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

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted

  • Cambodia seeks probe into 'false reports' on Hun Sen's alleged Cypriot passport

    Minister of Justice Koeut Rith on September 6 wrote a letter to his Cypriot counterpart Stephie Dracos requesting cooperation in investigating and providing the truth in relation to the "exaggerative and false allegations" that Prime Minister Hun Sen holds a Cypriot passport. In his letter, the