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Chairman's Report

Mr. Chhay Soeun, Chairman of the Board of Directors

On behalf of ACLEDA Bank Plc.'s Board of Directors, I am pleased to present the 2019 Annual Report to the Shareholders and other stakeholders of ACLEDA Bank Plc.

The Cambodian Economy

The World Bank and the Asian Development Bank delivered the same projection on Cambodian economic growth of 7% for 2019. This expansive growth was propelled by export diversification, strong construction and real estate, tourism activities, better weather conditions, and a supportive fiscal policy.

Financial Sector

Because of peace, stability and sustained economic growth, there has been a significant expansion in the number of financial institutions in 2019, which now includes 46 commercial banks, 16 specialized banks and 82 microfinance institutions.

We are grateful for the new regulations issued by the National Bank of Cambodia, which enable us to focus on and address the need to mitigate risks, protect the interests of stakeholders, and especially to strengthen customer protection amongst many other mechanisms, with the optimal goal to guarantee sustainable growth in the financial sector.

ACLEDA Bank Plc.

In 2019, the Bank continued to implement its foremost goal, outlined in its five-year strategy 2019-2023, to be a regional commercial bank, "the Bank You Can Trust, the Bank for the People", with a competitive edge in relevant banking markets. Transparency provides the Bank's stakeholders with confidence in the long-term returns available as we can sustainably benefit from the economic growth agenda and the Rectangular Development Strategy of the Royal Government of the Kingdom of Cambodia.

The Bank continues to strengthen its business model and facilitate the delivery of enhanced banking services to its clients in the public and private sectors that enables sustainable revenue streams into the future and ultimately benefits its shareholders.

This year and in the years to come, the Bank will continue to enhance its e-banking services to provide outstanding services and banking convenience to its customers and to be ready to serve its expanding customer base with a digital bank strategy of which FinTech products are included.

An enabling business environment in Cambodia lent strong support to the business community including ACLEDA Bank Plc. The Bank was able to achieve its business plan, while the rating agency Standard & Poor's has elevated ACLEDA Bank Plc.'s rating by one mark from "B" to "B+" with an outlook "stable". This rate is a testament to the success in strengthening the Bank's governance, capital, franchise operations, and the ability to deliver a consistent performance.

Board Composition

The Board consists of ten Directors, three of whom are independent, five are non-executive and two members are executive directors.

Corporate Governance

The Bank holds its Annual General Meeting of Shareholders in compliance with the law, the Articles of Association and other relevant regulations. The 2019 Annual General Meeting of Shareholders was held on April 25, 2019 and the Shareholders' Extraordinary General Meeting were held on August 8, 2019 respectively at the Bank's Headquarters.

The Board and management have the responsibility to ensure that the Bank's operations are conducted in accordance with all applicable laws and regulations, and as a credible going concern for years to come.

In accordance with its terms of reference, the Board of Directors meets regularly four times per year. The meetings reviewed the executive management's performance, while the Board retains effective control over the Bank. The Board is assisted by Board Committees, which are responsible for different aspects of governance. They are the Audit Committee, the Remuneration and Nomination Committee, the Risk Management Committee, and the Information and Technology Committee.

The Outlook for 2020

According to the National Bank of Cambodia, Cambodia's economic growth was projected to reach around 7% in 2020 due to growth in exports, foreign investment inflows, tourism, and construction and real estate, sectors which are expected to enjoy continued growth.

However, there are some potential risks for economic growth in 2020. External risks include a faster-than-expected slowdown in China's economy, which could have a negative impact on Cambodia's economy as it has a close relationship with that of China. Moreover, the implementation of protectionist policies could affect the country's exports. Finally, the COVID-19 virus is spreading globally and will impact short-term economic growth due to a drop in tourism, a reduction in the supply of raw materials to the garment sector, and contractions in the service and hospitality industries. At this stage, it is difficult to predict the ultimate impact on short and long-term growth.


On behalf of the Board of Directors, I would like to thank our customers, shareholders, directors, executive management, and all staff of the ACLEDA Group for their support and efforts in implementing the Bank's strategy and in achieving its goals and objectives.

We also express our sincerest gratitude to the Royal Government of Cambodia, the National Bank of Cambodia, regulators, and all relevant authorities for their constant support and dedicated efforts to develop Cambodia's financial industry, especially the banking sector.

We reaffirm our commitment to all our customers and shareholders that in 2020 we will continue to focus on areas that represent the best opportunities for ACLEDA Bank Plc., to dedicate all our efforts to achieving a strong and sustainable growth rate, and to deliver on our strategic goals to enhance future returns as well as strengthening the position of ACLEDA Bank Plc. in the Kingdom of Cambodia and within the region.

Mr. Chhay Soeun
Chairman of the Board of Directors
ACLEDA Bank Plc.
February 28, 2020

To declare that our financial statements comply with applicable International Financial Standard and give a true and fair view of the bank's financial position and its performance, we have appointed external auditors to conduct auditing of our bank's statements.


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