With a nationwide network of 95 branches and over 1,700 self-banking machines, ABA Bank ensures convenient access to financial services for all Cambodians. Photo SUPPLIED
ABA Bank, Cambodia's premier commercial bank, has disclosed its audited annual report for the year 2023.
The financial statements presented reveal that the bank has maintained its impressive trajectory of growth, reinforcing its role as a principal lender in the economy and a pivotal force in the Kingdom's economic advancement.
Confidence Evident in Deposit and Loan Growth
Customer deposits saw a 25% increase year-on-year, amounting to USD 9.03 billion, which signifies the escalating confidence in ABA's financial offerings.
The loan portfolio, serving a variety of sectors, swelled by 21% to USD 7.77 billion over the course of 2023.
This expansion underscores the bank's dedication to bolstering Cambodian enterprises and the burgeoning demand for credit in the Kingdom's economy, which is on the mend from the pandemic's impact.
Loan Portfolio Geared Towards Growth
The 21% augmentation in the loan portfolio was chiefly propelled by heightened lending to small and medium-sized enterprises (SMEs) and corporate entities.
This strategic emphasis accentuates ABA's commitment to fostering Cambodia's entrepreneurial milieu and driving pivotal industries ahead.
Capital Infusion Spurs Expansion
The share capital of the bank's stakeholder, the National Bank of Canada, escalated from USD 660 million in 2022 to USD 1.10 billion by the close of 2023. Such capital injections have fortified ABA's financial foundation, setting the stage for prospective expansion endeavours.
The continuous investment by the stakeholder and the reinvestment of all retained earnings into the bank underscore the confidence in ABA's leadership and potential for growth. The total equity of ABA reached USD 1.78 billion.
Financial Robustness on Display
ABA's total assets experienced a substantial 27% year-on-year increment, culminating in USD 11.48 billion by the end of 2023. The cash reserves with the National Bank of Cambodia (NBC) and other financial institutions surged by 40% in 2023, denoting the bank's solid liquidity stance and its fortitude amidst market fluctuations.
Profitability Mirrors Astute Management
The net profit for 2023 soared to USD 276.48 million, mirroring ABA's proficient operations and prudent financial stewardship. This surge is also recognised as an indicator of robust internal governance and strategic decision-making. The bank managed to amplify its profit through the continual expansion of its loan book. ABA augmented its loan portfolio by USD 1.32 billion in 2023, which led to an increase in net interest income.
Commitment to Cambodia Highlighted
The contribution of USD 70.29 million in taxes on profits to the state budget in 2023 underscores ABA's transparency and allegiance to the nation's fiscal health. This significant accomplishment signifies the bank's robust financial performance and its congruence with Cambodia's developmental aspirations.
Extensive Network Guarantees Accessibility
With an expansive network of 95 branches and in excess of 1,700 self-banking machines, ABA Bank guarantees convenient access to financial services for all Cambodians. This pledge to accessibility promotes financial inclusion and empowers individuals and businesses to engage actively in the economy.
With a formidable network powered by more than 9,500 professionals, the bank persistently invests in human capital and employee advancement through training programmes and educational opportunities, thereby driving the growth of the financial and banking sector.
Digital Banking Powerhouse for Individuals and Corporates
As the foremost provider of digital banking, ABA equips consumers with a user-friendly and highly secure mobile application designed for streamlined financial management. Users can execute payments and transfers, settle taxes and bills, and personalise the app with widgets and various themes with just a few taps.
The digital emphasis extends to corporate banking, aiding businesses in operating efficiently through the adoption of cashless financial management. Moreover, the bank champions financial inclusion by promoting the Khmer Riel across all its digital offerings, showcasing ABA's commitment to the national currency. Customers can open savings and deposit accounts and transact with Riel notes through self-service machines round-the-clock.
Key Ally in Cambodia's Economic Voyage
ABA Bank's stellar financial performance and concentration on growth cement its status as a crucial ally for the country's ongoing development. It is anticipated that the bank will persist in supporting businesses and individuals with innovative financial solutions, focusing on lending to SMEs and a pledge to national prosperity.
As the largest commercial bank, ABA embraces and actively supports the endeavours of the Royal Government of Cambodia aimed at further socio-economic advancement. This steadfast commitment spans a range of governmental initiatives, such as the Pentagonal Strategy, with ABA firmly aligning its support with the government's strategic objectives and affirming its dedication to contributing to their realisation.
