Krungsri Bank expects more growth from Cambodia’s HKL acquisition

Bank of Ayudhya or Krungsri Bank has registered a quarterly net profit increase of 10.6 percent from a year earlier since the completion of its acquisition of Cambodian microlender Hattha Kaksekar Ltd (HKL), The Phnom Penh Post Online reported on Monday.

Thailand’s fifth largest commercial bank, the Bank of Ayudhya did not fully include the acquisition of HKL in its revenue calculations. But it noted in Friday’s filing that the purchase of 100 percent stake in the HKL would likely boost its performance for the rest of the year.

Bank of Ayudhya acquired HKL in September for upwards of $140 million though the final price of the acquisition has not yet been made public.

The bank president and CEO Noriaki Goto said in a statement that the acquisition of HKL was another key milestone for the bank as it expands its operation throughout Asean.

With the bank’s presence in Cambodia, Laos and Myanmar, he said the bank had revised loan growth target upward from 5-6 percent to 8-9 percent, including consolidated loans from HKL.

For the first nine months of the year, Bank of Ayudhya’s loan portfolio grew by 7.7 percent. It attributed the increase to the expansion of auto, mortgage, credit card and personal loan products.

HKL is Cambodia’s fourth largest microfinance institution, with 150 branches and $446 million in assets. It had a $363.5 million loan portfolio with $236.4 million in deposits last year and posted 37 percent annual net profit growth.

Source: Thai Public Broadcasting Service (Thai PBS)

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