Vietnamese-owned MB Bank (Cambodia) Plc (MBCambodia), initially established in 2011 as a sub-branch, officially launched its services on February 27 as a full-fledged commercial bank.
MBCambodia is a wholly-owned subsidiary of the state-owned Military Commercial Joint Stock Bank (MB) which has links to the Vietnamese Ministry of Defence, according to Nikkei Asia. The outlet suggests that Tokyo-based commercial lender Shinsei, an MB partner in Vietnam, could move to acquire up to 49 per cent of the Cambodian unit’s shares this year.
At the launch ceremony, National Bank of Cambodia (NBC) governor Chea Chanto stated that the new commercial bank “will participate in a true and fair competition with other banks and financial institutions”.
MBCambodia could also bring “more business experience, modern technology, innovation and a variety of new financial products to meet the needs of customers [and support] development of [Cambodia’s] banking and financial markets”, he said.
Leveraging MB Group’s digital capabilities and expertise, the Cambodian unit could introduce novel electronic banking services, and deliver them safely and securely in this ever-growing online world to customers in the Kingdom, he added.
MB CEO Luu Trung Thai remarked that the bank’s transformation would significantly broaden its footprint in Cambodian, in particular by enabling it to support more businesses.
“To celebrate this major milestone in MB’s expansion into Cambodia, we hosted a grand opening ceremony that marks the start of our fruitful journey as a fully-fledged commercial bank in the Kingdom,” Thai said.
“This not only presents the opportunity for us to raise a celebratory glass with our partners and thank them for their support, but to also introduce MBCambodia and our products.
“As we rapidly enter the digital era, our main focus is on offering convenience through innovative digital banking technologies. Our aim is to provide modern banking services for individuals, institutions and enterprises throughout Cambodia,” he added.
In a consolidated financial report for the first half of the 2022 calendar year, MB Bank reported after-tax profit and net interest income of $408 million (9.520 trillion dong) and $743.6 million, respectively, up 49 per cent and 39 per cent year-on-year, according to theinvestor.vn.
Earnings from foreign exchange business and securities trading were given at $40.3 million and $5.7 million, up 68 per cent and 670 per cent, said the outlet, which is owned by Vietnam’s Association of Foreign Invested Enterprises (VAFIE).
It noted at end-July that military-run Viettel Group and State Capital Investment Corporation (SCIC) were MB Bank’s two biggest shareholders at the time, with 14.14 per cent and 9.42 per cent stakes, and that state ownership at the bank is at 32.42 per cent. No updates were immediately available.
On the Ho Chi Minh City Stock Exchange (HoSE), MB’s share price fell 450 dong or 2.54 per cent to close at 17,250 dong on February 28 for a market capitalisation of 80.25 trillion dong and 52-week range of 13,200-29,083 dong, with 10.26 million shares traded or 87 per cent of the 65-day average of 11.84 million, according to MarketWatch.
According to the NBC’s 2022 annual report, Cambodia’s formal “banking” system at the time comprised 59 commercial banks; nine specialised banks; five deposit-taking microfinance institutions (MFI); 82 non-deposit-taking MFIs; 224 rural credit institutions; 16 financial leasing companies; five third-party processors; 34 payment service providers; one credit information sharing service provider; six foreign bank representative offices; and 2,869 money exchange businesses.
Outstanding loans and deposits in the Kingdom’s formal banking system stood at 229.5 trillion riel and 178.5 trillion riel – or $56.1 billion and $44.6 billion – as of end-December, up 20.2 per cent and 11.3 per cent year-on-year, it said.
For reference, the Kingdom’s five deposit-taking MFIs – or MDIs – are: Amret Plc, AMK Microfinance Institution Plc, PRASAC Microfinance Institution Plc, LOLC (Cambodia) Plc, and Mohanokor Microfinance Institution Plc.
