Logo of Phnom Penh Post newspaper Phnom Penh Post - Canadian bank satisfied with local aquisition

Canadian bank satisfied with local aquisition

Customers use banking services at an ABA Bank branch in Phnom Penh yesterday.
Customers use banking services at an ABA Bank branch in Phnom Penh yesterday. Heng Chivoan

Canadian bank satisfied with local aquisition

National Bank of Canada saw strong growth on its investment in Advanced Bank of Asia Ltd (ABA Bank) after taking a 90 percent stake in the Cambodia-based lender last May, a banking executive said yesterday.

“I am very satisfied with the performance of the bank as its growth continues,” Louis Vachon, CEO of National Bank of Canada, told reporters after the official launch of ABA Bank’s new logo – a design that combines elements of the two banks.

He said both credit and deposits at ABA Bank surged last year. The bank’s outstanding loan portfolio swelled to $789 million by the end of 2016, from $484 million one year earlier. Meanwhile, deposits topped $800 million by the end of 2016, compared to $654 million a year before.

ABA Bank was founded in 1996 and currently operates 42 branches nationwide, with five more expected to open by the end of the year.

Vachon said under National Bank of Canada’s direction ABA Bank would pursue expansion and roll out new financial services, especially in digital banking.

“The global trend is that people use digital technology to reduce cost and increase efficiency,” he said. “And Cambodia is no different from Canada and other places around the world.”

National Bank of Canada, the sixth-largest lender in Canada by assets, invested a total of $148 million into acquiring a controlling stake in ABA Bank. In 2014, it purchased a 10 percent stake in the Cambodian lender.

The bank upped its shareholding to 42 percent in 2015, and last May it paid $103 million to bring its total shareholding to 90 percent.

This version updates the size of ABA Bank's loan portfolio.

MOST VIEWED

  • Stock photo agencies cash in on Khmer Rouge tragedy
    Stock-photo companies selling images from S-21 raises ethics concerns

    A woman with short-cropped hair stares directly into the camera, her head cocked slightly to the side. On her lap is a sleeping infant just barely in the frame. The woman was the wife of a Khmer Rouge officer who fell out of favour, and

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • Prime Minister: Take back islands from inactive developers

    The government will “take back” land on roughly 30 islands from private companies that have not made progress on planned developments, Prime Minister Hun Sen said in a speech on Monday that also targeted land-grabbing villagers and idle provincial governors. Speaking at the inauguration of the