MICROCAPITAL BRIEF: Woori Bank of South Korea Acquires VisionFund Cambodia from Microfinance Subsidiary of US-based World Vision

VisionFund International, a UK-based NGO that offers microfinance services for World Vision, a US-based Christian relief and development organization, recently sold VisionFund Cambodia, a microfinance institution (MFI) serving rural Cambodia, to South Korea’s Woori Bank for an undisclosed price. VisionFund International intends to use the proceeds to “support the growth of its network of microfinance institutions in 29 countries around the world.” The purchase follows Woori Bank’s acquisitions of the following institutions since 2014: Indonesia-based Bank Woori Saudara, the Philippines-based Wealth Development Bank and the MFI Woori Finance Cambodia. The deal with VisionFund International brings the number of branches Woori Bank operates outside of South Korea to 410.

Registered since 2003 with the National Bank of Cambodia, VisionFund Cambodia serves both individuals and enterprises. As of December 2017, it reported total assets of USD 196 million, a gross loan portfolio of USD 170 million, and customer deposits of USD 45 million. It also reported annual return on assets (ROA) of 1.70 percent and return on equity (ROE) of 9.39 percent. As of June 2018, it served 216,000 clients via 106 branches in Cambodia.

VisionFund International was created in 2003 as a wholly owned subsidiary of World Vision with the purpose of managing its MFIs. As of September 2016, VisionFund International and its 31 partner MFIs reported total assets of USD 618 million, a gross loan portfolio of USD 509 million and customer deposits of USD 56 million.

Woori Bank, which serves 13 countries, is a member of the Woori Financial Group, which is active in banking, insurance, research, private-equity, asset management and other sectors. Based in Seoul, Woori Bank and its subsidiaries reported total assets of KRW 316 trillion (USD 296 billion), deposits of KRW 235 trillion (USD 220 billion), outstanding loans of KRW 200 trillion (USD 187 billion) and 21 million customers as of December 2017. For that year, Woori Bank reported ROA of 0.48 percent and ROE of 7.42 percent.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Information provided directly to MicroCapital from Miranda Barham Limited on behalf of VisionFund

VisionFund Cambodia background
https://www.visionfund.com.kh/who-we-are

VisionFund Cambodia annual report
http://www.visionfund.com.kh/Data/Sites/1/media/annual-report/2017/fa-eng-annual-report-2017-for-web.pdf

VisionFund International operations
http://www.visionfund.org/1501/where/

VisionFund International annual report
http://www.visionfund.org/library/client/VisionFund%20Annual%20Report%20-%20Final%20-%20Digital.pdf

Korea Herald article
http://www.koreaherald.com/view.php?ud=20180624000188

Woori Bank annual report
https://spot.wooribank.com/pot/Dream?withyou=ENENG0659

MicroCapital Brief; February 28, 2018; VisionFund Myanmar, LIFT Partner on Microfinance Loans of $370 to Garment Factory Workers from Rural Areas
https://www.microcapital.org/microcapital-brief-visionfund-myanmar-lift-partner-microfinance-loans-370-garment-factory-workers-rural-areas/

MicroCapital Brief; September 10, 2011; responsAbility Invests $13.5m in Microfinance Institutions (MFIs) VisionFund Cambodia, Equity Bank of Kenya
https://www.microcapital.org/microcapital-brief-resposnability-invests-13-5m-in-microfinance-institutions-mfis-visionfund-cambodia-equity-bank-of-kenya/

MicroCapital Brief; July 15, 2014; Woori Bank of South Korea to Acquire Cambodian Microfinance Institution (MFI) Malis Finance for $5m
https://www.microcapital.org/microcapital-brief-woori-bank-of-south-korea-to-acquire-cambodian-microfinance-institution-mfi-malis-finance-for-5m/