Banking

ABA Announces Record $130.6m Profits in Six Months

ABA has staved off the global challenges of the pandemic and Russia-Ukraine war to rake in a record $130.6 million in net profits from 2.5 million customers in the first half of 2022
ABA Bank in Phnom Penh's Mittapheap district. Kiripost/Prak Chan Thul
ABA Bank in Phnom Penh's Mittapheap district. Kiripost/Prak Chan Thul

Advanced Bank of Asia (ABA) raked in a record $130.6 million in net profits in the first six months of 2022 despite challenges dealt by the pandemic and Russia-Ukraine war, its chairman Yves Jacquot said.

In its second quarterly report dated August 11, Jacquot said during that quarter, 11,534 loans worth $513.3 million were handed out. The bank’s deposit portfolio also totalled $6.9 billion in the second quarter, representing a 9 percent increase since the start of the year.

In the first half of 2022, ABA’s customer base grew by 21 percent, and the number of customer accounts hit 2.5 million.

Jacquot said Cambodia continued its post-pandemic rebound during the reported period. However, at the same time, the country witnessed a slower than expected return of foreign direct investments and experienced inflationary pressure that impacted household purchasing power.

“The real estate sector remains under pressure, and tourism has yet to recover to its pre-pandemic levels. Additionally, we begin to see the impact of the Russia-Ukraine crisis on the world economy and its potential repercussions on every country,” he said.

“Despite these general economic uncertainties, ABA Bank, with its solid financial fundamentals, remains a safe and stable institution on its upward trajectory. The continuous growth of the customer base and sound financial performance reflects the bank’s strategy effectiveness and strong position in the financial sector,” Jacquot added.

He said that ABA employs more than 7,000 local staff at 81 branches and outlets. Its total assets grew 8 percent compared to the end of 2021, and totaled $8.5 billion.

Shareholders’ equity increased by 13 percent from the beginning of the year and reached $1.2 billion, he added.

ABA raked in a staggering $212.02 million in net profits in 2021 with a customer base of 2.1 million.

ABA said its three main types of income are interest income, fees and commissions income, and other income. In the second quarter of 2022, the bank earned the most money from interest income, representing 88.29 percent of total income, of which 97.20 percent of the interest income is from loans to customers.

The bank said it is one of Cambodia’s top three taxpayers in 2021. This marks a significant shift from last year's 12th placement.