Logo of Phnom Penh Post newspaper Phnom Penh Post - Acleda all set for future growth after solid third-quarter results

Acleda all set for future growth after solid third-quarter results

Content image - Phnom Penh Post
Acleda Bank will undergo major corporate rebranding in January. Hong Menea

Acleda all set for future growth after solid third-quarter results

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.

MOST VIEWED

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Tottenham Hotspur to wear ISF Cambodia logo on jerseys in match against Sheffield United

    Last year, the Indochina Starfish Foundation (ISF) – an NGO providing education to underprivileged children in Cambodia – made global headlines with its “socially distanced” football initiative. This year, a world-class football club – Tottenham Hotspur FC – will wear special edition jerseys to show their support for ISF

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American