ABA Bank shows stellar growth in 2023, keeps fuelling economy with lending

ABA Bank, Cambodia’s largest commercial bank, published its audited annual report for 2023. Following the presented financial statements, the bank continues its impressive growth trajectory, solidifying position as a key lender in the economy and an important driver of the Kingdom’s economic development.

Deposit and loan growth reflect confidence
Customer deposits climbed by 25% year over year to $9.03 billion, demonstrating growing trust in ABA's financial solutions. The loan portfolio, catering to diverse sectors, expanded by 21% to $7.77 billion during 2023. This growth highlights both the bank's commitment to supporting Cambodian businesses and the increasing demand for credit within the Kingdom's economy recovering from the pandemic.

Loan portfolio tailored to growth
The 21% loan portfolio growth was primarily driven by increased lending to small and medium enterprises (SMEs) and corporates. This strategic focus highlights ABA's commitment to nurturing Cambodia's entrepreneurial ecosystem and propelling key industries forward.

Capital injection fuels expansion
The share capital of the bank’s shareholder, National Bank of Canada, grew from $660 million in 2022 to $1.10 billion by the end of 2023. Capital injections make ABA’s financial base stronger, providing a springboard for future expansion plans. Continuous investment from the shareholder and reinvestment of all retained earnings into the bank underscores confidence in ABA’s leadership and growth potential. Total equity of ABA reached $1.78 billion.

Financial strength on display
ABA's total assets witnessed a significant 27% year-on-year increase to reach $11.48 billion by the end of 2023. The cash balances with NBC and other banks increased 40% in 2023, which signifies the bank’s solid liquidity position and underscores its resilience against market volatility.

Profitability reflects sound management
Net profit for 2023 surged to $276.48 million, reflecting ABA’s efficient operations and sound financial management practices. This is also acknowledged as a sign of strong internal controls and strategic decision-making. The bank managed to increase its profit thanks to the continuous growth of its loan book. ABA boosted its loan portfolio by $1.32 billion in 2023, which led to net interest income growth.

Commitment to Cambodia underscored
Contribution of $70.29 million in taxes on profit to state budget in 2023 underscores ABA's transparency and dedication to the nation's economic well-being. This significant fulfilment signifies the bank's strong financial performance and its alignment with Cambodia's development goals.

Extensive network ensures accessibility
With a nationwide network of 95 branches and over 1,700 self-banking machines, ABA Bank ensures convenient access to financial services for all Cambodians. This commitment to accessibility fosters financial inclusion and empowers individuals and businesses to participate actively in the economy. Given its strong network driven by more than 9,500 professionals, the bank continuously invests in human capital and employee development through training programs and educational opportunities, ultimately propelling the growth of the financial and banking sector.

Digital banking powerhouse for individuals and corporates
As the leading digital banking provider, ABA empowers consumers with a convenient and top-secured mobile app designed for convenient financial management. Users can make any payments and transfers, settle taxes and bills, and customize the app with widgets and various themes in a few taps. The digital focus extends to corporate banking, helping businesses operate efficiently by embracing cashless money management. Additionally, the bank champions financial inclusion by promoting the Khmer Riel within all its digital products, showcasing ABA's commitment to national currency. Customers can open savings and deposit accounts and deposit or withdraw Riel notes through self-service machines 24/7.

Key partner in Cambodia's economic journey
ABA Bank's impressive financial performance and focus on growth solidify its position as a key partner for the country’s ongoing development. It is believed that the bank will continue supporting businesses and individuals through innovative financial solutions, with a focus on lending to SMEs and a commitment to national prosperity.

Being the largest commercial bank, ABA embraces and actively backs the endeavors of the Royal Government of Cambodia aimed at further socio-economic development. This unwavering commitment encompasses a range of governmental initiatives, such as the Pentagonal Strategy, with ABA firmly aligning its support with the government’s strategic goals and affirming its dedication to contributing to their realization.