ABA Bank boosts registered capital, red-hot growth set to continue
ABA BANK has increased its registered capital to US$36 million to comply with new National Bank of Cambodia (NBC) minimum capital requirements due to come into force at the end of the year. Chief Executive Officer Madi Akmambet said the additional capital came from shareholders and gave ABA a strong financial base from which to build on its rapid growth over the last couple of years.
“The new capital injection means we are extremely well placed to continue with our bold expansion strategy,” he said.
ABA has invested around $4 million over the last three years to expand
its branch network and install a core banking and payment system that will be able to be extended as the bank continues to grow.
The mid-sized lender now has eight full-service branches across the country’s three major commercial centres and an ever expanding network of ATMs, putting it on a par with the leading banks in the country and well ahead of its mid-sized competitors. In terms of organic growth, it is also leading the way in Cambodia. Over the last 12 months, assets have almost tripled from $51.7 million to $151.5 million. Bank deposits grew almost four times from $31.1 million at the end of November 2009 to $116.1 million.
ABA had also extended loans worth $70.5 million by the start of December, almost 300 percent more than the same time last year when it had lent just $24.5 million. “Our customers have rewarded us for our investment and hard work and helped make us the fastest organically growing bank in Cambodia for each of the last two years,” Mr Akmambet said. “We will repay that faith by continuing to set the standard for banking in Cambodia through the launch of new products and services.”
ABA has already brought an extensive suite of innovative new banking products and services to the market, many a first for Cambodia. As well as deposit and savings plans for retail customers, the bank also offers visa and master- card products to make it easier for its customers to manage their finances. Motorbike and car loans, as well as home mortgages, give its customers extra flexibility around purchases of big ticket items. It also provides secure internet banking services allowing customers to manage their finances from the comfort of their home or office. The comprehensive iBank service is supported by e-services, including sms and email.
For small and medium-sized enterprises (SMEs), entrepreneurs and larger corporate clients, ABA provides a full range of banking services, including deposits, business loans, remittances and payroll management. “Small businesses are a major engine of growth for the Cambodian economy,” Mr Akmambet said. “We can take care of all their banking needs so that they can concentrate on growing their businesses.”
Mr Akmambet said the recent capital injection from shareholders put ABA in a great position to continue to launch innovative products and expand its branch presence across the county. “By continuing to innovate and expand, we are confident we can cement our growing reputation as one of Cambodia’s leading banks,” he said.
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