Logo of Phnom Penh Post newspaper Phnom Penh Post - Maybank steers for untapped markets

Maybank steers for untapped markets

Maybank steers for untapped markets

081128_13.jpg
081128_13.jpg

Maybank will bet on what it said was Cambodia’s low bank-penetration rate for future growth as it transitions from a branch of its Malaysian parent into a locally incorporated subsidiary.

{jathumbnail}

With 34 licenced banks operating in a market with US$4.07 billion in loans in 2011, analysts have long called the sector saturated.

But Maybank CEO Abdul Wahid Omar yesterday said banking penetration, as measured by Cambodia’s gross domestic product-to-loan ratio, was about 30 per cent, leaving it substantial room for growth compared to Malaysia and Singapore, where penetration is above 100 per cent.

“In this respect, we believe the potential for growth in Cambodia is tremendous,” he said yesterday at a press conference in Phnom Penh.

The bank had US$313 million in assets in December 2011, ranking it the country’s seventh-largest bank. As a subsidiary, it will inject up to $50 million into the market and aim at Cambodia’s number-five spot in terms of assets and market share by 2015, Abdul Wahid Omar said.

Cambodia’s GDP was $11.2 billion in 2010, World Bank data showed. According to the National Bank of Cambodia, banks loaned $4.07 billion last year, an increase of 33.5 per cent over the year before.

Cambodia’s bank penetration rate was low because a large portion of the Kingdom’s population was still unexposed to the sector, ACLEDA Bank executive vice president So Phonnary said yesterday.

But entrepreneurial activity, as well as agriculture and construction investment, would continue to pull customers into the market this year, she said.

MOST VIEWED

  • Ministers to tackle sea pollutants

    Preah Sihanouk provincial authorities and members of local communities have collected 77 tonnes of water hyacinth at a Sihanoukville beach, Preah Sihanouk Provincial Hall spokesperson Or Saroeun said. He told The Post yesterday that the aquatic weeds had been floating along some of the province’s

  • Negotiations on EBA being held

    In an effort to defuse tensions, a senior government official said Cambodia is negotiating with the European Union (EU) on the Everything But Arms (EBA) trade deal, which allows the Kingdom to export goods to the 28-member bloc tariff-free. The EU notified Cambodia on October 5

  • Chinese police escort deported scam suspects

    Ninety-one Chinese nationals accused of extorting money from victims in a Voice over Internet Protocol (VoIP) scam were deported from Phnom Penh International Airport on Monday under the escort of 182 Chinese police personnel. General Department of Immigration head of investigations Ouk Hay Seila told reporters

  • EU timber deal in firing line

    A committee of more than 20 national and international organisations filed a petition to the EU on October 10 to prevent it from signing a timber trade agreement with Vietnam, noting that the deal would be disastrous to the Kingdom’s forests. The petition claims Vietnamese timber