Acleda Bank Plc co-founder Dr In Channy has a strong message for the New Year – the bank is all set for 2021.
Acleda has been making all the right noises in the market this year.
It went public in May, invested heavily in developing its digital banking infrastructure, introduced flexible fees for its Acleda Unity ToanChet mobile app and even rebranded with a striking new logo.
The prudently managed Acleda entered the coronavirus crisis financially well positioned, while some of its competitors have been left with concerns over weak loan books.
“In spite of the Covid-19 pandemic, Acleda Bank continues to grow confidently. The bank feels confident it will maintain its growth in Q4 [the fourth quarter] and the years to come.
“Three sets of infrastructure – the largest branch and office network, the electronic infrastructure, and digital in particular – create secure and convenient conditions for our customers to access all of Acleda Bank’s financial products and services,” said Channy, who is also president and group managing director.
In the third quarter of 2020, the bank chalked up $142.47 million in revenue, while its net profit hit $34.62 million, outperforming the figures achieved over the same period in the previous year.
As of September, total deposits rose by $158.17 million and total outstanding loans swelled by $264.54 million compared to the year ended 2019.
“Acleda has made a plus from a minus by making loan applications simple and enhancing user experience by digital means via Acleda’s Unity ToanChet app.
“And this is also applicable to fixed deposits, including flexible interest rates for loans.
“This helped with loan growth for this quarter and reduced the bank’s operating costs by $1.69 million compared to Q3 of 2019,” Channy said.
Supported by it unrivalled network of 263 branches and 723 ATMs across the Kingdom, the bank is able to roll out its financial services efficiently – to both urban and rural customers – from corporate to retail clients.
“Branches and offices are in close proximity to the customers in the field, and that makes loans disbursement to the agricultural sector, which is among the safest of sectors, so convenient” he added.
As at the end of September, of the total loan portfolios, agriculture-related loans accounted for 20.04 per cent.
Interest income has been the main source driving the bank’s growth and profitability.
In Q3 of 2020, the group’s total interest income from loans stood at $127.37 million, which accounted for 99.78 per cent of total interest income, or 89.41 per cent of total revenue.
“Interest income is the main source that has been driving the bank’s growth and profitability.
“The Covid-19 pandemic has affected almost all business sectors, including the banking and financial sector in Cambodia. However, Acleda has managed its group business growth with quality within this context,” Channy said.
Acleda – the Kingdom’s first commercial bank to be listed on the Cambodia Securities Exchange – is also in the process of rebranding.
“The new logo symbolises a mythical bird standing in the middle of a blue circle, representing the sustainable strengths and prosperity of the bank.
“With this new branding, we aim at modernising our trademark to complement our vision, mission, strategy and advancement in financial technologies,” Channy said at the announcement of the new logo on November 24.
The new emblem is expected to be officially launched in January.