The National Bank of Canada (NBC) announced on Friday it has increased its stake in the Cambodia-based ABA Bank.
In the announcement, NBC said it had invested an additional $20 million into the Cambodian bank, taking its overall stake to 42 per cent.
NBC initially purchased a 9.99 per cent stake in the local firm in July last year and then upped its holding to 30 per cent again in September.
Louis Vachon, CEO of NBC, said the decision to increase the bank’s holdings in ABA followed unrelated investments in other small – and medium-size businesses in Cambodia. Vachon did not reveal details of the NBC’s other investments in Cambodia.
“Cambodia’s small-business market segment is thriving and ABA bank is in a position to take advantage of the financial demand from these entrepreneurs,” he said.
ABA reported a $7.5 million net profit last year, an 85 per cent increase from 2013, a press statement said.
Damir Karassayev, chairman of ABA, said its deposits totalled $433 million for the 2014 financial year, with outstanding loans reaching $271 million.
“We plan to open eight new branches this year and gradually increase the total number to 40 by 2017 to ensure the bank’s position as a strong player at the national level,” said Damir. “We are now opening a new page in the history of our partnership with National Bank of Canada.”