ABA posts robust income growth
ABA posts robust income growth
Local corporate bond-listed Advanced Bank of Asia Ltd (ABA) reported strong growth in business performance in the second quarter of this year, despite economic disruptions owing to the February 20 community outbreak of the novel coronavirus.
In a second quarter financial report filed to the Cambodia Securities Exchange (CSX) on August 18, ABA said total interest and comprehensive income reached 443.938 and 195.248 billion riel ($109 and $48 million) in the quarter, respectively, surging by 29 and 42 per cent year-on-year. Net profit “continued to rise steadily” over the period.
The bank booked $93 million in total comprehensive income over the January-June period.
Chairman Yves Jacquot said in the report that the pandemic situation in Cambodia worsened in the second quarter of the year as the so-called “February 20 community outbreak” led to an outburst of coronavirus infection cases.
“At a certain point, the event resulted in a lockdown of the Phnom Penh and Takhmao areas for three weeks, which seriously affected the overall business environment. These factors continued to impact local businesses, especially in the hospitality, tourism, garment and construction sectors,” he said.
Jacquot said ABA restructured loans worth $704 million for 13,806 accounts, accounting for 16 per cent of the total portfolio. He described the restructured loans as “high quality”, noting that more than 75 per cent carry a grace period on principal only.
“ABA will continue helping its borrowers to overcome the time of hardship through its Loan Restructuring Policy. In addition to restructuring, the bank continued distributing new loans to its customers as the access to capital is vital for people and businesses not only in the growing economy but also in times of crisis,” he said.
He added that 7,828 loans worth $271.2 million were disbursed over April-June, increasing the bank’s gross loan portfolio by six per cent to $4.5 billion.
ABA remains a partner in the SME Co-Financing Scheme 2020 (SCFS), a government initiative to provide affordable loans to small- and medium-sized enterprises.
Under the SCFS, the bank disbursed loans worth $2.3 million for capital expenditure and working capital with a special annual interest rate of seven per cent and a term of up to seven years.
As of June 30, its deposit portfolio stood at $5.5 billion in the second quarter of 2021, representing six per cent growth against the first quarter.
ABA was the first Cambodian commercial bank to issue corporate bonds, listing 84.8 billion riel-worth, and continues to take a prominent role in developing the securities market and promoting the local currency.
