National Bank Of Canada Denies Reports Of ABA Bank Sale In Cambodia
The National Bank of Canada has refuted claims about the potential sale of its wholly-owned subsidiary, ABA Bank, in Cambodia. Speculation arose following a report by Bloomberg on March 12, 2024.
In an official statement released on the same day Bloomberg reported the Canadian bank was "exploring options" over its ownership of ABA Bank, including a sale valued at over USD $2 billion, the National Bank of Canada clarified that it is presently not involved in any negotiations or processes related to the sale of ABA. The bank emphasised that it has not enlisted the services of any advisors in this regard.
“Following the publication of media articles this morning, and while it is not customary for National Bank ("the Bank") to comment on market rumours, the Bank is currently not engaged in any process or negotiations for the sale of ABA Bank ("ABA"), nor has it hired any advisors,” the National Bank of Canada stated.
The Canadian bank expressed satisfaction with ABA Bank's performance and success, highlighting its robust growth and returns. According to the statement, ABA Bank achieved revenues of CAD $726 million (approximately USD $538 million) and a net income of CAD $343 million (approximately USD $254 million) in the previous fiscal year ending on October 31, 2023.
Over the past five years, ABA has expanded its loans and deposits more than fourfold, with a focus on providing services to local small and medium businesses operating in key sectors of Cambodia's economy.
“We continue to be pleased with its performance and strong track record, its talented management team, strong execution and prudent risk management. National Bank continues to support ABA’s growth and participation in the establishment of a sound and resilient banking industry for Cambodia, underpinned by attractive economic prospects and strong fundamentals,” said the statement.
ABA Bank was founded in 1996 as the 'Advanced Bank of Asia Ltd'. Initially owned by South Korean investors, the bank was bought out by Kazakhstan investment bank, Visor Capital, in 2009. The National Bank of Canada began buying equity in the bank in 2014, upping its stake progressively to 100 per cent in 2019, according to The Banker.
“The Canadian bank, looking for a one-off investment in south-east Asia, was drawn to Cambodia as an emerging market and was attracted to ABA’s dynamic business model,” the Banker reported.
ABA Bank had an annual growth rate of 50 per cent between 2016 and 2019, rising from being Cambodia's 11th largest bank in 2012, to the third largest bank in 2019, behind Cambodian-owned ACLEDA Bank and Canadia Bank.