Harrison White
Advanced Bank of Asia Limited (ABA), a National Bank of Canada Group subsidiary, has posted a record $47.5 million in first-quarter net profit. The announcement comes as a sector-wide increase in lending is combined with the installment of self-banking infrastructure.
The record net profit is a 43% increase due mainly to the rise in both interest Income with a 25% growth and fee and commission Income with a 32% growth compared to Q1 2020.
“The Bank continued distributing new loans to its customers as the access to capital is vital for people and businesses not only in the growing economy but also in times of crisis. In Q1 2021, 11,453 loans worth $505.1 million were disbursed. It increased the Bank’s gross loan portfolio by 10%, amounting to $4.2 billion in total. ABA Bank Chairman Yves Jacquot stated.
The company has been at the forefront of digital banking with ABA’s physical network also expanded and improved. The Bank opened a branch in the Mondulkiri province, launched two new ABA 24/7 self-banking spots in the high-traffic areas in Phnom Penh, and expanded existing premises to bring more self-banking areas as a response to the steadily growing clientele.
Self-banking infrastructure has allowed the company to rapidly increase lending and loan accounts while slightly reducing staff numbers from 6,410 staff at the end of 2019 to 6,372 today.
“These results rest primarily upon the Bank’s leverage on its state-of-art digital banking and self-banking platforms. In the period, the Bank continued improving its ABA Mobile banking application by bringing new convenient services and features, such as scheduled payments and transfers, improved bill payments and phone top-ups, enhanced cardless cash withdrawal feature, to name a few,” Jacquot added.
Earlier this month the bank changed its share structure as well as its replacement board member. The bank increased its registered capital by $115 million, from $335 million to $450 million representing a total of 450,000 shares.
ABA Bank also received approval to transfer one of Damir Karassaye’s shares (equal to $1000) to the Natcan Trust Company as well as appointing Paolo Pizzuto as a new member of the Board of Directors in replacement of Lionel Pimpin who had resigned. Natcan Trust Company provides asset management services and serves customers in Canada.
ABA Banks owns the long-term issuer credit rating “B+” with Stable outlook from Standard & Poor’s Global Ratings Agency (S&P). The rating was reaffirmed in December 2020.
