ACLEDA Bank sees surge in deposits, SME loans
ACLEDA Bank sees surge in deposits, SME loans
The first Cambodia-based commercial bank to operate in Laos, ACLEDA Bank Lao Ltd, has reported that its loans and deposits have exceeded the bank's initial expectations for 2012.
The bank's plan was to disburse loans worth about 456 billion kip (US$57 million) last year, and for deposits to reach about 368 billion kip (US$46 million).
The bank's Managing Director and CEO Mr Narin Phon said in an interview on Friday it had disbursed loans to family businesses and small and medium d enterprises worth about 532 billion kip (US$66.5 million) by the end of last year.
“Deposits also exceeded the plan, and rose to about 420 billion kip (US$52.5 million),” Mr Narin said.
A report issued by the bank noted that deposits grew by 73 percent to US$52.5 million, of which the retail sector is by far the largest with a significant amount coming from first time depositors such as customers in rural areas where the bank has newly opened offices.
At the end of 2012, the bank had 590 employees working at 28 service offices in Vientiane and the provinces, including the headquarters, seven branches and 20 service units. The bank also has 30 ATMs.
“Currently we have an additional 30 people undergoing training prior to being taken on as staff,” Mr Narin said.
The report also noted that the bank's total assets grew to about 741 billion kip (US$92.7 million), a 66 percent increase over 2011. Net interest income rose 48 percent to over 49 billion kip (US$6.1 million) whilst after-tax profits increased 80 percent to over 17.3 billion kip (US$2.17 million).
This record result was achieved through focusing on four key areas, including tight management of the portfolio quality, reducing the Non-Performing Loan ratio from 1.90 percent in 2011 to 1.72 percent in 2012, careful cost control reducing the ‘Operating Expenses to Gross Operating Revenues' ratio from 57.05 percent to 49.90 percent, and growth of the fee-based income by 12.84 percent from 16 billion kip (US$2 million) to 18.8 billion kip (US$2.3 million).
The success of the rural economy in Laos enabled the bank to achieve its business plan for 2012, as well as its medium and long term strategies.
vientiane times
