,000 200,000 80,000 100,000 60,000 40,000 0 0 `12 `13 `14 `12 `13 `14

( USD’ 000 55,000 50,000 45,000 40,000 35,000 30,000 25,000

20,000 35,158 37,060 50,579 15,000 10,000 5,000 0 `12 `13 `14 %#%:=(%"

18

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Tan Sri Dato’ Sri Dr. Teh Hong Piow, aged 84, was appointed as the President/Managing Director of Cambodian Public Bank on 14 May 1992. He was re-designated as the Non-Executive Chairman of Cambodian Public Bank with effect from 28 December 2010.

Tan Sri Teh began his banking career in 1950 and has 65 years’ experience in !" in 1965 at the age of 35. He was appointed as a Director of Public Bank on #$'*+;<=> its commencement of business operations in August 1966. He was re-designated 20 as Chairman of Public Bank and Chairman of Public Bank Group with effect from 1 July 2002. He is also the Chairman of several other companies in the Public Bank Group.

Tan Sri Teh had won both Malaysian and international acclaim for his outstanding = > services group. Awards and accolades that he had received include:

• Asia’s Commercial Banker of the Year 1991 • The ASEAN Businessman of the Year 1994 • Malaysia’s Business Achiever of the Year 1997 • Malaysia’s CEO of the Year 1998 • Best CEO in Malaysia 2004 • The Most PR Savvy CEO 2004 • The Asian Banker Leadership Achievement Award 2005 for Malaysia • Award for Outstanding Contribution to the Development of Financial Services in Asia 2006 • Lifetime Achievement Award 2006 • Award for Lifetime Achievement in Corporate Excellence, Dedication and Industry 2006 • Asia’s Banker of High Distinction Award 2006 • The BrandLaureate Brand Personality Award 2007 • ASEAN Most Astute Banker Award 2007 • Lifetime Entrepreneurship Achievement Award 2007 • The Pila Recognition Award 2007 • Asian Banker Par Excellence Award 2008 • Best CEO in Malaysia 2009 • Asia’s Banking Grandmaster 2010 • Asian Corporate Director Recognition Award 2010 for Malaysia • Value Creator: Malaysia’s Outstanding CEO 2010 • The BrandLaureate - Tun Dr. Mahathir Mohamad Man of the Year 2010 – 2011 • Best CEO (Investor Relations) 2011 for Malaysia • Asian Corporate Director Recognition Award 2011 for Malaysia • The BrandLaureate Premier Brand Icon Leadership Award 2011 • Best CEO (Investor Relations) 2012 for Malaysia 21 • Asian Corporate Director Recognition Award 2012 for Malaysia • Best CEO (Investor Relations) 2013 for Malaysia • Asian Corporate Director Recognition Award 2013 for Malaysia • BrandLaureate Banker of the Year Award 2012-2013 • Best CEO (Investor Relations) 2014 for Malaysia • Asian Corporate Director Recognition Award 2014 for Malaysia

Tan Sri Teh was awarded the Medal ‘For the Course of Vietnamese Banking’ by the State Bank of Vietnam in 2002 for his contributions to the Vietnamese banking industry over the past years. Tan Sri Teh was conferred the Recognition Award 2007 by the National Bank of Cambodia in appreciation of his excellent achievements

In recognition of his contributions to society and the economy, he was conferred the Doctor of Laws (Honorary) from University of Malaya, Malaysia in 1989.

He is an Emeritus Fellow of the Malaysian Institute of Management and is a Fellow of the Asian Institute of Chartered Bankers (formerly known as the Institute of Bankers Malaysia); the Chartered Institute of Bankers, United Kingdom; the Institute of Administrative Management, United Kingdom and the Governance Institute of Australia. (")"9('X<$'

Tan Sri Datuk Seri Utama Thong Yaw Hong, aged 84, was appointed as the Chairman of Cambodian Public Bank on 14 May 1992. He was re-designated as the Non-Executive Co-Chairman of Cambodian Public Bank with effect from 28 December 2010.

Tan Sri Thong was appointed as Director of Public Bank, the parent company on 23 June 1986 and was made its Chairman in October 1986. He was re-designated as Co-Chairman of Public Bank with effect from 1 July 2002. He was re-designated from Independent Non-Executive Director to Non-Independent Non-Executive Director with effect from 21 April 2014. He is also the Co-Chairman of several other companies in the Public Bank Group and a Director/Co-Chairman of several other companies listed on the Malaysian Stock Exchange. 22 He graduated with a Bachelor of Arts (Hons) degree in Economics from University of Malaya and a Master’s degree in Public Administration from Harvard University. He attended the Advanced Management Program at Harvard Business School. In June 1998, he was appointed a Pro-Chancellor of University Putra Malaysia from which he had retired in end June 2006. In September 2006, he was conferred the Doctor of Economics (Honorary) from University Putra Malaysia. He is a Fellow of the Asian Institute of Chartered Bankers (formerly known as the Institute of Bankers Malaysia).

He has had a distinguished career with the Government of Malaysia, primarily in X! in the Economic Planning Unit in the Malaysian Prime Minister’s Department since 1957 and became its Director-General from 1971 to 1978 and served as Secretary-General, Ministry of Finance, Malaysia from 1979 until his retirement in 1986.

He was a member of the National Economic Council of Malaysia and was a Senior Member of the Working Group of the Executive Committee for the National Economic Council. He was a Distinguished Fellow of the Institute of Strategic and International Studies (ISIS) Malaysia. &>X'('

Mr. Phan Ying Tong, aged 52, was appointed as the Executive Director of Cambodian Public Bank on 15 March 2010.

Mr. Phan has a total of 33 years’ service with Public Bank Group. He was a Branch Manager of several branches in Public Bank before his appointment as General Manager of Cambodian Public Bank in 2002. He was appointed the Country Head of Cambodian Public Bank in 2007 and Regional Head of Indo-China Operations in 2014. He is a holder of a Master’s degree in Business Administration.

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Dato’ Sri Lee Kong Lam, aged 73, was appointed as a Director of Cambodian 23 Public Bank on 10 March 2004.

'R\]^_R!{ Public Bank, the parent company in November 1996 as General Manager and was subsequently appointed Senior General Manager in 1997 and Executive Vice-President in 1998. He was appointed as an Executive Director of Public Bank on 28 November 2001 X='|'=> with effect from 1 October 2013. He was re-designated from Executive Director/ '=>}X~}X=' Public Bank with effect from 28 November 2013, following his retirement as '=>} 2013. He is also a Director of several other companies in the Public Bank Group.

Prior to joining Public Bank, he was with the Central Bank of Malaysia (“BNM”) and was involved primarily in the supervision and examination of banking institutions. He retired in August 1996 as the Head of BNM’s Examination Department and as a member of the BNM’s Management Committee.

He is a Fellow of CPA Australia and the Chartered Institute of Bankers, United Kingdom; and a Chartered Accountant of the Malaysian Institute of Accountants. >?!"#

Dr. Ghanty Sam Abdoullah, aged 74, was appointed as a Director of Cambodian Public Bank on 27 June 2014.

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Dr. Ghanty holds a PhD. in Business Administration (International Business and Finance) from the University of Wisconsin-Madison (USA). He also holds a Master’s degree in Business Administration in Finance, Investment and Banking, and also a Master’s degree in Science in International Business and Finance from the University of Wisconsin-Madison (USA). He is a member of Kampuchea ƒƒ

He is presently a Member of Board of Directors of the Securities and Exchange 24 Commission of Cambodia (SECC), and the Parliamentary Institute of Cambodia, and he is also an Advisor to the National Accounting Council, Regulator of the Cambodian Accounting Standard.

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Mr. Quah Poh Keat, aged 62, was appointed as a Director of Cambodian Public Bank on 11 August 2009.

He was an Independent Non-Executive Director of Public Bank, the parent company from July 2008 until his appointment on 1 October 2013 as Deputy Chief =>~~„†X' =>}$*#

He is a Fellow of the Malaysian Institute of Taxation and the Association of ƒ‡ „ „ ~ ƒ" „ ~ ƒ Chartered Institute of Management Accountants.

He was a partner of KPMG, Malaysia since October 1982 and appointed Senior Partner (also known as Managing Partner in other practices) in October 2000 until #$\$$_!#*'$$_

He is experienced in auditing, tax and insolvency practices and had worked in Malaysia and United Kingdom; his experiences include restructuring, demergers and privatisation. R'++

Dato’ Chang Kat Kiam, aged 60, was appointed as a Director of Cambodian Public Bank on 10 March 2004.

'R^$R! been with Public Bank, the parent company since 1975 and is experienced in all aspects of banking having managed branches and banking business portfolio in !>!>> $$;X\>>>$*#! a holder of a Master’s degree in Business Administration.

25 CHAIRMAN’S STATEMENT

TAN SRI DATO’ SRI DR. TEH HONG PIOW

26 %

The outlook of the Cambodian economy is expected to be resilient and supportive of growth despite the uncertainties from the vulnerable external economic conditions, and signs of moderation from certain sectors domestically.

According to the Asian Development Bank report in Octorber 2014, Cambodia is projected to achieve a GDP growth of 7% in 2014 and 7.3% in 2015 on the back of sustainable growth in tourism and agriculture sectors coupled with higher export of garments and textiles, and Foreign Direct Investments. Cambodia has joined the “Olympians of Growth” which places the country among a group of eight countries including Laos PDR, Vietnam and the People’s Republic of China with an average yearly growth rate of 7.7% for two decades and is the 6th fastest growing country in the world.

Most of the country’s economic growth for the past decade has been driven by four main sectors, namely garments and textiles, tourism, construction and agriculture which had continued to improve in 2014. According to the Ministry of Commerce, total trade in 2014 increased by 13.8% to USD15.9 billion as compared to 2013. Total exports increased by 11.6% to USD7.7 billion whilst total imports increased by 15.5% to USD9.0 billion.

The positive factors that can contribute towards the growth of Cambodia’s macroeconomic stability, ample development potentials leveraged by supportive government policies, promotion of domestic investments and implementation of the revised Financial Sector Development Strategy 2011-2020. Moreover, the launch of the Cambodia Securities Exchange on 11 July 2011 has provided investors with an alternative source of funding from the capital market ~> Water Supply Works, a state-owned company on 18 April 2012 and Grand Twins International (Cambodia) Plc on 16 June 2014. In addition, on-going initiatives taken by the Government to diversify the country’s narrow-based economy and increase in its national budget from USD3.56 billion in 2014 to USD3.9 billion in 2015 coupled with the favourable outlook of the tourism and agriculture sector, augurs well for the Cambodian economy and investment outlook in Cambodia remains promising and positive for the next few years though its economic growth remains modest.

27 "!)R:

RX$*^ˆ\'<$<" an increase of 36.48% as compared to USD37.06 million recorded in the previous ‰ "" from loans. Gross loans and advances increased by 15.38% or USD113.98 million to USD854.95 million as at 31 December 2014. For the year 2014, the Bank’s deposits from customers had increased by 20.07% or USD188.75 million to USD1,129.17 million.

Financing activities were well-spread across different industries and economic sectors with primary concentration on wholesale and retail (36.70%), services (24.14%), construction (7.88%), manufacturing (6.38%) and consumer items (4.97%) sectors. 28 The paid-up capital of the Bank remains at USD90.00 million in 2014 whilst the Bank’s return on equity increased to 12.89% compared to 10.84% in 2013.

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R to the customers had seen the Bank installing another two (2) Automated Teller Machines (“ATMs”) in 2014, bringing a total of 49 in its ATM network. The Bank had on 21 March 2014 launched Outward Remittance in Chinese Yuan Renminbi to Mainland China which allows individuals to remit up to RMB60,000 per day. In addition, the Bank had enhanced the internet services to allow customers to perform online application for Outward Remittances and Banker’s Cheques and also, cardholders to print e-statement for Electron Debit and Credit Cards in 2014.

The Bank had on 17 April 2014, also enhanced Online Shopping Security for Campu Bank Credit/Debit Cards which requires the cardholders to key in One- Time-Password (OTP) to authenticate online purchases for better security. The Bank had on 18 December 2014, also implemented Short Message Service (SMS) Gold/Classic MasterCard and VISA Card, Electron Card and Debit One Card. <)RDU'

Campu Bank remains steadfast and committed in ensuring compliance to the NBC’s regulations. The Bank will continue to ensure compliance with NBC’s guidelines and regulations and also uphold good corporate governance and professionalism in the management and operation of the Bank’s business.

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Campu Bank remains focused in attracting lower cost savings and current account funds by delivering superior service delivery at the frontline. The Bank capitalises on its low cost of funds to offer competitive pricing to potential and viable businesses and ensure full participation and contribution towards the economic growth and development in the country.

The Bank’s lending business growth will continue to be supported by prudent 29 yet fast paced expansion in the wholesale, retail and services sectors. The Bank’s in the economic and market environments to remain competitive.

Campu Bank continues to invest substantially in updating and upgrading the competency, skills, knowledge and professionalism of its staff force. Continuous investments are being made on information technology (“IT”) to upgrade the R and new service delivery channels to cater to the banking needs of the Bank’s fast-growing customer base. :

Campu Bank’s strong commitment to excellence in all aspects of its business and operations has been attested by the “Bank of the Year” award accorded to the Bank $$*$$<"$$"$$+"$* The Banker, London and “Cambodian Domestic Retail Bank of the Year” for three consecutive years from 2012 to 2014 by Asian Banking & Finance.

Campu Bank was also awarded “USD Straight-Through-Processing Excellence Award” for four consecutive years from 2011 to 2014 by Deutsche Bank for its exceptionally high accuracy in the processing of payment messages.

Campu Bank expects 2015 to be even more challenging than 2014 in view of more new entrants in the market and tougher economic conditions. The key challenge 30 competitive business environment has motivated the Bank to continue delivering banking excellence.

The Board of Directors (“Board”) of Campu Bank is committed to growing the Bank’s market share and improving customer service delivery while at the same time ensuring good corporate governance, sound risk management policies and prudent credit policies and practices in order to support sustainable long-term

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The Board and Management would like to thank the National Bank of Cambodia (“NBC”) and all other relevant authorities for their on-going invaluable advice, guidance and support. %@=X##(=?9=@=":%%%#( GOVERNANCE

The Board maps out and reviews the Bank’s strategic plans on an annual basis, so as to align the Bank’s business directions and goals with the prevailing economic and market conditions. The Board approves the Bank’s annual budget and carries out periodic review of the progress made by the various business units against the budget. The Board also reviews the action plans that are implemented by the Management to achieve business targets.

The Board prescribes minimum standards and establishes policies on the management of credit risks and other key areas of the Bank’s operations.

The Board’s other main duties include regular oversight of the Bank’s business 31 operations and performance, and ensuring that the infrastructure, internal controls, and risk management processes are well in place to assess and manage business risks inter-alia operational, credit, market and liquidity risks, and that they are implemented consistently. The Board carries out the various functions and responsibilities laid down according to the guidelines and directives that are issued by NBC from time to time.

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The Board has set up the following committees as required by the Prakas on Governance in Banks and Financial Institutions:

• Audit Committee • Risk Committee • Remuneration and Nomination Committee

Audit Committee comprised Tan Sri Datuk Seri Utama Thong Yaw Hong, Dato’ Sri Lee Kong Lam and Dr. Ghanty Sam Abdoullah, whilst Risk Committe and Remuneration and Nomination Committee comprised Tan Sri Datuk Seri Utama Thong Yaw Hong, Dato’ Sri Lee Kong Lam, Mr. Quah Poh Keat and Dr. Ghanty Sam Abdoullah. &'"!=

Board meetings are held at least 4 times a year. Reports on the progress of Campu Bank’s business operations prepared by the Bank’s management team are tabled for review by members of the Board. At these Board meetings, the members of the Board also evaluate business propositions and corporate proposals that require R Š

The agenda for every Board meeting, together with comprehensive management reports, proposal papers and supporting documents, are furnished to all the Directors for their perusal well in advance of the Board meeting date, so that the Directors have ample time to review matters to be deliberated at the Board meeting and to facilitate informed decision-making by the Directors.

32 Minutes of each Board meeting are circulated to all Directors for their perusal prior

The Directors are regularly updated and advised by the Secretary of the Board on new statutory as well as regulatory requirements relating to the duties and responsibilities of Directors, including policy guidelines issued by NBC that concern Campu Bank. Every member of the Board has ready and unrestricted access to the advice and services of the Secretary, and the Directors have the liberty to seek external professional advice if so required by them.

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Responsibility

The Board of Cambodian Public Bank Plc. (“the Bank”) is responsible for the adequacy and effectiveness of the Bank’s system of internal controls. The Board ensures that the system manages the Bank’s key areas of risk within R and business objectives will be achieved. The Board continually reviews the system to ensure that this system of internal controls provides a reasonable but not absolute assurance against any material misstatement of management and The Board has established an on-going process for identifying, evaluating and enhancing the system of internal controls as and when there are changes to the business environment or regulatory guidelines. The process is regularly reviewed by the Board.

Management assists the Board in the implementation of the Board’s policies and procedures on risk and control by identifying and assessing the risks faced, and in the design, operation and monitoring of suitable internal controls to mitigate and control these risks.

The Board is of the view that the system of internal controls in place for the " adequate and effective to safeguard the shareholders’ investment, the interests of customers, regulators and employees, and the Bank’s assets. 33 Key Internal Control Processes

The key processes that have been established in reviewing the adequacy and effectiveness of the system of internal controls include the following:

(i) The Board Executive Committee was established by the Board to manage the business of the Bank and to ensure that the Bank’s operations are in accordance with the corporate objectives, strategies and the annual budget as well as the policies and business directions that have been approved by the Board. The Board Executive Committee implements strategies approved by the Board and addresses issues arising from changes in both the external business environment and internal operating conditions. Management committees are established to assume the functions as stated above. (ii) Internal Audit Department carries out periodic audits to assess the adequacy, effectiveness and adherence to the system of internal controls and highlights ŠXƒ !>"Š which is determined by the level of risk assessed, to provide an independent and objective report on operational and management activities of these !>‰ Rƒ‰ to the Bank’s Audit Committee for review at its periodic meetings. (iii) The Compliance and AML Department checks for compliance with applicable laws/regulations and internal policies and procedures, and highlights X Rƒ Committee for review at its periodic meetings. (iv) ‰ƒ by the Internal Audit Department, Compliance and AML Department, the external auditors, regulatory authorities and management and evaluates the adequacy and effectiveness of the risk management and system of internal controls. The minutes of Audit Committee meetings are tabled to the Board of the Bank on a quarterly basis. (v) The Risk Committee (RC) was established by the Board to assist the Board to oversee the overall management of the principal areas of risk of the Bank. The Assets & Liabilities Management Committee (ALCO) manages market, liquidity and funding risks. 34 (vi) Operational committees have also been established with appropriate empowerment to ensure effective management and supervision of the Bank’s core areas of business operations. These committees include the Bank’s Credit Committee and Public Bank Group’s Human Resource Committee, Business Continuity Management Committee and IT Steering Committee. (vii) The Bank’s annual business plan and annual budget are reviewed and approved by the Board. The Bank’s performance is assessed against the a quarterly basis to the Board. (viii) There are guidelines within the Bank for hiring and termination of staff, formal training programmes for staff and annual or semi-annual performance appraisals to enhance the level of staff competency in carrying out their duties and responsibilities. (ix) The Board receives and reviews reports from management on a regular basis. ‰ " reports on monitoring of compliance with banking laws and National Bank of Cambodia’s guidelines on lending, capital adequacy and other regulatory requirements, periodic progress reports on business operations which are tabled to the Board at its quarterly meetings. (x) There are policy guidelines and authority limits imposed on management XX" extension of credits, investments, acquisitions and disposals of assets. (xi) Policies and procedures to ensure compliance with internal controls and the relevant laws and regulations are set out in operations manuals, guidelines and directives issued by the Bank which are updated from time to time. )&'

Introduction

The Bank will continue to place emphasis on strengthening of the Bank’s risk management, infrastructure and capabilities within its integrated enterprise wide risk management framework, not only for regulatory compliance but with a view to ‹

Overall Risk Management Framework

Campu Bank had set up its Risk Committee which adheres to the Group’s risk management framework established by its parent bank, Public Bank, Malaysia.

The Board of Campu Bank is responsible for the management of risks of the Bank and maintains overall responsibility for risk oversight within Campu Bank to 35 ensure clear accountability and responsibility for the risk management process.

Assets and Liabilities Management Committee

Campu Bank has set up an Assets and Liabilities Management Committee to develop the framework and set the objectives for the assets and liabilities management functions. The Committee also develops adequate processes, procedures and internal control measures for carrying out the assets and liabilities management functions.

Campu Bank is in an industry where trust is of paramount importance given that ‰ customers and the public have in the Bank are vital to the continued growth and success of the Bank. The Bank actively seeks to conduct itself with integrity and

ƒ way its employees conduct themselves in their work and in the delivery of services to customers and the public. The Bank has taken, and continues to take, proactive initiatives to ensure that employees have values and principles, and conduct themselves to standards that are consistent with the expectations of customers and The formalization of what constitutes acceptable conduct expected of employees of the Bank in the form of clear and documented codes and policies is a critical step in building trust and integrity in employee conduct and behavior. Such codes and policies include a Code of Ethics, an Anti-Fraud Policy and an Anti-Money Laundering and Counter Financing of Terrorism Policy.

The Bank issued staff circulars to guide employees’ conduct based on 6 key principles: (i) ƒ\ (ii) Avoid misuse of position (iii) Prevent misuse of information for personal gain or any purpose other than its intended purpose (iv) Ensure integrity and completeness of records 36 (v) = (vi) Fair and equitable treatment of customers

‘ ~ extensive infrastructure established to prevent and detect fraud and fraudulent activities, the Bank also has an Anti-Fraud Policy to spell out the roles and responsibilities of each employee in combating fraud.

The Bank has put in place an Anti-Money Laundering and Counter Financing of Terrorism Policy in the prevention of the use of the Bank for illicit and money laundering

To ensure such code and policies are complied with, the Bank conducts comprehensive training on the standards of conduct expected of employees of the Bank and sends out regular reminders via staff circulars from time to time to nurture employees to embrace the Bank’s Code of Ethics.

=!(!

The Board of Campu Bank subscribes to the policy of sound corporate conduct, transparency and accountability in term of the extent and timeliness of corporate

The Board is committed to providing a balanced, clear and comprehensible 9"=""%#(=%(#?(

:

ˆ\'<$<#*' 2014 or 36.48% higher than previous year. Gross loans and advances increased by USD113.98 million or 15.38% as compared to end of year 2013 whilst deposits from customers increased by USD188.75 million or 20.07% from USD940.42 million as at 31 December 2013 to USD1,129.17 million as at 31 December 2014.

The Bank will continue its business strategy of focusing on meeting the banking and " particularly the small and medium enterprises and on building a long-term core deposit funding base of retail depositors to further expand its balance sheet and 37

A Committed Drive to Customer Service Excellence

The importance of excellent customer service in an intensely competitive banking ‰ standards of customer service. Customer service delivery excellence is a culture that permeates every level of staff in the Bank. Campu Bank’s tagline of “Excellence Is Our Commitment” is a way of life in the Bank.

Customer Satisfaction Our Top Priority

The Bank follows the customer service excellence culture of the parent bank, Public Bank. The main theme “Doing It Right For You” and “Your Needs, Our Focus” are aimed at cultivating, as well as reinforcing, the desired attitude in customer service delivery by front-line staff as well as seeking customer’s perception of the Bank’s service quality levels.

A Wider Spectrum of Customer Service Delivery Channels

With an increasingly sophisticated customer base seeking the convenience of carrying out banking transactions and accessing products and services information interactively, the multiple service delivery channels of the Bank offer the convenience sought by such customers. =

The Bank’s IT initiatives in 2014 continued to emphasize on delivering enhanced banking products and service excellence. Various emerging technologies were deployed and new applications introduced to strengthen the existing IT foundation of the Bank.

To enhance a wide range of the Bank’s products and services, and to offer convenience to customers in conducting banking transactions outside banking hours, the Bank introduced ATM services and Credit Card services followed by launching of various types of Credit Cards such as VISA Credit Card, Debit Card and MasterCard and thereafter, the Bank had participated in the EasyCash network. Western Union Services, Internet Banking and 24/7 Cash Deposit Terminal are three added services for customers performing banking activities outside the banking hours.

38 In 2014, the Bank opened a two new branches in Boeng Trabek, Phnom Penh and Suong, Tboung Khmum Province bringing the branch network to 27 and has further targeted to open a few more branches in 2015.

$

The key to the success and strong performance of Campu Bank is the contribution of the team of dedicated, committed and knowledgeable employees who are continuously striving for excellence.

The Bank highly treasures this and further reinforces their strengths by providing extensive, wholesome and effective training to develop the skills of its employees. Campu Bank also continually nurtures its human capital by a performance reward system; thus generating a strong performance culture that achieves results for both today’s and tomorrow’s business needs.

Developing Human Capital for Continued Excellence

The know-how, skills and expertise of its staff continue to be a cornerstone in the Bank’s intellectual capital. By continuously supporting life-long learning and development, the Bank demonstrates its recognition of training as a key driver to help the Bank outperform the competition and achieve superior results. Providing continuous access to learning and development of both operational and management skills sets is a commitment the Bank has made to further enhance the performance levels of all staff. This also directly encourages the upward mobility of staff within the organization, breeding a force of loyal, skillful and knowledgeable employees. For the year 2014, all staff underwent regular in-house and on-the-job training. Newly recruited staff in particular are inducted through programmes encompassing our corporate values, banking system and operational processes and procedures and Anti-Money Laundering/Counter Financing for Terrorism (AML/CFT) to ensure that they are well equipped to meet customers’ needs. Opportunities for further enhancement of staff’s skills and knowledge are also made accessible through the many lessons and courses posted on the Bank’s 24-hour e-learning platform.

Training and development was also expanded beyond borders. While staff were sent for specialised training at Public Bank’s Knowledge and Learning Centre in Malaysia, trainers from Public Bank, Malaysia also came to Cambodia to train the masses to complement and supplement the local training content.

With the expansion of another two new branches in 2014, it is the Bank’s belief that a well rounded human capital will be one of the key drivers that will propel the Bank to greater heights and new levels of success. 39 Expanding Our Passion for Service

In line with the theme “Your Needs, Our Focus”, staff are encouraged to go beyond contractual obligations to serve with a passion. The Bank maintains a strong ‰ Bank’s passion for service excellence is well demonstrated through the continuous pursuit of improvement in skills and knowledge.

The Bank’s human capital approaches are always aligned to optimize on business goals such as revenue growth, deposit growth, staff productivity, customer satisfaction, cost containment and decreased turnover to gain competitive advantage for the Bank.

The Bank will continually aim for superior human capital practices as it believes that through its staff, the Bank will scale new heights of excellence and achieve accelerated growth.

)'=!

The level of competition in the banking industry is expected to intensify further due to more new entrants and banks adopting aggressive and proactive marketing strategies to increase their market share. Nevertheless, despite the intensive competition in the Cambodian banking industry, the Bank has put in place business strategies to expand its core business activities, particularly in lending to wholesale and retail sectors and middle market commercial enterprises, particularly small and medium enterprises, without compromising on its prudent credit standards and practices. ANALYSIS OF THE FINANCIAL STATEMENTS

#!"=

Net Interest Income

Net interest income of the Bank increased by 14.55% to USD52.99 million in 2014 compared to USD46.26 million in 2013. This was due to increase in interest from Loans & Advances.

Net Fee and Commission Income

Net fee and commission income of the Bank grew by 10.29% to USD13.61 million in 2014 compared to USD12.34 million in 2013. The growth was primarily derived from higher income from commission received from remittance and loans commitment 40 fees earned.

General and Administrative Expenses

The Bank’s overhead expenses amounted to USD20.19 million in 2014, which was 21.99% higher than USD16.55 million incurred in 2013. Personnel cost increased by 29.73% to USD9.12 million due to increase in staff strength, annual salary increment and higher payment of performance-based bonus.

The cost income ratio of the Bank decreased to 26.89% for 2014 from 27.58% in 2013.

Allowance for Losses on Loans and Advances

Allowance for losses on loans and advances decreased by 32.45% to USD4.31

Income Tax

Income tax for the year increased by USD2.8 million or 36.75% to USD10.42

‰$’ #!(" Total Assets

Campu Bank’s total assets stood at USD1,464.57 million as at 31 December 2014, an increase of 17.03% over its total assets as at 31 December 2013. The increase in total assets in 2014 was primarily driven by the growth in loans and advances, and cash and bank balance.

Cash and Bank Balances

The Bank’s cash and bank balances increased by 43.21% to USD158.17 million as at 31 December 2014.

Loans and Advances

The Bank’s gross loans and advances increased by 15.38% or USD113.98 million 41 to USD854.95 million in 2014 due to fast turnaround time for loan approval

Total Liabilities and Shareholder’s Funds

The Bank’s total liabilities increased by 17.66% or USD173.00 million to USD1,152.89 million in 2014 primarily due to higher deposits from customers and income tax payable.

The Bank’s shareholder’s funds stood at USD311.68 million.

Deposits from Customers

The Bank’s deposits from customers increased by 20.07% to USD1,129.17 million $*^‰ the public have on the Bank and the Bank’s high standards in customer service delivery.

Deposits by Banks Deposits by banks decreased by 84.47% to USD3.4 million in 2014. %(%:($%#%:=(%"

The Directors have pleasure in submitting their report together with the audited “O‚P– Bank Plc. (“the Bank”) for the year ended 31 December 2014 (hereafter referred OP–

The principal activities of the Bank are the provision of comprehensive banking

The principal activities of the subsidiaries and associate are stated in Notes 9 and *$" 42 ‰

!

The parent company of the Group is Public Bank Berhad, a bank licensed and incorporated in Malaysia.

:

‰‚#*' 2014 were as follows: Group Bank 2014 2013 2014 2013 USD USD USD USD 51,100,118 37,695,018 50,578,910 37,060,494 Income tax expense (10,521,175) (7,888,208) (10,418,069) (7,615,421)

40,578,943 29,806,810 40,160,841 29,445,073

M˜!™R$$$ 165,359,194 119,078,206 163,655,428 117,633,066

Attributable to: Owner of the Bank 40,252,260 29,520,625 40,160,841 29,445,073 Minority interest 326,683 286,185 - -

} 40,578,943 29,806,810 40,160,841 29,445,073

No dividend was declared or paid and the Directors do not recommend any dividend

‰X year.

There were no material movements to or from reserves and provisions during the

43 ‚" Directors took reasonable steps to ascertain that actions had been taken in relation to the writing off of bad loans and advances and the making of allowance for " advances had been written off and adequate allowance had been made for bad and doubtful loans and advances.

At the date of this report, the Directors are not aware of any circumstances, which would render the amount written off for bad loans and advances, or the amount of ‚ and of the Bank, inadequate to any substantial extent.

‚" Directors took reasonable steps to ensure that any current assets, other than loans and advances, which were unlikely to be realised in the ordinary course of business at their value as shown in the accounting records of the Group and of the Bank had been written down to an amount which they might be expected to realise.

At the date of this report, the Directors are not aware of any circumstances, which of the Group and of the Bank misleading. Z

At the date of this report, the Directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation ‚ misleading or inappropriate.

'

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

(a) any charge on the assets of the Group and of the Bank which has arisen since " or

(b) any contingent liability in respect of the Group and of the Bank that has 44 business.

No contingent or other liability of the Group and of the Bank has become enforceable, or is likely to become enforceable within the period of twelve months "'" substantially affect the ability of the Group and of the Bank to meet its obligations as and when they fall due.

'

At the date of this report, the Directors are not aware of any circumstances, not ‚ " misleading.

=

‰‚ were not, in the opinion of the Directors, substantially affected by any item, transaction or event of a material and unusual nature.

‰ the date of this report any item, transaction or event of a material and unusual "'" ‚ this report is made.

‰'“OP– year and at the date of this report are:

Tan Sri Dato’ Sri Dr. Teh Hong Piow Non-Executive Chairman Tan Sri Datuk Seri Utama Thong Yaw Hong Non-Executive Co-Chairman Mr. Phan Ying Tong Executive Director Dato’ Sri Lee Kong Lam Director Mr. Quah Poh Keat Director Dato’ Chang Kat Kiam Director Dr. Ghanty Sam Abdoullah Director (Appointed on 27 June 2014) Tan Sri Dato’ Sri Tay Ah Lek Director (Resigned on 21 April 2014) 45

#

The auditors, KPMG Cambodia Ltd, expressed their willingness to accept re-appointment as auditors.

R

None of the Directors held or dealt directly in the shares of the Group and of the

‰‚ statements. R

' " the Group and the Bank is a party with the object of enabling Directors of the ‚ŠŠ debentures of the Group and the Bank or any other body corporate.

\ " ' ‚ “ included in the aggregate amount of emoluments received or due and receivable '– ‚ Director is a member, or with a company in which the Director has a substantial

46 "R!

‰" "‚ #* ' $*^ \ the year then ended in accordance with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation and ~" who is required to:

(i) adopt appropriate accounting policies which are supported by reasonable and prudent judgments and estimates and then apply them consistently;

(ii) comply with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation and presentation of " true and fair presentation, ensure that these have been appropriately disclosed, Š‡

(iii) maintain adequate accounting records and an effective system of internal controls; “– inappropriate to assume that the Group and the Bank will continue operations in the foreseeable future; and

(v) control and direct effectively the Group and the Bank in all material decisions affecting the operations and performance and ascertain that such have been \

Management is responsible for ensuring that proper accounting records are kept "" Group and of the Bank and to ensure that the accounting records comply with the registered accounting system. It is also responsible for safeguarding the assets of the Group and the bank and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

‰Š 47

#

š" "‚#* '$*^"\ ended, in accordance with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation and presentation of

(")"9('X<$' R"@+'@

Phnom Penh, Kingdom of Cambodia

4 February 2015 REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS

Cambodian Public Bank Plc

š “O‚P– “OP–" ‚#*' $*^""Š \"" <$*#$ “OP–

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48 „ ƒ \ } " "

Auditors’ responsibility

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š %

~ " " " ‚#*'$*^ \ " with Cambodian Accounting Standards and the guidelines of the National Bank of

For +&?@

Nge Huy 49

Phnom Penh, Kingdom of Cambodia

4 February 2015 %"%@=#(#@#"$( As at 31 December 2014

2014 2013 Note USD KHR’000 USD (Note 4) ASSETS Cash on hand 5 48,206,170 196,440,143 47,803,717 Balances with other banks 5 110,574,996 450,593,109 63,037,232 Deposits and placements with banks 6 275,000,000 1,120,625,000 250,000,000 Loans and advances – net 7 835,466,334 3,404,525,311 723,252,086 Statutory deposits 8 156,663,200 638,402,540 127,750,682 Investment in an associate 10 3,920 15,974 3,920 Intangible asset 11 152,211 620,260 198,133 Property and equipment 12 23,272,551 94,835,645 24,096,063 50 Investment 13 25,588 104,271 25,588 Other assets 14 3,024,915 12,326,529 2,851,087

( 1,452,389,885 5,918,488,782 1,239,018,508

@=#=@=(="#^9=(X Deposits from customers 15 1,108,854,084 4,518,580,392 920,517,327 Deposits by other banks 16 3,400,087 13,855,355 21,887,624 Income tax payable 17 9,369,750 38,181,731 6,717,991 Other liabilities 18 12,751,237 51,961,291 12,459,782

( 1,134,375,158 4,622,578,769 961,582,724

\! Paid-up capital 20 90,000,000 366,750,000 90,000,000 Non-distributable reserves 40,000,000 163,000,000 40,000,000 Retained earnings 182,681,794 744,428,311 142,429,534

\! <) 312,681,794 1,274,178,311 272,429,534 Minority interest 5,332,933 21,731,702 5,006,250

(\! 318,014,727 1,295,910,013 277,435,784

(\! 1,452,389,885 5,918,488,782 1,239,018,508

‰ %"%@=#(=%&"(#(&( For the year ended 31 December 2014

2014 2013 Note USD KHR’000 USD (Note 4)

Interest income 21 70,196,176 286,049,417 63,673,546 Underwriting income-net 1,035,733 4,220,612 867,332 Interest expense 22 (16,582,770) (67,574,788) (16,768,896)

<' 54,649,139 222,695,241 47,771,982

Fees and commission income 23 14,623,196 59,589,524 13,437,022 Fees and commission expense (1,248,473) (5,087,527) (1,326,887) 51 /jqj-vq-,j wvqwQ/qxx- /,q//Qq/jw

Other income 24 8,510,321 34,679,558 1,448,761

(' -zqwjvq/{j j//q{-zq-xz z/qjjQq{-{

General and administrative expenses 25 (21,119,566) (86,062,231) (17,253,864) Allowance for losses on loans and advances 7 (4,314,499) (17,581,583) (6,381,996)

51,100,118 208,232,982 37,695,018

Income tax expense 17 (10,521,175) (42,873,788) (7,888,208)

40,578,943 165,359,194 29,806,810

Minority interest (326,683) (1,331,233) (286,185)

! 40,252,260 164,027,961 29,520,625

(KHR’000 - Note 4) 164,027,961 117,934,897

‰ 910,013 318,014,727 40,578,943 277,435,784 50 277,435,784 ,065 247,628,974 ,065 625 286,185 29,806,810 625

52 Total Minority ained USD interest equity Total earnings #<) - - 40,252,260 40,252,260 326,683 40,252,260 - - %"%@=#("(#(&(%:$#?"=^9=(X For the year ended 31 December 2014 Paid-up Non-distributable Ret 40,000,000 142,429,534 272,429,534 5,006,2 90,000,000 At 1 January 2014 } 40,000,000 182,681,794 312,681,794 5,332,933 At 31 December 2014 90,000,000 1,295, 21,731,702 1,274,178,311 744,428,311 (KHR’000 equivalents – Note 4) 366,750,000 163,000,000 4,720 242,908,909 112,908,909 40,000,000 90,000,000 At 1 January 2013 29,520,625 29,520, - } - 5,006,250 272,429,534 142,429,534 40,000,000 At 31 December 2013 90,000,000 ‰ capital reserves USD %"%@=#("(#(&(%:#"$:@%]" For the year ended 31 December 2014

2014 2013 Note USD KHR’000 USD (Note 4)

\<' Net cash (used in)/generated from operating activities 26 (127,231,129) (518,466,850) 1,304,817

\<' Acquisition of: Property and equipment (2,724,209) (11,101,152) (1,070,646) Intangible asset - computer software (104,445) (425,613) (150,842)

' D,q{,{qzwvU D//qw,zq-zwU D/q,,/qv{{U

53 \<' Proceeds from borrowing - - 110,000,000 Repayment of borrowing - - (110,000,000) ' ' - - - DU} \ D/jQqQwxq-{jU Dw,xqxxjqz/wU {jqj,x

\ ''! 360,840,949 1,470,426,867 360,757,620

\ ! 5 230,781,166 940,433,252 360,840,949

‰ SEPARATE BALANCE SHEET As at 31 December 2014

2014 2013 Note USD KHR’000 USD (Note 4) ASSETS Cash on hand 5 48,205,535 196,437,555 47,803,032 Balances with other banks 5 109,963,620 448,101,752 62,649,154 Deposits and placements with banks 6 275,000,000 1,120,625,000 250,000,000 Loans and advances – net 7 835,466,334 3,404,525,311 723,252,086 Statutory deposits 8 154,963,200 631,475,040 126,050,682 Investment in subsidiaries 9 15,570,000 63,447,750 15,570,000 Investment in an associate 10 3,920 15,974 3,920 Intangible asset 11 152,211 620,260 198,133 54 Property and equipment 12 22,980,752 93,646,564 23,669,461 Investment 13 25,588 104,271 25,588 Other assets 14 2,238,015 9,119,912 2,183,026

( 1,464,569,175 5,968,119,389 1,251,405,082

@=#=@=(="#^9=(X Deposits from customers 15 1,129,171,118 4,601,372,306 940,422,102 Deposits by other banks 16 3,400,087 13,855,355 21,887,624 Income tax payable 17 9,353,288 38,114,649 6,701,757 Other liabilities 18 10,964,693 44,681,124 10,874,451

( 1,152,889,186 4,698,023,434 979,885,934

"R\! Paid-up capital 20 90,000,000 366,750,000 90,000,000 Non-distributable reserves 40,000,000 163,000,000 40,000,000 Retained earnings 181,679,989 740,345,955 141,519,148

(R\! 311,679,989 1,270,095,955 271,519,148

(\! 1,464,569,175 5,968,119,389 1,251,405,082

‰ SEPARATE INCOME STATEMENT For the year ended 31 December 2014

2014 2013 Note USD KHR’000 USD (Note 4)

Interest income 21 70,184,231 286,000,741 63,662,407 Interest expense 22 (17,195,971) (70,073,582) (17,405,831)

52,988,260 215,927,159 46,256,576

Fees and commission income 23 14,862,155 60,563,282 13,663,331 Fees and commission expense (1,248,473) (5,087,527) (1,326,887)

13,613,682 55,475,755 12,336,444 55 Other income 24 8,484,826 34,575,666 1,397,628

(' -wqQ{zq-z{ jQwqx-{qw{Q wxqxxQqzv{

General and administrative expenses 25 (20,193,359) (82,287,938) (16,548,158) Allowance for losses on loans and advances 7 (4,314,499) (17,581,583) (6,381,996)

wQqw-{qx/Q ,Qzq/QxqQwx j-qQzQqvxv

Income tax expense 17 (10,418,069) (42,453,631) (7,615,421)

! 40,160,841 163,655,428 29,445,073

(KHR’000 - Note 4) 163,655,428 117,633,066

‰ ined

56 Non-distributable Reta As at 1 January 2014 } At 31 December 2014 90,000,000 (KHR’000 equivalents – Note 4) At 1 January 2013 366,750,000 40,000,000 - } 90,000,000 163,000,000 capital At 31 December 2013 141,519,148 - - USD 40,000,000 740,345,955 90,000,000 40,160,841 271,519,148 181,679,989 1,270,095,955 - 40,160,841 reserves 40,000,000 311,679,989 90,000,000 USD 29,445,073 112,074,075 29,445,073 242,074,075 40,000,000 earnings 141,519,148 USD 271,519,148 Total USD Paid-up "##("(#(&(%:$#?"=^9=(X For the year ended 31 December 2014 ‰ SEPARATE STATEMENT OF CASH FLOWS For the year ended 31 December 2014

2014 2013 Note USD KHR’000 USD (Note 4)

\<' Net cash (used in) / generated from operating activities 26 (127,469,321) (519,437,483) 1,102,742

\<' Acquisition of: Property and equipment (2,709,265) (11,040,255) (969,229) Intangible asset - computer software (104,445) (425,613) (150,842)

' D,q{/jq-/QU D//qvzwq{z{U D/q/,QqQ-/U 57 \<' Proceeds from borrowing - - 110,000,000 Repayment of borrowing - - (110,000,000) '' - - - \ D/jQq,{jqQj/U DwjQqxQjqjw/U D/-qj,xU

\ ''! 360,452,186 1,468,842,658 360,469,515

\ ! 5 230,169,155 937,939,307 360,452,186

‰ NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2014

These notes form an integral part and should be read in conjunction with the

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The Bank was incorporated in Cambodia on 20 February 1992 under Registration No. Co-2083/96M and commenced operations on 25 May 1992. The immediate and ultimate parent company of the Bank is Public Bank Berhad (“PBB”), a bank licensed and incorporated in Malaysia. On 28 November 2006, the National Bank of Cambodia (“NBC”) renewed the banking license of the Bank for an

58 The principal activities of the Bank are the provision of comprehensive ˜

The principal activities of the subsidiaries and associate are stated in Notes 9 *$

The Bank and its subsidiaries had 778 employees as at 31 December 2014 (2013: 729 employees).

,>

(a) Statement of compliance

‰ Accounting Standards and the guidelines of the National Bank of Cambodia

‰ of Directors on 4 February 2015.

(b) Basis of measurement

‰‚ the historical cost basis. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,> (continued)

(c) Functional and presentation currency

The national currency of Cambodia is the Khmer Riel (“KHR”). However as the Group and the Bank transacts and maintains its accounting records primarily in United States Dollars (“USD”), management have determined the USD to be the Group and the Bank’s functional and presentation currency as \ of the Group and the Bank.

Transactions in foreign currencies are translated into USD at the exchange rates ruling at the dates of the transactions. Monetary assets and liabilities 59 denominated in currencies other than USD at the reporting date are translated into USD at the rates of exchange ruling at that date. Exchange differences arising on translation are recognised in the income statement.

‰ˆ\D, which is the Group and the Bank’s functional currency. All amounts have been rounded to the nearest dollars, unless otherwise indicated.

(d) Use of estimates and judgements

‰ Š judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, and income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future periods affected.

˜{ statements include estimates of recoverable amount for loans and advances which have a separate accounting policy stated in Note 3 (g). NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j> "''

‰‚ ‰ have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of consolidation

(i) Subsidiary companies

‰ 60

A subsidiary is an enterprise controlled by the Bank. Control exists when "" ‰ the date that control effectively ceases. The subsidiaries are consolidated using the acquisition method of accounting.

Under the acquisition method of accounting, the results of the subsidiary Š statements from the date of acquisition or up to the date of disposal. At the date of acquisition, the fair values of the subsidiaries’ net assets are determined and \

Any excess of the cost of the acquisition over the Group’s interest in the " represents goodwill. Any excess of the Group’s interest in the net fair value " of acquisition, after reassessment, is recognised immediately in the income statement. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 j> "''(continued)

(a) Basis of consolidation (continued)

(i) Subsidiary companies (continued)

„ subsidiaries not held by the Group. It is measured at the minorities’ share R acquisition date and the minorities’ share of changes in the subsidiaries’ equity since then.

~X eliminated on consolidation. Unrealised losses resulting from intra-group 61 transactions are also eliminated unless costs cannot be recovered.

The total assets and liabilities of the subsidiaries are included in the consolidated balance sheet and the interest of the minority shareholders in the net assets is stated separately.

~ R " companies are stated at cost less impairment losses, if any. On disposal of such investments, the difference between the net disposal proceeds and the net carrying value of the investment is recognised as gain or loss on disposal in the Bank’s income statement.

(ii) Associated companies

Investment in an associate is accounted for using the equity method in the R ƒ ‚ \

Under the equity method, the investment in the associate is carried in the balance sheet at cost plus post acquisition changes in the Group’s share of net assets of the associate. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j> "''(continued)

(a) Basis of consolidation (continued)

(ii) Associated companies (continued)

‰ \ the associate. Where there has been a change recognised directly in the shareholders of the associate, the Group recognises its share of any changes and discloses this, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. 62 ‰|“– ‰|“– associate.

‰ period as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an additional impairment loss on the Group’s investment in its associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its of an associate in the income statement.

ˆ\"‚ recognises any retaining investment at its fair value. Any difference between \ the fair value of the retaining investment and proceeds from disposal is NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 j> "''(continued)

(a) Basis of consolidation (continued)

(ii) Associated companies (continued)

~ R " companies is stated at cost less impairment losses, if any, determined on an individual basis. On disposal of such investments, the difference between the net disposal proceeds and their carrying amounts is recognised in the income statement.

(b) Segment information 63 A segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment) which is subject to risks and returns that are different from those of other segments. Segment information is presented in respect of the Group’s business segments. The Group’s primary format for segment reporting is based on business segments. The business segments are determined based on the Group’s management and internal reporting structure.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

The Group operates in three business segments which are located in the Kingdom of Cambodia, being:

• Commercial banking; • Security and brokerage; and • Insurance.

(c) Financial instruments

‰‚RR equivalents, originated loans and receivables, deposits, and other receivables and payables. The accounting policies for the recognition and measurement of these items are disclosed in the respective accounting policies. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j> "''(continued)

(d) Cash and cash equivalents

Cash and cash equivalents consist of cash and bank balances, unrestricted }"" and short-term highly liquid investments with original maturities of three months or less when purchased, and that are readily convertible to known {

(e) Deposits and placements with banks

64 Deposits and placements with banks are carried at cost.

(f) Loans and advances

All loans and advances to customers are stated in the balance sheet at the amount of principal and accrued interest receivable, less any amounts written off, and allowance for losses on loans and advances.

Loans are written off when there is no realistic prospect of recovery. Recoveries on loans previously written off and reversals of previous allowance are disclosed as income in the income statement.

(g) Allowance for losses on loans and advances

~ } ‚" according to the repayment capacity of the counterparty. This repayment " "\{"R ""Š NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 j> "''(continued)

(g) Allowance for losses on loans and advances (continued)

In addition to the above qualitative information, number of days past due is taken into account as follows:

! #<

Normal/standard <30 days 1% Special mention 1 30 days – 89 days 3% Substandard 1 90 days – 179 days 20% Doubtful 1 180 days – 359 days 50% 65 Loss 360 days or more 100%

The minimum percentage of allowance for losses on loans and advances are š information suggests that losses are likely to be more than these minimum requirements, larger allowance is made.

In determining the above allowance, any collateral value other than cash deposits which has been pledged is disregarded.

Loans are written off when there is no realistic prospect of recovery. Recoveries on loans previously written off and reversals of previous allowance are disclosed as income in the income statement.

ƒ taking into consideration the realisable value of the collateral, if any, when in the judgement of the management there is no prospect of recovery. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j> "''(continued)

(h) Statutory deposits

(i) Statutory deposits for banking-related activities are maintained with the NBC in compliance with the Cambodian Law on Banking and Financial Institutions customers’ deposits as required by the NBC.

(ii) A statutory deposit for insurance-related activities is maintained with the NBC at 10% of the registered capital in compliance with Article 53 of the Royal Government’s Sub-Decree on Insurance dated 22 October 2001 and  66 Article 1 of the Ministry of Economy and Finance’s Circular No 009 dated 9 December 2002.

(iii) Statutory deposit for securities-related activities is maintained with the NBC ˜!™]~ Trading of Non-Government Securities and is determined in Article 17 of the Prakas No. 009 SECC/09 dated 18 November 2009 on Licensing of Securities Firms and Securities Representatives issued by the Securities and Exchange Commission of Cambodia (“SECC”).

All statutory deposits are carried at cost. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 j> "''(continued)

(i) Operating Leases

Operating leases are recognised as an expense on a straight-line basis over the lease term.

(j) Intangible asset

Intangible asset represents computer software which is stated at cost less accumulated amortisation and accumulated impairment losses. Computer software is amortised on a declining method basis at the rate of 50% per annum. 67 (k) Property and equipment

(i) Items of property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Where an item of property and equipment comprises major components having different useful lives, the components are accounted for as separate items of property and equipment.

(ii) Depreciation of property and equipment, except for buildings, is charged to the income statement on a declining balance basis at the following rates:

Leasehold improvements 20% ‘"Š <’ Information technology (“IT”) equipment 50% Motor vehicles 25%

Buildings are depreciated on a straight-line basis at 5% per annum.

(iii) Subsequent expenditure relating to an item of property and equipment that has already been recognised is added to the carrying amount of the asset " "\‚ and the Bank. All other subsequent expenditure is recognised as an expense in the year in which it is incurred. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j> "''(continued)

(k) Property and equipment (continued)

(iv) Gains or losses arising from the retirement or disposal of an item of property and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the assets and are recognised in the income statement on the date of retirement or disposal.

“– ‘ Š statements until disposed of or written off.

68 (l) Other investment

Other is stated at cost less any impairment allowance to recognise non- temporary declines in the value of the investment.

(m) Other assets

Other assets are carried at cost.

(n) Impairment of assets

ƒ between its carrying amount, and the present value of the estimated future \

~ ‰ groups that share similar credit risk characteristics.

ƒ {ƒ be impaired if objective evidence indicates that one or more events have had \‰ apply to loans and advances which has a separate accounting policy stated in Note 3(g). NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 j> "''(continued)

(n) Impairment of assets (continued)

(continued)

All impairment losses are recognised in the income statement.

An impairment loss is reversed through the income statement if the reversal can be related objectively to an event occurring after the impairment loss was recognised.

69

‰ X reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value in use, the \X \ ‘" assets are grouped together into the smallest group of assets that generates cash \\ other assets or groups of assets (the “cash-generating unit”).

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in the income statement.

If an impairment loss subsequently reverses, the carrying amount of the asset or group of assets is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset or group of assets in prior years. A reversal of an impairment loss is recognised immediately in income statement. NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2014

j> "''(continued)

(o) Provisions

A provision is recognised in the balance sheet when the Group and/or the Bank has a present legal or constructive obligation as a result of a past event, \ will be required to settle the obligation. If the effect is material, provisions \X \" "

70 (p) Deposits from customers and banks

Deposits from customers and banks are stated at cost.

(q) Income recognition

(i) Bank

Interest income is recognised on an accruals basis.

~" reference to rest periods, which are either monthly or daily. Where an account becomes non-performing, the recording of interest is suspended until it is realised on a cash basis. Customers’ accounts are deemed to be non-performing where repayments are in arrears for more than three months.

Income from the various activities of the Bank is accrued using the following bases:  Loan arrangement fees and commissions on services and facilities extended to customers are recognised on the occurrence of such transactions;  Commitment fees and guarantee fees on services and facilities extended to customers are recognised as income over the period in which the services and facilities are extended;  Service charges and processing fees are recognised when the service is provided; and  Dividend income is recognised when the Bank’s right to receive the payment is established. NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2014 j> "''(continued)

(q) Income recognition (continued)

(ii) Insurance

Underwriting income and expenses are disclosed for each type of business.

Premium income in respect of direct insurance business is recognised upon inception of the risk regardless of the period of the policy. Premium income in respect of inward reinsurance business is recognised upon 71 receipt of returns and advices from ceding companies.

Unearned premiums represent the portion of the net premiums of insurance policies underwritten that relate to the unexpired periods of the policies at

At the reporting date, the following methods are used to determine the Unearned Premium Reserve (“UPR”):

J 25% method for marine cargo, aviation cargo and transit business; and J 1/24 method for all other types of business.

DAC are costs which are primarily related directly to the securing of premiums on issue and renewal of insurance policies. DAC is recognised when incurred and is not deferred.

Claims expense includes claims paid in the period and a provision for incurred but not reported at the reporting date, net of expected reinsurance recoveries. NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 December 2014

j> "''(continued)

(q) Income recognition (continued)

(ii) Insurance (continued)

A liability for outstanding claims is recognised in respect of both direct insurance and coreinsurance. The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries to settle the present obligation at the reporting date. 72 Provision is also made for the cost of claims, together with related expenses incurred but not reported at the reporting date, using a mathematical method of estimation determined by the management on a case by case basis.

Estimating the provision for outstanding claims involves projection of the future claims experience based on current claims experience. As with all projections, there are elements of uncertainty and thus the projected future claims experience may be different from its actual claims experience due to the level of uncertainty involved in projecting future claims experience based on past claims experience.

These uncertainties arise from changes in underlying risks, changes in spread of risks, timing and amounts of claims settlement as well as uncertainties in the projection model and underlying assumptions.

Reinsurance outward premium is recognised in accordance with treaty " reinsurers and in a manner consistent with the treatment of the accounting for premium income. Premium ceded for non-proportional reinsurance is treated as an expense in accordance with the pattern of the reinsurance ceded. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 j> "'' (continued)

(q) Income recognition (continued)

(iii) Securities and brokerages

The Group recognises revenue from rendering of services in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed based on surveys of work performed.

If the Group acts in the capacity of an agent rather than as the principal in a 73 transaction, the revenue recognised is the net amount of commission earned by the Group.

(r) Interest expense

Interest expense on deposits is recognised on a daily accruals basis.

(s) Income tax

~ tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted at the balance sheet date. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j> "'' (continued)

(s) Income tax (continued)

A deferred tax asset is recognised only to the extent that it is probable that Deferred tax assets are reduced to the extent that it is no longer probable that

(t) Related parties

Parties are considered to be related if the Group and/or the Bank has the "" 74 \" vice-versa, or where the Group and/or the Bank and the party are subject to \™ or corporate entities and include close family members of any individual considered to be a related party.

Under the Cambodian Law on Banking and Financial Institutions, related parties include individuals who hold directly or indirectly a minimum of 10% of the capital of the Bank or voting rights therefore, or who participates in the administration, direction, management or the design and implementation of the internal controls of the Group and the Bank.

v> (9"+

‰ ˆ \ '‰ of United States Dollars amounts into Khmer Riel are included solely for the compliance with the guidelines issued by the NBC regarding the preparation and ˆ\D1 to KHR4,075 published by the NBC on 31 December 2014. These convenience translations should not be construed as representations that the United States Dollars amounts have been, could have been, or could in the future be, converted into Khmer Riel at this or any other rate of exchange. 6 ) 2014 2013

75 ? (CONTINUED) 110,574,996 450,593,109 63,037,232 110,574,996 109,963,620 448,101,752 62,649,154 196,440,143 47,803,717 48,206,170 48,205,535 196,437,555 47,803,032 (<) Cash and bank balances 647,033,252 110,840,949 158,781,166 158,169,155 644,539,307 110,452,186 <)~ In USD In KHR <)~ In USD In other foreign currencies 525,283 2,140,528 68,459,514 551,206 278,972,520 525,283 3,177,213 23,493,826 2,140,528 12,947,143 551,206 67,866,855 38,412,986 276,557,435 2,800,612 156,532,918 23,161,282 3,158,496 36,191,588 12,870,871 38,412,986 156,532,918 2,745,078 36,191,588 ( ~ In USD In KHR In other foreign currencies 2,180,528 315,006 535,099 535,099 2,180,528 315,00 46,366,850 188,944,914 1,304,221 46,265,934 5,314,701 46,366,215 188,942,326 1,222,777 46,265,249 1,304,221 5,314,701 1,222,777 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO 2014 2013 For the year ended 31 December 2014 w> ) USD KHR’000 USD KHR’000 USD (Note 4) (Note 4) ote 4) ) 937,939,307 360,452,186

USD KHR’000 2014 2013 76 ? (CONTINUED) 0.10%-0.25% (continued) Cash and bank balances Deposits and placements 158,781,166 with banks (with original 647,033,252 maturities of 3 months or less) 72,000,000 293,400,000 110,840,949 250,000,000 158,169,155 72,000,000 644,539,307 293,400,000 250,000,000 110,452,186 230,781,166 940,433,252 360,840,949 230,169,155 USD KHR’000 (Note 4) ( N =~ Annual interest rates on balances with other banks are summarised as follows: 2014 2013 Public Bank Berhad, Malaysia ‘\"Š 2014 2013 Other banks 0.01%-0.02% 0.01%-0.20% NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 w> ) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 z> <)

Deposits and placements with banks of the Group and the Bank are as follows:

2014 2013 USD KHR’000 USD (Note 4)

Deposits and placements with NBC 32,000,000 130,400,000 120,000,000 Deposits and placements with local bank 183,000,000 745,725,000 70,000,000 Deposits and placements with Public Bank Berhad, overseas bank 60,000,000 244,500,000 60,000,000

275,000,000 1,120,625,000 250,000,000 77

Annual interest rates on deposits and placements with banks are summarised as follows:

2014 2013 NBC 0.07%-0.11% 0.08%-0.10% Public Bank Berhad, Malaysia 0.30%-1.00% 0.30%-0.75% Local banks 0.90%-2.75% 1.05%-2.75%

‘"}*+‰ and placements with banks are maintained in USD.

-> @

Loans and advances of the Group and the Bank are as follows:

2014 2013 USD KHR’000 USD (Note 4) @ Overdrafts 248,011,014 1,010,644,882 200,894,283 Fixed loans 566,538,995 2,308,646,405 510,525,248 Housing loans 22,423,724 91,376,675 18,861,854 Vehicle loans 922,976 3,761,127 1,355,606 Trust receipts 12,855,188 52,384,891 5,844,724 Credit card facilities 1,973,306 8,041,222 1,374,412

Total loans – gross 852,725,203 3,474,855,202 738,856,127

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

-> @ (continued)

Loans and advances of the Group and the Bank are as follows: (continued)

2014 2013 USD KHR’000 USD (Note 4) ~ Accrued interest receivable 6,415,698 26,143,969 5,471,711 Interest-in-suspense (4,194,658) (17,093,231) (3,357,326)

2,221,040 9,050,738 2,114,385 78 Total gross loans and net interest receivable 854,946,243 3,483,905,940 740,970,512

Allowance for losses on loans and advances (19,479,909) (79,380,629) (17,718,426)

@M 835,466,334 3,404,525,311 723,252,086

Further analysis of loans and advances are as follows:

(a) Movements of allowances for losses on loans and advances of the Group and the Bank are as follows:

2014 2013 USD KHR’000 USD (Note 4) At 1 January 17,718,426 72,202,586 19,314,995 Allowance for the year 4,314,499 17,581,583 6,381,996 Write-off (2,553,016) (10,403,540) (7,978,565)

At 31 December 19,479,909 79,380,629 17,718,426 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

-> @ (continued)

(b) Grading of loans and advances portfolio, including net interest receivable of the Group and the Bank are as follows:

2014 2013 USD KHR’000 USD (Note 4)

Normal loans - Secured 840,006,131 3,423,024,984 720,260,257 Special mention loans - Secured 3,918,987 15,969,872 7,263,199 Substandard loans - Secured 144,678 589,563 2,616,753 Doubtful loans - Secured 1,386 5,648 2,109,410 Loss loans - Secured 10,875,061 44,315,873 8,720,893 79

854,946,243 3,483,905,940 740,970,512

(c) For analysis of loans and advances by maturity, refer to Note 19 on

(d) Analysis of loan portfolio by industrial sector of the Group and the Bank are as follows: 2014 2013 USD KHR’000 USD (Note 4)

Wholesale and retail 313,759,222 1,278,568,830 240,651,021 Services 206,366,079 840,941,772 185,839,778 Construction 67,356,806 274,478,984 75,859,735 Manufacturing 54,505,627 222,110,430 57,963,987 Consumer items 42,463,344 173,038,127 32,320,368 Transportation, storage and communication 31,974,596 130,296,479 33,622,609 Real estate 41,814,978 170,396,035 34,159,236 Housing loans 19,296,971 78,635,157 18,916,937 Import 18,367,566 74,847,831 14,747,883 Agriculture 22,073,107 89,947,911 21,087,850 Export 240,416 979,695 248,719 Others 36,727,531 149,664,689 25,552,389

Total gross loans and net interest receivable 854,946,243 3,483,905,940 740,970,512 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

-> @(continued)

(e) Analysis of loan portfolio by residency, relationship, exposure and interest rates of the Group and the Bank are as follows:

2014 2013 USD KHR’000 USD (Note 4)

Loans to residents 854,946,243 3,483,905,940 740,970,512

Relationship: 80 Non-related parties 851,236,163 3,468,787,364 737,260,432 Related parties 3,710,080 15,118,576 3,710,080

854,946,243 3,483,905,940 740,970,512

Exposure: Non-Large exposures 827,432,240 3,371,786,378 740,970,512 Large exposures 27,514,003 112,119,562 -

854,946,243 3,483,905,940 740,970,512

ƒOP} " which exceeds 10% of the Bank’s net worth. The gross exposure is the higher of the outstanding loans or commitments and the authorised loans or commitments.

Annual interest rates:

2014 2013

Overdrafts 5.25% - 14.40% 5.75% - 14.40% Fixed loans 3.00% - 14.20% 3.00% - 15.60% Trust receipts 7.00% - 9.00% 8.00% - 10.00% Housing loans 3.00% - 9.50% 3.00% - 15.00% Vehicle loans 6.50% - 16.00% 6.50% - 18.00% ) R~ 2014 2013 2014

81 R (CONTINUED) ? 10,700,000 43,602,500 10,700,000 9,000,000 36,675,000 9,000,000

Reserve requirement Capital guarantee 145,963,200 deposits 594,800,040 117,050,682 145,963,200 594,800,040 117,050,682 ‰Š\ Prakas No. B7-012-140 dated 27 September 2012 at the rates of in compliance with the National Bank of Cambodia’s The 4.5% of statutory deposit on customers’ deposits in KHR and 12.5% currency other than KHR. 8% of customers’ deposits in currency other than KHR earns interest at 1/2 LIBOR (one month) while the remaining 8% and statutory deposits in KHR does not earn interest. deposit on customers’ 156,663,200 638,402,540 127,750,682 154,963,200 631,475,040 126,050,682 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO 2014 2013 DU \) For the year ended 31 December 2014 {> "! KHR’000 USD USD KHR’000 (Note 4) USD (Note 4) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

{> "!(continued)

DU '

Under NBC Prakas No B7-01-136 dated 15 October 2001, banks are required to maintain a statutory deposit of 10% of registered capital with the NBC. This deposit is not available for use in the Bank’s day-to-day operations but is refundable when the bank voluntarily ceases to operate the business in Cambodia.

82 Under the Cambodian Sub-Decree on Insurance dated 22 October 2001 and Circular No. 009  of the Ministry of Economy and Finance, dated 9 December 2002, an insurance company is required to maintain a statutory deposit of 10% of registered capital with the NBC.

Statutory deposit is maintained with the National Bank of Cambodia in compliance with the Law on the Issuance and Trading of Non-Government Securities and is determined in Article 17 of the Prakas No. 009 SECC/09 dated 18 November 2009 on Licensing of Securities Firms and Securities Representatives issued by the Securities and Exchange Commission of Cambodia (“SECC”).

x> =

) 2014 2013 USD KHR’000 USD (Note 4) Unquoted shares, at cost:

Campu Securities Plc (i) 12,000,000 48,900,000 12,000,000 Campu Lonpac Insurance Plc (ii) 3,570,000 14,547,750 3,570,000

15,570,000 63,447,750 15,570,000

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014 x> = (continued)

DU ="

On 15 February 2010, the Bank incorporated Campu Securities Plc. (“CSP”) as a wholly-owned subsidiary. The principal activity of CSP is to provide securities related services which include but not limited to securities underwriting, dealing and brokerage.

DU =@=

On 30 August 2007, Campu Lonpac Insurance Plc. (“Campu Lonpac”) was incorporated as a 51%-owned subsidiary of the Bank. The principal activity 83 of Campu Lonpac is to provide general insurance services in Cambodia.

/Q> =

The investment represents 49% equity interest in CPB Properties Co., Ltd. (“CPBP”), a company incorporated in Cambodia whose principal activities are to invest and lease the freehold land and building for rental income.

The income statement of the associate for the year ended 31 December 2014 |“–“$*#}–‰ net assets of an associate of the Group and allowance for impairment losses of the Bank. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

//> ='

?) Computer software

2014 2013 USD KHR’000 USD (Note 4) At 1 January 1,562,459 6,367,020 1,450,481 Additions 104,445 425,613 150,842 Written off - - (38,864)

84 At 31 December 1,666,904 6,792,633 1,562,459

@~# At 1 January 1,364,326 5,559,628 1,204,377 Amortisation for the year 150,367 612,745 198,800 Written off - - (38,851)

At 31 December 1,514,693 6,172,373 1,364,326

!' At 31 December 152,211 620,260 198,133

USD Motor vehicles Total Motor vehicles ? 85 IT equipment IT and equipment (CONTINUED) ‘" 82,970,871 6,860,095 3,295,807 1,708,872 94,835,645 (Note 4) At 1 January 2014 Additions Reversal off Written At 31 December 2014 @~# 29,288,380 At 1 January 2014 - Depreciation for the year 30,039,074 Reversal 4,205,286 (19,048) 4,680,682 At 31 December 2014 850,403 2,745,599 1,950,677 !' (99,709) 3,820,040 (1,470) At 31 December 2014 7,778,411 1,462,080 - (20,518) 588,491 1,324,906 576,903 (94,046) 9,678,124 40,001,877 \+$RQQQ (76,485) (67,351) (50,964) 2,496,806 At 31 December 2014 37,564,171 1,146,621 (923) 2,997,224 20,360,950 789,484 (70,710) (195,723) 2,289,120 3,011,253 138,694 1,683,459 1,042,725 139,877 (1,520) 808,787 903,771 2,724,209 16,729,326 419,355 3,456,941 13,468,108 (265,985) 23,272,551 USD 2014 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /,> !\ improvements USD (236,324) (937) (221,085) Motor vehicles Total Motor vehicles ? 86 IT equipment IT and equipment (CONTINUED) ‘" (continued) At 1 January 2013 Additions off Written - (157,153) At 31 December 2013 (78,191) @~# (980) 28,914,470 At 1 January 2013 29,288,380 Depreciation for the year (143,762) off Written (76,386) - 4,205,286 4,075,901 At 31 December 2013 2,745,599 373,910 1,922,787 2,461,795 !' At 31 December 2013 1,324,906 5,855,624 286,538 1,277,683 640,744 37,564,171 7,778,411 1,999,824 36,729,849 2,496,806 361,995 21,509,969 445,924 1,919,582 2,289,120 1,708,480 146,761 903,771 48,203 757,947 456,479 13,468,108 3,156,216 1,070,646 10,532,977 421,135 24,096,063 USD 2013

NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /,> !\ improvements USD Motor vehicles Total Motor vehicles )

87 IT equipment IT and equipment (CONTINUED) ‘" (continued) (Note 4) At 1 January 2014 Additions Reversal off Written At 31 December 2014 28,558,961 @~# At 1 January 2014 Depreciation for the year 4,046,876 Reversal 29,309,655 At 31 December 2014 850,403 4,518,947 - 2,556,726 (99,709) 1,847,263 !' (19,048) At 31 December 2014 3,619,549 7,357,423 585,165 1,133,603 (94,046) 556,023 \+$RQQQ 9,153,722 1,270,777 (1,470) At 31 December 2014 36,296,166 2,386,640 1,135,003 2,866,178 20,155,933 38,718,928 (70,710) (50,964) 770,570 - 2,144,014 1,652,769 138,694 2,847,233 (76,485) (20,518) 82,135,427 133,338 (1,520) 738,628 772,316 2,709,265 (67,351) 6,735,034 871,043 3,307,194 (265,985) 12,626,705 15,738,176 399,734 (923) 3,147,187 (195,723) 22,980,752 1,628,916 93,646,564 USD 2014 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /,> !\ improvements USD Motor vehicles Total Motor vehicles )

88 IT equipment IT and equipment (CONTINUED) ‘" (continued) At 1 January 2013 Additions off Written At 31 December 2013 @~# 28,257,933 At 1 January 2013 Depreciation for the year off Written 28,558,961 3,921,714 At 31 December 2013 - 4,046,876 301,028 1,796,127 2,297,234 !' At 31 December 2013 2,556,726 (157,153) 5,561,296 1,086,380 282,315 609,005 7,357,423 1,133,603 (78,191) 1,921,397 35,563,261 - 21,201,538 36,296,166 2,386,640 337,683 424,055 (980) 1,796,345 (143,762) 1,660,236 2,144,014 (236,324) 131,657 48,203 607,908 (76,386) 412,712 738,628 2,960,844 (937) 9,886,946 969,229 12,626,705 394,975 (221,085) 23,669,461 USD 2013

NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /,> !\ improvements ) 2014 2013

89 ? (CONTINUED) Prepayment and advances Interest receivable from deposits with other banks 427,122 Others 1,740,522 958,769 659,652 3,906,984 395,838 332,582 1,639,024 6,679,023 1,613,040 1,858,853 884,942 3,606,139 1,213,546 957,235 636,898 3,900,733 3,024,915 12,326,529 2,851,087 2,238,015 332,582 9,119,912 2,183,026 This represents the investment in Credit Bureau Holding (Cambodia) (“CBH”) Ltd through the Association of Bank in Cambodia This represents the investment in Credit Bureau Holding (Cambodia) (“CBH”) Ltd through (“ABC”). CBH is one of the shareholders Credit Bureau (Cambodia) Co., Ltd which a company operates as leading "X This investment is stated at cost. in Cambodia. shares. ABC’s As at 31 December 2014, the Group and Bank held 1% (31 2013: 1%) of NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO /v> % 2013 2014 (Note 4) (Note 4) 4) (Note For the year ended 31 December 2014 /j> = 4) (Note USD KHR’000 USD KHR’000

- ) )

90 ? ? (CONTINUED) Current accounts Savings deposits Fixed deposits Other deposits 284,723,791 1,160,249,447 436,602,034 235,009,151 1,779,153,289 285,146,951 266,767,886 1,161,973,825 387,137,395 235,523,750 436,602,034 1,577,584,885 1,779,153,289 390,864 1,592,771 418,740,290 266,767,886 - 390,864 1,592,771 407,031,269 1,658,652,421 438,130,466 1,108,854,084 4,518,580,392 920,517,327 1,129,171,118 4,601,372,306 940,422,102 2014 2013 2014 2013 STATEMENTS THE FINANCIAL NOTES TO 2014 2013 4) 90,977 78,789 4) 86,479 2014 2014 2013 (Note 99,184 78,789 USD KHR’000 (Note USD KHR’000 90,966 86,479 deposits Savings Current accounts 99,123 Fixed deposits Other deposits 7,234 5,146 264 6,779 5,398 - 7,240 5,201 264 6,789 5,399 - For the year ended 31 December 2014 /w> )

91 ? (CONTINUED) 22,457,768 91,515,405 21,882,718 22,457,768 91,515,405 21,882,718 (continued) ‘"}*+}+“–Š For deposits from related parties, refer to Note 28 on party transactions and balances. Type of customers: Type Non-residents 14,947,312 60,910,296 9,992,820 14,947,312 60,910,296 9,992,820 1,108,854,084 4,518,580,392 920,517,327 1,129,171,118 4,601,372,306 940,422,102 Non-government organisations Domestic corporations Individuals 479,989,005 1,955,955,195 355,364,321 500,306,039 2,038,747,109 375,269,096 591,459,999 2,410,199,496 533,277,468 591,459,999 2,410,199,496 533,277,468 (a) Further analysis of deposits from customers are as follows: (b) (c) NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO 4) 4) 2014 2013 (Note USD KHR’000 (Note USD KHR’000

For the year ended 31 December 2014 /w> NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

/w> (continued)

(d) Interest rates

2014 2013

Current accounts 0.00%-0.50% 0.00%-0.50% Savings deposits 0.25%-0.60% 0.50%-0.75% Fixed deposits 1.00%-3.50% 1.50%-5.25%

/z> !)

92 ?)

2014 2013 USD KHR’000 USD (Note 4)

Fixed term deposits - - 20,000,000 Current accounts 3,400,087 13,855,355 1,887,624

3,400,087 13,855,355 21,887,624

‘"}*+}+“– liquidity risk. ation )

93 ? (CONTINUED) At 1 January Income tax expense Income tax paid At 31 December 10,521,175 42,873,788 6,717,991 (7,869,416) 7,888,208 (32,067,870) 27,375,813 10,418,069 9,369,750 (7,699,538) 6,529,321 42,453,631 38,181,731 (7,766,538) 6,701,757 (31,648,642) 6,717,991 7,615,421 27,309,660 (7,321,526) 9,353,288 6,407,862 38,114,649 6,701,757 ‰Š‚ and the Bank. Movements of income tax payable during the year are as follows: of tax laws and regulations to many types transactions is susceptible varying interpretations, amounts reported in the The tax returns of the Bank and its subsidiaries are subject to periodic examination by authorities. Because applic NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO (b) Income tax payable 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 /-> = tax (a) Deferred

)

94 ? (CONTINUED) (continued) Current income tax 10,521,175 42,873,788 Corporate income tax expense in accordance 7,888,208 10,418,069 42,453,631 income 7,615,421 with statutory tax regulations: Current Deferred tax - - - - 10,521,175 - 42,873,788 - 7,888,208 10,418,069 42,453,631 7,615,421 In accordance with Cambodian tax regulations, current income is calculated at the higher of taxable for year multiplied by the tax rate of 20% at reporting date and 1% turnover. Major components of income tax expense for the year are as follows:

For the year ended 31 December 2014 /-> = (c) Income tax expense NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO 2014 2013 activities: (i) Banking-related USD KHR’000 USD KHR’000 (Note 4) (Note 4) )

95 ? (CONTINUED) 301,151 1,227,190 349,204 302,287 1,231,819 203,322 (continued) 10,521,175 42,873,788 7,888,208 10,418,069 42,453,631 7,615,421 Income tax using statutory tax rate 20% 51,100,118 of non-deductible effect Tax 208,232,982 10,220,024 expenses and others 41,646,598 37,695,018 7,539,004 50,578,910 10,115,782 206,109,059 41,221,812 37,060,494 7,412,099 In accordance with Cambodian tax regulations, current income is calculated at 5% of insurance premiums and 20% of any taxable income not attributable to insurance and reinsurance activities interest from the local banks The reconciliation of income tax expense computed at the statutory rate to shown in statement is as follows:

NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 /-> = (c) Income tax expense (continued) activities: (ii) Insurance-related )

96 ? (CONTINUED) (Note 4) (Note 4) 4) (Note 4) Interest payable cheques Banker’s Others (Note 5,162,547 671,909 21,037,379 Others comprise mainly of withholding taxes payable on interest, and other accrued expenses. 2,738,029 5,686,302 1,346,159 5,433,568 6,916,781 22,141,790 28,185,883 671,909 5,427,321 5,979,281 2,738,029 12,751,237 4,859,216 1,346,159 51,961,291 19,801,305 12,459,782 3,549,011 10,964,693 44,681,124 10,874,451 NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO 2014 2013 USD KHR’000 USD KHR’000 For the year ended 31 December 2014 /{> %

2013

539,238 25,588 564,826 ? 97 2014

(CONTINUED)

Investment in an associate – gross Property and equipment Intangible asset Other assets - - Less allowances for losses on loans and advances 152,211 1,239,018,508 808,577,975 Equivalent in KHR’000 (Note 4) 3,920 - 152,211 638,170,266 1,692,871 1,446,748,241 23,272,551 3,920 - 1,452,389,885 433,460,819 (19,479,909) 23,272,551 1,692,871 - 796,998,732 1,692,871 1,979,267 23,428,682 1,230,459,551 - 25,121,553 1,979,267 24,298,116 - 1,979,267 198,133 26,277,383 - 198,133 24,096,063 5,918,488,782 3,920 24,096,063 3,920 (17,718,426) USD USD USD USD USD USD USD USD USD USD The following tables show an analysis of assets and liabilities analysed according to whether they are expected be recovered USD : Cash and bank balances Deposits and placements with banks 275,000,000 Loans and advances: Loans - gross - net receivable interest Accrued Statutory deposits 158,781,166 Other assets: 2,221,040 - Accrued interest receivable from deposits 275,000,000 Others 373,275 Less than 398,863 25,588 - 12 months 371,243,725 250,000,000 - 158,781,166 481,481,478 12 months Over 110,840,949 2,221,040 852,725,203 - 958,769 Total - 69,633,665 156,663,200 2,114,385 250,000,000 669,222,462 156,663,200 - 12 months 738,856,127 - 110,840,949 - 12 months Less than 958,769 - 2,114,385 127,750,682 Total Over 332,582 127,750,682 - 332,582 or settled in less than over twelve (12) months from the balance sheet date: NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /x> &! 24 ,571,699 4,888,083 2013

? 98 2014

(CONTINUED) 4,613,907,405 8,671,364 4,622,578,769 (continued)

USD USD USD USD USD USD USD USD USD USD USD :@~ Deposits from customers Deposits by other banks Other liabilities 1,106,726,142 3,400,087 2,127,942 6,207,731 1,108,854,084 Less than - 919,609,759 12 months 6,207,731 - 12 months Over 7,571,699 907,568 - 920,517,327 3,400,087 Equivalent in KHR’000 (Note 4) Total 7 21,887,624 12 months 12 months - Less than 21,887,624 Total Over @~ Income tax payable Other liabilities 9,369,750 6,543,506 - 1,132,247,216 6,543,506 1,116,333,960 - 4,888,083 15,913,256 2,127,942 2,127,942 9,369,750 - 1,134,375,158 1,118,461,902 - 960,675,156 6,717,991 949,069,082 15,913,256 907,568 11,606,074 961,582,7 907,568 - 949,976,650 11,606,074 - 6,717,991 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /x> &! 564,826 - 1,311,206 2013

)

99 2014

(CONTINUED) 2,221,040 - 2,221,040 2,114,385 - 2,114,385

275,000,000 - 275,000,000 250,000,000 - 250,000,000 (continued)

Statutory deposits Other assets: Accrued interest receivable Others 957,235 - 373,275 154,963,200 - 25,588 154,963,200 398,863 539,238 25,588 957,235 - 332,582 126,050,682 126,050,682 - 332,582 1,251,405,082 Investments in subsidiaries 1,464,569,175 Investment in an associate – gross Property and equipment Intangible asset Other assets - Less allowances for losses on loans and advances 3,920 - 807,964,430 15,570,000 907,505 - - Equivalent in KHR’000 (Note 4) - 152,211 636,470,266 22,980,752 3,920 907,505 15,570,000 1,444,434,696 22,980,752 1,311,206 152,211 433,072,056 907,505 (19,479,909) 38,706,883 795,298,732 39,614,388 - - 1,228,370,788 1,311,206 - - 15,570,000 39,441,514 23,669,461 3,920 40,752,720 15,570,000 198,133 23,669,461 5,968,119,389 3,920 198,133 (17,718,426) :~ Cash and bank balances Deposits and placements with banks Loans and advances: Loans - gross Accrued interest receivable - net 158,169,155 Less than - 12 months 371,243,725 USD 158,169,155 481,481,478 12 months Over 110,452,186 852,725,203 USD Total 69,633,665 669,222,462 - 12 months USD 738,856,127 110,452,186 12 months Less than USD Total Over USD USD NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /x> &! 2013 - 7,864,678

3 - 3,009,773 ) 100 4,698,023,434 2014

(CONTINUED) 4,689,352,070 8,671,364 (continued)

4) (Note KHR’000 in Equivalent 13,839,229 - 13,839,229 1,150,761,244 2,127,942 9,711,530 1,152,889,186 - 978,978,366 9,711,530 907,568 979,885,934 USD USD USD USD USD USD USD USD USD USD USD :@~ Deposits from customers Deposits by other banks Other liabilities 3,400,087 1,127,043,176 6,478,752 - 6,478,752 2,127,942 7,864,678 1,129,171,118 - Less than 939,514,534 12 months 3,400,087 12 months Over 907,568 21,887,624 940,422,102 Total Less than - 12 months Over 21,887,624 12 months Total @~ Income tax payable Other liabilities 9,353,288 4,485,941 - 4,485,941 3,009,77 - 1,136,922,015 9,353,288 2,127,942 1,139,049,957 6,701,757 969,266,836 907,568 - 970,174,404 6,701,757 NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 /x> &! )

101 ? (CONTINUED) Interest income from loans and advances Interest income from deposits with: NBC Other banks 66,799,541 272,208,130 61,965,643 66,799,541 272,208,130 3,274,151 13,342,165 61,965,643 1,566,597 122,484 3,262,206 13,293,489 499,122 1,555,458 141,306 70,196,176 286,049,417 63,673,546 122,484 70,184,231 286,000,741 499,122 63,662,407 141,306 As at 31 December 2014, the authorised share capital comprised of 90 million ordinary shares (2013 : million) par value of USD1 each. All issued shares are fully paid up. NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO ,/> = 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 ,Q> ) )

102 ? ? (CONTINUED) 2014 2013 ‰Loan processing fees Loan commitment fees Service charges Foreign exchange gain Others 3,788,239 1,415,960 _"#*<"*_* 15,437,074 547,195 5,770,037 1,433,618 +"$+"# 3,406,634 2,229,820 1,181,876 5,841,993 _"$^" 3,788,239 123,013 1,415,960 513,199 1,189,320 _"^#+"$$ 15,437,074 501,278 5,770,037 #$"#*^"$$_ 1,433,618 14,623,196 547,195 121,711 3,406,634 1,181,876 59,589,524 _"*#<"$$$ 238,123 5,841,993 2,229,820 13,437,022 970,351 1,189,320 14,862,155 513,199 237,302 60,563,282 13,663,331 Fixed deposits Savings deposits Current accounts Borrowed funds 14,049,676 1,931,680 601,414 57,252,430 - 7,871,596 14,711,266 - 2,450,762 1,362,349 14,662,877 270,889 424,392 1,931,680 59,751,224 - 16,582,770 - 15,348,201 7,871,596 601,414 67,574,788 270,889 16,768,896 1,362,349 2,450,762 17,195,971 424,392 70,073,582 17,405,831 USD KHR’000 USD KHR’000 (Note 4) (Note 4) NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO ,j> 2014 2013 : USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 ,,> =

)

103 ? (CONTINUED) Recovery from loans written off Recovery from loans written off Others 8,484,826 34,575,666 1,397,628 8,484,826 25,495 34,575,666 103,892 8,510,321 51,133 1,397,628 34,679,558 - 1,448,761 - 8,484,826 - 34,575,666 1,397,628

NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 ,v> %

)

104 ? (CONTINUED) Personnel Depreciation and credit card expenses ATM Repairs and maintenance Rental expenses Utilities expenses 1,372,438 Bank security expenses Supplies Other tax expenses 5,592,685 License fees 862,509 10,226,261 Amortisation 3,456,941 remuneration Directors’ 1,035,662 3,514,724 expenses Telephone 41,672,014 14,087,035 360,888 940,013 expenses Travelling 886,106 Professional fees 1,372,438 7,975,492 meeting Shareholder’s 800,474 3,156,216 1,470,619 3,830,553 307,573 Insurance expenses 3,610,882 Others 5,592,685 157,300 9,119,885 540,095 3,307,194 850,289 1,253,360 308,578 422,925 800,347 653,616 131,047 150,367 1,035,662 37,163,531 13,476,816 122,189 2,200,887 640,998 3,464,928 1,723,419 242,996 360,888 896,123 10,777 203,451 855,817 534,017 7,025,165 612,745 2,960,844 121,340 497,920 261,824 183,000 799,475 1,470,619 229,401 3,651,701 307,573 3,487,454 829,063 43,916 127,835 198,800 494,461 102,382 540,095 157,300 847,346 1,253,360 308,578 397,816 759,887 623,854 108,275 86,117 150,367 8,096 2,200,887 3,452,933 640,998 74,086 21,119,566 1,621,100 6,926 242,996 1,076,102 441,221 173,719 612,745 86,062,231 261,824 10,777 183,000 301,900 204,506 846,086 664,631 17,253,864 102,221 707,905 198,800 3,447,800 43,916 2,708,372 20,193,359 47,897 68,357 82,287,938 851,761 865,235 8,096 16,548,158

NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 ,w> ? - )

105 ? (CONTINUED) Adjustments for: Depreciation and amortisation Allowance for losses on 3,607,308 loans and advances <*"*$$"** Reversal of property and equipment 14,699,780 $"#"+ Property and equipment written off 20,518 70,262 83,611 #_";+<"$* 3,355,016 4,314,499 286,318 - <$"<_"+*$ 17,581,583 3,457,561 20,518 $;"*$+"$<+ 15,252 14,089,561 6,381,996 83,611 #_"$;$"^+^ 3,159,644 4,314,499 70,262 17,581,583 286,318 6,381,996 15,252 59,112,705 240,884,274 47,447,282 58,441,750 238,150,132 46,617,386 NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 ,z> '' ,087,784) )

106 ? (continued) (CONTINUED) (127,231,129) (518,466,850) 1,304,817 (127,469,321) (519,437,483) 1,102,742 Changes in: Statutory deposits Deposit and placement with banks Loans and advances to customers (203,000,000) Other assets (116,528,747) (827,225,000) Deposits from customers and by banks 169,849,220 (474,854,644) Other liabilities (28,912,518) 692,135,572 (69,715,283) (117,818,511) (116,528,747) - 47,344,138 (4,500,000) (474,854,644) (203,000,000) 170,261,479 291,455 (173,828) (28,912,518) (827,225,000) (69,715,283) 1,187,679 693,815,527 (117,818,511) (708,350) (10,657,124) 48,017,825 90,242 (4,500,000) (914,658) - 367,735 (11 (54,989) (224,080) (907,876) Net cash (used in) / generated from operations Income tax paid Net cash (used in) / generated from operating activities (119,361,713) (486,398,980) (7,869,416) 9,004,355 (32,067,870) (119,702,783) (7,699,538) (487,788,841) (7,766,538) (31,648,642) 8,424,268 (7,321,526) NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 ,z> '' NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,-> '

?)

2014 2013 USD KHR’000 USD (Note 4) (i) Credit commitments Unused portion of overdrafts 112,659,624 459,087,966 121,715,649 Letters of credit 51,282,593 208,976,568 74,653,249 Bank guarantees 41,513,493 169,167,484 36,899,316 Others 3,665,113 14,935,336 2,501,751 107 209,120,823 852,167,354 235,769,965

(ii) Lease commitments Within one year 762,938 3,108,972 558,532 *"*+^";;< ^";";$ *";+"$# „ 660 2,690 85,398

1,958,263 7,979,922 1,913,733

‰ " Ltd., an associate, amounting to USD2,846,033 (31 December 2013: USD3,973,780).

(iii) Legal claims

During the year, the Bank pursued legal claims against borrowers in default. The majority of these claims are still being negotiated and/or disputed by borrowers, thus, neither the ultimate outcome of these claims, nor the amounts recoverable can be determined at this time. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,{> !

“– ~" Bank recorded the following transactions with related parties during the year:

2014 2013 USD KHR’000 USD (Note 4)

Income: Public Bank Berhad – interest 523,309 2,132,484 465,104 108 CPB Properties – interest 111,179 453,054 110,875 Campu Lonpac Insurance – rental 62,640 255,258 58,350 Campu Securities – rental 57,240 233,253 57,240

754,368 3,074,049 691,569

2014 2013 USD KHR’000 USD (Note 4)

Expenses: CPB Properties - rental 168,320 685,904 168,732 Campu Lonpac Insurance – interest 352,738 1,437,406 350,369 Campu Lonpac Insurance – insurance 724,747 2,953,342 858,309 Campu Securities – interest 260,463 1,061,388 286,566

1,506,268 6,138,040 1,663,976 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,{> !(continued)

(b) Included in the balance sheet of the Bank are amounts due from/(to) parent company, subsidiaries and an associate as follows:

2014 2013 USD KHR’000 USD (Note 4) Amount due from parent and associate: CPB Properties – loan 3,706,000 15,101,950 3,706,000 Public Bank Berhad – deposits and placements 60,000,000 244,500,000 60,000,000 Public Bank Berhad – current 109 accounts 22,958,549 93,556,087 15,051,215

86,664,549 353,158,037 78,757,215

2014 2013 USD KHR’000 USD (Note 4) Amount due to subsidiaries: Campu Securities – deposits 9,658,873 43,432,006 9,815,944 Campu Lonpac Insurance - deposits 10,658,161 82,791,914 10,088,831

20,317,034 126,223,920 19,904,775

Other outstanding balance: Loans to management 4,080 16,626 4,080

(c) Key management personnel compensation

The remuneration of directors of the Group and Bank comprises:

2014 2013 USD KHR’000 USD (Note 4)

Fees 157,300 640,998 183,000 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,x> :)'

The guidelines and policies adopted by the Group/the Bank to manage the following risks that arise in the conduct of business activities are as follows:

DU %) Operational risk is the risk of direct or indirect loss arising from inadequate or failed internal processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour.

The operational risk loss is managed through established operational risk management processes, proper monitoring and reporting of the business activities 110 by control and support units which are independent of the business units and oversight provided by the senior management of the Group/the Bank. The Group’s/the Bank’s operational risk management entails the establishment of clear organisational structures, roles and control policies. Various internal control policies and measures have been implemented including the establishment of signing authorities, " and compliance with regulatory and other legal requirements. These are continually reviewed to address the operational risks of the business unit as well as to assess the level of compliance with the Group/the Bank policies by a programme of periodic reviews undertaken by the internal audit function. The results of internal audit reviews are discussed with the management of the business unit to which they relate, with summaries submitted to the Audit Committee and senior management of the Group/the Bank.

DU ) allowance as a result of defaults by the borrowers or counterparties through its lending, hedging and investing activities. The primary exposure to credit risk arises through its loans and advances. The lending activities are guided by the Group’s/the Bank’s credit policy to ensure that the overall objectives in the area of lending are achieved; i.e., that the loan portfolio ‰ lending policy, collateral policy and credit approval processes, including the Group’s/the Bank’s own internal grading system, and procedures implemented to ensure compliance with the NBC’s guidelines. The credit exposure arising from off balance sheet activities, i.e. commitments and contingencies, is discussed in Note 27. he 97,408 )

111 ? (CONTINUED) 275,000,000 1,120,625,000 250,000,000 275,000,000 1,120,625,000 250,000,000 (continued) (continued) 1,379,062,162 5,619,678,310 1,164,937,408 1,376,749,252 5,610,253,202 1,162,849,330 Loans and advances - net Statutory deposits Other assets 835,466,334 3,404,525,311 156,663,200 723,252,086 638,402,540 835,466,334 1,357,632 5,532,350 3,404,525,311 127,750,682 897,408 723,252,086 1,356,098 154,963,200 5,526,099 631,475,040 8 126,050,682 Cash and bank balances (excluding cash on hand) Deposits and placements with banks 110,574,996 450,593,109 63,037,232 109,963,620 448,101,752 62,649,154 Concentrations arise when a number of counterparties are engaged in similar business activities, or activities the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations be by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of t similarly affected a particular industry or geographic location. performance to developments affecting Group’s Maximum exposure to credit risk before collateral held or other enhancements are as follows: NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO 2014 2013 USD KHR’000 USD KHR’000 (Note 4) (Note 4) For the year ended 31 December 2014 ,x> :)' DU ) 2013

647,333,817 647,359,405 25,588 advances Others Total * - (17,718,426) - (17,718,426)

112 ? 2014 (CONTINUED)

54,505,627 - 54,505,627 - 57,963,987 - 57,963,987 advances Others Total equivalents * (continued) (continued) Excluding cash on hand An analysis of concentrations the The Group/the Bank monitors concentration of credit risk counterparty by industry. credit risk as at the balance sheet date is shown below: Group and the Bank’s

Manufacturing Financial intermediaries 385,574,996 Real estate social Others community, 1,303,474 and personal activities 157,995,244 - - 757,322,164 USD USD 544,873,714 25,588 313,037,232 757,347,752 Less allowance for losses - on loans and advances 1,513,472 - (19,479,909) 128,622,502 - (19,479,909) 443,173,206 Equivalent in KHR’000 - * (Note 4) 41,814,978 385,574,996 854,946,243 158,020,832 1,571,218,109 1,398,542,071 - 3,404,525,311 313,037,232 385,574,996 835,466,334 643,934,890 158,020,832 1,379,062,162 41,814,978 5,619,678,310 740,970,512 313,037,232 128,648,090 723,252,086 1,182,655,834 128,648,090 1,164,937,408 - 34,159,236 - 34,159,236 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO Equivalents Cash and cash Loans and Cash and cash Loans and For the year ended 31 December 2014 ,x> :)' DU ) 128 (17,718,426) 2013

advances Others Total * - 647,333,817 647,359,405 25,588

113 )

2014 (CONTINUED)

54,505,627 - 54,505,627 - 57,963,987 - 57,963,987 (19,479,909) - - (19,479,909) - (17,718,426) advances Others Total equivalents * (continued) (continued) Excluding cash on hand

Financial intermediaries 384,963,620 1,303,474 156,293,710 542,560,804 312,649,154 USD USD 1,513,472 126,922,502 441,085, NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO Equivalents Cash and cash Loans and Cash and cash Loans and For the year ended 31 December 2014 ,x> :)' DU ) Manufacturing Real estate social Others community, and personal activities - 757,322,164 25,588 757,347,752 Less allowance for losses on - loans and advances - - 41,814,978 Equivalent in KHR’000 (Note 4) 384,963,620 854,946,243 * 156,319,298 1,396,229,161 - 312,649,154 41,814,978 740,970,512 1,568,726,752 3,404,525,311 637,001,139 5,610,253,202 384,963,620 126,948,090 835,466,334 1,180,567,756 156,319,298 1,376,749,252 312,649,154 723,252,086 126,948,090 1,162,849,330 - 34,159,236 - 34,159,236

398,863

? 114 (CONTINUED) Neither past due nor impaired

32,000,000 243,000,000 - - - 275,000,000 (continued) (continued) 2014

Total Impaired Loans and receivables: Balances with other banks impaired banks with placements and Deposits 71,003,037 not 39,571,959 grade USD High Less allowance for losses on loans and advances - Standard Equivalent in KHR’000 (Note 4) Substandard 2,411,645,644 - 2,845,440,992 (3,354,973) Past due but 346,861,098 (4,185,297) (859,791) 15,490,774 595,169,855 239,802 (117,570) - 5,619,678,310 (10,962,278) 702,453,025 (19,479,909) 110,574,996 591,814,882 85,979,079 698,267,728 85,119,288 3,918,987 3,801,417 11,021,125 58,847 1,398,542,071 1,379,062,162 assets: Loans and advances Other Statutory deposits Accrued interest receivable Others 335,497,312 418,529,740 156,663,200 6,306 85,979,079 952,463 3,918,987 - - 11,021,125 398,863 854,946,243 ------156,663,200 958,769 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 ,x> :)' DU )

? 115 (CONTINUED) Neither past due nor impaired

(continued) (continued) 2013 Total Impaired Loans and receivables: impaired Balances with other banks banks with placements and assets: Deposits 120,000,000 Loans and advances Other 25,292,051 Statutory deposits 130,000,000 not grade 37,745,181 Accrued interest receivable USD Others 277,711,529 High 349,096,917 127,750,682 - Less allowance for losses on loans 8,723 - 93,451,811 and advances Standard 7,263,199 323,859 - Substandard - 13,447,056 - - Past due but 740,970,512 564,826 (2,777,115) - (3,490,968) - - - (934,517) 550,762,985 - 250,000,000 - 517,730,783 (216,878) 63,037,232 - - (10,298,948) - 93,451,811 564,826 547,985,870 (17,718,426) 514,239,815 7,263,199 92,517,294 13,447,056 - - 1,182,655,834 7,046,321 127,750,682 3,148,108 332,582 1,164,937,408 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 ,x> :)' DU ) 398,863

)

116 (CONTINUED) Neither past due nor impaired

(continued) (continued) 2014 Total Impaired Loans and receivables: impaired banks with Balances with other banks placements and 32,000,000 assets: Deposits Loans and advances 243,000,000 Other 71,003,037 Statutory deposits not 38,960,583 grade Accrued interest receivable USD 335,497,312 Others - High 418,529,740 154,963,200 Less allowance for losses on loans 6,306 - 85,979,079 and advances Standard 950,929 3,918,987 - - Substandard Equivalent in KHR’000 (Note 4) - 11,021,125 2,404,718,144 - Past due but 398,863 2,842,943,384 (3,354,973) 854,946,243 (4,185,297) - 346,861,099 - - - (859,791) 15,490,774 - 593,469,855 275,000,000 - 239,801 (117,570) - 701,840,115 5,610,253,202 (10,962,278) 109,963,620 (19,479,909) - 590,114,882 85,979,079 - 697,654,818 3,918,987 85,119,288 3,801,417 11,021,125 - 58,847 1,396,229,161 - 1,376,749,252 154,963,200 957,235 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 ,x> :)' DU ) ,826

)

117 (CONTINUED) Neither past due nor impaired

(continued) (continued) 2013 Total Impaired Loans and receivables: impaired Balances with other banks banks with assets: placements and Deposits 120,000,000 Loans and advances Other Statutory deposits not 25,292,051 130,000,000 grade Accrued interest receivable USD Others 37,357,103 277,711,529 High 126,050,682 - 349,096,917 Less allowance for losses on loans and advances 8,723 Standard - 93,451,811 Substandard 323,859 - 7,263,199 - Past due but - - 13,447,056 564,826 (2,777,115) 740,970,512 - (3,490,968) - - 549,062,985 - (934,517) 250,000,000 - 517,342,705 - (216,878) - 62,649,154 546,285,870 93,451,811 - - (10,298,948) 513,851,737 564 (17,718,426) 7,263,199 92,517,294 - 13,447,056 - 1,180,567,756 7,046,321 126,050,682 332,582 3,148,108 1,162,849,330 NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 ,x> :)' DU ) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,x> :)'(continued)

DU )(continued) The Group holds collateral against loans and receivables in the form of real estate and chattel mortgages, guarantees, and other registered securities over assets. Estimates of fair value are based on the value of collateral assessed at the time of borrowing. As at 31 December 2014 and 2013, the Group and the Bank’s aging analysis of past due but not impaired loans are shown below:

2014 2013 30-60 days 61-90 days 30-60 days 61-90 days 118 USD USD USD USD Overdrafts - - 965,172 586,316 Fixed loans 1,694,228 2,177,953 2,072,197 3,490,865 Housing loans 41,732 - 43,306 - Vehicle loans - - 34,395 1,305 Credit card facilities - 5,074 - 69,643

1,735,960 2,183,027 3,115,070 4,148,129

Equivalent in KHR’000 (Note 4) 7,074,037 8,895,835

DU &))

Market risk is the risk of loss arising from adverse movements in the level of market prices or rates, the two key components being foreign currency exchange risk and interest rate risk.

Market risk arising from the trading activities is controlled by marking to market the trading positions against their pre-determined market risk limits.

(i) Foreign currency exchange risk

Foreign currency exchange risk refers to the adverse exchange rate movements on foreign currency exchange positions taken from time to time. The Group/ the Bank maintains a policy of not exposing itself to large foreign exchange positions. Any foreign currency exchange open positions are monitored against the operating requirements, pre-determined position limits and cut- loss limits. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,x> :)'(continued)

DU &))(continued)

(i) Foreign currency exchange risk (continued)

As at 31 December 2014 and 2013, balances in monetary assets and liabilities ˆ\'‰" sensitivity analysis for foreign currency exchange risk was presented.

(ii) Interest rate risk

Interest rate risk refers to the volatility in net interest income as a result of changes in the levels of interest rate and shifts in the composition of the assets and liabilities. Interest rate risk is managed through close monitoring of returns on 119 investment, market pricing, and cost of funds and through interest rate sensitivity gap analysis. The potential reduction in net interest income from an unfavourable interest rate movement is monitored against the risk tolerance limits set. ‰‚|\ rates. Balances with other banks, deposits and placements with banks, loans deposit and placement and deposits from customers and deposits by banks

DU @\!) ]ŠŠ cost. In addition to full compliance with all liquidity requirements, the management ‚| \ \ maturity gaps through periodical reporting. Movements in loans and customers’ deposits are monitored and liquidity requirements adjusted Š obligations as and when they fall due. >" ‚#*'$*^ 2013: NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,x> :)'(continued)

DU @\!)(continued)

ƒ date on which these assets will be realized. For other assets, the analysis into maturity grouping is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier the expected date the assets will be realized.

120 The maturity grouping is based on the remaining period from the end of the reporting period to the contractual maturity date. When counterparty has a choice of when the amount is paid, the liability is allocated to the earliest period in which the Group/the Bank can be required to pay. 902 - 25,588 1,357,632 - - 6,207,731 6,207,731

121 ? (CONTINUED) (continued) 643,511,995 643,511,995 112,990,141 604,593,720 364,945,863 1,446,817,083 (2,421,021,180) 1,258,386,202 506,548,580 157,917,054 27,727,642 148,366,557 89,557,267 355,047,137 (594,115,627) 308,806,430 124,306,400 71,545,464 124,001,639 82,482,324 106,980,027 2,127,942 - 731,324,506 1,118,461, 229,462,518 151,729,281 230,848,881 196,537,294 357,175,079 137,208,879 1,427,268,332 124,306,400 (continued) Total date month months years maturity years \!D'U ( ( : :# 2014 in Equivalent KHR’000 (Note 4)

Deposits from customers Deposits by other banks 71,545,464 Other liabilities 124,001,639 82,482,324 106,980,027 - - 2,127,942 - - - - - 721,716,688 1,108,854,084 - - - - 3,400,087 3,400,087

NOTES TO THE FINANCIAL STATEMENTS THE FINANCIAL NOTES TO ˆ* ž*# ž#; ž;* ž*< >< } USD USD Cash and bank balances Deposits and placements 158,781,166 with banks Loans and advances Statutory deposits Other assets - 44,349,308 25,000,000 104,729,281 47,000,000 57,848,881 173,000,000 166,537,294 357,175,079 - 30,000,000 1,332,044 124,306,400 - - (19,479,909) - 835,466,334 ------275,000,000 - 158,781,166 - - 156,663,200 156,663,200 For the year ended 31 December 2014 ,x>:)' DU @\!) - 25,588 897,408 - - 7,571,699 7,571,699

122 ? (CONTINUED) (continued) 247,767,758 30,894,823 (27,643,842) (12,760,729) 324,703,157 100,981,824 (401,178,516) 262,764,475 68,578,676 137,959,251 90,208,801 141,085,994 907,568 - 511,236,360 949,976,650 316,346,434 168,854,074 62,564,959 128,325,265 325,610,725 100,981,824 110,057,844 1,212,741,125 (continued) Total date month months years maturity years ( \!D'U ( :# : 2013

NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO ˆ* ž*# ž#; ž;* ž*< >< } USD USD Cash and bank balances 110,840,949 ------110,840,949 - 110,840,949 balances 127,750,682 bank and 127,750,682 deposits Cash - Statutory Deposits and placements with banks Loans and advances Other assets 69,633,665 135,000,000 115,000,000 53,854,074 62,564,959 128,325,265 Deposits from customers 871,820 325,610,725 - Deposits by other banks 100,981,824 - 68,578,676 Other liabilities - (17,718,426) 117,959,251 723,252,086 - 90,208,801 - 141,085,994 - - - 907,568 - 20,000,000 - - - - 501,777,037 - 920,517,327 - - - 250,000,000 - - 1,887,624 21,887,624 For the year ended 31 December 2014 ,x> :)' DU @\!) 957 25,588 1,356,098 154,963,200 154,963,200 - - 6,478,752 6,478,752

123 ) (CONTINUED) (continued) 1,330,510 - - - - - 72,395,464 126,151,081 89,503,225 116,853,557 2,127,942 - 722,139,849 1,129,171,118 890,198,049 177,581,165 249,983,548 324,711,228 1,446,817,084 (2,430,777,472) 1,165,062,182 506,548,580 72,395,464 126,151,081 89,503,225 116,853,557 2,127,942 - 732,018,688 1,139,049, 218,453,509 43,578,200 61,345,656 79,683,737 355,047,137 124,306,400 (596,509,809) 285,904,830 290,848,973 169,729,281 150,848,881 196,537,294 357,175,079 124,306,400 135,508,879 1,424,954,787 (continued) 87,000,000 65,000,000 93,000,000 30,000,000 - - - 275,000,000 Total date month months years maturity years \!}D'U Deposits and placements ( : :# 2014 Equivalent in Equivalent KHR’000 (Note 4) Deposits from customers Deposits by other banks Other liabilities ------3,400,087 3,400,087 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO ˆ* ž*# ž#; ž;* ž*< >< } USD USD Cash and bank balances 158,169,155 with banks ------158,169,155 For the year ended 31 December 2014 ,x> :)' DU @\!) deposits ------Statutory Loans and advances Other assets 44,349,308 104,729,281 57,848,881 166,537,294 357,175,079 124,306,400 ( (19,479,909) 835,466,334 - 25,588 897,408 - - 7,864,678 7,864,678

124 ) (CONTINUED) (continued) 237,076,554 28,659,464 (30,067,079) (17,189,868) 324,703,157 100,981,824 (403,686,094) 240,477,958 78,881,117 140,194,610 92,632,038 145,515,133 907,568 - 512,043,938 970,174,404 315,957,671 168,854,074 62,564,959 128,325,265 325,610,725 100,981,824 108,357,844 1,210,652,362 (continued) Total date month months years maturity years ( \!}D'U ( : :# 2013

Deposits by other banks - 20,000,000 - - - - 1,887,624 21,887,624 1,887,624 20,000,000 - banks - other by Deposits Deposits from customers 78,881,117 Other liabilities 120,194,610 92,632,038 145,515,133 - 907,568 - - - - 502,291,636 940,422,102

NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO ˆ* ž*# ž#; ž;* ž*< >< } USD USD Cash and bank balances 110,452,186 ------110,452,186 - 110,452,186 balances 126,050,682 bank and 126,050,682 deposits Cash - Statutory Deposits and placements with banks Loans and advances Other assets 69,633,665 135,000,000 115,000,000 53,854,074 62,564,959 128,325,265 871,820 325,610,725 100,981,824 - - - (17,718,426) 723,252,086 ------250,000,000 For the year ended 31 December 2014 ,x> :)' DU @\!) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

,x> :)'(continued)

DU '

(i) Regulatory capital

The main regulatory capital requirement for the Group/the Bank is on its banking operations to which the Bank’s lead regulator, the NBC, sets and monitors capital requirements for the Bank as a whole. Subsidiary companies are directly supervised by the SECC and the Ministry of Economy and Finance.

The Group’s/the Bank’s policy is to maintain a strong capital base so 125 " further development of the business. The impact of the level of capital on shareholder’s return is also recognised and the Group/the Bank recognised the need to maintain a balance between the higher returns that might be possible with greater gearing and advantages and security afforded by a sound capital position.

The Group/the Bank and its individually regulated operations have complied with all externally imposed capital requirement throughout the year.

(ii) Capital allocation

‰" large extent, driven by optimisation of the return achieved on the capital allocated. The amount of capital allocated to each operation or activity is based primarily upon the regulatory capital. jQ> :

Fair value represents the amount at which an asset could be exchanged or Xƒ " ‚R|R‘" therefore, have been based on management assumptions according to the ~" NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j/> "''

Segment information is presented in respect of the Group’s business since the Bank and its subsidiaries operate their businesses in the Kingdom of Cambodia only. See Note 3(b) for the accounting policy adopted on segment information and reporting.

The Group comprises the following main business segments:

(i) Commercial banking

126 customers, ranging from large corporate and the public sector, to individual customers. The products and services offered include long-term credit such {"X" and fees based services such as cash management and custodian services.

(ii) Insurance

The insurance segment includes the business of underwriting of all classes of general insurance businesses.

(iii) Securities and brokerage

The securities segment includes the business of securities underwriting, dealing and brokerage. 40,252,260 Elimination Consolidated

127 2014 Securities and brokerage (CONTINUED) (4,314,499) - - - (4,314,499) (continued) ~ External revenue Fee and commission income Other income revenue USD Total USD Equivalent in KHR’000 (Note 4) 14,862,155 "'~ USD Operating income 381,139,689 70,184,231 USD USD General and administration expenses 8,167,144 8,484,826 93,531,212 1,639,587 - (20,193,359) 1,165,540 2,004,207 364,620 (1,237,261) (5,933,257) 25,494 286,022 260,528 384,539,115 (531,760) - (1,456,014) (260,463) 75,086,768 (956,592) 94,365,427 8,849,511 842,814 (238,959) 2,004,207 70,892,720 (21,119,566) 14,623,196 286,022 (842,814) 76,534,183 Income tax expense Minority interest } (10,418,069) <$"<_"+*$ (100,246) 40,160,841 _;;"+^; (2,860) - 666,700 “^<"_#– (10,521,175) (248,598) - 40,578,943 X <*"*$$"** (326,683) Commercial banking Insurance banking Commercial Allowance for losses on loans and advances Equivalent in KHR’000 (Note 4) 164,027,961 NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 j/> "'' Elimination Consolidated

128 2014 Securities and brokerage (CONTINUED) (continued) #~ Segment assets Segment liabilities Equivalent in KHR’000 (Note 4) Segment assets Segment liabilities USD 1,464,569,175 1,152,889,186 USD 12,896,938 2,013,401 5,968,119,389 4,698,023,434 11,098,880 77,679 52,555,022 (20,605,108) (36,175,108) 8,204,609 1,452,389,885 1,134,375,158 45,227,936 316,542 (147,413,565) (83,965,816) 5,918,488,782 4,622,578,769 Commercial banking Insurance banking Commercial NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 j/> "'' 29,520,625 Elimination Consolidated

129 2013 Securities and brokerage (CONTINUED) (6,381,996) - - - (6,381,996) (continued) Income tax expense Minority interest } (7,615,421) #_"$;$"^+^ (269,408) 29,445,073 (3,379) <#"^;* - 584,053 (7,888,208) “*"+#_– (222,316) - 29,806,810 X #_";+<"$* (286,185) #~ Segment assets Segment liabilities 979,885,934 1,251,405,082 1,808,361 12,025,196 94,369 11,364,170 (20,205,940) (35,775,940) 961,582,724 1,239,018,508 ~ External revenue Fee and commission income Other income revenue USD Total "'~ USD Operating income 13,663,331 General and administration expenses USD 63,662,407 USD USD (16,548,158) 78,723,366 1,397,628 (1,125,872) 1,617,873 - 1,979,333 361,460 (556,684) 59,990,648 337,747 51,133 286,614 (1,613,785) 976,850 (636,935) - 1,979,333 79,426,661 (750,542) 1,408,767 (17,253,864) (226,308) 64,580,871 337,747 13,437,023 (976,850) 61,330,878 Commercial banking Insurance banking Commercial Allowance for losses on loans and advances NOTES TO THE FINANCIAL STATEMENTS STATEMENTS THE FINANCIAL NOTES TO For the year ended 31 December 2014 j/>"'' NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014

j,> '

year’s presentation.

As As previously presented USD USD

Interest Income 63,673,546 65,071,174 130 Other Income 1,448,761 51,133

65,122,307 65,122,307

" Interest Income 63,662,407 65,060,035 Other Income 1,397,628 -

65,060,035 65,060,035 #@#%:"=?=:=#(Z(",Q/v

,Q!,Q/v

ƒ #* \ „ > attended Public Bank Group National Sales Convention themed “Safeguarding Our Brand Value” which was held at the Sunway Pyramid Convention Centre, Malaysia.

,x!,Q/v

Campu Bank donated a sum of USD1,000 to the Nokor Tep Foundation, a non-government 131 organization which is building a USD5.5 million 220-bed hospital in Phnom Penh to treat women’s ailments for the third consecutive year.

,:!,Q/v

A traditional Lion Dance to usher the Lunar Chinese New Year was performed by the Cambodian Chinese Association at our Preah Sihanouk Branch.

,&,Q/v

Campu Bank sponsored a sum of USD1,500 for the BUAYA Club Golf Tournament which was held at the Garden City Golf Club, Phnom Penh. The tournament was participated by members who are mainly expatriates and professional working adults and residents in Cambodia. #@#%:"=?=:=#(Z(",Q/v

j&,Q/v

Campu Bank launched a Special Financing Package for Small Medium Enterprise (SFP- SME) to expand the Bank’s portfolio of loan products to cater to the small to medium size business enterprises.

{&,Q/v

A total of 28 Senior Management Staff and Branch Managers attended the Public Bank 132 Group Management Seminar themed “Safeguarding Our Brand Value” which was held at the Sunway Resort Hotel and Spa, Malaysia.

/v&,Q/v

Campu Bank supported the Global Money š$*^ high school students from the American Intercon School to have a better insight and understanding on banking and its operations.

,/&,Q/v

Campu Bank launched Outward Remittance in Chinese Yuan Renminbi as an alternative to USD to Mainland China by individuals. #@#%:"=?=:=#(Z(",Q/v

,,&,Q/v

In collaboration with the Embassy of Japan, Campu Bank donated a sum of USD1,000 to the “Nodojiman Japanese Song Contest for 2014” to encourage Cambodian students to \Ÿ

/-#,Q/v

Campu Bank enhanced Online Shopping Security for Campu Bank Credit/Debit Cards 133 by implementing 3-D Secure Code whereby cardholders are required to request and key in a One-Time-Password number as additional authentication or security.

,j&!,Q/v

Campu Bank launched online application for Outward Telegraphic Transfer for Corporate customers as added convenience to remit funds outside the banking hours.

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A total of 100 staff attended the appreciation dinner hosted by Tek Thla branch for winning the “Best Branch Award – Cambodia 2013” ™\]™!" #@#%:"=?=:=#(Z(",Q/v

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Campu Bank and three (3) Japanese banks, Resona Bank Ltd., Saitama Resona Bank Ltd. and Kinki Osaka Bank Ltd. entered into a Memorandum of Understanding to strengthen business collaboration and cooperation.

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Campu Bank was awarded “USD 2013 Straight – Through – Processing Excellence” 134 Award by Deutsche Bank, New York for the third consecutive year for its exceptionally high accuracy in the processing of payment messages.

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Campu Bank was awarded “Retail Banking Awards 2014” Award by the publisher, Asian Banking and Finance Magazine for the third consecutive year.

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> R ; branch in Boeng Trabek, Phnom Penh which is located at the Borkor junction of Monivong Boulevard and Mao Tse Toung Boulevard and in Tonle Bassac district, Phnom Penh to reach out to customers in the up and coming Boeng Keng Kang commercial and residential district. #@#%:"=?=:=#(Z(",Q/v

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The opening of Campu Bank’s 27th Branch in Suong, Tboung Khmum Province was !=˜ "'‚ of Banking Supervision, the National Bank of Cambodia in the presence of H.E. Leng Sokha, Deputy Provincial Governor of Tboung Khmum Province, and more than one hundred guests.

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Campu Bank launched online application of Banker’s Cheques by Individuals and 135 Corporate customers to facilitate application of Banker’s Cheques outside the banking hours.

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Campu Bank celebrates its 22nd Anniversary Dinner with the theme “Wild Wild West” jointly with Campu Lonpac Insurance and Campu Securities at the Diamond Island City Hall, Phnom Penh which was attended by 709 staff.

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A total of 8 staff were presented with the Long Service Awards ranging from 10 years to 35 years by Mr. Phan Ying Tong, Regional Head of Indo-China Operations during the 22nd Anniversary Dinner held at the Diamond Island City Hall, Phnom Penh. CALENDAR OF SIGNIFICANT EVENTS 2014

25 August 2014

After the signing of the Memorandum of Understanding between Campu Bank and Resona Bank Ltd., Saitama Resona Bank Ltd. and Kinki Osaka Bank Ltd. on 25 June 2014, Mr. Kazuhiro Higashi, President of Resona Bank Ltd. paid a courtesy visit to Campu ™R the business collaboration and cooperation.

13 September 2014

Campu Bank launched e-Statement for Electron Debit and Credit Cards via Internet 136 Banking to facilitate cardholders to view and print card statements from home.

2 October 2014

Tan Sri Dato’ Tay Ah Lek, Group Managing Director of Public Bank Berhad and Members of the Board of Campu Bank paid a courtesy visit to H.E. Chea Chanto, the Governor of the National Bank of Cambodia in conjunction with the 35th Anniversary celebration of the National Bank of Cambodia.

2 October 2014

Tan Sri Dato’ Tay Ah Lek, Group Managing Director of Public Bank Berhad and Members of the Board met H.E. Neav Chanthana, Deputy Governor and Senior > ' ‚ Banking Supervision of the National Bank of Cambodia as part of the annual meeting with the National Bank of Cambodia. #@#%:"=?=:=#(Z(",Q/v

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A total of 67 Senior Management staff, !'!>" Branch Managers and Sales & Marketing >#š Session which was chaired by Senior Chief > > " Dato’ Chang Kat Kiam in Phnom Penh.

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As a premier bank in Cambodia, Cambodian Public Bank was selected as the only bank to 137 be the main sponsor for the 2nd Cambodian ™ ‘ \ Phokeetra Hotel, Phnom Penh and attended by more than 100 representative from 43 countries.

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More than 150 children who are Campu BrightStar Children Savings Account holders participated in the coloring competition themed ‘I Shine Like A BrightStar’ organized by Campu Bank at the AEON Shopping Mall, Phnom Penh.

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The Bank had sponsored 50 power banks as souvenirs for the participants of the 1 Malaysia Ambassador Cup 2014 Tournament which is under the patronage of His Excellency Dato’ Raszlan bin Abdul Rashid, the Malaysian Ambassador to the Kingdom of Cambodia. Campu Bank Building, No. 23, Kramuon Sar Avenue (Street No. 114) Sangkat Phsar Thmey 2, Khan Daun Penh, Phnom Penh, Kingdom of Cambodia SWIFT : CPBLKHPP E-mail : [email protected] Tel : 855-23-222 880 / 222 881 / 222 882 Fax : 855-23-222 887

www.campubank.com.kh