ABA Bank maintains strong B+ credit rating from S&P
18/Dec/2024
ABA Bank, Cambodia's largest commercial bank1, has once again demonstrated its financial strength and stability by securing a reaffirmed 'B+' long-term credit rating with a Stable outlook from the world's largest credit rating agency, Standard and Poor's (S&P) Global Ratings. The rating was reassigned to ABA on 13 December 2024.
The reaffirmation of the 'B+' rating comes amidst a challenging market environment. However, S&P analysts expressed confidence in ABA Bank's ability to maintain its strong, well-entrenched physical and digital presence in Cambodia as the country's largest bank. This will continue to strengthen the bank's funding profile.
In the rationale provided for the rating, the S&P experts mentioned that ABA Bank's deposits increased 25% in 2023 versus the industry's 14%. The research also praises the bank's strong focus on technologies and robust development of its digital finance products.
"ABA's digital platform users increased over 2 times over 2021-2023. This reflected the bank's investments in technology over the years, which help it stand out in Cambodia. The bank uses a combination of in-house developed technology and solutions from leading IT companies," concluded S&P in its rating paper.
The Stable outlook on ABA reflects the experts' view that the bank will sustainably balance rapid loan growth with sufficient deposit mobilization and sound underwriting standards over the next 12-18 months. The researchers also believe ABA Bank will remain a strategic subsidiary of National Bank of Canada over the outlook horizon.
The 'B+' credit rating and Stable Outlook from S&P Global Ratings provide reassurance to ABA Bank's customers, investors, and other stakeholders on the bank's financial soundness, strong foundation, and positive prospects.
This recognition is a testament to the bank's strong financial performance, prudent risk management practices, and commitment to delivering innovative banking solutions to customers.
About ABA Bank
ABA Bank is the largest commercial bank in Cambodia as per National Bank of Cambodia's Supervision Reports 2021-2023. As of September 30, 2024, the bank's total assets amounted to US$ 13 billion, customer deposits reached US$ 10.4 billion, and gross loans climbed to US$ 8.5 billion. With 99 branches, 46 ABA 24/7 spots, more than 1,700 self-banking machines, and advanced online and mobile banking platforms, ABA Bank reaches out to 4 million customers with an array of modern financial services.
About S&P Global Ratings
With more than 1 million+ credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities, S&P Global Ratings is the world's leading provider of credit ratings. Its credit risk analyses, research and insights support the growth of transparent, liquid debt markets worldwide. S&P Global Ratings has approximately 1,500 credit analysts in 128 countries around the globe. Its Head Office is headquartered in New York City, USA. For more information visit www.spratings.com.
1ABA Bank is the largest commercial bank in Cambodia by total assets, gross loans, customer deposits, and profitability based on the National Bank of Cambodia’s Annual Supervision Report 2021-2023.
