navigate_nextFinancial Informationnavigate_nextPresident & Group Managing Director's Report

President & Group Managing Director's Report

"As we step into 2025, ACLEDA Bank remains unwavering in its mission to lead innovation and deliver exceptional value to our customers and business partners. This year, we are doubling down on our commitment to digital transformation, market expansion, and sustainability, ensuring we meet the evolving needs of our stakeholders and stay ahead in a rapidly changing financial landscape. The ACLEDA Super App will continue to be at the heart of our digital strategy, offering cutting-edge features that enhance user experience and extend our reach both domestically and globally. By deepening our integration with government and public sector applications, we aim to create a more inclusive and interconnected financial ecosystem—one that empowers individuals, businesses, and communities to thrive and contribute to sustainable growth. Looking ahead, we are excited about our plans for regional expansion, which will bring enhanced financial accessibility to underserved markets. Coupled with our commitment to sustainability, these efforts underscore our dedication to creating long-term value for our customers, employees, and stakeholders. Cybersecurity remains a priority in 2025. We will strengthen defenses, protect assets, and prioritize customer awareness education to ensure secure and confident digital experiences for all. As we embark on this journey, I am deeply grateful for the trust of our customers and business partners, the dedication of our employees, and the support of our stakeholders. Together, we are building a brighter future—one that drives growth, innovation, and opportunity for all."

Performance in 2024

Competitive Environment

In 2024, Artificial Intelligence (AI) was increasing rapidly and potentially with innovative services supporting to all sectors, especially driving the growth of financial sector in Cambodia.

In the digital era, as consumers are adapting gradually to the context of the digital economy and society, as well as quickly embracing digital banking products and services, Banks and Financial Institutions (BFIs) in Cambodia have been facing fiercer competition, employing various tactics such as marketing channels, promotional strategies, physical and digital branch expansion, pricing, and so forth. In fact, customers have now found it relatively more convenient and highly effective to have access to financial products and services, gained significant financial leverage, and improved their financial literacy and inclusion.

The BANK is actively transforming its branches into self-service banking hubs, offering a diverse array of hybrid options. This digital framework has not only enhanced the efficiency, security, cost-effectiveness, and speed of the economic system, but has also become a vital driver of economic growth. Moreover, it has facilitated greater inclusion by connecting communities nationwide and expanding into ASEAN member’s countries and globally. Mobile Banking Application (Mobile App.) has become a significant and popular payment tool for the daily uses and businesses purpose, which result in fierce competition. "ACLEDA Super App – 'The real bank in your hand'" is a multifunctional mobile banking service that provides comprehensive financial and non-financial services with user-friendly platform. It offers modern, stylish, fast, secure, and trusted solutions tailored to meet all needs. ACLEDA Super App currently serves over 4.22 million registered users/partners. Customers can use the app anytime, anywhere globally, as long as they have a Wi-Fi or internet connection, including scanning KHQR/QR codes nationwide in Cambodia and cross-border payments via QR codes in Thailand, Vietnam, and Laos. The volume of digital transactions now contributes up to 99% of the BANK's total transactions.

Operational Highlights in 2024

• Total loans outstanding at the end of 2024 were US$7,119.02 million, with US$1,468.10 million (or 20.62%) allocated to the agriculture sector. In 2023, lending to agriculture totalled US$1,414.68 million. By the end of December 2024, there were 513,477 active customers for the Group’s small business loans.
• Non-performing loans (NPLs) remained high but manageable at 5.47% due to uneven economic activities, sectoral stress and elevated private debt levels.
• Total deposits reached US$8,359.06 million across approximately 5.53 million accounts.
• The Group reported a profit for the period attributable to the owner of the BANK at US$121.19 million.
• The BANK consistently made efforts to minimize costs and risks to retain income and maximize profit.
• Fintech products were integrated into the BANK's electronic banking infrastructure, offering customers a range of choices to manage their financial resources.

Financial Services and SME Businesses

Lending in the "Small" business category grew by 6.49% or US$195.43 million. The "Personal & Others" category grew by 27.60% or US$133.44 million. "Housing Loans" balance was US$163.64 million. The total amount of loans outstanding was US$7,119.02 million as of the end of 2024.

The Group’s deposit balance was US$ 8,359.06 million (increased by 15.65% or US$1,131.24 million) and the total number of accounts was around 5,525,086. The retail sector accounted for the largest segment of the BANK’s growth in deposits with a large percentage coming from first-time depositors such as employees paid through the BANK’s Payroll Service and non-bank customers in rural areas using the E-Wallet via ACLEDA Super App. Financial products and services via Fintech solutions have contributed to such strong growth.

The Group maintains a diversified infrastructure of choices with 319 traditional branches (or offices), and 206 self-service banking with 1,555 ATMs and 5,553 POS terminals. It’s interesting to note that the Group has issued a total of 1.76 million debit cards. Moreover, the digitized ACLEDA Super App has proved very popular with registered users of more than 4.41 million at the end of 2024.

Medium and Corporate Businesses

In this product category in 2024, cash management services increased substantially through our arrangement and partnership with the public sector, particularly the Social Security Fund (SSF), government payroll direct deposits, registration and license fee payment, and vehicle stamp tax collection. The demands for these services payment via ACLEDA Super App were particularly strong in 2024 with a number of organizations that signed up, including entities in the public sector, local and international companies, and other organizations, thereby providing excellent opportunities for cross-selling of other products and services.

In addition, the best services offered by the nationwide networks of the BANK have highly attracted and engaged medium and corporate business entities to consistently appreciate, remain loyal to, and prioritize the BANK as the first effective coordinator for financial management and sources of their business operations and settlement. These multiple services have also had a significant positive impact on the BANK’s local currency cash flow and have enabled the BANK to fund, strengthen, and expand its local Khmer Riel currency loan portfolios. Meanwhile, the medium and corporate loans outstanding increased by 5.60% compared to 2023 and accounted for 35.05% of the total loans outstanding.

Furthermore, the BANK and its subsidiaries continued to collaborate with their long–term, experienced, and strategic partners. These entities assist our mutual, common customers to manage their financial resources effectively and efficiently. Together with this, these partnerships also significantly contributed to the BANK’s long-term funding and also provided a useful source of off-balance sheet revenue, while enhancing the international expertise and experience of the BANK’s management and staffs.

Treasury Local and International

The BANK is remained a prominent provider of Foreign Exchange (FX) service to various sectors and the public at large. Revenue generated from this service has grown consistently, contributing significantly to non-interest income. Committed to its risk management policy, the BANK avoids speculative trading, focusing instead on supporting customers’ business needs. It maintains a low-risk approach by managing open positions within prudent ratios, adhering to internal and regulatory limits. This disciplined strategy has ensured steady income and growth, strengthened customer relationships, and fostered lasting partnerships.

Strong inflow of the customers deposit and long-term borrowings fortified the BANK's balance sheet, enabling sustained loan growth throughout the year. This robust financial foundation supports the BANK's rapid expansion and growing operations and activities.

The BANK has been a proactive advocated for the use of Khmer Riel (KHR) by offering local currency loans and participating in government initiatives to enhance Cambodia’s financial market. As of 2024, over 19.67% of the BANK’s loan portfolio offered in KHR, exceeding the regulatory requirement of 10%. In addition, the BANK actively support government led initiative to develop Cambodia’s financial market and also invested its KHR sources of fund in government bonds amounting to KHR269b (≈US$67m). These efforts reflect the BANK’s commitment to contributing to the nation’s economic growth and financial market modernization.

To strengthen its long-term funding sources, the BANK diversified funding options by cultivating strong relationships with strategic partners globally, particularly in Europe, the USA, and Asia. It has also enhanced relationships with other financial institutions, leveraging an extensive international correspondent network of 252 correspondent banks residing in 43 countries by the end of 2024. This robust network underscores the BANK’s global connectivity and reliability.

Additionally, the BANK holds a substantial market share for accounts from local banks and financial institutions, offering comprehensive fund-transfer services nationwide. The BANK continues to comply with internal risk policies, regulatory requirements, and lenders’ prudent covenants, ensuring stability and trust within its operations.

Strategic Priorities for 2025

The BANK you can trust, the BANK for the people!

To determine the basic long-term goals and adopt courses of action, as well as allocate the resources necessary for achieving these goals and select a relevant set of activities to deliver a unique mix of value, The BANK has drawn up and set out the ideally matched strategies elaborating how the BANK will achieve its vision, mission, milestones, goals, and business plans. These strategies primarily include Mobile-First "ACLEDA Super App"; Human Resource Digitalization; Funding; Branding ACLEDA Community; First-class IT; Strategic Partnerships; Environmental, Social, and Governance (ESG); and Subsidiaries.

The BANK aims to contribute to improving the quality of lives, ensuring sustainable and growing benefits to our stakeholders, and supporting the socio-economic development of the society as a whole.

The Challenges for 2025

As the first listed commercial bank in Cambodia Securities Exchange (CSX), the BANK is accountable to two authorities: the National Bank of Cambodia (NBC) and Securities and Exchange Regulator of Cambodia (SERC). Meanwhile, the BANK is also accountable to the public at large and individual investors. Over three-decade of its history of development, the BANK has earned trust from the general public through its good corporate governance, the management team with many years of considerable experience, and a culture of transparency.

In the ever-evolving landscape of financial technology, particularly in the digital banking era (Bank 4.0), ACLEDA Super App services have undergone a full upgrade with the latest technology and continuously maintain its further regular development over time to maintain its leading position, convenience, security, and attractive modernity.

Despite Cambodia’s economy facing a number of challenges such as heightened geopolitical risks, the imperative to accelerate the decarbonization in the economy, the rise in climate-related risks, and dramatic digital transformation, as well as the modest growth in real estate and construction sectors, the outlook for Cambodia’s economy in 2025 is still optimistic and robust compared to that in the previous year. On the firm basis of the peace and political stability, it is forecasted that Cambodian economy will grow from 6.0% in 2024 up to at least 6.3% in 2025, driven by rebound in garment and non-garment manufacturing sectors, and more considerable growth in tourism and service sectors, alongside the resilient agriculture and a manageable inflation rate.

Given this economic scenario and forecast for 2025, the BANK sees the opportunities to continue and further strengthen its existing successful strategies while incorporating new strategic directions for 2025 and the following years in order to ensure its growth, success, and prosperity all together with all of our customers and stakeholders.

Last but not least, I would like to express my profound thanks to all our customers, the Board of Directors, the management, staff, and stakeholders, especially the Royal Government of Cambodia, the National Bank of Cambodia (NBC), and Securities and Exchange Regulator of Cambodia (SERC) for all of the unwavering trust, confidence, support, seminal contributions, as well as great efforts, strong will and commitment, solidarity, and synergy in 2024, together with a fervent conviction and anticipation of a happy and prosperous 2025.

Dr. In Channy
President & Group Managing Director of ACLEDA Bank Plc.
March 18, 2025.