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Cambodian Banks: ​
2016 Financial Review

The Cambodian bank sector continues to be high growth, with one of the highest rates of revenue growth globally, and on track for $30 billion in loans by 2020. While overall returns are disappointing at just 12%, a number of banks have demonstrated that 20%+ returns are achievable with the right strategy.


  • Financial system on track for $30b in loans by 2020. National election not expected to have material impact on loan growth, likely to have some impact on deposits. 
  • Revenue growth strong, one of the highest growth rates globally. 
  • Revenue Share of big 4 banks down from 70%+ to 50% - while new entrants have taken some share, ABA Bank has been the big winner.
  • Loan growth is driving bank profits higher in absolute terms, but ROE stuck between 11% & 12%.
  • Average loan yields have stabilized, but efficiency gains appear harder to come by, with expenses growing faster than revenue.  
  • $400m in loans is the new “magic number”. Banks with a loan portfolio below this will struggle to generate an acceptable return.