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Despite ongoing challenges in the global, regional, and Cambodian economies, Cambodia’s financial industry continues to see gradual growth. Even amidst slower overall economic activity, some industry players are performing well, providing essential support to the country’s economic engine.
Mr. Igor Zimarev, Chief Marketing and Corporate Social Responsibility (CSR) Officer at ABA Bank, spoke to Investing Cambodia about the impact of the financial sector’s performance on the current state of the industry during the economic slowdown.
How did ABA Bank fare in the first half of this year?
Mr. Igor: We’re happy to report strong performance in the first half of 2024. Our convenient ecosystem and services continue to attract new customers. Our mobile app users have grown by 34% compared to the same period in 2023, reflecting a steady increase in confidence towards ABA’s digital finance solutions. We’ve also expanded our presence in the corporate and lending portfolios.
Our physical footprint grew with the successful launch of 3 new branches in Phnom Penh and Battambang, providing even more customers with access to ABA Bank’s modern products and services.
The Bank’s total assets grew 7.1% from the end of December 2023, reaching $12.3 billion.
What were the total outstanding loan and deposit amounts for ABA Bank at the end of the first half of 2024?
Mr. Igor: Our loan portfolio reached US$8.3 billion, representing a 5.6% increase from the end of 2023. Customer deposits also saw significant growth, reaching US$9.8 billion, reflecting a 6.5% increase since the beginning of the year.
Despite the perception of a slow economy, what growth trends has ABA Bank observed in the first half of 2024?
Mr. Igor: While economic activity might seem slower, we are still seeing growth trends. Our customer base has impressively expanded by 32% compared to the same period last year, reaching almost 4 million customers. We’ve also witnessed tremendous growth in cashless payments nationwide. In the first semester of 2024, we processed 126% more ABA PAY transactions (including payments via static and dynamic KHQR, POS terminals, and websites) compared to the corresponding period in 2023. This highlights the accelerating digitalization of the Cambodian market.
ABA Bank has also managed to sustain loan growth, understanding that access to capital remains vital for businesses. We provide productive loans to key sectors of the economy, and the portfolio growth gives us confidence in future advancements.
Can you tell me the primary industries or business types that ABA Bank prioritizes when issuing loans?”
Mr. Igor: We support various sectors that drive Cambodia’s growth. Traditionally, our loans primarily flow to wholesale and retail trade, manufacturing, agriculture, and fishing. Micro, Small, and Medium Enterprises (MSMEs) comprise a significant portion of our borrowers.
How might a potential slowdown in economic activity impact ABA Bank’s projections for the remainder of 2024?
Mr. Igor: A slower economic pace can affect projections; however, we remain cautiously optimistic. Our focus on diversification, robust risk management, and a growing customer base positions us well to navigate any challenges. We will continue to monitor the situation and adapt our strategies to achieve our goals for the year.
