MICROCAPITAL BRIEF: ANZ Royal Bank, Microfinance Institution (MFI) Hattha Kaksekar Limited (HKL) to Share Branches, ATMs

ANZ Royal Bank (ANZ), a joint venture between the Australia and New Zealand Banking Group Limited (ANZ Group) and the Cambodian Royal Group of Companies, and Hattha Kaksekar Limited (HKL), a Cambodian microfinance institution (MFI), reportedly have entered into a partnership to offer a wider range of financial service products to the clients of the two institutions. The two organizations will enable their clients to use either company’s branches and automated teller machine (ATM) network, which together include 180 ATMs in Cambodia.

According to a statement attributed to Grant Knuckey, the CEO of ANZ, “the partnership, between a commercial bank and microfinance institution, will facilitate transactions between clients and give ANZ a greater presence outside cities”[1]. Hout Ieng Tong, the CEO of HKL reportedly added that “the MFI’s customers would benefit from a greater variety of financial products and services through ANZ”[1].

ANZ has 19 branches in Cambodia as of 2014. Financial information for ANZ is not available. As of 2013, ANZ Group reported total assets of USD 703 billion, net loans and advances of USD 271.6 billion, return on assets of 0.9 percent and return on equity of 15.3 percent. Financial information on the Cambodian Royal Group of Companies is not publicly available. As of 2012, HKL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 123 million, a gross loan portfolio of USD 102.8 million, approximately 74,600 borrowers, total deposits of USD 44.3 million and approximately 97,800 depositors. HKL also reported return on assets of 2.61 percent and return on equity of 18.59 percent.

By Alíz Crowley, Research Associate

About ANZ Royal Bank

Cambodia-based ANZ Royal Bank (ANZ) is a joint venture between Australia and New Zealand Banking Group Limited (ANZ Group) and the Cambodian Royal Group of Companies (RGC). The Australia and New Zealand Banking Group holds 55 percent of the company and the remaining 45 percent is owned by RGC. ANZ offers retail banking, corporate & institutional banking, electronic banking and trade finance services. ANZ was established in 2005. As of 2014, ANZ has 19 branches. Financial information for ANZ is not publicly available. As of 2013, ANZ Group reported total assets of USD 703 billion, net loans and advances of USD 271.6 billion, return on assets of 0.9 percent and return on equity of 15.3 percent.

About Hattha Kaksekar Limited

Hattha Kaksekar Limited is a deposit-taking microfinance institution (MFI) based in Phnom Penh, Cambodia. It was founded in 1994 by two charitable organizations, the Canada-based Organisation Canadienne pour la Solidarité et le Développement (OCSD) and UK-based Oxfam International. It was transformed into an independent non-governmental organization (NGO) in 1996 and then into a private liability company in 2001. Its financial supporters have included Oikocredit, Norfund, Triple Jump, the Agence Francaise de Developpement (AFD) and Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ). As of 2012, HKL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 123 million, a gross loan portfolio of USD 102.8 million, approximately 74,600 borrowers, total deposits of USD 44.3 million and approximately 97,800 depositors. HKL also reported return on assets of 2.61 percent and return on equity of 18.59 percent.

Sources and Additional Resources

[1] The Cambodia Daily: ANZ, MFI Partner to Bridge Financial Sectors

MicroCapital, January 18, 2012, responsAbility Lends $4m to ACLEDA Bank, Hattha Kaksekar Limited (HKL) of Cambodia

MicroCapital, August 12, 2011, responsAbility Loans $3m to Microfinance Institutions (MFIs) Hattha Kaksekar Limited (HKL) of Cambodia, Mitra Bisnis Keluarga (MBK) Ventura of Indonesia

MicroCapital, June 13, 2011, responsAbility Global Microfinance Fund (rAGMF) Makes Loans Totaling $2.8m to Hattha Kaksekar Limited (HKL), Thaneakea Phum Limited (TPC) of Cambodia and Koperasi Mitra Dhuafa (Komida), Tanaoba Lais Manekat Foundation (TLM) of Indonesia

MicroCapital Universe Profile: ANZ Royal Bank

MicroCapital Universe Profile: Hattha Kaksekar Limited

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/