PETALING JAYA: Malayan Banking Bhd's (Maybank) Cambodian operations have received a local incorporation licence from the National Bank of Cambodia.
The bank, to be known as Maybank (Cambodia) Plc, will see its capital raised from US$30mil (RM91.98mil) to US$50mil (RM153.3mil) and has set its sights on being among the country's top five banks by 2015.
It is currently ranked seventh in terms of assets among 33 banks operating in Cambodia.
Abdul Wahid: ‘(The licence) will strengthen our regional footprint.’
It will also be investing in a new 10-storey corporate office in Phnom Penh, which is expected to be ready in two years, Maybanksaid in a statement.
The new corporate office will house the main Phnom Penh branch and other country operations of the Bank and will be located in Norodom Boulevard, the main commercial street of Phnom Penh.
Maybank, Malaysia's largest lender by assets, first set up a Cambodian branch in 1993 and has in the last three years expanded its operations to 11 branches.
“This initiative is part of our broader strategy to further develop our operations in the country as well as strengthen our regional footprint in line with our vision to become a regional financial services leader,” president and CEO Datuk Sri Abdul Wahid Omar said.
He added that Maybank Cambodia had been growing at a healthy pace with assets and deposits doubling in the last four years since its branch expansion got underway.
Total assets rose from US$129mil (RM395.51mil) in June 2007 to US$313mil (RM959.65mil) in December 2011 while deposits increased from US$100mil (RM306.6mil) to US$231mil (RM708.25mil) and loans from US$30mil (RM91.98mil) to US$168mil (RM515.09mil).
Revenue in June 2011 stood at US$10.2mil (RM31.27mil) from US$450,000 (RM1.38mil) in June 2007 while profit before tax for the same period rose to US$8.4mil (RM25.75mil) from US$380,000 (RM1.17mil).
Maybank started operations in Cambodia in 1993 with a single branch. It has in the last three years expanded to 11 branches.
In the six months to December 2011, revenue reached US$12.8mil (RM39.24mil) while profit before tax was US$4.47mil (RM13.7mil).
Maybank said the local incorporation would also allow it to adopt an enhanced governance framework.
“The increase of capital to US$50mil will enable Maybank Cambodia to operate at a comfortable capital adequacy ratio above 12% whilst maintaining an aggressive growth strategy in the years ahead,” it said in the statement.
Wahid added that there could be opportunities to venture into new areas of business such as investment banking, insurance, stockbroking, debit cards and credit cards which would be in demand as the financial services industry matured.
Maybank had initially operated in Cambodia on a wholesale banking business model with a single branch, serving mainly home-based customers doing business in the country. In 2008, this was changed to a commercial banking business model to cater to demand from local enterprises and individuals
From: The Star Online
Thursday April 5, 2012
