ABA shareholders' capital reaches $1.7 billion, reflecting growth and contribution
20/Jul/2023
ABA Bank announces the successful increase of its paid-up capital from $660 million as of January 1, 2023, to $1.1 billion today with an additional injection from its shareholder, National Bank of Canada. The capital injection has been made recently following the regulatory approval of the National Bank of Cambodia, the country's central bank.
"ABA Bank is thrilled to announce the significant increase of its paid-up capital up to $1.1 billion. It comes in the form of the conversion of the bank's retained earnings by $250 million and the new capital by $190 million. As a result, the total shareholders' capital, together with regulatory reserves and accumulated net income, has reached $1.7 billion as of today," commented Askhat Azhikhanov, CEO of ABA Bank.
This momentous capital increase highlights ABA's remarkable growth trajectory and commitment to meeting its customers' surging demand. With the enlarged capital base, ABA Bank is poised to further accelerate its physical presence by opening new branches and self-service outlets while introducing new innovative and convenient banking products.
"The capital increase extends numerous benefits. It strengthens our financial resilience, fuels our expansion plans, and showcases our commitment to regulatory compliance. It also underscores the continuous support of our esteemed shareholder, National Bank of Canada. We remain dedicated to delivering exceptional banking experiences and are excited for the opportunities this capital infusion brings to better serve our valued customers," Azhikhanov added.
It is worth noting here that National Bank of Canada significantly contributes to the country's economy through the solid growth of ABA Bank. "In addition to regular paid-up capital injections, our shareholder strategically re-invests all profits and provides capital in the form of subordinated debt," stated Madi Akmambet, Executive Director at ABA Bank.
"Since 2014 when National Bank of Canada became a shareholder of ABA, it has been growing its equity to $1.7 billion and providing $185 million as subordinated debt. All this capital supports ABA's business growth and development in terms of human talent capacity, branch network, and IT and digital infrastructure," Akmambet concluded.
According to the National Bank of Cambodia's Annual Supervision Report 2022, ABA is the largest commercial bank in Cambodia by total assets, loans, deposits, and profitability. Through its customer-centric approach, comprehensive banking products, and embrace of technological advancements, the bank has experienced rapid expansion and garnered widespread acclaim. Today, ABA serves 3 million customers with a deposit base of $8.2 billion. ABA's loan portfolio is $7.2 billion, which is fully funneled to the Cambodian economy and represents about 22% of the country's GDP.
ABA Bank management profoundly praises the Royal Government of Cambodia for its policy of achieving economic growth, peace, and political stability.
ABA also admires the National Bank of Cambodia for creating fair competition, maintaining the financial stability of the market, and supporting sustainable and inclusive growth in the financial sector.
Ultimately, the bank extends gratitude to its loyal customers for their unwavering trust and support. It remains resolute in delivering its modern banking products and services for the benefit of individuals and businesses across Cambodia.
