ACLEDA Bank has posted an after-tax-profit of $35.36 million in the first quarter of 2022, a decrease of 19.81% from $44.10 million in Q1’21 mainly due to an increase in net impairment losses, interest expense, and general and administrative expenses.
In a quarterly statement released by the CSX the Bank’s Chairman Chhay Soeun commented: “During this first quarter 2022, the Bank achieved the positive outcomes as below: Total deposit reached $5,899.66 million increased by $183.64 million (3.21%) while total loan outstanding were $5,792.03 million grew by $363.45 million (6.70%) compared to the year ended 2021.”
“The Bank reaped a profit attributable to owners of the Bank of $35.34 million whilst Return on Average Assets (ROAA) was 0.44% and Return on Average Equity (ROAE) was 2.91%. Finally, I would like to express my profound gratitude to all stakeholders for their continued cooperation and ongoing support for the Bank,” he added.
ABC stock is currently trading at KHR 11,220 a share down around 30% from the company 2020 IPO listing at KHR 16,200 a share.
Impairment losses increase
The Bank’s nonperforming loan ratio has remained nearly the same at 2.32% however during the quarter the Bank recorded approximately $16 million in net impairment losses a 343% from around $3.7 million compared to the same period last year.
Speaking to Cambodia Investment Review ACLEDA Bank’s Senior Executive Vice President Mrs. Mar Amara said the bank has written off $333,711 during the first quarter of 2022 while Expected Credit Losses (ECL) of loans increased to $15 million to reach $49.62 million.
The significant increase in ECL of Loans in stage 2 is deemed as under-performing, while there is no significant change in ECL of Loans in stage 3 deemed as Non Performing and only a slight increase in ECL of Loans in stage 1 considered performing, she added.
Upgrading digital infrastructure
ACLEDA Bank has been pushing its digital first agenda since been diversifying hybrid infrastructure of choices with 319 offices, gradually transforming them to self-service centres with 93 banking self-service, 1,047 ACLEDAATMs, 26 Term Deposit Machine, 24 Virtual Teller Machine, 14 Cash Bag Deposit Machine and 4,550 POS terminal, the Bank issued 1.65 million ACLEDA ATM cards to its customers.
Moreover, the digitized ACLEDA mobile has proved very popular, registered by more than 2.42 million users as at the end of March 2022, all enabling the rapid circulation of money in the economy.
To read more about Acleda Bank’s 2022 strategic outlook click here.
2021 dividend approved
Shareholders recently approved to distribute 35% of the Banks 2021 $166.91 million after-tax profit to shareholders equating to KHR 548.6405 a share.
The total annual dividend of $58.42 million is a 37.48% increase from the bank’s 2020 total annual dividend of $42.49 million or KHR 399.267 a share after receiving central bank approval due to the bank demonstrating a strong COVID-19 exit plan.
To read more about the 2021 dividend approval click here