Annual Report 2013

ANNUAL REPORT

2013

CONTENTS

HIGHLIGHT ON KEY ACHIEVEMENTS ......................................................................................................................................................................... MESSAGE FROM CHAIRPERSON ...................................................................................................................................................................................... MESSAGE FROM CHIEF EXECUTIVE OFFICER ......................................................................................................................................................... CHAMROEUN AT A GLANCE ............................................................................................................................................................................................
VISION, MISSION,AND COREVALUES .....................................................................................................................................................
OPERATIONAL PERFORMANCE .......................................................................................................................................................................................

134589

OPERATIONAL COVERAGE ............................................................................................................................................................................. SCALING UP OUTREACHTO MORE POOR HOUSEHOLDS ................................................................................................. NEW FINANCING INITIATIVESTO HELPTHE POOR ADDRESSTHEIRVULNERABILITIES ................................. NEW MICROINSURANCE SCHEME FOR BETTER HEALTHTREATMENT ......................................................................

910 11 13

SOCIAL PERFORMANCE ........................................................................................................................................................................................................

SOCIO-ECONOMIC SERVICES FOR MORE MEANINGFUL IMPACTS ............................................................................... SOCIAL PERFORMANCE MONITORING ............................................................................................................................................... EXTENDING CHAMROEUN’S ACTIVITIES BEYOND SOCIAL MICROFINANCE .......................................................

14 16 17

REVISED STRATEGIC PLAN FOR 2013-2017 ............................................................................................................................................................. GOVERNANCE ..............................................................................................................................................................................................................................

SHAREHOLDERS AND SHAREHOLDING STRUCTURE .............................................................................................................. BOARD OF DIRECTORS ...................................................................................................................................................................................... KEY ACTIVITIES OF OUR SPECIALIZED COMMITTEES ................................................................................................................. EXECUTIVETEAM .................................................................................................................................................................................................... EXPANDING STRUCTURE FOR BETTER SERVICE QUALITY AND INNOVATIONS ...............................................

19 21 22 23 24

STAFF DEVELOPMENT .............................................................................................................................................................................................................

26 26 27 28 29

BUILDING UP OUR HUMAN CAPITAL:A KEY PRIORITY ........................................................................................................... MOTIVATION, INSPIRATION,AND EMPOWERMENTTHROUGH REWARDS AND - SUCCESSION PLANNING .................................................................................................................................................................................

RECOGNITION AND AWARDS ........................................................................................................................................................................................ AUDITED FINANCIAL STATEMENTS .............................................................................................................................................................................
REPORT OF BOARD OF DIRECTORS ....................................................................................................................................................... REPORT OFTHE INDEPENDENT AUDITORS ..................................................................................................................................... BALANCE SHEET ..................................................................................................................................................................................................... INCOME STATEMENT .......................................................................................................................................................................................... STATEMENT OF CASH FLOW ........................................................................................................................................................................ STATEMENT OF CHANGES IN EQUITY ..................................................................................................................................................

29 33 35 36 37 38

RATIONALE BEHIND OUR CHOSEN CORPORATE “PINK” COLOR AND LOGO ...................................................................... NETWORKS AND PARTNERSHIPS ................................................................................................................................................................................... OFFICE ADDRESSES......................................................................................................................................................................................................................

HIGHLIGHT ON KEY ACHIEVEMENTS

OPERATIONAL PERFORMANCE

Operating Provinces

Operating Districts

2011

2012

2013

Operating Communes OperatingVillages

1,936
12
2,969
14

3,620
15

Main Branches

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12,980
667,300
163
41,480 20,269
727,300
213

52,419 25,199
784,100
333

Gross Loan Portfolio (KHR’Million) Average Loan Disbursed (KHR) Staff

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&SVVS[IVWꢀTIVꢀ0SERꢀ3J½GIV

Portfolio at Risk (30 Days) Write-off Ratio

0.05% 0.06%
0.05% 0.02%

0.33% 0.05%

ANNUAL REPORT 2013

SOCIAL PERFORMANCE

Female Borrower Ratio

2011

81.2% 12.6% 75.2% 19.0% 22.2%
0.6%

2012

85.4% 12.6% 70.8% 26.3% 18.2%
1.9%

2013

83.5% 12.4% 72.3% 22.4% 23.3%
1.7%

Average Loan Portfolio as % GNI per Capita Partner Loyalty Rate % Female Staff % Female Management % Staff with Disability

44,148 37,933

16.5%
11,080
1,952

Participants to Financial Literacy and BusinessTraining Participants toTraining on SocialTopics.
44,663 49,701

FINANCIAL PERFORMANCE

Total Asset (KHR’Million) Total Equity (KHR’Million)

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PorfolioYield

31,041
7,034

17,627
2,914
24,874
5,535
465,826
49.8%
108.1%
2.4%
149,790
43.5%
103.5%
0.4%

373,486
47.1%
104.2%
1.6%

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Return on Assets²

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ANNUAL REPORT 2013

MESSAGE

MS. HÉLÈNE KERAUDREN

FROM CHAIRPERSON

Chamroeun continued to serve strong social objectives in 2013 by combining growth in outreach with new products and services to better address its partners’ needs. By

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serves, the institution now reaches out to more than 52,000 active borrowers in 14 provinces of Cambodia. The focus remains, as always, on poorer households, with a range of affordable and adapted products and services.
All these developments and achievements will be further consolidated in 2014 as Chamroeun remains committed

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partners to help them succeed in their ventures.

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active support; I trust that the strong social values shared at all levels of the organisation will continue to make

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New developments in 2013 have allowed Chamroeun to bring innovative and ever more complete services to its partners: access to a microinsurance provider to cover

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daily lighting and cooking needs; access to USD loans to save on transaction and conversion costs.
Yours sincerely
Socio-economic services have also been further developed with a community based approach, bringing training to the doorsteps of our partners. More socio-

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have boosted the outreach of these services, as well as satisfaction from partners who enjoy these workshops.

HÉLÈNE KERAUDREN

Board Chairperson

The success and very identity of Chamroeun lie in its strong social mission and the will to make a difference

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diagnosis conducted with Entrepreneurs du Monde, as

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picture on the achievements and remaining improvements for the institution. Moreover, in its will to always place

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process on the Client Protection Principles.

¹Chamroeun calls its clients « partners » to underline its concern for the success of its clients in improving their livelihoods.

ANNUAL REPORT 2013

MESSAGE

MR. SUON SOPHEA

FROM CHIEF EXECUTIVE OFFICER

“2013 was a wonderful year for us. Even some major

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the garment sector, and political deadlock, we survived

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semi-urban areas of some more provinces such as Pursat, Kampong Chhnang, and Prey Veng in addition to the

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the results, active borrowers and gross loan portfolio increased by 26% and 24% respectively whereas PAR 30 was still in a good condition at 0.33%.The service points also grew up to 40 with 333 committed staff serving more than 52,000 poor households.We remained focus

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to other MFIs in Cambodia-120 USD per partner.
Furthermore,we are also proud of recent developments our complementary socio-economic services as a re-

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rolled out across all service points with the support of

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2013, more than 10,000 partners and non-partners

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and business management, and we strongly hope that the application of these topics will contribute to an

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and complementary socio-economic services, we started providing scholarship awards to 84 students from partner

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generations to have more access to education. With

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efforts to help them reduce vulnerabilities, new products and services were developed, tested, and introduced. With the support of its Foundation which was created late 2011, we were able to introduce a new health microinsurance scheme, under a partnership with PRÉVOIR (KAMPUCHEA) MICRO-LIFE INSURANCE PLC, PKMI. As of December 2013, 1,924 partners and 455 of their household members were insured by this program.Also, USD loan were also made available to the institution’s partners, who are transacting in USD, to help reduce transaction and coversion costs.

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stakeholders, board of directors, lenders, regulators, and beloved staff for their contribution to help Chamroeun

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the poor liberate themselves from poverty, and I hope you will strongly support us in the upcoming years.Your

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to make positive and lasting changes to the poor.
Financing clean energy solutions such as solar kits and

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under a project called“Access to Clean Energy Program”,

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daily energy consumption, and it also contributes to the promotion of environmentally friendly products.
Yours Sincerely,

SUON SOPHEA

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ANNUAL REPORT 2013

CHAMROEUN AT A GLANCE

Chamroeun was founded by Entrepreneurs du Monde, a French NGO, as a development program in early 2006 with a focus on serving the poor within and surrounding Phnom Penh areas through the provision of adapted loans, savings, and microinsurance services. The very

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places in the capital city to address the needs of the small market stallholders, ambulant vendors, and other small scale business activities.

Noting the large underserved poor communities in Phnom Penh, Entrepreneurs du Monde, a French NGO, signed an agreement with Phnom Penh Municipality and Cambodian Ministry of Foreign Affairs to start up a

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namely as “Chamroeun” (“prosperity” in Khmer) to aim

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socio-economic services to poor households living in Phnom Penh’s urban depressed areas.

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the institution’s operational and institutional sustainability. The institution opened an average 3 branches per year

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To comply with regulations, in 2009, Chamroeun was

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the National Bank of Cambodia as a registered credit

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and successfully achieved all requirements to become

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Cambodia in 2011.

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market places in Phnom Penh to address the needs of small market stallholders, ambulant vendors, and other small scale business activities.The institution also started a partnership with GRET’s SKY project to provide health microinsurance to its partners. This scheme offered a complete health coverage to Chamroeun’s partners and their household members, to insure access to doctors, hospitals, and pharmaceutical drugs.

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operational activities to some main provincial towns in 2009. Currently, the institution is covering 14 provinces across Cambodia mainly in areas surrounding Tonle Sap

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ANNUAL REPORT 2013

2007 2009

Chamroeun launched a wide range of complementary socio-economic services, including various business and

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that there are urban depressed areas beyond Phnom

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Kandal province through a new branch set up.
To comply with regulations, Chamroeun was registered with the Ministry of Commerce as a company with two shareholders namely Entrepreneurs du Monde and Mr. Humbert Garreau de Labarre. The institution was

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of Cambodia. Furthermore, Chamroeun also established two more new branches in Battambang and Siem Reap provinces.

2008 2010

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and surrounding Phnom Penh areas through additional

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Kampong Cham province with an additional new branch set up. Further, to address our partner’s challenges in relation to distance between their destinations and the

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created to bring the available services closer to them. The institution also brought on board another new

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ANNUAL REPORT 2013

2011 2013

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Two additional new branches were launched in Banteay Meanchey and KampongThom provinces aligned with the institution’s strategic plan. Chamroeun fully complied with all requirements from the National Bank of Cambodia and

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an important step within the institutional development. A Foundation was initiated to create more synergy with the institution to help the poor address their challenges

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and a new provincial town of Pursat. Chamroeun also

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microinsurance scheme, USD loans, and clean energy loan to help its partners address their vulnerabilities.

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scholarship awards to 84 children of the partners through its Foundation. Moreover, additional paid-up

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to continue sustaining the growth of the institution’s activities.

To sustain the growth of Chamroeun’s activities, a capital increase was done early 2012 bringing three new shareholders with whom Chamroeun already has

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continued to two additional new provinces, Takeo and Kampot. Socio-economic services were also re-adapted to the needs of Chamroeun’s partners. Particularly, the training method was initially changed from compulsory

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participatory at the community level with the modules mainly focused on Financial Literacy.

ANNUAL REPORT 2013

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working to achieve positive and lasting changes in the livelihoods of economically active poor families in a socially responsible manner ”

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of poor families in Cambodia by providing them a wide

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socio-economic services”

CoreValues

Integrity:ꢀ 'LEQVSIYRꢀ TVSZMHIWꢀ QMGVS½RERGIꢀ ERHꢀ

complementary socio-economic services to the poor to enhance their well-being. It achieves this ethically and with transparent, fair, and cost effective methods.
Fair practices: At Chamroeun, we ensure that the services we provide to our partners as well as the interactions we have with other stakeholders are not unethical or deceptive. We are committed to building relationships that are based on respect, fair treatments, and courtesy.

Annual Report 2013

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