Acleda Bank, one of the biggest commercial banks in Cambodia, says it will focus on loans for small and medium enterprises (SMEs) and on the bank’s products and services to boost growth.
Speaking at its head office yesterday, bank president and group managing director In Channy said the bank would choose the sector and services that were low-risk, supported the bank’s growth with efficiency, and generated high profit.
He said the bank would look at services besides interest from loans to generate profit and support growth. Mr Channy added that the bank’s profit from the interest rate of the credit accounting for more than 85 percent of the total profit while profit from other bank’s services is about 15 percent. However, in the long run, the bank will push the profit from service charge to 30 percent or one third of the total profit and interest rate from loan is 60 percent.
“The leading and developing banks in the world do not focus only on interest from loans to grow,” he said.
“They generate revenue from other services charge which are also highly profitable for the bank.
“We can collect service fees, including ATM fees, fees from money transfers both locally and internationally, and other fees which boost our profits.”
Mr Channy said profit from interest on credit accounted for more than 60 percent of the total profit while profit from other bank services was more than 30 percent or one third of the total.
Therefore, he said the bank would diversify to boost the income or profit from services and products.
Acleda Unity Toan Chet, a fin-tech application, lets customers carry out transactions anywhere and at any time. The app is convenient, fast and secure, the bank says. It cuts costs, saves time and allows for speedy transactions.
“We use the Unity Toan Chet to boost our profit while we allow for normal loan growth,” he said.
“We will allow Unity Toan Chet to play an active role to serve customers and get the service fees, which is better than pushing the growth of credit.”
Launched in April 2017 and until now, Acleda Unity Toan Chet had reached more than 430,000 users. It and expects to have 500,000 users next month, and five million users in the next five years, Mr Channy said.
