Tuesday, 31 January 2023

With a high return-on-assets of 1.8% and a low cost-to-income ratio of 31.7% Canadia Bank is the Strongest Bank in Cambodia in 2021

5 min read

As the largest bank by total assets in Cambodia, Canadia Bank maintained high profitability during the challenging year. Meanwhile, it achieved strong capitalisation and liquidity.

  • Canadia Bank emerged as the strongest bank in Cambodia in 2021
  • Demonstrating high profitability and sound capital and liquidity buffers
  • It continues to invest in technology and support customers and community while retraining and redeploying employees

Singapore, 21 October 2021 – Canadia Bank remains on top of the ranking of the Strongest Banks by Balance Sheet in Cambodia in 2021. Canadia Bank and others were recognised at The Asian Banker Strongest Banks By Balance Sheet Briefing and Recognition Virtual Ceremony 2021. 

The comprehensive annual evaluation captures the quality and sustainability of the balance sheets of banks in Asia Pacific (APAC), Middle East, and Africa regions. The ranking is based on a detailed and transparent scorecard that evaluates commercial banks and financial holding companies in six areas of balance sheet financial performance, namely the ability to scale, balance sheet growth, risk profile, profitability, asset quality, and liquidity.  

Canadia Bank emerged as the Strongest Bank in Cambodia 

Canadia Bank maintains its position as the strongest bank in Cambodia. With total assets of $7.1 billion at the end of 2020, the bank remains the largest bank in the country, and its assets to gross domestic product (GDP) ratio reached 26%. The bank delivered good performance in profitability and maintained sufficient capital and liquidity buffers in 2020. It was among the very first banks in the country to embark on digital transformation, and its efforts have improved operational efficiency and service quality.  

Raymond Sia, CEO of Canadia Bank, in his acceptance speech said, “This award goes to all my colleagues back in Cambodia, who have worked very hard during the pandemic over the past two years across our 63 branches and our head office as well”.

Demonstrating high profitability and sound capital and liquidity buffers

Despite the pandemic, the return on assets (ROA) of Canadia Bank only declined slightly from 1.96% in 2019 to 1.8% in 2020. Although its cost to income ratio (CIR) rose from 26.4% in 2019 to 31.7% in 2020, the ratio remained the second lowest in Cambodia. ACLEDA Bank and Advanced Bank of Asia, the second and third largest bank by total assets in Cambodia, registered higher CIR of 53.4% and 37.4%, respectively. 

In addition, Canadia Bank recorded a higher capital adequacy ratio of 21.2% in 2020, compared with 19.8% in 2019. Its liquidity continued to be sufficient, as reflected by the liquid assets to total deposits and borrowings ratio of 42%. ACLEDA Bank’s liquid assets to total deposits and borrowings ratio went down to 24.4% in 2020 from 31.3% in the previous year. 

It continues to invest in technology and support customers and community while retraining and redeploying employees

Sia said, “Over the past year, we have seen more SME loans being granted in the country using some of the schemes that have been instituted by the government as well as the launch of a credit guarantee scheme over the past 12 months where customers are able to use it as a collateral to get financing. After the restructuring period ends, banks like us need to strike a balance to ensure that we continue to support some of these customers who have been affected”.  

“We continue to look at how we can protect and grow our balance sheet. One area of focus is the investment into technology. We will continue to invest in technology to see how we can further improve overall customer experience and simplify processes. Another area is the retraining and redeployment of our people,” he added. The bank has been reskilling employees into some of the areas where they can be a lot more effective and productive. 

For video of award presentation and the winner's acceptance speech, click here. 

For video of the Strongest Banks by Balance Sheet Briefing, click here

About the Strongest Banks By Balance Sheet programme 

The Asian Banker Strongest Banks By Balance Sheet is an annual assessment of the financial and business performance of the banking industry in the Asia Pacific, Middle East, and Africa regions. The assessment ranks the top performing banks in each country or territory by strength, an evaluation that is based on a belief that a strong bank demonstrates long-term profitability from its core businesses.

The scope and coverage for The Asian Banker Strongest Banks By Balance Sheet come from both the mature markets and the most promising emerging markets in the regions. The focus of the assessment is on commercial banks and financial holding companies with a significant proportion of activity in commercial banking. The assessment does not include central banks, policy banks or finance companies. 

The winners are determined using a scorecard approach based on six crucial performance indicators rated on a scale of 0-5: scale, balance sheet growth, risk profile, profitability, asset quality, and liquidity.

About The Asian Banker 

The Asian Banker is the region’s most authoritative provider of strategic business intelligence to the financial services community. The global research company has offices in Singapore, Malaysia, Manila, Hong Kong, Beijing, and Dubai, as well as representatives in London, New York, and San Francisco. It has a business model that revolves around three core business lines: publications, research services and forums. The company’s website is www.theasianbanker.com.

For further information, please contact:

Ms. Sue Kim

Marketing Manager

[email protected]

www.theasianbanker.com

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