National Bank of Canada becomes major shareholder of ABA Bank
ABA Bank and the National Bank of Canada today announced a landmark agreement for the Cambodian banking industry. 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 Azhikhanov, 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.