I am happy to say that 2016 has been a good year again for both Cambodian microfinance sector and MAXIMA. During the year, MAXIMA is aware of the systemic risk presented by the rapid increase in overall levels of private credit to the GDP, which is currently estimated at 63.1% (World Bank Country Report, 2016). The rapid increase is credited mainly to the booming real estate and construction sectors. Keeping in mind the risks involved in 2016, MAXIMA grew slowly and put more focus on staff capacity building, client satisfaction, and loan quality. Furthermore, MAXIMA strengthened on social performance management through providing more training on social performance management to all level of staff. MAXIMA also conducted self-assessment using Smart Campaign Self-Assessment tool. By doing so MAXIMA was able to identify lacking areas in client protection principles.

Based on this MAXIMA improved policy and procedures to ensure full adoption of client protection principles. Despite the gentle growth, MAXIMA maintained growth in loan portfolio by 23% and profit after tax increased 42% compared to the year 2015. Even though the growth is still lower compared to industry standards, MAXIMA is considered as an efficient microfinance institution in the market and among good players in the entire sector. Staff turn-over ratio was kept low at 10%, and the portfolio quality was better than the industry average, with the portfolio at risk (PAR) of 1%.

In the coming year, MAXIMA intends to further increase productivity of front line staff, as well as recruit more staff to expand the operation into rural area while focusing more on small and medium enterprise loan in order to assist clients to generate more income.

To conclude I would like to express my gratitude to the MAXIMA Board and its committees that provide the guidance and support to the management and keep MAXIMA’s focus on balanced financial and social sustainability. My congratulations to MAXIMA’s staff and management who strive to push MAXIMA forward to reach greater heights. Last but not the least, my thanks to all our stakeholders and clients for their continued confidence in us. Let us move into the next year with the goal “to improve our clients’ lives”.

On behalf of the Board of Directors