Cambodia Investment Review
ACLEDA Bank Plc. reported a 7.2 percent year-on-year increase in net profit for the first quarter of 2026, with earnings reaching approximately $45.9 million as Cambodia’s largest listed lender continued to benefit from stronger interest income and digital banking growth.
The bank’s latest filing to the Cambodia Securities Exchange (CSX) showed profit growth was primarily supported by higher net interest income, expansion in its loan portfolio and continued growth of its AC Super App ecosystem. However, the results also highlighted ongoing pressure from rising non-performing loans (NPLs), elevated impairment expenses and continued relief measures linked to borrowers affected by the Cambodia-Thailand border conflict.
The lender’s loan portfolio increased by more than $500 million compared to the same period last year, while registrations for the AC Super App rose sharply from 4.8 million users in March 2025 to 5.9 million by March 2026, underlining the bank’s continued push into digital banking services.
Despite the stronger earnings performance, the bank continued to absorb significant costs associated with borrower support programs and provisions. Net impairment losses increased to $21.7 million in Q1’26 from $18.1 million during the same period last year, while additional relief measures and higher operating expenses also weighed on overall profitability.
The latest results come after ACLEDA announced support measures tied to Cambodian borrowers impacted by border tensions with Thailand in 2025, including debt relief initiatives for affected civilians and military personnel. The National Bank of Cambodia had previously instructed banks and financial institutions to provide relief support for borrowers affected by the conflict and economic disruptions along the border regions.
NPL Ratio Continues to Climb
The bank’s NPL ratio rose to 6.18 percent in the first quarter, up from 5.94 percent in the previous quarter and 5.5 percent during the same period in 2025, reflecting wider concerns over asset quality across Cambodia’s banking sector amid slower economic activity and spillover impacts from regional energy and economic pressures.
While the ratio moved above the six percent threshold during the quarter, the bank indicated it expects the overall NPL ratio to remain below six percent for the full year as relief-related pressures gradually ease through the remainder of 2026.
Profitability metrics remained relatively stable, with return on average assets unchanged at 0.38 percent, although return on average equity declined slightly to 2.74 percent from 2.84 percent a year earlier.
Total assets reached approximately $12.06 billion as of March 31, 2026, representing a modest increase from the $12 billion recorded at the end of December 2025.
Dividend Maintained Despite Market Weakness
Alongside the earnings results, ACLEDA announced a dividend distribution of 555 riel per share, equivalent to approximately 240.4 billion riel, or around $60 million. The payout represents 30 percent of the bank’s 2025 net profit of approximately $200 million.
The dividend marks the bank’s second-highest payout since listing on the Cambodia Securities Exchange in 2020, behind the 685.9 riel per share distribution announced for the 2022 financial year.
However, despite continued profitability and dividend payments, ACLEDA’s share price has remained under pressure in recent years. The stock has fallen below 7,000 riel per share, down more than 55 percent from its 16,200 riel IPO price during its landmark CSX listing in 2020, reflecting broader investor concerns surrounding Cambodia’s banking sector, rising NPL levels and slower economic conditions across the property and SME segments.
The bank remains one of Cambodia’s largest financial institutions and continues to play a significant role in the Kingdom’s banking system through its retail, SME and digital banking operations.
