A legacy of transformation: fifteen years of empowering Cambodian families
As I reflect on our journey through 2024, I am filled with profound gratitude for the trust placed in us by the families we serve, the dedication of our team, and the unwavering support of our partners. This year not only marks our 15th anniversary but also stands as a testament to the enduring power of our mission: to create pathways to homeownership for Cambodia's underserved communities.
Our strategic achievements
The context in which we operate has shaped our work significantly. In 2024, the Cambodian economic landscape presented both challenges and opportunities. The Asian Development Bank maintained its growth forecast at 6.0%1, but we witnessed notable sectoral shifts. Cambodia’s exports rose by 16.9 percent in 2024 with a value of US $26 billion according to the General Department of Customs and Excise of Cambodia (GDCE), while the real estate and construction sectors continued to experience softness. Additionally, concerns about household indebtedness across the microfinance sector grew.
Despite these challenges, First Finance's specialized affordable housing finance model displayed remarkable resilience. Our ability to maintain a non-performing loan ratio of just 5.95%—significantly lower than the sector average of 14.70%—reflects the strength of our underwriting processes and the fundamental need for our services.
In terms of strategic achievements, we focused on controlled portfolio growth, increasing our loan portfolio by 14.66% to $89.72 million while adhering to strict credit discipline. Notably, 25% of our portfolio supports home purchasing and construction, 54% facilitates home improvements, and 12% enables land purchases for future development.
Geographically, we expanded our reach purposefully by adding two new branches in Samaki Monichey and Ponhealeu. This allowed us to serve an additional 1,667 families this year, bringing our total number of active clients to 9,245.
Our deepening social impact is reflected in the findings from our 2024 Client Self-Perception Survey, conducted in partnership with Oikocredit. The report shows that 79% of clients with children under 15 years of age have their children in school, 76% of them have savings, and 66% have improved their toilet and sanitation facilities.
→ read more on Client Self-Perception Survey Repot 2024 at www.firstfinance.com.kh/reports
Operational excellence has been the foundation of our success. Our commitment to operational rigor included revised credit policies and enhanced recovery processes, which maintained portfolio quality despite economic headwinds. The implementation of our data protection policy and with equipped security tools improved efficiency and data security, while an average of 63 training hours per employee strengthened our institutional capacity.
Our financial stewardship in 2024 demonstrates sustainable growth. Our total assets reached $93.21 million, marking an 7.34% increase from the previous year. We recorded a net profit of $1.02 million, a 330.74% rise, and improved our return on assets to 1.13%.
Supporting our clients and communities
In addition to our financial achievements, we are deeply committed to enhancing financial literacy among our clients. Through initiatives like the "Home Sweet Home" comic series, we provide essential knowledge on financial management and responsible borrowing. Our aim is to equip families with the tools they need to make informed decisions, ensuring that homeownership is a sustainable and transformative milestone.
→ Learn more about "home sweet home" at www.firstfinance.com.kh/financial-tip-in-comic-book
As part of our corporate responsibility, we sponsored the construction of a kindergarten, provided school materials, and funded the printing of financial educational materials.
Fifteen years ago, First Finance was founded on a simple but powerful idea that every Cambodian family deserves the security and dignity of homeownership. As we celebrate our anniversary, we renew our commitment to this vision—not just through financial services, but by laying the foundations for generational prosperity.
The year ahead will undoubtedly present challenges, but with our strong fundamentals, experienced team, and clear strategic direction, I am confident in our ability to create lasting value for all our stakeholders.
We would like to extend our deepest appreciation to the Board of Directors; the management team and staff whose dedication turns our mission into reality. We also thanked the National Bank of Cambodia for their prudent regulatory guidance, our funding partners, and our clients who have entrusted us with their homeownership dreams.
