ACLEDA’s Q3 Net Profit Hits $50m on Higher Interest Income, Fees

The second largest commercial bank in Cambodia saw net profits and net interest income rise on increased loans and deposits as the domestic economy improves
ACLEDA Bank on Monivong Boulevard, Phnom Penh, November 15, 2022. Kiripost/Siv Channa
ACLEDA Bank on Monivong Boulevard, Phnom Penh, November 15, 2022. Kiripost/Siv Channa

Higher net interest income (NII), fees and commissions, and reduced net impairment losses boosted ACLEDA Bank Plc’s net profit by 27 percent to $49.4 million in its third quarter ended September 30 (Q3), from $38.9 million a year ago.

This was driven by the growth of loan portfolios due to high demand, especially by the small and medium enterprise segment, and an increase in deposits and other transactional products and services, its filing with Cambodia Securities Exchange showed.

ACLEDA shared that quarterly NII gained 12.8 percent at $114.2 million, compared to $101.2 million in 3Q21. Revenue came in at 776.5 trillion riel ($188.5 million) in the quarter versus 656.9 trillion riel ($159.4 million) last year, with interest income accounting for 90.4 percent of total revenue.

Net profit for the cumulative nine-month period ending September 30 was up 10.8 percent at $133.04 million, from $120.12 million last year. While NII for the period in review rose 12.4 percent to $337.8 million against $300.6 million in 2021.

The bank’s return on average equity for 3Q22 stood at 4.01 percent, whereas the return on average asset was 0.59 percent.

The ratio of non-performing loans inched up to 2.86 percent for the quarter, compared to 2.33 percent as of December 31, 2021.

As of September 30, 2022, ACLEDA’s total asset value grew to $8.4 billion, representing a 6.7 percent increase from $7.9 billion as at end-December 2021, making it Cambodia’s second largest commercial bank after Advanced Bank of Asia (ABA). Total loans amounted to $6.2 billion while deposits totalled $5.9 billion, as of Sept 30, 2022.

Meanwhile, the bank said it has reduced the interest rate for new loan applications to support the business growth of customers. As a result, gross loans outstanding in 3Q22 rose 16.3 percent from the financial year ended December 31, 2021.

Going forward, the bank sees a promising future on the back of business confidence and economic growth. It said recovery in manufacturing exports and expansion of agricultural commodity exports will augur well for the bank as a bulk of borrowers are involved in the agri-related businesses.

It expects to perform better in 2022 because it has invested heavily in digital infrastructure, including building a large high-security storage data centre.

“The construction of Disaster Recovery Data Centre will help data storage in a highly-protected environment. With the digital infrastructure and upgraded products and services, the bank is confident in facing future challenges,” it added.

ACLEDA rose to an intraday high of 10,700 riel to close 40 riel lower at 10,660 riel with 95,313 shares traded for a market capitalization of 4.6 trillion riel ($1.1 billion).