ABA Bank and the National Bank of Canada announced a landmark agreement for the Cambodian banking industry on Monday, 9th May during its press conference in Sofitel Phokeethra Phnom Penh.
Following the receipt of required regulatory approval, National Bank of Canada has increased its equity in ABA Bank through a 'Share Purchase Agreement' from 42% to 90%.
This is the first time that a North American financial institution holds a majority of shares in a Cambodian bank and it will allow ABA Bank to greatly improve upon its already outstanding levels of service.
"This agreement with National Bank of Canada is one of the most significant milestones in ABA Bank's history. It is symbolic that National Bank of Canada has become a major shareholder in the year we celebrate our 20th anniversary," said Askhat zhikhanov, CEO of ABA Bank. "The acquisition by National Bank of Canada demonstrates our strong position in the market, and our partner's confidence in the strategy and growth of ABA Bank. The latest capital injection gives us unprecedented market
opportunities and the ability to deliver more to our valued customers."
In July 2014, National Bank of Canada acquired 10% of ABA Bank's shares, the same year that ABA Bank was named as 'Cambodia's Bank of the Year' by The Banker magazine and the 'Best Bank in Cambodia' by Euromoney magazine.
National Bank of Canada subsequently increased its equity in ABA Bank to 30% in September 2014 and to 42% in January 2015.
"National Bank is proud to become the majority shareholder of ABA Bank, a well-established financial institution in its market and recognized for its sound business practices," said Louis Vachon, President and CEO of National Bank of Canada.
"ABA Bank is positioned to take advantage of the country's long-term growth prospects and to contribute to increased utilization of financial services by individuals and commercial businesses in the region."
This landmark agreement will not alter ABA Bank's strategy, only enhance it. ABA Bank will remain focused on extensive branch expansion, further targeting SMEs, as well as working harder to cater to corporate clients and retail sector. It is also essential
that ABA Bank continues to improve its service quality through the delivery of cutting-edge digital banking solutions and new products.
About ABA Bank
ABA Bank (www.ababank.com) was founded in 1996. With assets of USD892 million as of March 31, 2016, ABA Bank provides a wide range of financial services to individuals, SMEs, and corporate entities. In 2014 and 2015, ABA Bank was named the 'Best Bank in Cambodia' by the world's most prominent financial publications, including the Banker, Euromoney and Global Finance magazines.
About National Bank of Canada
The National Bank of Canada (www.nbc.ca) is one of Canada's largest commercial banks, with assets of CAD219 billion as of January 31, 2016. Together with its subsidiaries, National Bank of Canada forms one of Canada's leading integrated financial groups. It is headquartered in Montreal and has branches in almost every Canadian province, with 2.4 million personal clients. Its securities arc listed on the Toronto Stock Exchange.
Clients in the United States, Europe and other parts of the world arc served through a network of representative offices, subsidiaries and partnerships.