Maybank Upgrade into Incorporation to Catch Market Growth

As the crowed market with 34 licensed banks in kingdom, 18 years experienced still see the space to grow in the future. In believe of grow opportunity of Cambodia, Maybank upgrade branch into incorporation to catch market growth and new opportunities and setting its sights on being among the top in Kingdom by 2015.

“Compare to mature market such as Malaysia and Singapore where the loan to Gross Domestic Product (GDP) is more than 100 percent, Cambodia banking market still have the space to grow measured by Cambodia’s GDP to loan was about only 30 percent,” Dato’ Sri Abdul Wahid Omar, President and CEO of Maybank.

Dato’ Sri Abdul Wahid Omar (center), President and CEO of Maybank

 In term of trade facilities between Cambodia and other countries, Cambodia absorbs a lot of business and investment from many countries and ASEAN countries into country, he mentioned.

While upgrading, the bank’s capital raised from US$30 million to US$50 million in a move to enable a better service and meet the demand in country.

At the same time, the bank will invest in a new 10 storey corporate office in Phnom Penh located in Norodom Boulevard which is expected to be read in two years. It will serve as Phnom Penh branch and other country operations of the bank.

“This initiative is a part of our broader strategy to further develop our regional footprint in line with our vision to become a regional financial services leader,” Dato’ Sri Abdul Wahid Omar said. Currently, Maybank Cambodia ranked 7^th in terms of assets among 33 banks operating in Cambodia.

The Maybank Cambodia had been growing at a healthy pace with assets and deposits doubling in the last 4 years since its branch. Total assets rose from US$129 million in June 2007 to US$313 million in December 2011 while deposits increased from US$100 million US$231 million and loans from US$30 million to US$168 million.

The revenue of the bank rose from US$0.45 million in June 2007 to US$10.2 million at the same time in 2011 while profit tax rose from US$0.38 million to US$8.4 million for the same period. In the last six month of 2011, revenue reached US$12.8 million while profit before tax was US$4.47 million.

The local incorporation would also enable the bank to adopt an enhanced governance framework which will provide additional assurance as it further grows its business in Cambodia. As the increasing of its capital to US$50 million, it will enable the bank to operate at a good capital adequacy ratio above 12 percent whilst maintain an aggressive growth strategy in the years ahead.

Maybank initially operated in Cambodia on a wholesale banking business model with a single branch, mainly serve home based customers doing business in the country. In 2008, it changed to a commercial banking business model which to meet growing demand of local enterprises and individuals.

Besides offering traditional banking products and services such as deposit accounts, financing and wholesale banking products, the bank has recently introduced various products such as Yippie children’s account, Premier current account, trade pack and electronic trade finance to leverage the booming business banking and consumer market.

“Maybank is intent to bring Cambodia market more innovative and value added products and service within this year to tap on the growing demand and increasing affluence in Cambodia,” said Dato’ Sri Abdul Wahid. “We will soon introduce internet banking, agriculture loans and more modules of TradeConnex.”

As seeing new opportunities in the new areas of business in kingdom, Maybank is on the way to include financial service such as investment banking, insurance, stock broking debit cards and credit card into industry.

“We are committed to develop Cambodia’s human capital and have provided significant training and development opportunities to our local staff which make up 94 percent of our 172 strong force,” he said.

Peter England, Head of Retail Financial Services of CIMB Bank said short time operate in Cambodia, the bank industry is growing very fast as now it has several branches and promoted effective business. “We believe that Cambodia’s market now is in a good position and the timing is also perfect for us here and we also plan to grow further in Cambodia.” To invest in Cambodia, “We believe that Cambodia has great potential and we are also serious about investing in Cambodia.

By Sok Lak