ABC - Annual Report - 2023 - Eng

1
Vision
To be Cambodia's leading and the most trusted commercial bank serving all
segments of the community.
Mission
Our mission is to provide our customers with secured and innovative products and
services to manage their financial resources efficiently. At all times, we observe the
highest principles of ethical behaviour, respect for society, the law and environment. By
doing so, we aim to contribute to improving the quality of lives, ensuring a sustainable
and growing benefits to our stakeholders, and to support the socio-economic development
of the society as a whole.
Slogan
The Bank's slogan: The bank you can trust, the bank for the people!
ACLEDA Mobile's Slogan: The Bank in your hand!
This report has been prepared and issued by ACLEDA BANK to whom any comments or requests for further information should be sent.
Headquarters: Building No 61, Preah Monivong Blvd., Sangkat Call Centre (24/7):
Srah Chork, Khan Daun Penh, Phnom Penh, Kingdom of Cambodia. Tel: +855 (0)23 994 444, +855 (0)15 999 233
P.O. Box: 1149 E-mail: inquiry@acledabank.com.kh

Tel: +855 (0)23 998 777 / 430 999
Fax: +855 (0)23 430 555
E-mail: acledabank@acledabank.com.kh
Website: www.acledabank.com.kh
SWIFT Code: ACLBKHPP
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FINANCIAL HIGHLIGHT
Description 2023 2022 2021
Financial Position (in KHR million)
Total assets 39,804,405 37,181,299 32,002,298
Total liabilities 34,158,850 31,760,660 27,092,985
Total shareholders' equity 5,645,555 5,420,639 4,909,313
Profit / (Loss) (in KHR million)
Total revenue 3,403,114 3,040,038 2,590,086
Profit/ (Loss) before Tax 757,216 933,095 832,937
Profit/ (Loss) after Tax 608,356 743,077 678,031
Total Comprehensive Income 522,970 750,254 635,685
Financial Ratios
Solvency ratio 18.45% 19.25% 22.36%
Debt to equity ratio 605.06% 585.92% 551.87%
Liquidity Coverage Ratio 180.13% 154.96% 155.65%
Non-performing loans ratio (*) 5.77% 2.90% 2.33%
Loan to deposit ratio 92.11% 100.51% 94.97%
Return on average assets (ROAA) (**) 1.58% 2.15% 2.32%
Return on average equity (ROAE) (**) 11.05% 14.45% 14.61%
Interest Coverage ratio (Times) 1.56 2.03 2.19
Book value per share (KHR) 12,977 12,456 11,277
Earnings per share (KHR) 1,405 1,715 1,568
Dividend per share (KHR) - 686 549
Other Important Ratios - - -
(*) Non-performing loan ratio = Contractual Principal Balance of Non-Performing Loan/Total Contractual Loan Principal Balance
(**) . These ratios were calculated using the profit attributable to owners of the BANK.
. ROAE = profit attributable to owners of the BANK / average total equity of the owners of the BANK.
. ROAA =profit attributable to owners of the BANK / average total assets.
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FINANCIAL SUMMARY AND ANNUAL STATISTICAL SUMMARY (CHARTS)

39,804,405
37,181,299
34,158,850
32,002,298 31,760,660
27,092,985
Financial Position (KHR Million)
2023
2022
2021
5,645,555 5,420,639
4,909,313
Total Assets Total Liabilities Total Shareholders’ Equity
3,403,114
3,040,038
2,590,086
áɭȶ˪ʋࡸࢎȶɽɽ࢏ࢎqè¡ǫȍȍǫȶȥ࢏
2023
2022
933,095 2021
757,216 832,937 743,077 678,031 750,254
608,356 635,685
522,970
Total Revenue áɭȶ˪ʋࡸࢎȶɽɽ࢏%ơǉȶɭơþŔˉ áɭȶ˪ʋࡸࢎȶɽɽ࢏ǉʋơɭþŔˉ Total Comprehensive

Income
Financial Ratio (%)

605.06% 585.92% 2023
551.87%
2022
2021
180.13%
154.96% 155.65%
92.11% 100.51% 94.97%
18.45% 19.25% 22.36% 5.77% 2.90% 2.33%
Solvency Ratio Debt to Equity Ratio ǫɩʠǫƎǫʋˊ-ȶʽơɭŔǌơèŔʋǫȶ ¥ȶȥɢơɭǉȶɭȟǫȥǌȶŔȥɽèŔʋǫȶࢎࡤ࢏ Loan to Deposit Ratio
14.45% 14.61%
11.05%
2023
2022
2.15% 2021
2.32%
1.58%
èơʋʠɭȥȶȥʽơɭŔǌơɽɽơʋsࢎè¶࢏ èơʋʠɭȥȶȥʽơɭŔǌơFɩʠǫʋˊࢎè¶F࢏
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3,403,114
3,040,038 3,105,644
2,741,369
2,590,086
2,334,217 In KHR Million
2023
2022
1,352,196
2021
902,501
701,204
Total Revenue Interest Income Interest Expense
29,525,616
27,195,120
26,437,928 26,303,475
23,287,064
22,116,013
In KHR Million
2023
2022
2021
Total Gross Loan Total Deposit
4,550,582
3,865,749
3,298,382
2023
2022
2021
661,941 591,494
541,184
Number of Loan Number of Deposit Account
12,977
12,456
11,277
2023
2022
2021
1,405 1,715 1,568
Book Value Per Share (KHR) Earning Per Share (KHR)

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BOARD OF DIRECTORS
The Directors are appointed by the Shareholders for three-year terms to act on their behalf. The Articles provide that the Board shall consist
of nine Directors and that:
• The Board of Directors is responsible for determining the strategy of the BANK and for conducting or supervising the conduct of its business
and affairs. Its members shall act in the best interests of the BANK.
• The powers of the Board of Directors are to be exercised collectively and no individual Director shall have any power to give directions to the
officers or employees of the BANK, to sign any contracts, or to otherwise direct the operations of the BANK unless specifically empowered
to do so by a resolution of the Board of Directors.
• Each Director shall have unlimited access to the books and records of the BANK during ordinary business hours.
The Board of Directors shall elect, by majority vote, one of its members to serve as Chairman who shall preside over meetings of the Board of
Directors as well as the AGM.
The Board of Directors assumes responsibility for corporate governance and for promoting the success of the BANK by directing and
supervising its business operations and affairs. It appoints and may remove the President & GMD, Senior GCIAO, and Head of COD. It also ensures
that the necessary human resources are in place, establishes with management the strategies and financial objectives to be implemented by
management, and monitors the performance of management both directly and through the Board Committees.
The Board of Directors established three Committees: Audit, Remuneration and Nomination, Risk Management and IT, and may establish
such other committees as it deems necessary or desirable to carry on the business and operations of the BANK. These Board Committees
shall exist at the pleasure of the Board of Directors and all members of such Committees shall be approved by the Board. The Committees
themselves will not exercise any of the powers of the Board, except insofar as the Board may formally delegate such powers, but may make
recommendations to the Board for their collective action. Whilst membership on Board Committees is restricted to Directors themselves,
they may invite members of management and others so as to provide operational information and explanation when considered necessary.
All Board Committees are chaired by Independent Directors.
6 BOARD OF DIRECTORS
Mr. Chhay Soeun

Chairman
Dr. In Channy
Executive Director
Mr. Kyosuke Hattori

Non-Executive Director
BOARD OF DIRECTORS 7
Dr. Albertus Bruggink

Mr. Stéphane MANGIAVACCA

Mr. Kay Lot

8 BOARD OF DIRECTORS
Dr. Heng Dyna

Independent Director
Drs. Pieter Kooi

Ms. Phurik Ratana

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Mr. Chhay Soeun

Chairman
MESSAGE FROM CHAIRMAN

On behalf of ACLEDA BANK PLC. ("BANK") and the Board of Directors, I am pleased to present the 2023 Annual
Report to all stakeholders.
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Dr. In Channy
President & Group Managing Director
MESSAGE FROM PRESIDENT & GROUP MANAGING DIRECTOR
Our BANK is committed to enhancing customer experience In addition to our domestic market presence, we have
and driving efficiency through innovative solutions. By expanded our markets into regional markets with the
prioritizing customer satisfaction, we have successfully introduction of our Cross-Border Payment system initially
implemented a cost-effective transaction process that launched in Thailand, and we have successfully extended
benefits all parties involved. Furthermore, our continuous our reach to countries such as Laos and Vietnam, with
investment in upgrading our IT infrastructure has enabled plans for further expansion beyond the region. Our ongoing
us to effectively manage large volumes of data, allowing dedication to these initiatives has paved the way for our
us to offer personalized advertising, marketing, and sales success in both local and international markets.
strategies to our customers. These tailored strategies create
numerous value-added opportunities for our customers.
12 MESSAGE FROM PRESIDENT & GROUP MANAGING DIRECTOR
Performance in 2023
Competitive Environment
In 2023, the World Health Organization (WHO) finally declared the end of the COVID-19 pandemic. Artificial intelligence (AI) has been on an
accelerating trend with considerable potential to be able to replace and undertake various types of work and activities carried out by human
beings. Globally, the interest rate was noticeably high before realizing a slight downtrend at the year’s end, with predictions pointing towards
another rate cut during the first half of 2024. It is now the time for all countries around the world to come together to address pressing issues
such as climate change, sustainable development, health improvement, and digital transformation.
In the digital era, as consumers are adapting gradually to the context of the digital economy and society, as well as quickly embracing
digital banking products and services, banks and Financial Institutions (BFIs) in Cambodia have been facing fiercer competition, employing
various tactics such as marketing channels, promotional strategies, physical and digital branch expansion, pricing, and so forth. In actual fact,
customers have now found it relatively more convenient and highly effective to have access to financial products and services, gained
significant financial leverage, and improved their financial literacy and inclusion.
ACLEDA BANK PLC. is actively transforming its branches into self-service banking hubs, offering a diverse array of hybrid options. This digital
framework has not only enhanced the efficiency, security, cost-effectiveness, and speed of the economic system, but has also become a
vital driver of economic growth. Moreover, it has facilitated greater inclusion by connecting communities nationwide and expanding into
neighboring countries in the region. ACLEDA Mobile banking Application (Mobile App.) has become a popular payment tool and is competitive,
with over two-thirds (2/3) of banks launching their App. ACLEDA Mobile, “the BANK in your hand”, is a leading one, serving registered users/
partners over 3.34 million. Customers can use ACLEDA Mobile anywhere all over the world where Wi-Fi/the Internet is available, especially to
scan KHQR/QR codes within Cambodia countrywide and engage in cross-border payments with QR in Thailand, Vietnam, and Laos. The volume
of digital transactions now contributes up to 97% of the BANK's total transactions, with digital fund transfers accounting for 98%.
Operational Highlights in 2023

• Total loans outstanding at the end of 2023 were US$6,657.31 million, with US$1,414.68 million (or 21.25%) allocated to the agriculture sector. In 2022,
lending to agriculture totaled US$1,392.11 million. By the end of December 2023, there were 478,656 active customers for the Group’s small business
loans.
• Non-performing loans (NPL) remained high but manageable, at 5.77%, considering the post-COVID-19 economy and tighter financing conditions.
• Total deposits reached US$7,277.81 million across approximately 4.55 million accounts.
• The Group reported a profit for the period attributable to the owner of the BANK at US$148.05 million.
• The BANK consistently made efforts to minimize costs and risks to retain income and maximize profit.
• Fintech products were integrated into the BANK's electronic banking infrastructure, offering customers a range of choices to manage their financial
resources.
MESSAGE FROM PRESIDENT & GROUP MANAGING DIRECTOR 13
Financial Services and SME Businesses

Lending in the “Small” business category grew by 4.95% or US$142.03 million. The “Personal & Others” category grew by 84.11% or US$220.90
million. “Housing Loans” balance was US$185.41 million. The total amount of loans outstanding was US$6,657.31 million as of the end of 2023.
The Group’s deposit balance was US$ 7,277.81 million (increased by 13.13% or US$838.82 million) and the total number of accounts was around
4,550,582. The retail sector accounted for the largest segment of the BANK’s growth in deposits with a large percentage coming from first-time
depositors such as employees paid through the BANK’s Payroll Service and non-bank customers in rural areas using the E-Wallet ACLEDA
mobile App. Financial products and services via Fintech solutions have contributed to such strong growth.
The Group maintains a diversified infrastructure of choices with 318 traditional branches (or offices), and 177 self-service banking with 1,453
ATMs and 4,728 POS terminals. It’s interesting to note that the Group has issued a total of 1.91 million debit cards. Moreover, the digitized ACLEDA
mobile App has proved very popular with registered users of more than 3.45 million at the end of 2023.
Medium and Corporate Businesses

In this product category in 2023, cash management services increased substantially through our arrangement and partnership with the
public sector, particularly the Social Security Fund (SSF), government payroll direct deposits, and vehicle stamp tax collection. The demands for
payroll services were particularly strong in 2023 with a number of organizations that signed up, including entities in the public sector, local and
international companies, and other organizations, thereby providing excellent opportunities for cross-selling of other products and services.
In addition, the best services offered by the nationwide networks of the BANK have highly attracted and engaged medium and corporate business
entities to consistently appreciate, remain loyal to, and prioritize the BANK as the first effective coordinator for financial management and
sources of their business operations and settlement. These multiple services have also had a significant positive impact on the BANK’s local
currency cash flow and have enabled the BANK to fund, strengthen, and expand its local Khmer Riel currency loan portfolios. Meanwhile, the
medium and corporate loans outstanding decreased by 5.75% compared to 2022 and accounted for 35.50% of the total loans outstanding.
Furthermore, the BANK and its subsidiaries continued to collaborate with their long–term, experienced, and strategic partners. These entities
assist our mutual, common customers to manage their financial resources effectively and efficiently. Together with this, these partnerships also
significantly contributed to the BANK’s long-term funding and also provided a useful source of off-balance sheet revenue, while enhancing the
international expertise and experience of the BANK’s management and staffs.
Treasury Local and International

The BANK is a prominent provider of Foreign Exchange (FX) service to various sectors and the public at large. The revenue generated from this
service has consistently grown, making a valuable contribution to our non-interest income. Adhering to its risk management policy, the BANK
refrains from engaging in speculative trading within its FX business, focusing solely on supporting customers' businesses. The BANK maintains
a low-risk approach, managing open positions within a certain prudent ratio to comply with both internal and regulatory limits. This service
is a stable source of income, demonstrating consistent growth over time, and fostering enduring relationships with customers and partners.
Strong customers deposit inflows and long-term borrowings reinforced and sustained the BANK's balance sheet, which made it possible to
sustain a loan growth throughout the year. As a result, a strong financial foundation was established to sustain the rapid expansion of the
BANK's operations and activities.
The BANK actively promoted the use of Khmer Riel (KHR) by extending local currency loans to customers and active participations in government
initiatives for upgrading the financial market in Cambodia by investing in government bond, amounting to more than 17% of its total loan
portfolios, exceeding the regulatory requirement of 10%.
In addition to fortify its long-term funding sources, the BANK diversified its funding options by nurturing and progressively expanding strong
relationships with its strategic partners globally, particularly in Europe, the USA and Asia.
The BANK persistently enhanced relationships with other financial institutions and assessed our extensive international correspondent networks
during the year. As of the end of 2023, the BANK had 254 correspondent banks residing in 44 countries. Moreover, the BANK commands a significant
market share in terms of accounts from local banks and financial institutions, offering fund-transfer services across the country. The BANK has
formulated and fully complied with all of its internal risk policies, regulatory requirements, and lenders’ prudent covenants.
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ABBREVIATIONS
Abbreviations Expansion
ACLEDA BANK/ the BANK ACLEDA BANK PLC.
the Group ACLEDA BANK PLC. and its Subsidiaries
ABC Association of Banks in Cambodia
ABL ACLEDA Bank Lao Ltd.
ACLEDA Association of Cambodian Local Economic Development Agencies
ACS ACLEDA Securities Plc.
AFT ACLEDA Financial Trust
AGM Annual General Meeting of the Shareholders
AIB ACLEDA Institute of Business (previously ACLEDA Training Center Ltd.)
AMM ACLEDA MFI Myanmar Co., Ltd.
BACO Board Audit Committee
BRENCO Board Remuneration and Nomination Committee
BRIC Board Risk and IT Committee
CIFRS Cambodian International Financial Reporting Standards
CSX Cambodia Securities Exchange
EDF Entrepreneurship Development Fund
EGM Extraordinary General Meeting of the Shareholders
FIPED Financial Institutions for Private Enterprise Development
GAICD Graduate of the Australian Institute of Company Directors
Head of COD Head of Compliance Division
IBF Institute of Banking and Finance
MAOA Memorandum and Articles of Association
MCC Management Credit Committee
MoC Ministry of Commerce
NBC National Bank of Cambodia
President & GMD President & Group Managing Director
Senior GCIAO/GCIAO Senior Group Chief Internal Audit Officer/ Group Chief Internal Audit Officer
Securities and Exchange Regulator of Cambodia (previously known as the Securities and Exchange
SERC
Commission of Cambodia "SECC")
SMBC Sumitomo Mitsui Banking Corporation (previously Sumitomo Bank)
SSA Subscription and Shareholders' Agreement

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CONTENTS
Page
1 Vision and Mission 39 Part 7. Information on Related Party Transactions and
2 Financial Highlight Conflict of Interest
3 Financial Summary and Annual Statistical Summary (Charts) 40 A. Material Transactions with Shareholder who
5 Board of Directors hold at least 5% or more shares of outstanding
equity securities
9 Message from Chairman
41 B. Material Transactions with Director and Senior
11 Message from President & Group Managing Director
Officer
17 Part 1. General Information of ACLEDA BANK 41 C. Transaction with Director and Shareholder
18 A. Identity of ACLEDA BANK related to buy/sell asset and service
18 B. Nature of Business 41 D. Material Transactions with Immediate Family

Members of the Director, Senior Officer and
19 C. Group Structure of ACLEDA BANK
Shareholder who hold at least 5% or more shares
20 D. ACLEDA BANK's Milestones
42 E. Material Transactions with the Person, who
23 E. Market Situation
associated with Director of the Listed Entity, its
23 F. Competitive Situation Subsidiary or Holding Company
24 G. Future Plan 43 F. Material Transactions with Former Director
24 H. Risk Factors or a Person who involved with Former Director
25 Part 2. Information on Business Operation Performance 43 G. Material Transactions with Director who is holding
any position in a non-profit organization or in any
26 A. Business Operation Performance including business
other company other than the listed entity
segments information
43 H. Material Transactions with Director who get
28 B. Revenue Structure
benefit whether finance or non-financial from the
29 Part 3. Information on Corporate Governance listed entity
30 A. Organization Structure 44 Part 8. Management's Discussion and Analysis

31 B. Board of Directors 45 A. Overview of Operation
31 C. Executive Management 48 B. Significant Factors Affecting Profit
32 Part 4. Information on Securities' Trading and 49 C. Material Changes in Sales and Revenue
Shareholders of ACLEDA BANK 49 D. Impact of Foreign Exchange, Interest Rates and
33 A. Information on Securities Commodity Prices
33 B. Securities' Price and Trading Volume 49 E. Impact of Inflation
34 C. Controlling Shareholder (30% or more) 49 F. Economic/Fiscal/Monetary Policy Of Royal Government
34 D. Substantial Shareholder (5% or more)

52 Signature of Directors
34 E. Information on Dividend Distribution in the last
3 (thee) years 53 Appendix: Annual Corporate Governance
Report determined by the Director General of the SERC
35 Part 5. Internal Control Audit Report by Internal Auditor
90 Appendix: Sustainability Report 2023
38 Part 6. Financial Statement Audited by the Independent
Auditor
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PART 1
GENERAL INFORMATION OF
ACLEDA BANK
18
A. IDENTITY OF ACLEDA BANK

Entity Name in Khmer JK}:}R ZWŤśSśB} OśZŚSWŤś
In Latin ACLEDA BANK PLC.
Standard Code KH1000100003
Building No 61, Preah Monivong Blvd., Sangkat Srah Chork, Khan Daun Penh,
Address
Phnom Penh, Cambodia
Phone number +855 (0)23 998 777 / 430 999
Fax +855 (0)23 430 555
Website www.acledabank.com.kh
Email acledabank@acledabank.com.kh
Company registration number 00003077 dated 05 June 2000, issued by MoC
License number C.B.06 dated 7 December 2023, issued by NBC
053/20 SECC/SSR dated 19 March 2020, issued by Securities and Exchange

Disclosure Document registration number Committee of Cambodia (Currently known as the Securities and Exchange
Regulator of Cambodia “SERC”)
Representative of ACLEDA BANK PLC. Dr. In Channy
B. NATURE OF BUSINESS
ACLEDA BANK PLC. is a commercial bank with the largest branch and office network in the Kingdom of Cambodia. It has listed on the CSX since
May 25th, 2020. Currently, it has 4 wholly-owned subsidiaries: ACLEDA Bank Lao Ltd., ACLEDA Securities Plc., ACLEDA University of Business and
ACLEDA MFI Myanmar Co, Ltd. and 1 representative office in Myanmar.
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C. GROUP STRUCTURE OF ACLEDA BANK

Percentage of share Company
No Company name Type of relation holding Core business registration date Business address
1 ABL Subsidiary ACLEDA BANK holding Operate as a 19 June 2008 #398, Corner of Dongpalane
99.90% and AIB Commercial Bank, and Dongpaina Road, Unit 20,
holding 0.10% through-out the Lao PhonesavanhNeua Village,
PDR, providing banking Sisattanak District, Vientiane
and financial services Capital Lao PDR.
2 ACS Subsidiary ACLEDA BANK Operate as a brokerage, 01 March 2010 5th floor ACLEDA Building #61,
holding 100% providing as a brokerage Preah Monivong Blvd,
business and also has Sangkat Srah Chork, Khan
other business activities Daun Penh, Phnom Penh,
Kingdom of Cambodia.
3 AIB Subsidiary ACLEDA BANK holding Operate as educational 08 June 2011 #1397, Phnom Penh-Hanoi
76.6090% and ACLEDA services Friendship Blvd., Phum
Financial Trust Anlong Kngan, Sangkat
holding 23.3910% khmuonh, Khan Saensokh,
Phnom Penh, Kingdom of
Cambodia.
4 AMM Subsidiary ACLEDA BANK Operate as a deposit 06 September 2012 Building No.186(B) Shwe
holding 100% taking MFI, providing Gone Taing Road, Yae Tar
lending and microfinance Shae Block, Bahan Township,
services Yangon Region, Myanmar.
5 Representative Office Rep-Office ACLEDA BANK Advertising ACLEDA 06 May 2016 Building No.186(B) Shwe
of ACLEDA BANK holding 100% BANK’s product and Gone Taing Road, Yae Tar
services Shae Block, Bahan Township,
Yangon Region, Myanmar.
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D. ACLEDA BANK'S MILESTONES

• During 2023, ACLEDA BANK was expanding its self-automation Banking services as part of its focus on digitalization in Cambodia. Through
this expansion, it reduced the need for additional staff at the counter, which would allow our existing staffs to be more productive. To
meet customer needs, the BANK changed its mobile application interface to enhance its capabilities with the latest developments in global
financial technology. With the new ACLEDA mobile interface, the BANK had provided convenient, fast, and highly secure banking transactions
to the customers broadly. It also has reduced costs and saves customers time since they no longer needs to go to any physical branch
to conduct most of their transactions. Having the ACLEDA mobile seems we have a mini bank in our hands. Moreover, ACLEDA BANK had
developed, enhanced, and launched many new functions in ACLEDA mobile App as listed below:
Get instant loan approval;

Open bank account and term deposit;
Create virtual card;
Pay tax for property and all types of vehicles;
Download summary account statement;
Download loan schedule;
Repay loan of other financial institutions;
Receive payments notification;
Pay insurance premium;
Restore Bakong’s account;
Customize bank account’s name;
Add purpose of own account fund transfer;
Notify alert to keep balance for loan against term deposit repayment;
Rate on the use of ACLEDA mobile banking;
Pay bill for PSP’s agent; etc.;
Set and Change new PIN;
Link and Fund transfer to trading account;
Receive money via Pay Me;
Make payment via QR code (KHQR, QR Cross Border);
Request to print KHQR;
Create my KHQR;
Check QR transaction;
Request payment (Pay Me);
Make Payment via Tap to Pay;
Save transaction in favorite; and
Send and receive money worldwide in minutes via MoneyGram, Western Union, and Thunes; etc.
For further details of each function above, please visit the link: https://www.acledabank.com.kh/qr/toanchet
• On 24 January 2023, the BANK received the Certificate of Compliance in compliance with requirements of Payment Card Industry Data
Security Standard (PCI DSS) Version 3.2.1 from Control Case LLC, the famous and International Qualified Security Assessor (QSA) based in
the United States of America.
• On 06 February 2023, the BANK received 9 Leadership Awards for 2021 & 2022 from Visa, a leading provider of digital payment technology.
It represents that ACLEDA BANK is the leading bank in Cambodia to received 9 awards including: (1) Leadership in Spend Per Active Card
(For Visa Debit In Affluent Segment 2021), (2) Leadership in Domestic Merchant (Sales Volume 2021), (3) Leadership in Ecommerce Merchant
(Sales Volume 2021), (4) Leadership in Transaction Per Active (Terminal 2021), (5) Leadership in Active Caids 2021, (6) Leadership in Credit
Card Issurance 2021; (7) Leadership in Domestic Merchant (Sales Volume 2022); (8) Leadership in Ecommerce Merchant (Sales Volume 2022);
and (9) Leadership In Active Caids 2022.
• On 08 February 2023, the BANK received the letter of appreciation from the Cambodia Kantha Bopha Foundation for its significant and
continuous contribution to the Cambodia Kantha Bopha Foundation in working together to sustain the operations of the Kantha Bopha
Hospital.
• On 24 February 2023, delegations from the Central bank of Solomon Islands and the Reserve bank of Fiji visited ACLEDA BANK PLC., a
commercial bank that offers a wide range of digital banking services, especially Bakong service in Cambodia.
21
• On 01 March 2023, the BANK received the letter of appreciation from Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the
Kingdom of Cambodia that the BANK contributed to pay taxes, the 3rd largest among all taxpayers and tax compliance "Gold" in 2022.
• On 01 March 2023, the BANK received the Excellence Award and Certificate of Appreciation from the Trust Regulator (TR) for outstanding
trustee providing Safeguard Keeping/Escrow Services with the highest number of registered trusts in 2022 after receiving authorization
from the TR as a Trustee Operator.
• On 06 March 2023, ACLEDA BANK's management and staff at Headquarters and branches in Phnom Penh voluntarily participated in the
blood donation to rescue all patients who need blood transfusions. It represents that the BANK is participating in social and human
activities in order to meet the needs of blood to rescue people's lives to the National Blood Transfusion Center Cambodia.
• On 10 March 2023, the BANK received the letter of appreciation from the Inter-Ministerial Committee that the BANK has sponsored for the
7th River Festival 2023, which held in Kampong Thom province under the theme "Our River for Now and Next" organized by Ministry of
Tourism in order to contribute to the development of Cambodia's tourism sector and to stimulate economic growth.
• On 17 March 2023, the BANK signed a Memorandum of Understanding with the Samdech Techo Voluntary Youth Doctor Association (TYDA)
in order to cooperate in providing free medical examination and treatment services to the poor throughout the Kingdom of Cambodia. It
was proven that the BANK participates in humanitarian activities in the cause of the people and society to support public welfare as well
as contribute to reducing poverty and alleviating the burden of the people.
• On 17 March 2023, the BANK received the certificate of appreciation from the Samdech Techo Voluntary Youth Doctor Association (TYDA)
for its financial contribution to provide free health care services in order to promote welfare of Cambodian people nationwide.
• On 22 March 2023, the BANK partners with RIA Money Transfer to expand remittance services in Cambodia. This expansion of RIA's network
includes convenient services such as cash payments, cash collection in both KHR (Cambodian Riel) and USD (United States Dollars) and
account deposits.
• On 10 April 2023, the BANK received the Certificate of Achievement in the field of banking and Business Excellence Awards 2023 from
Honorary Consul of Cambodia.
• On 18 April 2023, the BANK received the Letter of Appreciation from the Ministry of Information for a contribution to Cambodia Kantha
Bopha and Krousar Thmey Foundations to support social affairs and humanitarian activities, and to contribute with the Royal Government
in socio-economic development and poverty alleviation.
• On 19 April 2023, the BANK received the Certificate of Appreciation from the Cambodian Red Cross (“CRC”) for a contribution of KHR 800
million on their 160th anniversary of World Red Cross and Red Crescent Day on 8 May 2023 under the theme "Together with CRC for Social
Inclusion".
• On 26 April 2023, the BANK received the Certificate of Membership from Cambodia Data Exchange (CamDX). Through this certificate,
the BANK has become an official member of CamDX Platform. The CamDX Platform is an information technology platform of the Royal
Government of Cambodia operated by the Ministry of Economy and Finance, establishing for the exchange of data using the Application
Programming Interface (API) between different information technology systems, public and private sectors that are the CamDX members
via internet or any other digital connection.
• On 26 April 2023, the BANK received the Letter of Appreciation from Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the
Kingdom of Cambodia that the BANK declared and paid income tax, the 4th largest income taxpayer in 2022.
• On 01 May 2023, the BANK received the Certificate of Appreciation from National Social Security Fund (NSSF) that the BANK contributed to
their program "NSSF Members Pageant 2023".
• On 10 May 2023, the BANK received the Special Recognition Award 2021-2022 from Wells Fargo BANK.
• On 06 June 2023, NBC and the Bank of Thailand (BoT) announced the official launch of the second phase of cross-border QR payments
between Cambodia and Thailand, which allows Thai people traveling to Cambodia to scan KHQR for making payments like Cambodian
traveling to Thailand. The service fee is free of charge in both countries. ACLEDA BANK is a sponsoring bank, ACLEDA mobile users can scan
QR to pay for goods and services in Khmer Riel in Thailand that displays the ThaiQR/PromptPay logos of five banks, including Kasikorn
bank, Krungthai bank, Bangkok bank, Bank of Ayudhya, and Siam Commercial Bank, for up to KHR 52 million per day (from wallet account:
KHR 12 million and bank account: KHR 40 million).
22
• On 08 June 2023, the BANK signed an agreement with Credit Bureau (Cambodia) Co., Ltd. (CBC), the leading credit reporting service provider
in Cambodia for Cooperation on Financial Health Check Service via ACLEDA mobile App to provide an easier and faster way for customers
to request their credit report anytime, anywhere, with moderate fees. The CBC function in ACLEDA Mobile will show customers' borrowing
and repayment history with ACLEDA BANK or other banks and financial institutions.
• On 19 June 2023, the BANK has cooperated with the Global Loyalty Network "GLN International Inc.", a global network of digital wallets for
cross-border payments. This will enable the digital wallet users in GLN’s network from the Republic of Korea and all around the world to pay
for goods and services in Cambodia through their domestic mobile wallets by presenting their QR codes to be scanned at POS terminals
more conveniently, faster, safer and inclusively.
• On 16 July 2023, the BANK received the Micro, Small, and Medium Business Development and Investment Award from the Cambodia
Economic Youth Association in the First Economic Forum 2023.
• On 15 August 2023, the BANK received a Letter of Appreciation from the Ministry of Health of Cambodia for providing excellent services
during the COVID-19 outbreak.
• On 18 August 2023, the BANK officially launched Cross-Border Payment via QR Code in Laos (Phase 1: Cambodia scans Laos QR Code) in
order to promote the wide use of Khmer Riel for settlement in the ASEAN region and financial inclusion in line with the integration of the
ASEAN Economic Community (AEC). ACLEDA BANK PLC. and ACLEDA Bank Lao Ltd. are selected to be the Settlement Banks for Cross-Border
Payment between Cambodia and Laos for accepting payments in local currency in each other (KHR vs LAK). The Cross-Border Payment via
QR code allows customers and the public to purchase goods and conduct payments in their own currency when traveling to neighboring
countries by scanning QR codes more easily and securely. After completing this official launch, the high delegation of the NBC led by H.E.
Chea Serey, Governor, and the high delegation of bank of the Lao P.D.R (BOL) paid the official visit to ACLEDA Bank Lao Ltd.
• On 23 August 2023, the BANK received a Certificate of Appreciation from the Association of Banks in Cambodia, which the BANK contributed
as a Diamond Sponsor in Cambodia Banking Conference 2023.
• On 14 September 2023, the BANK was awarded and recognized by the SME Finance Forum as the Gold winner in the "Best Financier for
Women Entrepreneurs" category and with an Honorable Mention in the "SME Financier of the Year - Asia" category of the Global SME
Finance Awards 2023. The Global SME Finance Awards are organized by the International Finance Corporation (IFC), a member of the World
Bank Group and SME Finance Forum and endorsed by the G20's Global Partnership for Financial Inclusion (GPFI).
• On 19 September 2023, the BANK signed a sponsorship agreement with the Football Federation of Cambodia (FFC) in order to contribute
USD 200,000 in sponsorship for 2023 and 2024 to take part in supporting, developing, and promoting football in Cambodia.
• On 20 September 2023, the BANK collaborated with Mastercard to launch the ACLEDA Mastercard Lady Card in Cambodia. The ACLEDA
Mastercard Lady Card offers a wealth of exciting experiences, including special benefits, privileges, and partnerships. These benefits are
tailored to center around the most popular spending categories among cardholders, especially women, such as online shopping, travel,
wellness, family, entertainment, and transportation. The availability of the ACLEDA Mastercard Lady Card for women customers provides
them with a faster, safer, and more convenient way to make secure digital payments, enhancing their daily lives.
• On 11 October 2023, the BANK obtained two Asian Leadership Awards for the "Best Use of Mobile Technology in Financial Services" and
"Bank with Leading Financial Inclusion Initiatives".
• On 01 November 2023, the BANK received the Straight-through Processing (STP) Award 2022 from BNY Mellon.
• On 04 November 2023, the BANK got the report from Global Ratings Agency Standard & Poor's (S&P) which the BANK has maintained the
Credit Ratings at "B+/Stable/B". This stable rating outlook reflects that the BANK maintains its long-term financial profile with sufficient
capital buffers to prevent all economic conditions from COVID-19 and macroeconomic hurdles.
• On 11 November 2023, the BANK received Certificate of Appreciation from the Royal University of Law and Economics to the BANK for
supporting their program "The 2023 RULE's Education Fair".
• On 11 November 2023, the BANK received Letter of Appreciation from the Cambodia Women Entrepreneurs Association to the BANK for
supporting their program "Cambodia Women Entrepreneur's Day" under the topic: The Challenges of Taxation on Women Entrepreneurs
and Future Outlook.
• On 20 November 2023, the BANK and Japan-Cambodia Association (JCA) has organized business matching between Cambodia and Japan
Investors. This business-matching event is also a platform to exchange knowledge about financial management, technical knowledge, and
23
essential innovation for business Cambodian and Japanese investors introduce one another. Approximately 60 companies, both local and
foreign Japanese investors participated in this event including SMEs, Industries, Automotive repair & maintain technicians, Cosmetology
School, Information Technology, Influencer Marketing and Advertising/sales promotion, Medical, Agriculture, Real Estate, Tourism, and
Hospitality, etc.
• On 01 December 2023, the BANK received Leadership awards in 2023 from Mastercard. These awards are: Leadership in Credit Growth 2023,
Leadership in Debit Volume 2023, and Leadership in Cross-Border Volume 2023.
• On 03 December 2023, the National Bank of Cambodia (NBC) and the State Bank of Vietnam (SBV) announced the official launch of
Cross-Border QR Payment between Cambodia and Vietnam, with the Cross-Border QR Payment between the Socialist Republic of
Vietnam and the Kingdom of Cambodia. The BANK and BANK for Investment and Development of Vietnam (BIDV) have been chosen as the
Sponsoring Bank for Cross-Border Payment via QR Code in Cambodia and Vietnam in order to ease goods and services payment, to promote
the wide use of KHR for settlement in region and financial inclusion in line with integration of ASEAN Economic Community (AEC).
• On 22 December 2023, the BANK's management & staff at Headquarters and branches in Phnom Penh voluntarily participated in the blood
donation to rescue all patients who need the blood transfusion. The blood donation is very important to rescue the victims and patients
who need blood to treat their illness. Taking part in this crucial social activity, the BANK voluntarily and charitably participated in social and
human activities for its 07 times in order to meet the needs of blood to rescue people's lives in case of emergency to the National Blood
Transfusion Centre Cambodia.
• On 23 December 2023, the BANK received Certificate of Appreciation from the Cambodia Securities Exchange to the BANK for supporting
their program "CSX Fun Run 2023" to contribute the sport and donate to the Cambodia Kantha Bopha Foundation.
E. MARKET SITUATION
As of the December of 2023, ACLEDA BANK still maintain its market share of approximately 15.37% and 12.49%, respectively, for deposit and loan
balances. With the reopening of domestic economic activity in 2022, ACLEDA BANK continue to maintain the growth of savings services, with
the total number of accounts increased by 662,944 accounts and the total deposit balance increased by approximately KHR3,25 trillion equal to
USD795.88 million, while credit services also increased, of which the total number of accounts increased by 72,234 accounts, the loan balance
increased by approximately KHR0.86 trillion equivalent to USD211.32 million compared to 2022.
As for the price situation for banks, the interest rate on loans in KHR and USD decreased slightly by 13.39% and 11.08% respectively compared to
2022 (13.51% and 11.24%, respectively) while the average loan interest rate in KHR and USD has also increased to 17.44% and 16.2%, respectively,
from 16.8% and 15.05% in 2022. Deposit rates in the banking sector increased, with riel and US dollar deposits estimated at 7.7% and 6.47%,
respectively, higher than the 2022 rates (6.88% and 5.36% respectively) while the microfinance sector increased to 8.39% and 8.25% respectively
compared to 2022 (7.42% and 7.38%, respectively). (1)
F. COMPETITIVE SITUATION
The banks and microfinance institutions continues to grow remarkably. As of December 2023, there were 58 commercial banks (29 local
incorporated banks, 18 subsidiary banks, and 11 foreign branch banks), 09 specialized banks (04 locally Incorporated and 05 foreign Banks),
87 microfinance institutions (04 MDI, and 83 MFI), 16 leasing companies, 6 Representative Offices of Foreign Banks in Cambodia, 33 payment
service providers, 114 rural credit operator and 2,915 money exchanger. (Source: NBC Report, CMA Report, and Actually Updated)
At the same time, loan customers increased by 4.8% to KHR237.2 trillion (USD57.6 billion), of which the banking sector increased by 14.8% from
the previous year (18.2%) to KHR213.1 trillion (USD51.8 billion) with a total of 2.2 million accounts. Microfinance sector customers fell 42.6%
year-on-year (22.7%) to KHR22.4 trillion (USD5.4 billion) with 1.6 million accounts, the financial leasing sector decreased by 3.4% to KHR1.7
trillion (USD421.5 million) with 93,318 accounts and rural credit institutions provided total loans of KHR213.2 billion (USD51.3 million) to 116,044
customer accounts. Consumer deposits increased 13.1% to KHR197.2 trillion (USD47.9 billion), with the banking sector depositing 21.3% to
KHR188.1 trillion (USD45.7 billion) and 16.7 million accounts, and the microfinance sector mobilized KHR9.2 trillion (USD2.2 billion) in deposits,
equivalent to 1.9 million accounts. (1)
The situation of customers, market, price and competition in the banking sector has changed significantly, but ACLEDA BANK continues to
maintain a competitive advantage in all products-services, operating network, capital and technical resources, and continues to grow well. As
of the end of December 2023, ACLEDA BANK's credit services increased by 13.04% (higher than 2022 with 11.28%) and 3.38% (lower than 2022 by
19.31%) both the number of loans and the total loan balance in line with the deposit service increased by 15.90% and 12.78%, both the number
of accounts and the total deposit balance was higher than in 2022, which increased by 15.72% and 12.45%.
24
G. FUTURE PLAN
ACLEDA BANK plans to keep maximizing its potential and setting itself apart from other banking institutions as Cambodia’s leading and
the most trusted commercial bank through product innovation, technological advancement, healthy business partnerships, branch network,
premium services, well-trained HR with ethic and morality, and enhancement of digital banking services (24/7). In addition, the plan of ACLEDA
BANK is to focus on Phygital, which means the BANK still uses physical and digital (virtual) branches, which is relevant to Self-service banking
(SSB), physical office, ATM, CRM, TDM, VTM, POS, and other digital services. (Source: Strategic Planning Division (SPD)
H. RISK FACTORS
1. Analyst
ACLEDA BANK's business, operating results, financial position, and future status depend on the global and national macroeconomic situation.
The significant risks and challenges are: 1) Slower economic growth in major trading partner countries 2) Tightening on international financial
markets and interest rate hikes 3) The Russia-Ukraine war led to higher inflation and declining demand 4) Socio-economic problems left by
the COVID-19 pandemic, especially the ongoing impact on tourism and support services; 5) Slower growth in the construction and real estate
sectors; 6) Geopolitical tensions; and 7) The uncertainty of climate change (droughts, floods and other disasters). The material risk factors
related to ACLEDA BANK's business are as follow:
1-1 Credit Risk

Credit clients or counterparties failing to meet their repayment obligations would have a material impact on the BANK's profitability
and future prospects. The impact on tourism and support services left behind by the COVID-19 pandemic and the slowdown in the
construction and real estate sectors have slowed credit growth at the same time of the end of loan restructuring measures causing an
increase of non-performing loans (NPLs).
1-2 Liquidity Risk

ACLEDA BANK ensures to have sufficient capital and liquidity to fund its business operations, as liquidity is a risk that could have a
material impact on the BANK's business growth and operational performance, expenses, reputation, and compliance. The Russia-Ukraine
war, continued interest rate hikes in international markets and related risks could affect the flow of external funding sources which are
high price and limited.
2. Management opinion and Risk mitigation

ACLEDA BANK understands the identified risks and believes that these risk factors can be effectively managed, mitigated and as well as turned
into opportunities:
2-1 Liquidity Risk Management Measures

• Introduced risk management measures to mitigate the liquidity risk and ensure the business continuity by maintaining a high level of funds
to support business growth and to respond to unprecedented events in a timely manner.
• Continuously seek for sources of fund by maintaining good relation and signing agreements with potential lenders, partners and clients, and
diversifying sources of fund to ensure sustainable business operations.
2-2 Credit Risk Management Measures

• Cautiously implement the National Bank of Cambodia's circulars, particularly, the classification and provisioning requirement on restructured
loans, which aims for minimizing credit risks to ensure the financial stability and support the recovery of economic activities.
• Strengthen and enhance capacity of the governance, policies, procedures, internal control related to credit assessment and review to ensure
that loans provided to customers are well assessed on sources of income, cash flow, repayment capacity, and environmental and social impact
with the aim of assuring that credit risks and losses are minimized.
• Gently solve the loan problem caused by the impacts from COVID-19 based on the real circumstances with the encouragement to credit officers
to contact and solve the loan problem with clients professionally.
Reference:
(1) https://www.nbc.gov.kh/download_files/publication/annual_rep_kh/Annual_Report_2023_KHM.pdf
25
PART 2
INFORMATION ON BUSINESS
OPERATION PERFORMANCE
26
A. BUSINESS OPERATION PERFORMANCE INCLUDING

BUSINESS SEGMENTS INFORMATION
As of December 2023, the sale and revenue of the BANK and its subsidiaries had performed well. The main keys performance are as follows:
Actual Data
Key Performance
2023 2022 2021
LOAN
Number of Loan 661,941 591,494 541,184
Total Loan Outstanding (Million KHR) 27,195,120 26,437,928 22,116,013
DEPOSIT
Number of Account 4,550,582 3,865,749 3,298,382
Deposit Balance (Million KHR) 29,525,616 26,303,475 23,287,064
E-Banking Product/Channel
ATM CARD
Number of Card 1,939,098 1,799,909 1,585,449
Number of Txn 19,851,801 21,058,609 19,448,837
Value of Txn (Million KHR) 17,145,411 18,683,335 16,173,990
Mobile Banking
Number of Register 3,451,606 2,845,886 2,278,220
Number of Txn 373,036,336 148,799,661 78,726,895
Internet Banking
Number of User 24,825 22,164 13,557
Number of Txn 3,529,209 2,318,789 1,466,822
E-Commerce
Number of partners 88 73 59
Number of Txn 3,983,167 3,619,936 3,215,207
ATM & CRM Terminal
Number of Machine 1,314 1,114 901
Number of Txn 41,554,993 35,298,214 27,129,252

27
Actual Data
Key Performance
2023 2022 2021
TDM Terminal
Number of Terminal 26 26 26
Number of Txn 304 1,487 4,120
Value of Txn (Million KHR) 16,143 111,134 343,158
VTM Terminal
Number of Txn 130,987 43,089 34,092
Value of Txn (Million KHR) 5 16 70
CBD Terminal
Number of Txn 88,908 75,020 94,713
POS Machine
Number of Machine 4,728 4,358 4,462
Number of Txn 1,900,400 2,159,175 2,033,283
QR Merchant
Number of merchants 382,217 239,751 125,309
Number of Txn 110,148,848 16,459,377 3,194,443
Value of Txn (Million KHR) 63,175,720 7,777,491 638,240
ACLEDA Virtual Cards
Number of Virtual Cards 27,106 8,898 3,684
Number of Txn 182,376 34,907 2,491
Value of Txn (Million KHR) 18,818 3,018 161

28
Actual Data
Key Performance
2023 2022 2021
i-bank Payband
Nº of Issued i-bank Payband 10,603 4,960 -
Number of Txn 12,710 18,742 -
Value of Txn (Million KHR) 14,511 31,762 -
NETWORK OPERATIONS AND STAFFS
ACLEDA BANK
Number of Branch Operation 264 264 262
Number of Self Service Banking 177 125 73
Number of Staff 12,045 12,083 12,081
SUBSIDIARIES (LOCAL & OVERSEAS)
Number of branch Office 56 56 57
Number of Staff 1,458 1,499 1,593
B. REVENUE STRUCTURE
2023 2022 2021
Source of Revenue (in KHR million)
Amount Percentage Amount Percentage Amount Percentage
Interest Income 3,105,644 91.26% 2,741,369 90.18% 2,334,217 90.12%
Fee and commission Income 191,849 5.64% 193,949 6.38% 174,665 6.74%
Other Income, net 105,621 3.10% 104,720 3.44% 81,204 3.14%
TOTAL REVENUE 3,403,114 100% 3,040,038 100% 2,590,086 100%

29
PART 3
INFORMATION ON CORPORATE
GOVERNANCE
30
Shareholders
Board of Directors
Board Audit Committee Board Remuneration and Board Risk Management

Nomination Committee
(BACO) (BRENCO) and IT Committee (BRIC)
President & Group

Managing Director
Executive Committee
(EXCO)
ACLEDA MFI ACLEDA Institute

-F7èơɢࡲ¶ǉ˪ƃơ ACLEDA Bank Lao Ltd. ACLEDA Securities Plc.
Myanmar Co., Ltd. of Business
Human Resource Portfolio Management

Management Credit Procurement Asset and Liability
Committee for IT Steering Committee IT Strategy Committee
Committee Committee Committee Committee
AIDS and Anti-Drugs
A. ORGANIZATION STRUCTURE
Senior EVP & Group Chief EVP & Group Chief EVP & Group Chief EVP & Group Chief EVP & Group Chief EVP & Group Chief Senior Group Chief
Financial¶ǉ˪ƃơɭŔȥƎGroup Chief Operations¶ǉ˪ƃơɭ þɭơŔɽʠɭˊ¶ǉ˪ƃơɭ ƎȟǫȥǫɽʋɭŔʋǫʽơ¶ǉ˪ƃơɭ ơǌŔȍ¶ǉ˪ƃơɭŔȥƎ zȥǉȶɭȟŔʋǫȶȥ¶ǉ˪ƃơɭ èǫɽȇ¶ǉ˪ƃơɭ zȥʋơɭȥŔȍʠƎǫʋ¶ǉ˪ƃơɭ
Corporate Secretary
Financial Institutions Human Resources Application Service Risk Management Internal Audit
Operations Division Finance Division Legal Division
Division Division Division Division Development Division
Credit Sale Budgeting & Control Corporate Secretary & Information Security Information System
Treasury Department Administration Division Credit Division
Management Division Division Disclosure Division Division Audit Division
Marketing Division Public Investment Foreign Exchange & Subsidiaries Counsel System Infrastructure Credit Data
Credit Audit Department
Division Reserve Department Department Division Analytics Division
Product Development Management Accounting Litigation Management Strategy & Governance Credit Control Financial Audit
Treasury Dealing Centre
Division Department Department Division Department Department
Financial Services Digital & Customer AML & CFT

Division Experience Division Audit Department
Strategic Planning Audit Reporting

Service Desk Centre
Division Department
Trade Finance
Department
Compliance Division
264 Branches Nationwide

31
B. BOARD OF DIRECTORS
Board Composition
No Name Position Date of term being Director Expired Date of being Director
1 Mr. Chhay Soeun Chairman 18 August 2014 18 August 2026
2 Dr. In Channy Executive Director 18 August 2014 18 August 2026
3 Drs. Pieter Kooi Independent Director 12 January 2004 12 January 2025
4 Dr. Heng Dyna Independent Director 11 December 2023 11 December 2026
5 Ms. Phurik Ratana Independent Director 08 November 2021 08 November 2024
6 Mr. Stéphane MANGIAVACCA Non-Executive Director 22 April 2020 21 August 2024
7 Mr. Kyosuke Hattori Non-Executive Director 08 November 2021 06 December 2025
8 Dr. Albertus Bruggink Non-Executive Director 12 May 2021 10 January 2025
9 Mr. Kay Lot Non-Executive Director 12 May 2021 12 May 2024
Note: Mr. Van Sou Ieng, Independent Director of ACLEDA BANK, retired on 10 October 2023.
Corporate Secretary Name: Mrs. Buth Bunseyha, Mr. Sen Sokla, Mrs. Tep Sarchenda
C. EXECUTIVE MANAGEMENT
No Name Gender Position
1 Dr. In Channy M President & Group Managing Director
Senior Executive Vice President & Group Chief Operations Officer

2 Dr. So Phonnary F (retired on 6 November 2023)
Senior Executive Vice President & Group Chief Financial Officer and Group
3 Mrs. Mar Amara F Chief Operations Officer (appointed on 6 November 2023)
4 Mr. Yin Virak M Executive Vice President & Group Chief Treasury Officer
5 Mr. Ly Thay M Executive Vice President & Group Chief Administrative Officer
6 Mrs. Buth Bunseyha F Executive Vice President & Group Chief Legal Officer and Corporate Secretary
7 Mr. Mach Theary M Executive Vice President & Group Chief Information Officer
8 Dr. Loeung Sopheap M Executive Vice President & Group Chief Risk Officer
Note: Detailed information of the corporate governance, please see the attached appendix.
32
PART 4
INFORMATION ON SECURITIES'
TRADING AND SHAREHOLDERS
OF ACLEDA BANK
33
A. INFORMATION ON SECURITIES
1. Information on Equity Securities (for equity listed entity)
Information Description
Name of equity securities Ordinary Share
Equity securities’ symbol ABC
Class of equity securities Voting Share
Par value per equity securities KHR 4,000
IPO Price KHR 16,200
The total number of outstanding shares 433,163,019 Shares
Market capitalization (Million Riel) 4,357,620
Permitted Securities Market Cambodia Securities Exchange, Listing date: 25 May 2020
2. Information on Debt Securities (for debt listed entity): N/A
B. SECURITIES' PRICE AND TRADING VOLUME
Common Share (2023) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Maximum 10,860 11,520 11,400 11,600 11,400 10,260 10,260 10,120 10,020 10,000 9,700 10,200
Trading Price Average 10,843 11,055 11,168 11,306 10,411 10,217 10,129 10,050 10,015 9,838 9,618 9,769
Minimum 10,760 10,820 10,780 11,020 10,200 10,140 10,040 9,980 9,980 9,140 9,460 9,540
Maximum 73,613 166,710 246,612 319,968 319,409 127,841 115,297 151,108 78,075 184,636 76,262 113,135
Trading Volume Average 43,883 55,555 76,125 88,787 105,792 56,656 49,233 58,115 39,268 54,148 29,525 37,986
Minimum 14,339 18,523 11,619 22,080 26,119 20,365 23,370 20,939 8,101 7,804 7,474 10,229
34
C. CONTROLLING SHAREHOLDER (30% OR MORE): N/A
D. SUBSTANTIAL SHAREHOLDER (5% OR MORE)
Name National Number of Shares Percentage
ACLEDA Financial Trust Cambodian 118,248,992 27.2990%
Sumitomo Mitsui Banking Corporation Japanese 78,259,310 18.0669%
COFIBRED French 52,530,223 12.1271%
ORIX Corporation Japanese 52,530,223 12.1271%
Shareholders Legalised from ASA, Plc. Cambodian 24,916,808 5.7523%
Total 326,485,556 75.3724%
E. INFORMATION ON DIVIDEND DISTRIBUTION IN THE LAST 3 (THREE) YEARS

(FOR EQUITY LISTED ENTITY)
Detail of dividend distribution 2022 2021 2020
Profit attributable to owners of the BANK (in KHR million) 742,765 679,002 576,865
Total Cash dividend (in KHR million) 297,106 237,651 172,948
Total share dividend (in KHR million) - - -
Other dividend - - -
Dividend payout ratio (%) 40% 35% 30%
Dividend yield (%) *6.34% 5.22% 2.33%
Dividend per share (KHR) 686 549 399
* Closing Price on 31 December 2022 was KHR 10,820

* Closing price on 31 December 2021 was KHR 10,520
* Closing price on 31 December 2020 was KHR 17,100
. Dividend yield = Dividend per share / Current Share Price (31/12/20XX)
. Dividend payout ratio = Dividend per share / Earning per share
35
PART 5
INTERNAL CONTROL AUDIT
REPORT BY INTERNAL AUDITOR
36
I. INTRODUCTION
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the BANK operations.
To help the BANK and subsidiaries to accomplish the objectives by bringing a systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control and governance processes, the internal audit function is led by the Senior Group Chief Internal
Officer, who is authorized to communicate and interact directly with the Board Audit Committee.
II. SCOPE OF INTERNAL AUDIT ENGAGEMENTS

The scope of Internal Audit activities consists of three core engagements to apply the systematic and disciplined approach to examine and
evaluate internal control, risk management perspectives and the processes of the BANK's operation.
• Assurance Review: To Review the BANK's policies, operating manuals, procedures and conduct the control testing to ensure the effectiveness
of compliance control in monitoring of compliance with regulatory requirements and adequate risk management processes to mitigate risks.
• Information Security Audit: To carry out audit techniques to ensure the reliability, effectiveness and integrity of the management
information systems including relevance, accuracy, completeness, availability, confidentiality and comprehensiveness of data and follow
standard executives audit base on National Bank of Cambodia (NBC)’s Technology Risk Management Guideline.
• Investigate Assessment: To conduct comprehensive examination on the red flags of common internal/ external fraud schemes including
misappropriation, bribery and corruption to ensure the effective and strong control on the conflict of interest and adequacy of procedures
to safeguard the BANK's assets.
III. SUMMARY OF PERFORMING INTERNAL AUDIT ENGAGEMENT IN 2023

The activities of internal audit consisted of defining the scope of assessment, submitting the audit plan to the Board Audit Committee for
approval, performing and controlling engagements, communicating the results, providing a written report, monitoring corrective action taken
by management.
An annual internal audit plan of the year 2023 was established based on the comprehensive risk assessment method to align with the BANK
strategy to define the audit objective and scope of each engagement. The Board Audit Committee approved the annual internal audit plan,
including the budget to support the internal audit activities, human resources and professional knowledge development.
The 2023 internal audit plan approved by the Board Audit Committee was successfully performed including 70 Assurance Review engagements,
32 Investigate Assessment engagements and 16 Information Security Audit engagements to cover the entire bank locations at both Head Office
and branch levels. The engagements also to cover the following audit areas, namely Risk Management Audit, Human Resource Audit, Office
Management Audit, Credit Audit, Digital Banking Audit, Forensic Audit, Information Security Audit, Financial Audit, Market Risk Audit, Liquidity
Risk Management Audit, Operation Audit, and AML/CFT Audit.
Where material issues have been identified through internal audit reviews, recommendations have been communicated to management and
internal audit have ensured that management have set up the appropriate corrective actions with proper timelines for improvement such as
updating/developing policy, operating manual and procedures, strengthening and training management and staff.
The monthly consolidation of internal audit reports is submitted to the Board Audit Committee and copied to senior managements. The
content of the audit reports includes management’s actions to be taken and those actions are the subjects of follow up audits to monitor the
correction of audit findings.
37
IV. CONCLUSION
The internal audit engagement plan in 2023 was completely achieved and strictly applied the risk based approach to all the audit areas
and audit locations to provide the recommendation on effective control on risk management, internal control process and procedure and
compliance control.
To respond to the internal audit recommendation, the BANK management set up corrective action plan to enhance control environment for
the day to day bank operation.
Based on the internal audit results of 2023 engagements, the BANK's framework of governance, risk management and control are adequately
designed for the system to perform in accordance with the regulations, internal policies, and procedures.
Read and Approved

Date: 02 February 2024
Ms. Phurik Ratana Ms. Kim Sotheavy

Chair of Board Audit Committee Senior Group Chief Internal Audit Officer
38
PART 6
FINANCIAL STATEMENT AUDITED
BY THE INDEPENDENT AUDITOR
PLEASE REFER TO THE ANNEX FOR FINANCIAL
STATEMENTS AUDITED BY INDEPENDENT AUDITOR
39
PART 7
INFORMATION ON RELATED
PARTY TRANSACTION AND
CONFLICT OF INTEREST
40
The Listed entity shall disclose material transactions information, with related parties in the last 2 (two) years, specifying name, relation
between the listed entity and related parties, size of transaction and the type of interest which arise from that relationship as follows:
A. Material Transactions with shareholder who hold at least 5% or more shares of outstanding
equity securities.
There were 5 shareholders who hold at least 5% or more shares of outstanding equity securities including: (1) AFT, (2) SMBC, (3) COFIBRED
(4) ORIX Corporation and (5) Shareholders Legalised from ASA, Plc.
As at 31 December 2023, ACLEDA BANK has material transactions with shareholders who hold at least 5% or more of the securities currently
circulating in market as below:
2023 2022
Description
USD KHR ‘000 USD KHR ‘000
Balances with related parties 655,991 2,679,723 725,388 2,986,422
SMBC 655,991 2,679,723 725,388 2,986,422
Account Payable (755,903) (3,087,864) (488,930) (2,012,924)
AFT (126,843) (518,154) (51,705) (212,869)
SMBC (629,060) (2,569,710) (437,225) (1,800,055)
Deposits 4,258,182 17,394,674 10,167,623 41,860,103
AFT 4,206,571 17,183,843 9,955,699 40,987,612
Current Accounts 2,637,117 10,772,623 6,261,922 25,780,333
Saving accounts 68,031 277,907 727,329 2,994,413
Fixed deposits 1,501,423 6,133,313 2,966,448 12,212,866
ASA, Plc. - - 175,276 721,613
Saving accounts - - 175,276 721,613
SMBC 51,611 210,831 36,648 150,880
Current Accounts 51,611 210,831 36,648 150,880
Loan from shareholders 64,585,867 263,833,267 48,847,528 201,105,273
SMBC 49,491,659 202,173,427 48,847,528 201,105,273
AFT 15,094,208 61,659,840 - -
Fee and commission income 115 472 45,510 186,000
AFT 22 90 40,401 165,119
ASA, Plc. - - 5,073 20,734
SMBC 93 382 36 147
Interest expenses 6,092,700 25,040,997 1,880,545 7,685,787
AFT 795,563 3,269,764 272,138 1,112,228
ASA, Plc. - - 908 3,711
SMBC 5,297,137 21,771,233 1,607,499 6,569,848

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B. Material Transactions with Director and Senior Officer

As of 31 December 2023, ACLEDA BANK has material transactions with directors and senior officer as below:
2023 2022
Description
Loans and advances 10,496,771 42,879,309 11,527,554 47,458,938
Interest income 896,019 3,682,638 904,154 3,695,277
Deposit 5,417,287 22,129,618 4,265,015 17,559,067
Interest expense 118,301 486,217 49,034 200,402
Interest payable (62,473) (255,202) (46,115) (189,856)
Fee and remuneration expense 11,343,358 46,621,202 10,065,156 41,136,292
C. Transactions with Director and Shareholder related to buy/Sell asset and service
As of 31 December 2023, ACLEDA BANK has no transaction with the director and shareholder related to buy/sell asset and service.
D. Material transactions with immediate family members of the director, Senior Officer and
Shareholder who hold at least 5% or more shares
As of 31 December 2023, ACLEDA BANK has material transactions with immediate family members of the director, Senior Officer and Shareholder
who hold at least 5% or more shares as below:
2023 2022
Description
Loans and advances 2,577,562 10,529,341 2,644,299 10,886,581
Deposit 2,552,213 10,425,790 1,465,293 6,032,611

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E. Material transactions with the person, who associated with director of the listed entity, its
Subsidiary or Holding Company, whose relationship has occurred in any transactions or have
been made by the listed entity
As at 31 December 2023, ACLEDA BANK has material transactions with subsidiaries as below:
2023 2022
Description
Balances with related parties 15,871 64,833 - -
ABL 15,871 64,833 - -
Interest income 18,247 74,995 6,217 25,409
ABL 18,247 74,995 6,217 25,409
Account receivable 449,377 1,835,705 259,910 1,070,049
AMM 246,542 1,007,124 259,910 1,070,049
AIB 202,835 828,581 - -
Account payable (18,960) (77,451) (28,709) (118,195)
ACS (18,945) (77,390) (14,056) (57,869)
AIB (15) (61) (14,653) (60,326)
Deposits 6,210,525 25,369,996 7,987,484 32,884,470
ABL 3,788,654 15,476,652 4,208,900 17,328,041
Current accounts 3,788,654 15,476,652 4,208,900 17,328,041
ACS 2,311,189 9,441,208 2,528,261 10,408,850
Saving accounts 251,289 1,026,516 258,388 1,063,783
Fixed deposits 2,059,900 8,414,692 2,269,873 9,345,067
AIB 110,682 452,136 1,250,323 5,147,579
Current accounts 52,405 214,074 65,670 270,363
Fixed deposits 58,277 238,062 1,184,653 4,877,216
Fee and commission income 26,974 110,862 988 4,037
ABL 13 53 13 53
Bank service fee 13 53 13 53
ACS 2,921 12,005 603 2,464
Bank service fee 2,921 12,005 603 2,464
AIB 24,040 98,804 372 1,520
Bank service fee 24,040 98,804 372 1,520
Interest expense 208,101 855,295 222,766 910,444
ACS 164,201 674,866 153,143 625,895
AIB 43,900 180,429 69,623 284,549
Fee and commission expense 1,963,126 8,068,448 3,147,747 12,864,842
AIB 1,963,126 8,068,448 3,147,747 12,864,842
Other commitments (17,675) (72,644) (64,114) (262,034)
AIB (17,675) (72,644) (64,114) (262,034)

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F. Material transactions with former director or person who involved with former director
As of 31 December 2023, ACLEDA BANK has material transaction with former director or person who involved with former director as below:
2023 2022
Description
Loans and advances 433,486 1,770,790,310 - -
Deposit 1,641,680 6,706,262,800 - -
Interest payable 4,830 19,730,550 - -
Interest expense 96,527 394,312,795 - -
Interest income 22,635 92,463,975
Fee and remuneration expense 58,022 237,019,870 - -
G. Material transactions with director who is holding any position in a non-profit organization
or in any other company other than the listed entity
As of 31 December 2023, ACLEDA BANK has material transaction with director who is holding any position in a non-profit organization or in any
other company other than the listed entity as below:
2023 2022
Description
Loans and advances 12 49 - -
Deposit 489,774 2,000,727 - -
Interest payable 3,887 15,878 - -
Interest expense 501 2,047 - -
Fee and remuneration expense 287,106 1,172,828 - -
H. Material transactions with director who get benefit either finance or non-financial from the
listed entity
As of 31 December 2023, there were executive directors, non-executive directors and independent directors who got benefit either finance or
non-financial from the BANK as below:
2023 2022
Description
Loans and advances 12 49 62,348 256,687
Deposit 2,377,289 9,711,226 2,723,345 11,212,011
Fee and remuneration expense 589,578 2,423,166 503,073 2,056,059

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PART 8
MANAGEMENT’S DISCUSSION
AND ANALYSIS
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The discussion and analysis focused on the operational and financial results based on Financial Statements as of 31 December 2023 audited by
Independent Auditor. The Audited Financial Statements had been prepared in accordance with CIFRS. Only the key components of the Audited
Financial Statements and key factors that affect the Group’s profitability were discussed and analysed.
A. OVERVIEW OF OPERATION
1. Revenue Analysis
The Group had three main sources of revenue including Interest Income, Fee & Commission Income and Other Income, net.
• Interest Income includes the interest income from loans and advances to customers, deposits and placements with banks and financial
investments.
• Fee & Commission Income mainly includes commission fees, Commission fee collected for assurance agency, ATM fee, early loan
redemption fees, Deposit fee charged, Fee income from guarantee, training income.
• Other Income, net includes foreign exchange gains, net, gain on disposals of property and equipment, dividend on financial investments
and other income.
2. Revenue by segment analysis

2023 2022 2021
Source of Revenue
(in KHR million)
Amount Percentage Amount Percentage Amount Percentage
Interest Income 3,105,644 91.26% 2,741,369 90.18% 2,334,217 90.12%
Fee and commission Income 191,849 5.64% 193,949 6.38% 174,665 6.74%
Other Income, net 105,621 3.10% 104,720 3.44% 81,204 3.14%
Total revenue 3,403,114 100% 3,040,038 100% 2,590,086 100%
In 2023, the total revenue increased by KHR 363.08 billion or 11.94% compared to 2022 due to the effectiveness of a broad range of banking
products and services in digital era and the increase in customers.
3. Gross profit margin analysis

The statement of Profit/ (Loss) and Other Comprehensive Income of the Group prepared in the format (the gross profit margin) was not presented.
The net interest income resulted from the total interest income less total interest expense was illustrated in the next point of the Profit/ (Loss) before
Tax Analysis as below.
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4. Profit/ (Loss) before tax analysis
Variance
Statement of Profit or loss (in KHR million) 2023 2022
Amount Percentage
Interest Income 3,105,644 2,741,369 364,275 13.29%
Interest expense (1,352,196) (902,501) (449,695) 49.83%
Net interest income 1,753,448 1,838,868 (85,420) (4.65%)
Fee and commission income 191,849 193,949 (2,100) (1.08%)
Fee and commission expense (16,265) (18,654) 2,389 (12.81%)
Net fee and commission income 175,584 175,295 289 0.16%
Allowance for Impairment losses on loans and advances, deposits and placements
with other banks, other receivables and investment securities (171,320) (84,115) (87,205) 103.67%
(Allowances for)/reversal of Impairment losses on off-balance sheet commitments (9) 11 (20) 181.82%
Net impairment losses (171,329) (84,105) (87,224) 103.71%
Income after impairment losses 1,757,703 1,930,059 (172,356) (8.93%)
Other income, net 105,621 104,720 901 0.86%
General and administrative expenses (1,106,108) (1,101,683) (4,425) 0.40%
Profit before income tax 757,216 933,095 (175,879) (18.85%)
The Increase in customer confidence in the Group, the deposit as of December 2023 grew to KHR29.53 trillion which increased by KHR3.22
trillion or 12.25% from December 2022. Following the requirement of regulation related to the loan reclassifications, and in order to withstand and
absorb all risks which would have impact on loans and advances to customers, especially deriving from COVID-19 pandemic, the Group
increased the allowance for impairment losses by KHR87.21 billion or 103.67% comparing to 2022.
5. Profit/ (Loss) after tax analysis
Variance
Statement of Profit or loss (in KHR million) 2023 2022
Amount Percentage
Profit before income tax 757,216 933,095 (175,879) (18.85%)
Income tax expense (148,861) (190,018) 41,157 (21.66%)
Profit for the year 608,356 743,077 (134,721) (18.13%)

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6. Total comprehensive income (loss) analysis
Variance
Total comprehensive income (in KHR million) 2023 2022
Amount Percentage
Profit for the year 608,356 743,077 (134,721) (18.13%)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Re-measurement of employee benefit obligations - (12,774) 12,774 100%
Exchange differences (45,439) 54,055 (99,494) (184.06%)
Items that are or may be reclassified subsequently to profit or loss:
Currency translation differences – foreign subsidiaries (23,984) (75,533) 51,549 68.25%
Remeasurement of the effective portion of derivatives arising from (15,963) 41,429 (57,392) (138.53%)
cash flow hedge
Other comprehensive Income for the year (85,386) 7,177 (92,563) (1,289.72%)
Total comprehensive income for the year 522,970 750,254 (227,284) (30.29%)
7. Factors and trends analysis affecting financial conditions and results

ACLEDA BANK is confident of improving its performance next year amid better GDP growth forecasts after building a strong legacy of over 30
years, future-ready ACLEDA BANK continues to lay strong foundations to offer holistic banking solutions to meet customers’ changing financial
commitment in Cambodia and beyond.
After breaking down the geographical boundaries by combining digital and physical infrastructures, the home-grown bank is successfully
catering to a diverse customer base – including individuals and corporate clients in urban, semi-urban and rural vicinities. With its hallmark
of offering superior banking services, ACLEDA offers a comprehensive suite of financial services – loans, fund transfer, deposit, trade financing,
internet banking, ACLEDA mobile, among others supported by its digital infrastructure and physical offices, the BANK is efficiently reaching
out to assist farmers to work their farmland or provide working capital for SMEs. By narrowing the financing gap – more than half a million
Cambodians today have access to ACLEDA BANK’s services – it is in the forefront driving financial inclusion in the Kingdom.
After over 30 years, ACLEDA BANK will be seen as the digital bank with sophisticated Data Lakehouse providing quality, security and trust. The
BANK’s efficient delivery ecosystem across the Kingdom comprising ATMs, self-service banking outlets, cash deposit, cash withdrawal machines,
virtual teller machines (to open accounts and print cards) and term deposit machines (for fixed deposits) are serving as a powerful catalyst
for the next wave of growth.
“The BANK’s future looks promising” as business confidence on Cambodia’s GDP growth is bolstered after the government efficiently curtailed
the spread of the COVID-19 pandemic. The Cambodia’s growth outlook is expected to continue to recover as COVID-19 related restrictions are
lifted.
Recovery in manufacturing exports and expansion of agricultural commodity exports will augur well for ACLEDA BANK as bulk of borrowers are
involved in the agri-related businesses. The BANK can do better in 2024 because the BANK has invested heavily in our digital infrastructure,
built a large high security data centre to store. The construction of Disaster Recovery Data Centre will help data storage in a highly protected
environment. With the digital infrastructure and upgraded products and services, the BANK is confident in facing future challenges.
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B. SIGNIFICANT FACTORS AFFECTING PROFIT

1. Demand and supply conditions analysis
The Group's operations are better, stronger and success in the market due to two factors:
• The growth of loan portfolio due to high demand in the market for the Group's loan products especially in the SME segment.
• The growth of the Group's deposits and other transactional products and services.
Both factors are associated with the continuous development of the Group's digital platform which provides customers with innovative and
modern financial products and services.
The Group has been diversifying hybrid infrastructure of choices with 320 offices, gradually transforming them to self-service centres with 177
banking self-service, 1,314 ACLEDA ATM & CRM, 26 Term Deposit Machine, 96 Virtual Teller Machine, 17 Cash Bag Deposit Machine and 4,728 POS
terminals. It’s interesting to note that the Group issued 1.94 million ACLEDA ATM cards to its customers. Meanwhile, the digitized ACLEDA mobile
has proved very popular which number of registered users has reached 3.45 million users as at the end of December 2023, all enabling the
rapid circulation of money in the economy.
Enriching customer experience and strengthening cyber security are at the heart of the Group’s focus at present. To achieve solid progress
in pursuing these objectives, the Group will continue to enhance our robust information technology infrastructure by investing in advanced
technologies, fortify the Group’s human resource capacities, and expand and improve business processes. Strategically, the Group is developing
a payment platform to enable licensed partners of all sizes, locally as well as internationally, to join forces in servicing its customers mutually
and beyond borders. This will not only benefit to our valued customers directly but their own business partners as well, recognizing that they
are an important link for extending the Group’s outreach and growth together.
ACLEDA mobile has been extensively improved and redesigned to be more modern, convenient and highly secure with many unique features.
Now, users can make deposits (current, saving and fixed/term) through ACLEDA mobile immediately and get high interest rates.
KHQR payment service provides the better convenient service to the users with high efficiency, safety, and confidence for goods and service
payment transactions among the banking and financial institutions and payment service providers that are members of Bakong App.
Now you can Scan QR to pay anywhere in Thailand, Vietnam and Loas through ACLEDA mobile conveniently and free of charge. This is another
new success of Bakong and ACLEDA BANK, a member of Bakong.
2. Fluctuations in prices of raw materials analysis

None Applicable.
3. Tax Analysis
The BANK and its subsidiaries are under Law on Taxation of respective country jurisdictions. Therefore, the BANK and its subsidiaries have their
obligation to pay taxes in according to the tax regulations of their jurisdictions.
Tax payment commitment to the tax departments not just a role model and awarding with Certificate of Tax Compliance Type awarded "Gold"
for 2022-2023, but also a contributor to society and economic growth.
Tax revenue is the most important source of revenue for a country. The more the government collects taxes, the greater the contribution to
the country's development. ACLEDA BANK PLC. was the third highest tax payer among all taxpayers and the fourth highest tax payer among all
taxpayers that paid Tax on Income in 2022. ACLEDA BANK PLC. is proud to be able to contribute to the economic development of our country.
4. Exceptional and extraordinary items analysis

The Group did not experience any items, transactions or events of a material and unusual nature. However, economic conditions that impacted
by COVID-19 community outbreak especially COVID-19 new variant may affect the repayment capacity of customer as result the Group’s loan
quality may be slightly impacted.
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C. MATERIAL CHANGES IN SALES AND REVENUE

In order to support the business growth of customers, the Group has offered very competitive interest rate for all new loan applications and
by making it easier for its customers, all loan applications can be made through ACLEDA mobile. As a result, gross loan outstanding in 2023
increased by KHR757.19 billion or 2.86% compared to the end of 2022.
D. IMPACT OF FOREIGN EXCHANGE, INTEREST RATES AND COMMODITY PRICES

For 2023, the KHR exchange rate against the US dollar has remained stable – at around KHR4,111 per USD, its price had just 0.2% fluctuated
from the previous year (KHR4,103 per USD). Looking ahead, the KHR's value is expected to remain stable due to the rebound of economic
activities, the public confidence on KHR, and the continued implementation of the National Bank of Cambodia's Riel promotion – measuring
and strengthening of cash management policies in the financial sector, and especially the establishment of mechanisms and procedures to
maintain the stability of the KHR.
For ACLEDA BANK, the BANK fully support all policies set out, follows the regulatory requirements of the NBC and its internal risk management
policies. Together, the BANK has measured, monitored and managed on a daily basis – maintains small enough open currency position; thereby,
there has been no material impact to the BANK.
The interest rates of both local and international have stayed stable, after the drop of inflation in the United States, which has prompted the US
Federal Reserve to suspend three consecutive rate hikes as of the December 2023 policy meeting. In addition, the US Federal Reserve officials
have signaled a cut in interest rates for 2024.
For ACLEDA BANK, the BANK has run its business almost entirely matching both sides of asset and its liability on fixed interest rates; therefore,
the impact of interest rate fluctuations on the BANK's business is minimal and the fluctuations are monitored on a regular basis for taking
appropriate and timely action to avoid the impacts on the BANK's business.
For commodity prices, the BANK does not provide such services, so there is no impact on the BANK.
E. IMPACT OF INFLATION
For 2023, the average inflation rate is forecast to be around 2.5% due to the return to normal of international oil prices and together, the
government has put its efforts into maintaining macroeconomic stability such as curbing inflation and keeping purchasing power. However,
the Bank's operations are not directly involving to the level of inflation. Therefore, the impact is minimal and manageable.
F. ECONOMIC / FISCAL / MONETARY POLICY OF ROYAL GOVERNMENT

• Economic:
The National Bank of Cambodia has reported that Cambodia's economic growth in 2023 is expected to be 5.5%. This new growth is supported
by the strong growth of tourism and the growth of non-garment manufacturing products. Tourism is growing well as the number of
international visitors has increased. The manufacturing sector grew due to an increase in manufacturing products for export, especially
non-garment products such as electronics and vehicles and vehicle accessories, while manufacturing products for the domestic market
declined. The agricultural sector increased, supported by the increase in rice, rubber and fisheries sub-sectors. Meanwhile, the construction
and real estate sectors continued to grow slowly. (1)
Refer to the release news with some well-known institutions still predict the Cambodia’s GDP 2023. The Asian Development Bank (ADB),
Cambodia’s economic growth in 2023 will be slightly lower than earlier forecast, down to 5.3% from 5.5%, mainly due to slower-than-expected
industry growth in the first half, according to an update to the Asian Development Bank’s (ADB) flagship economic report launched today.
The ADB report maintained the country’s 2024 growth forecast at 6.0%. The Asian Development Outlook (ADO) September 2023 notes that
exports of garments, footwear, and travel items declined by 18.6% year-on-year in the first half of 2023. This was partly offset by a 22.9%
increase in exports of manufactures other than garments, such as automotive parts, solar panels, and furniture. The International Monetary
Fund (IMF), IMF forecasted GDP for Cambodia is 5.6% for 2023 and 6.1% for 2024 according to the post on their website (World Economic
Outlook). (WB) In 2024, WB forecasted GDP for Cambodia is 5.8% for 2024 and 6.1% for 2025 according to the post on their website (Global
Economic Prospect). (2),(3),(4)
50
As a result, Cambodia's economic growth in 2023 has continued to recover, supported by strong growth in tourism and growth in non-garment
manufacturing. Tourism grew at a good rate of 19.8%, with the number of international visitors reaching 5.5 million. The manufacturing
sector grew at a rate of 7.4%, with manufacturing products for export up 4.3%, especially non-garment products such as electronics
increased 1.3 times and vehicles and vehicle accessories increased 3.2 times while manufacturing products for the domestic market
decreased by -7%. The agricultural sector grew by 1.1%, supported by growth in rice, rubber and fisheries sub-sectors. The construction and
real estate sectors continued to grow at a slower pace of 1.1% and 0.5%, respectively. Cambodia's balance sheet is estimated at a surplus
of USD226.1 million, supported by a net inflow of financial accounts, while current and capital balances shifted from deficit to surplus. The
surplus contributed to the increase in international reserves to USD20 billion, equivalent to seven months of imports of goods and services
for the next period, higher than the minimum for developing countries (3 months). (1)
• Fiscal:
For the tax collection results in December 2023, HE Kong Vibol presented all kinds of tax revenue that the General Department of Taxation
actually collected through the online revenue management system of the General Department of Taxation amounted to KHR1,072.31 billion
(approximately USD264,77 million), equivalent to 7.41% of the Financial Law Plan for 2023. In the first 12 months of 2023, the tax revenue
collected by the General Department of Taxation through the online revenue management system of the General Department of Taxation
was KHR14,629.10 billion (approximately USD3,612.12 million), equal to 101,13% of the Financial Law Plan for Management for 2023 compared
to tax revenue in the same period of 2022 is an increase of KHR628.28 billion (approximately USD155.13 million) equal to 4,49%. This
successful and proud result is an important contribution to the continued development of the nation. (5)
For 2024, His Excellency the Deputy Prime Minister supported the measures taken by the General Department of Taxation for further
implementation: (1) Continue to strengthen the dissemination and careful implementation of tax incentives and facilitation measures
for the private sector in the past and within the framework of the 19th Royal Government-Private Sector Forum under the chairmanship
His Excellency the Prime Minister on November 13, 2023 (2) Continue to prepare and / or update legal documents (announcements,
instructions and / or notices) in the implementation of tax incentives and tax facilitation measures laid down by the Royal Government,
as well as continue to strengthen careful implementation In accordance with the high recommendations of the Prime Minister issued
in the past to strengthen the quality of service and efficiency. (3) Continue to pay more attention to the quality of service and improve
its work efficiency in accordance with the high recommendations of the Prime Minister, adhering to the four work approaches of His
Excellency the Deputy Prime Minister, Minister of Economy and Finance (4) Develop and launch an e-Administration program that will be
a sophisticated tool to support the provision of taxpayer services, making it easier for taxpayers and the public to submit administrative
documents electronically to the tax administration for processing submissions (5) Continue to modernize the tax administration in line
with the vision of the General Department of Taxation to transform itself into a modern tax administration version 3.0 (Tax Administration
3.0) and to achieve this vision, the General Department respectfully request the high support of His Excellency the Deputy Prime Minister
to encourage the relevant ministries and institutions to participate in the modernization of their respective authorities. (6) Continue
to modernize information technology systems and programs with a proactive spirit through the development and continue updating
investment and development of information technology systems and infrastructure to support and strengthen the capacity of analytical
functions more data to further drive the level of fiscal compliance, making it easier to meet tax obligations but difficult to avoid by
further developing a number of input functions received from users from all environment to make it more comprehensive and easy to
use (7) Continue to cooperate with the Ministry of Land Management, Urban Planning and Construction to: 1. Develop standard operating
procedures (SOPs) on the issuance of certificates of immovable property that are tax-exempt and 2. Request real estate data that can be
used to collect stamp duty, property tax and capital gains tax in the future in case of decision to apply (8) Continue to actively participate
in research frameworks or international cooperation for the purpose of discussing, sharing and drawing on experiences from major
tax administrations and major international institutions, especially the study of new technologies in the field of taxation and revenue
collection. These include the Asia-Pacific Fiscal Administration Study and Research Group (SGATAR), the Belt and Road Initiative for Tax
Cooperation (BRITACOM) and the Forum on Tax Administration (FTA). (9) Continue to push for the completion of legal documents supporting
the 2023 fiscal law and the decisions of the 19th Royal Government and Private Sector Forum. Continue to strengthen cooperation with
the private sector, especially within the framework of cooperation with the private sector and chambers of commerce. (10) Continue to
promote the preparation, negotiation and expansion of the agreement on the elimination of double taxation (DTA) with other countries (11)
Continue to strengthen the transparency and accountability of tax payments of enterprises in the field of beer and non-alcoholic beverages
by continuing to strengthen the implementation of security camera mechanisms in breweries and non-alcoholic beverages with completed
51
all enterprises, inspection of flowmeter in the production line to the location by the leadership of the General Department of Taxation
and the continued strengthening of the performance and presence of officials. Prepare legal documents and action plans to support the
implementation of tax-related measures as set out in the National Strategy on Informal Economic Development 2023-2028 of the Royal
Government (12) Continue to participate in the anti-money laundering and terrorist financing and genocide financing framework with the
National Coordinating Committee against anti-money laundering and terrorist financing and genocide financing (AD) and Sub-Committee
on the Implementation of the Action Plan of the Joint Working Group of the Asia-Pacific Group on International Cooperation (APEC) (13)
Continue to disseminate the new tax law to the public taxpayers, as well as private sector working groups and associations in all forms, and
continue to update tax regulations in accordance with the new tax law. Continue to reform human resources by promoting and enforcing
the implementation of labor laws and regulations, and be gentle but firm, based on the legal aspects of providing taxpayer services and tax
revenue management. (14) Continue to strengthen the provision of consulting services and dissemination of laws and legal documents on
all forms of taxation, especially the provision of consulting services by telephone (Call Center-1277) and the organization of "Tax Cambodia"
(GDT Facebook Live) to Explain and solve the difficulties and questions of the people (15) Continue to strengthen tax registration and update
enterprise information and continue to cooperate to improve and promote enterprise registration in the information technology nursery
(CamDX) to be more efficient and comprehensive. (16) Continue to strengthen the efficiency and effectiveness of the spokesperson and
quick reaction team of the General Department of Taxation and actively participate in the public monitoring and quick reaction team of the
Ministry of Economy and Finance to monitor public opinion and disseminate information to the public more clearly. The great efforts and
achievements that the Royal Government has achieved for the motherland. (5)
• Monetary:
For 2023, the general currency (M2) rose slightly to 12.5% after declining to a low of 8.2% last year (2022). The increase was due to a 14.1%
increase in riel deposits, a 13% increase in currency deposits and a 5.9% increase in circulation. To meet the demand and to maintain the
exchange rate stability, the National Bank of Cambodia has intervened in the exchange market 12 times, selling a total of USD139.1 million
to banking and financial institutions and exchange traders sold for USD9 million. Meanwhile, the provision of liquidity in riel to banking
and financial institutions through liquidity operations with a total LPCO guarantee of KHR2.5 trillion (approximately USD605.1 million). The
recovery of liquidity from the banking system through the issuance of tradable securities (NCDs) can also be used as collateral for loan
operations from the National Bank of Cambodia and the interbank market. The National Bank of Cambodia has increased the absorption
of the riel from the banking system to around 1.3-2.6 trillion riel per month, compared to only 300-500 billion riel per month in March-July
to contribute to the reduction depreciation pressure of the riel against the US dollar. The average NCD interest rate in KHR decreased from
1.35% last year (2022) to 0.94%, from 0.83% to 0.56% from 0.93% to 0.62% from 1.02% to 0.86% from 1.57% to 1.33% from 1.77% to 1.03% from
1.97% to 1.23% and the US dollar fell from close USD800 million in February 2023 to less than USD200 million from September so on, with
interest rates falling from 1.65% in 2022 to 1.07% on average from 1.28 % to 0.74% from 1.32% to 0.78% from 1.40% to 0.86% from 1.67% to 1.29%
from 1.96% to 1.37% and 2.27% to 1.39%, respectively. As a result, overall inflation in 2023 will be 2.1% lower than the previous year (5.4%) due
to lower prices of fuel-related goods and services and lowering food inflation. While the exchange rate continues to stabilize at an average
rate of 4,110 riel per US dollar (compared to 4,102 riel per US dollar last year). (1)
For 2023, the National Bank of Cambodia has set to implement seven monetary policies to support the Royal Government's policies to
restore national economic growth, including: (1) Manage the supply of money at an appropriate level. (2) Maintain a stable exchange rate
by monitoring and intervening as necessary to contribute to maintaining price stability and public confidence in the national currency
(3) Improve the use and knowledge of the riel; (4) Improve and strengthen the existing monetary and political instruments and develop
new monetary instruments (5) Develop the Corridor interest rate framework and implement the benchmark interest rate; (6) Promote the
development of the interbank market in order to improve the efficiency of monetary policy and (7) Raise awareness of banking institutions
and financial institutions on the monetary policy framework and instruments of the National Bank of Cambodia. (1)
Reference:
(1) https://www.nbc.gov.kh/download_files/publication/annual_rep_kh/Annual_Report_2023_KHM.pdf
(2) https://www.adb.org/news/adb-adjusts-2023-growth-forecast-cambodia-maintains-2024-outlook
(3) https://www.imf.org/en/Publications/WEO/Issues/2023/10/10/world-economic-outlook-october-2023
(4) https://www.worldbank.org/en/publication/global-economic-prospects
(5) https://www.tax.gov.kh/u6rhf7ogbi6/gdtstream/2e8790c9-020b-453f-b743-4b1bad3729a8
53
ANNUAL REPORT APPENDIX

FOR ACLEDA BANK
ANNUAL CORPORATE GOVERNANCE REPORT
54
PART 1
SHAREHOLDERS
55
A. SHAREHOLDERS STRUCTURE (BY 31 DECEMBER 2023)

1. Shareholder Information
Description Nationality Type of Shareholder Number of Shareholders Number of Shares Percentage
Individual 16,604 65,991,460 15.2348%

Cambodian
Legal Person 5 3,725,990 0.8602%
Less than 5%
Individual 434 1,367,152 0.3156%
Non Cambodian
Legal Person 9 35,592,861 8.2170%
Individual - - -
Cambodian
Legal Person 2 143,165,800 33.0513%
From 5% to less than 30%
Individual - - -
Non Cambodian
Legal Person 3 183,319,756 42.3212%
Individual - - -
Cambodian
Legal Person - - -
From 30%
Individual - - -
Non Cambodian
Legal Person - - -
Total 17,057 433,163,019 100.00%
2. Shareholders Who are Directors, Senior Officials and Employees
Shareholders Number of Shareholders Number of Shares Percentage
Director 2 1,032,348 2.2004%
Senior Officials 7 1,552,756 3.3096%
Employees 7,128 44,330,981 94.4899%
Total 7,137 46,916,085 100.00%

56
B. SHAREHOLDERS' AND PROTECTION OF SHAREHOLDERS' RIGHTS

1. Rights of Shareholders
Any holder of each share shall be entitled to have:
• The rights to join General Meeting of Shareholders;
• The rights to vote directly or by proxy at any meeting of Shareholders;
• The right to receive any dividend or benefits distributed by the BANK;
• The right to receive the remaining property of the BANK on dissolution; and
• The right to obtain all kind of information including the BANK’s business information, the BANK’s accounting records and to check the
shareholder names list at the BANK’s Headquarters during working hours or at the General Meeting of Shareholders.
2. Protection of Shareholders' Rights and the Company's Practice of the Protection of

Shareholders' Rights
The rights of Shareholders are protected by the MAOA of ACLEDA BANK. In accordance with Article 14 (14.1 point 1) of the MAOA of the BANK, “The
ordinary share of the BANK provides the holder 1 (one) vote in General Meeting of Shareholders”.
3. Protection of Minority Shareholders' Rights and the Company's Practice of the Protection
of Shareholders' Rights
Each ordinary share has one vote. The rights of minority shareholders are protected by the MAOA of the BANK.
C. GENERAL SHAREHOLDER MEETING

1. Procedure of General Shareholder Meeting and Voting
The BANK has adopted a General Meeting Voting Policy, which is to provide clear rules and guidance to the Shareholders on how the voting
process is to be conducted.
Quorum
The quorum for any shareholders’ meetings shall be shareholders present in person or by proxy, holding at least 51% (fifty-one percent) of
total voting shares.
Notice
The written notice will be provided to all shareholders addressed in different ways: hard copy and/or electronic version at least twenty (20)
days, but no more than fifty (50) days, in advance of the scheduled meeting. The notice of the Shareholders meeting clearly specify the date
and time and place at which the general meeting is held.
During the meeting and voting process

The Chairman will start the meeting with a welcome speech, determine whether a quorum is present, and announce the agenda. The Chairman
would need to clarify the voting procedures to all shareholders presented at the Shareholders meeting before any resolution is put to the vote.
The BANK appoints their staff in advance to facilitate the voting process. The result will be announced after the counting of ballots and proxies
by the manual/ system.
After the meeting

The BANK is subject to continuous disclosure and reporting obligations under Prakas 007/18 K.M.K/BB.K. dated October 30th, 2018 of SERC on
Corporate Disclosure and in accordance with the Corporate Disclosure Policy of the BANK.
57
2. Information of General Shareholder Meeting
No Date Type of Meeting Quorums Agendas Resolutions
01 27 April 2023 AGM 83.71 % Matters for Decision: The shareholders passed the following resolutions:
• Approval of distribution of • The Shareholders Approved of distribution of cash
cash dividend dividend at 40% of the 2022 Profit for the Year
Attributable to Owners of ACLEDA BANK of
KHR742,764,670,000 equal to KHR297,105,864,987.58
at KHR685.8985 per share and transfer the remaining
balance of the 2022 Profit for the Year Attributable
to Owners of ACLEDA BANK to Retained Earning. The
Shareholders voted in the favour of 99.93 percent.
• Approval of revised Dividend • Approval of revised Dividend Policy. The Shareholders

Policy. voted in the favour of 99.93 percent.
• Approval of reappointment • Approval of reappointment of Mr. Chhay Soeun as a

of director mandate for the director of ACLEDA BANK for the next 3 years term.
next 3-year term The Shareholders voted in the favour of 99.93 percent.
• Approval of reappointment of Dr. In Channy as a

director of ACLEDA BANK for the next 3 years term.
The Shareholders voted in the favour of 99.93 percent.
• Approval of reappointment of Mr. Van Sou Ieng as

an Independent Director of ACLEDA BANK until his
retirement date on 10 October 2023. The Shareholders
voted in the favour of 99.92 percent.
• Approval of nomination • Approval of PricewaterhouseCoopers “PwC” as the

of external auditor for the external auditor of the ACLEDA BANK for the financial
ACLEDA BANK for the year 2024. The Shareholders voted in the favour of
financial year 2024 99.92 percent.
• Approval of annual increase in • Approval of annual increase in salary of Chairman of

Chairman’s salary the Board of Directors as below:
 To increase in salary of Mr. Chhay Soeun, Chairman

of the Board, with grading “A+” retro-effective
from 01 January 2023;
 To add 2022 inflation rate of 3% to his salary

effective from 01 April 2023 to 31 March 2024.
The Shareholders voted in the favour of 99.89 percent.
• Approval of adjustment of • Approval of Board of Directors fees of ACLEDA

Board of Director fee in line BANK in line with the 2022 inflation rate of 3%. The
with 2022 inflation rate Shareholders voted in the favour of 99.89 percent.
• Approval of setting a record • Approval of a record date on 10 May 2023 for

date for determining of determination of shareholders entitled to receive
shareholders who are dividend. The Shareholders voted in the favour of
entitled to receive 99.86 percent.
58
No Date Type of Meeting Quorums Agendas Resolutions
• Approval of amendment to • Approval of Amendment to Article 8 (“Subscription

Article 8, Appendix 1, of Shares”), Appendix 1 (“List of Composition of
Appendix 3, and Appendix 4 Board of Directors of ACLEDA BANK”), Appendix 3
of MAOA of ACLEDA BANK (“List of Public Shareholders of ACLEDA BANK”), and
Appendix 4 (“List of Shareholders Legalized from
ASA, Plc.”) of MAOA of ACLEDA BANK. The Shareholders
voted in the favour of 99.82 percent.
02 18 Sep 2023 EGM 84.61% • Approval and appointment of • Approval and appointment of Dr. Heng Dyna as
Dr. Heng Dyna as an an Independent Director of ACLEDA BANK. The
Independent Director of Shareholders voted in the favour of 99.77percent.
ACLEDA BANK.
• Approval and recognition of • Approval and recognition of nomination of Mr. Takeshi

nomination of Mr. Takeshi Kimoto as a new Shareholder Representative from
Kimoto as a new Shareholder SMBC in ACLEDA BANK to replace Mr. Hideomi
Representative from SMBC in Shigematsu.
ACLEDA BANK The Shareholders voted in the favour of 99.96percent.
• Approval of amendment to • Approval of amendment to the Appendix 1

the Appendix 1 (“List of (“List of Composition of Board of Directors of
Composition of Board of ACLEDA BANK PLC.”) of the ACLEDA BANK's MAOA. The
Directors of ACLEDA BANK PLC.”) Shareholders voted in the favour of 99.92percent.
of the ACLEDA BANK's MAOA
D. DIVIDEND DISTRIBUTION
1. Dividend Policy
The BANK put in place a Dividend Policy to set the principles to guide the determination of dividends to the shareholders properly and effectively.
The BANK classifies dividends into the following categories:
• Cash dividend;
• Stock dividend; and
• Other forms determined by the decisions of the Board of Directors and Shareholders, and permitted by applicable laws, regulations, and
international best practices.
2. Historical Information of Dividend Distribution of the last 3 years.
No Detail of Dividend Distribution 2023 2022 2021
Phase 1: 01 June 2021

1 Announcement Date of Dividend Distribution 28 April 2023 08 June 2022 Phase 2: 26 November 2021
Phase 3: 29 December 2021
2 Record Date 10 May 2023 06 May 2022 03 May 2021
Phase 1: 10 June 2021 (Cash)

3 Dividend Payment Date 19 May 2023 (Cash) 10 June 2022 (Cash) Phase 2: 06 December 2021 (Cash)
Phase 3: 30 December 2021 (Cash)
59
PART 2
BOARD OF DIRECTORS
60
A. BOARD OF DIRECTORS
1. Board Composition
No Name Position Appointment Date Ending Date
1 Mr. Chhay Soeun Chairman 18 August 2014 18 August 2026
2 Dr. In Channy Executive Director 18 August 2014 18 August 2026
3 Drs. Pieter Kooi Independent Director 12 January 2004 12 January 2025
4 Dr. Heng Dyna Independent Director 11 December 2023 11 December 2026
5 Ms. Phurik Ratana Independent Director 08 November 2021 08 November 2024
6 Mr. Stéphane MANGIAVACCA Non-Executive Director 22 April 2020 21 August 2024
7 Mr. Kyosuke Hattori Non-Executive Director 08 November 2021 06 December 2025
8 Dr. Albertus Bruggink Non-Executive Director 12 May 2021 10 January 2025
9 Mr. Kay Lot Non-Executive Director 12 May 2021 12 May 2024
Note: Mr. Van Sou Ieng, Independent Director of ACLEDA BANK, retired on 10 October 2023.
2. Director Biography
Mr. Chhay Soeun, Chairman

Board Committees: Audit
Cambodian. Born on April 1954. Mr. Soeun became a member of the Board of Directors in August 2014. He joined ACLEDA in January 1993 and
worked there until his retirement on April 2014. His last position at ACLEDA BANK PLC. was as Executive Vice President & Group Chief Financial
Officer. From 1980 to 1992, he was an accountant and deputy chief accountant at the Kampot Provincial Department of Commerce.
At present, he is Chairman of the Board of Directors of ACLEDA BANK PLC., Cambodia, a Board member of ACLEDA BANK Lao Ltd. (ABL), and a
Board member of ACLEDA MFI Myanmar Co., Ltd. (AMM).
He obtained his Executive Master of Business Administration in Finance and Accounting from Preston University, California, USA. He is also a
Graduate of the Australian Institute of Company Directors (GAICD).
Dr. In Channy, Director

Cambodian. Born in June 1960. Dr. Channy is President & Group Managing Director of ACLEDA BANK PLC., a position he has held since it was
established as a bank in 2000. He became a member of the Board of Directors of ACLEDA BANK PLC. in August 2014. He was one of the founders
of the Association of Cambodian Local Economic Development Agencies (ACLEDA) since January 1993. As President of the Executive Committee
he leads the Executive Management Team which is responsible for overall strategic planning and running the day-to-day business of ACLEDA
BANK PLC. and its Group as well as implementation of its business plan. He is directly accountable to the Board of Directors.
His other responsibilities within the Group include Chairman of ACLEDA BANK Lao Ltd. and ACLEDA MFI Myanmar Co. Ltd., Shareholder
Representative for ACLEDA BANK Lao Ltd., ACLEDA Securities Plc., the ACLEDA Institute of Business, and ACLEDA MFI Myanmar Co., Ltd. He is also
the Chairperson of Board of Trustees of ACLEDA Financial Trust.
Outside ACLEDA BANK, he was a Chairman of the Association of Banks in Cambodia for two consecutive terms from 2019 to March 2022.
He is currently a council member of the Association of Banks in Cambodia and he co-chairs a working group on banking and Financial Services.
He completed an Executive Course on Financial Institutions for Private Enterprise Development (FIPED) at Harvard University, USA in 1998.
He holds a Doctorate of Business Administration and is also a Graduate of the Australian Institute of Company Directors (GAICD).
61
Drs. Pieter Kooi, Director

Board Committees: Risk Management and IT (Chair), Remuneration and Nomination (Chair), Audit
Dutch. Born in 1958. Drs. Kooi joined the Board in October 2000. Starting in 1993, he advised ACLEDA as a microfinance consultant over a
period of seven years in its course from a development program into a commercial bank. From 1999, he worked as a short-term microfinance
consultant on projects in 15 countries located mainly in Africa and Asia. From September 2002 until December 2005, he was Director of the
Microfinance Unit of UNCDF in New York. From March 2006 till May 2011, Drs. Kooi supported ACLEDA BANK PLC. as a part-time consultant in
the establishment of ACLEDA BANK Lao Ltd., ACLEDA Training Center Ltd. (currently ACLEDA Institute of Business) and ACLEDA Securities Plc. At
present Drs. Kooi serves on several boards within the ACLEDA BANK Group.
He obtained his Master’s Degree with distinction in Corporate Finance and Sociology from Erasmus University in Rotterdam, the Netherlands.
He is also a Graduate of the Australian Institute of Company Directors (GAICD).
Dr. Heng Dyna, Director

Board Committees: Risk Management and IT
Cambodian. Dr. Heng Dyna joined the Board in December 2023, bringing more than 10 years of experience as financial sector specialist and
economist at international financial institutions. He has extensive experience in risk analysis, macroeconomic surveillance, and financial sector
assessment. Dr. Heng also led several technical assistance programs and training to central banks and ministries of finance in Asia, Africa, and
Europe. He is now on an external assignment based in the Unites States and also serves on voluntary basis as a board member of the Cambodian
Economic Association.
Dr. Heng completed Asset and Portfolio Management program at the Wharton School and earned a Ph.D. Degree in Economics from the Australian
National University, Australia, in 2012. He obtained a master’s degree in economics from Hitotsubashi University, Tokyo and a Bachelor’s Degree in
Economics from Nagoya University, Nagoya, Japan. Dr. Heng was also a high school National Math Champion (Rank 4th) in 2000.
Ms. Phurik Ratana, Director

Board Committees: Audit (Chair)
Cambodian (and French). Born in 1972, Ms. Ratana Phurik-Callebaut joined the Board in November 2021 and is also the chairwoman of the Board
of ACLEDA Institute of Business since November 2022. She is a CFA Charterholder. She also obtained a Post-Graduate Diploma (DEA) and was
a PHD candidate in Industrial Economics, a Master of Science in Foreign Trade and a Master in Economics and Finance at University of Paris 1
Panthéon-Sorbonne. She is also a Graduate of the Australian Institute of Company Directors (GAICD).
Ratana has 25 years' experience in international trade, investment, private sector development, and finance. She has a strong background
as a consultant/economist combined with experience in high-level management positions. She is currently a Private Sector and Investment
senior consultant for various international organizations and is on the advisory board of Khmer Enterprise, Impact Hub and SmallWorld. She
was an Independent Director for a commercial bank in Cambodia from 2014 to 2021. She terminated her position as Independent Director of
I-Finance Leasing (as it was sold to Kookmin at the end of 2022) and she started her position as a chairwoman of the board of AIB. In addition,
she is the founder and chairperson of the Cambodia Community of Investment Professionals (CFA Community in Cambodia) to build local skills
in finance while promoting Cambodia as an investment destination. Her previous positions in Cambodia include being the Executive Director
of EuroCham Cambodia from 2014 to 2018, business consultant of DFDL, partner at the private equity firm Cambodia Emerald in 2008 and
director of the CCFC (French Cambodian Chamber of Commerce). She worked also in Switzerland as portfolio manager for a Private Bank and
as economist at UNCTAD.
Mr. Stéphane MANGIAVACCA, Director

Board Committees: Remuneration and Nomination
French. Born in 1975. Mr. Mangiavacca joined the Board in March 2020. He started his career with the French Ministry of Finance, working in
China. He then joined the Internal Audit of BPCE Group where he became Senior Manager of Quantitative Audit. He now works for BRED Banque
Populaire as an Executive Board member, Head of International and then become a Board member of several French and international banks
of BRED Group. He was Chief Risk & Compliance Officer prior to that, until January 2020. He graduated from ECOLE NATIONALE SUPERIEURE DES
MINES DE SAINT-ETIENNE, Engineering Diploma with honors and studied at University of New Brunswick in Canada.
62
Mr. Kyosuke Hattori, Director

Japanese. Born in 1975. Mr. Kyosuke Hattori joined the Board in November 2021. He began his career with Sumitomo Bank (currently
Sumitomo Mitsui Banking Corporation (SMBC)) after graduating from Sophia University. In April 2001, Mr. Hattori was appointed to an Assistant
Vice President, Shin-Yokohama Corporate Business Office, SMBC. In October 2002, Mr. Hattori was assigned as an Assistant Vice President,
Corporate Finance Services Department, Tokyo. In December 2003, he was transferred to work at Singapore branch. In July 2005, he was promoted
to a Vice President, Singapore Branch. In July 2009, He was nominated as a Vice President, Public Relations Department, Tokyo. In October 2012,
he was further promoted to a Senior Vice President, Corporate Planning Department, Tokyo. He was changed his duty station to work at Emerging
Markets Business Division, and Planning Department, International Banking Unit in April 2014 and 2016 respectively. In April 2017, he was
elevated to a Senior Vice President and Group Head, Planning Department, International Banking Unit. In April 2020, he was changed the
duty station to work at Business Development Department, Tokyo. He was then transferred to work in Singapore in June 2021 as Joint General
Manager of Planning Department, Asia Pacific Division and now works for Asia Growing Markets Department, Asia Business Development
Division as Joint General Manager. He graduated from Sophia University with a Bachelor of Arts in Law in March 1998.
Dr. Albertus Bruggink, Director

Board Committees: Remuneration and Nomination, and Risk Management and IT
Nederlandse, Born in 1963. Dr. Albertus Bruggink joined the Board in May 2021.
Outside ACLEDA BANK, he is currently an independent consultant based in the Netherlands and he is a corporate advisor to ORIX Corporation
in Tokyo and independent chairman of the Audit Committee of ORIX Europe. Furthermore, he joined the Board of Foundation Westerbork Fund
(Netherlands) in January 2022. He has worked for 30 years at Rabobank in different roles in finance, risk management and treasury/capital
markets, both domestically and internationally of which the last 12 years as member of the Executive Board (CFRO). During his career, he served
on a number of board of directors, predominantly in the Netherlands, and has served as the chairman of the audit committees of such Boards
on a number of occasions. Dr. Bruggink received an MSc in Business Administration from University of Twente in 1986 and a PhD in Financial
Engineering from University of Twente in 1989. He is currently a part-time professor in Financial Engineering and Risk Management at University
of Twente.
Furthermore, he acts as a member of supervisory boards of Medisch Spectrum Twente (Netherlands), TFG and XAC Bank (Mongolia), and Gravis
Capital Management (UK).
Mr. Kay Lot, Director

Cambodian, Born in 1970. Mr. Kay Lot joined the Board in May 2021. He is an entrepreneur with senior management experience in finance, banking,
media, and telecommunications. Prior to joining ACLEDA BANK, he served as independent director, and chair of the audit committee, in one of the
largest Microfinance Deposit-Taking Institutions in Cambodia.
Currently he is chairman of the board of Artisans Angkor Co., Ltd., a social enterprise based in Siem Reap, a shareholder in a digital media agency,
and a construction company. He also serves as an Independent Director for BSP Finance Cambodia and Digital Divide Data, a social impact company
based in New York.
He obtained IFRS Certification from The Association of Chartered Certified Accountants (ACCA), and an EMBA from Essec Business School. He is also a
Graduate of the Australian Institute of Company Directors (GAICD).
63
3. Director, Shareholder of Co-owner of Other Company
No Name Company Director, Shareholder or Co-owner
1 Mr. Chhay Soeun N/A N/A
2 Dr. In Channy AFT Chairperson

Association of Banks in Cambodia (ABC) council member
working group on banking and Financial Services co-chairs
3 Drs. Pieter Kooi Alter Modus MFI in Podgorica, Montenergo N/A
4 Mr. Stéphane MANGIAVACCA Banque Franco Lao, BRED Vanuatu Limited, BCI Chairman and Director
Mer Rouge, BRED Bank Fiji Limited
BRED IT Ltd, BIC BRED – Suisse SA, COFIBRED, Director

BCEL, Foncière de Vanuatu Limited, SOCREDO,
Banque Calédonienne d’Investissement, SPIG,
and BIC-BRED
Mines Saint-Étienne Alumni Association Chairman
Institut Mines-Télécom and of Ecole Nationale Director

Supérieure des Mines de Saint-Etienne
5 Mr. Kyosuke Hattori Asia Growing Markets Department, Asia Business General Manager
Development Division
6 Dr. ALBERTUS BRUGGINK Foundation Westerbork Fund Board

MST, Netherlands Member
TFG / XAC Bank, Mongolia Member
Gravis Capital, UK Member
7 Mr. Kay Lot Sepakor Angkor Co., Ltd., Board Chair

BSP Financial Cambodia Plc. Independent Director
Digital Divide Data, New York. Independent Director
Quantum Publicity Co., Ltd. Director and Owner
YellowTree Interior Co., Ltd. Director and Owner
8 Ms. PHURIK RATANA Khmer Enterprise, Impact Hub and SmallWorld Advisor
CFA Community in Cambodia Founder and Chairperson
9 Dr. Heng Dyna Cambodian Economic Association Member

64
4. Board Roles, Duties, Responsibilities and Performance

The Directors are appointed by the Shareholders for three-year terms to act on their behalf. The Board shall consist of nine Directors and that:
• The Board of Directors is responsible for determining the strategy of the BANK and for conducting or supervising the conduct of its business
and affairs. Its members shall act in the best interests of the BANK.
• The powers of the Board of Directors are to be exercised collectively and no individual Director shall have any power to give directions
to the officers or employees of the BANK, to sign any contracts, or to otherwise direct the operations of the BANK unless specifically
empowered to do so by a resolution of the Board of Directors.
• Each Director shall have unlimited access to the books and records of the BANK during ordinary business hours.
The Board of Directors shall elect, by majority vote, one of its members to serve as Chairman who shall preside over meetings of the Board of
Directors as well as the Annual General Meeting.
The Board of Directors assumes responsibility for corporate governance and for promoting the success of the BANK by directing and supervising
its business operations and affairs. It appoints and may remove the President & GMD, Senior GCIAO/GCIAO, and Head of COD. It also ensures
that the necessary human resources are in place, establishing with management the strategies and financial objectives to be implemented by
management, and monitors the performance of management both directly and through the Board Committees.
The Board of Directors established three Committees: Audit, Remuneration and Nomination, Risk Management and IT, and may establish such
other committees as it deems necessary or desirable to carry on the business and operations of the BANK. These Board Committees shall exist
at the pleasure of the Board of Directors and all members of such Committees shall be approved by the Board. The Committees themselves will
not exercise any of the powers of the Board, except in so far as the Board may formally delegate such powers, but may make recommendations
to the Board for their collective action. Whilst membership on Board Committees is restricted to Directors themselves, they may invite members
of management and others so as to provide operational information and explanation when considered necessary. All Board Committees are
chaired by Independent Directors.
A complete list of existing Board Committees, their membership and their activities during 2023 appears on pages 68-70 of this report.
65
5. Board Meetings
No Date Type of Meeting Name of Directors Attending the Meeting
01 07 February 2023 Special Meeting by E-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana,
Mr. Stéphane Mangiavacca
Mr. Kyosuke Hattori
Mr. Kay Lot

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
04 27 February 2023 Special meeting by e-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
05 22 March 2023 Physical meeting Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
66
No Date Type of Meeting Name of Directors Attending the Meeting
06 13 April 2023 Special Meeting by E-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
07 05 May 2023 Special Meeting by E-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
08 30 May 2023 Special Meeting by E-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
09 23 June 2023 Physical meeting Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
10 31 July 2023 Special meeting by e-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
67
No Special Meeting by E-mail Name of Directors Attending the Meeting
11 07 August 2023 Special meeting by e-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
12 09 August 2023 Special Meeting by E-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
13 15 August 2023 Special Meeting by E-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
14 21 September 2023 Physical meeting Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Mr. Van Sou Ieng
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Dr. Albertus Bruggink (joined via con-call)
Mr. Kay Lot
15 06 November 2023 Special meeting by e-mail Mr. Chhay Soeun

Dr. In Channy
Drs. Pieter Kooi
Ms. Phurik Ratana
Mr. Kyosuke Hattori
Mr. Kay Lot
16 19 December 2023 Physical meeting Mr. Chhay Soeun,

Dr. In Channy,
Drs. Pieter Kooi,
Ms. Phurik Ratana,
Dr. Heng Dyna,
Mr. Kyosuke Hattori,
Mr. Stéphane Mangiavacca,
Dr. Albertus Bruggink, (joined via con-call)
Mr. Kay Lot,
68
B. BOARD COMMITTEE
1. Board Committee Structure

On 26 June 2019, the Board revised Board Committees structure and composition with reference to Cambodian law and the requirements of the
NBC, the best practice and any other factors specific to the BANK’s situation. The latest composition of Board Committees has been revised on
19 December 2023.
1.1 Board Audit Committee (BACO)
Scope & Purpose
The BACO is established by the Board of Directors of ACLEDA BANK PLC. to monitor and review the integrity of the financial statements, the
internal control system including Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), the internal audit and the
service provided by external auditors.
Members
• Ms. Phurik Ratana, Independent Director, Chair (Effective on 01 January 2022)
• Drs. Pieter Kooi, Independent Director, member
• Mr. Chhay Soeun, Non-Executive Director, member
Significant Issues and Activities in 2023

The BACO met 4 times in 2023 whereas 1 time in February, 1 time in May, 1 time in August, and 1 time in November. The main proceedings were:
• Reviewed, approved and endorsed to the Board of Directors for final approval, the financial audited statements of 2022.
• Reviewed and approved 2023 interim financial statement for March, June and September and endorsed to the Board of Directors for final
approval.
• Reviewed and approved the internal control report of the year 2022 for submission to the National BANK of Cambodia.
• Reviewed and approved the Internal Audit report of the year 2022 to disclose, as CSX requires.
• Reviewed the internal audit reports and analysed any unusual trends or incidents.
• Proposed the 2022 incentive of the Senior Group Chief Internal Audit Officer and recommended to Board for approval.
• Evaluated and graded the 2022 performance of the Senior Group Chief Internal Audit Officer and recommend to Board for approval.
• Reviewed and approved the Internal Audit report 2022 on AML Audit for submission to Cambodia Financial Intelligence Unit (CAFIU).
• Reviewed and approved the internal audit plan for fiscal year 2024.
• Reviewed and approved the criteria incentive 2024 for Senior Group Chief Internal Audit Officer and endorsed to the BRENCO for the Board
final approval.
• Reviewed and evaluated the performance of external audit for the year 2022.
• Reviewed and approved the audit scopes and fees of engagement AML/CFT audit for the 2023.
• Reviewed and approved the revised TOR of BACO and recommended to the Board for final approval.
• Annually reviewed the policies: Audit Policy, Internal Control Policy, Corporate Disclosure Policy, Dividend Policy and General Policy Guidelines.
69
1.2 Board Remuneration and Nomination Committee (BRENCO)
Scope & Purpose
The Committee is established by the Board of Directors of ACLEDA BANK to provide an independent opinion on advising the Board in the matters of:
a) Remuneration of Directors, President & GMD, Senior GCIAO, and Head of COD of the BANK, and Directors of subsidiaries; and
b) The selection of suitable candidates for the member of Board of Directors, the President & GMD, Senior GCIAO, and Head of COD of the BANK.
Members
• Drs. Pieter Kooi, Independent Director, Chair (Effective on 19 December 2023)
• Dr. Albertus Bruggink, Non-Executive Director, member
• Mr. Stéphane Mangiavacca, Non-Executive Director, member
The Committee, from time to time, may ask members of management and outside professional advisers to attend all or part of any meeting to
provide additional information and explanation as they consider necessary.
The BRENCO met 6 times in 2023 whereas 1 time in February, 1 time in March, 2 times in June, 1 time in September, and 1 time in December.
The main proceedings were:
• Reviewed and endorsed to the Board for final approval for annual report 2022 of BRENCO;
• Review and endorse to the Board for final approval of 2022 inflation rate for the payment to the BANK's employees from 01 April 2023 onward;
• Reviewed and endorsed to the Board for final approval of incentive and annual increase in salary of Dr. In Channy, President & GMD for year
2022 performance;
• Reviewed and endorsed to the Board for further approval of annual increase in salary of Chairman of the Board retro-effective from
01 January 2023;
• Reviewed and endorsed to the Board for further approval of the increase in Director fees of ACLEDA BANK PLC. and its subsidiaries;
• Reviewed and endorsed to the Board for further approval of re-appointment of Directors’ mandates of ACLEDA BANK PLC. and subsidiaries;
• Updated and endorsed to the Board for approval of Appendix E of Corporate Governance Policy tied to Board fees and expenses;
• Reviewed the audit report in connection with the pension and retirement benefits plan;
• Reviewed the employees’ pension and retirement benefits plan;
• Reviewed relevant laws and regulations;
• Reviewed succession plan of all senior positions of the BANK and subsidiaries;
• Interviewed and endorsed to the Board for approval of Dr. Heng Dyna as Independent Director of ACLEDA BANK PLC.;
• Reviewed the actual level and composition of employment costs for the year to date;
• Reviewed management’s proposal for employment costs in the next year BP;
• Reviewed and endorsed to Board for approval and nomination of Mr. Kay Lot as an Independent Director of ACLEDA BANK PLC.;
• Annually reviewed the BANK's policies;
• Annually reviewed the TOR of BRENCO;
• Reviewed and endorsed to Board for approval and nomination of composition of Board committees;
• Reviewed and endorsed to the Board for approval of President & Group Managing Director, Senior Group Chief Internal Officer, and Head of
Compliance’s 2024 incentive criteria;
• Made Annual self-appraisal of BRENCO; and
• Prepared Annual self-appraisal format of the Board.

70
1.3 Board Risk and IT Committees (BRIC)
Scope & Purpose
The Committee is established by the Board of Directors of ACLEDA BANK PLC. (“the BANK”) to assist the Board of Directors in the effective
discharge of its responsibilities for risk management, compliance, and information technology and to regularly review management's ability
to assess and manage the BANK's risks.
Members
• Drs. Pieter Kooi, Independent Director, Chair

• Mr. Kay Lot, Non-Executive Director, Member
• Mr. Kyosuke Hattori, Non-Executive Director, member
• Dr. Albertus Bruggink, Non-Executive Director, member
• Dr. Heng Dyna, Independent Director, member
The Committee, from time to time, may ask members of management and outside professional advisers to attend all or part of any meeting to
provide additional information and explanation as they consider necessary.

The BRIC met 12 times in 2023 whereas 1 time in January, 1 time in February, 1 time in March, 3 times in April, 2 times in June, 1 time in July, 1 time in
August, 1 time in September and 1 time in December. The main proceedings were:
• Reviewed and discussed the Group and the BANK's overall risk profile as presented by the EVP & Group CRO to ensure that the key risk
indicators fully complied with the regulatory requirements, internal targets, and risk appetite statement - key risk indicators’ level (RAS-KRIs).
• Assessed and discussed the potential future risks for ACLEDA BANK and its subsidiaries.
• Discussed and further refined the risk analysis process and undertook a series of stress test scenarios and reverse stress tests allowing for
simultaneous occurrence of risks including potential effects of COVID-19 pandemic, slow growth of real estate and construction sector, and
restructured facilities.
• Reviewed the internal capital adequacy assessment process (ICAAP) report which was aimed for assessing its overall capital adequacy in
relation to the risk profile and determining a strategy for maintaining appropriate capital levels.
• Assessed the composition of the credit portfolio and, particularly, its quality and compliance with internal policies.
• Monitored and discussed the restructuring of facility, refinancing of facility, reclassification of facility, and write-off of facility.
• Analysed the impact of possible risk scenarios on the balance sheet, income statement and prudential ratios.
• Reviewed the potential risks in light of the high standards as set by the Board of Directors on the Environmental, Social, and Governance
(ESG) aspect and customer protection.
• Reviewed and analysed cyber security and other main IT issues for the BANK as a Digital Bank.
• Reviewed and analysed the development of the banking industry in Cambodia to assess competitive and business risks.
• Reviewed and discussed the development of the market of digital financial services, small and medium business credit and real estate &
construction credit.
• Discussed strategies to optimally manage these potential risk events in the long-term interest of ACLEDA BANK and its customers.
• Reviewed the liquidity stress testing results and the contingency funding plan for 2024.
• Reviewed and approved management’s funding proposals to support funding needs.
• Reviewed the compliance division report and received analyses of any suspicious transactions.
• Reviewed and approved the incentive scheme targets for the Compliance Division and endorsed to the Board for final approval.
• Reviewed and approved the Compliance Division budget plan for fiscal year 2024.
• Reviewed the terms of reference of Board Risk Management and IT Committee (BRIC).
• Reviewed and endorsed the following policies: Risk Management Policy, Liquidity Risk Management Framework, Trade of ACLEDA BANK
Shares Policy, Credit Policy, Environmental, Social and Governance (ESG) Policy, IFRS9 Impairment Policy, Credit Scoring Policy, Compliance
Policy, Anti-Money Laundering and Combating the Financing of Terrorism Policy, KYC/Customer Due Diligence Policy, Whistle-blower's
Protection Policy, Related Party Transactions Policy, Conflict of Interest Policy, Insider Trading Policy, Code of Conduct Policy, Customer
Complaint Policy, Information Technology (IT) Governance Policy, and Information Security Policy.
• Reviewed and endorsed the risk appetite statement - key risk indicators’ level (RAS KRIs).
• Conducted an annual self-assessment of its performance relative to the Board Risk Management and IT Committee's purpose, duties, and
responsibilities in order to ensure the effective discharge of its responsibility.
71
2. Changes of Committee Member
No Committee Name Reason
1 BACO N/A N/A
2 BRENCO Drs. Pieter Kooi Drs. Pieter Kooi has been appointed as the Chairman of BRENCO, effective 19 December 2023.
3 BRIC Dr. Heng Dyna Dr. Heng Dyna is a new director appointed as a member of BRIC, effective 19 December 2023.
C. REMUNERATION AND COMPENSATION

1. Brief Policies of Remuneration or Compensation for Directors and Senior Officers
Director
• The Shareholders of ACLEDA BANK and its subsidiaries determine the remuneration and benefits of directors from time to time through the
Shareholders’ Agreement, based on the proposal of the Board of Directors.
• The Shareholders of ACLEDA BANK and its subsidiaries nominate the Directors of the Board as stipulated in their respective MAOA
Senior Officers
• The Board of ACLEDA BANK shall appoint a suitably qualified person as its President & GMD, Senior GCIAO/GCIAO, and Head of COD of the BANK.
• The Board of ACLEDA BANK approve the remuneration of the President & GMD, Senior GCIAO/GCIAO, and Head of COD of the BANK.
• The Boards of ACLEDA BANK and its subsidiaries shall approve the overall annual budget for the remuneration of the Directors and employees.
• The Boards of ACLEDA BANK and its subsidiaries will evaluate its own performance on an annual basis.
2. Remuneration and Compensation Receivers
No Remuneration and Compensation Receiver Remuneration and Compensation Amount Other
1 Directors $544,488.25
2 Executive Directors and Senior Officer $5,833,187.42
3 Top 5 Employees Receiving Remuneration and $4,229,025.01

Compensation Receivers
D. ANNUAL PERFORMANCE EVALUATION OF BOARD OF DIRECTORS, DIRECTORS,

COMMITTEE AND CEO
No Description Evaluation Process Marking Criteria
1 Board of Directors The Board makes self-assessment of their performances • Authorities, roles, and responsibilities stipulated
in their Board charter, MAOA, and applicable law
• Participation in the Board meetings
2 Directors The Directors make self-assessment of their performances • Authorities, roles, and responsibilities stipulated
in their Board charter, MAOA, and applicable law
3 Committees The Board committees make self-assessment of their • Authorities, roles, and responsibilities stipulated in
performances their Terms of References
4 President & GMD The performance of President & GMD is evaluated by Performance criterion (Both quantitative and qualitative)
BRENCO and is recommended to the Board for final set by BRENCO and recommend to the Board for final
approval.
72
E. TRAINING FOR DIRECTORS AND SENIOR OFFICERS

Training courses for directors and senior officers in 2023 as below:
Local Training
No Name Position Topic Venue Training Type Conducted Training by Date of Training
1 Dr. In Channy President & Group Managing Director The Roles of Governance in Ensuring 23 August 2023
The Association of Banks in
Commitment and Effective Phnom Penh Workshop
Cambodia
2 Drs. Pieter Kooi Independent Director Implementation of Client Protection
24 August 2023
25th training and examination and Securities and Exchange Regulator

3 Mrs. Kim Sotheavy Senior Group Chief Internal Audit Officer Phnom Penh Training 07-14 August 2023
vocational education program of Cambodia (SERC)
The Roles of Governance in Ensuring

Commitment and Effective The Association of Banks in
Workshop 14 June 2023
Implementation of Client Protection Cambodia
Establishing the Foundation Blocks

in Accelerating the Expansion of Workshop Women's World Banking 10 August 2023
Senior EVP & Group Chief Financial Women's Financial Inclusion
4 Mrs. Mar Amara Officer and Group Chief Operations Phnom Penh
Officer Digital Economy and Business
Cambodian Financial Technology
Workshop Committee (DEBC) and the Ministry 04 October 2023
Development 2023-2028
of Economy and Finance (MEF)
Understanding and Managing Singapore (Cambodia) International

Conference 09 December 2023
Unhappy Clients Conference Academy Co., Ltd.
5 Mr. Ly Thay EVP & Group Chief Administrative Officer Study visit at IDT Campus Phnom Penh Study Tour IDT Campus 13 March 2023
6 Mr. Yin Virak EVP & Group Chief Treasury Officer National Bank of Cambodia’s Phnom Penh Seminar National Bank of Cambodia (NBC) 27 December 2023
Monetary Policy Framework and
Tools
Overseas Training
No Name Position Topic Venue Training Type Conducted Training by Date of Training
Annual Partnership
1 Dr. In Channy President & Group Managing Director Japan Conference Prudential 20 to 25 April 2023
Development Conference
Renewal Overseas Standard Australian Institute of Company

2 Mr. Chhay Soeun Chairman of Board of Director - Membership 30 July 2022 to 29 July 2023
Graduate Directors
Renewal Overseas Standard Australian Institute of Company 29 April 2022 to 28 April

- Membership
Graduate Directors 2023
3 Mrs. Kim Sotheavy Senior Group Chief Internal Audit Officer
IIA renewal membership 2022 - Membership The Institute of Internal Auditors 31 May 2022 to 30 May 2023
ASEAN Central Bank Governors

& Financial Institute Dialogue as Indonesia Conference ASEAN Banker Association 28 to 31 March 2023
part of 19th ASEAN Central Bank
Senior EVP & Group Chief Financial Officer World Economic Forum "Looking
4 Mrs. Mar Amara - Webinar World Economic 06 September 2023
and Group Chief Operations Officer Ahead Foresight"
23rd ASEAN BANKING CONFERENCE

AND 51st ASEAN BANKING COUNCIL Lao Conference Lao Bankers Association 06 to 08 December 2023
MEETING & 8th AGM
United Arab
5 Dr. Loeung Sopheap EVP & Group Chief Risk Officer The COP28 UAE on Climate Change Conference Ministry of Environment 01 to 02 December 2023
Emirates
6 Mr. Mach Theary EVP & Group Chief Information Officer Core Banking System Vietnam On-site Visit MB Bank 12 to 13 July 2023
Strategy Execution - Online training 13 September 2023

Harvard Business School Online
EVP & Group Chief Legal Officer and
7 Mrs. Buth Bunseyha Leadership Principles - Online training 01 February 2023
Corporate Secretary
Australian Institute of Company 01 December 2023 to 30

New Overseas Affiliate - Membership
Directors November 2024
SOCIAL BANKING at the COFIDES

Spain Workshop Social Banking 19 to 20 June 2023
Headquarters in Madrid
8 Mr. Yin Virak EVP & Group Chief Treasury Officer
DEG SE Asia Client Forum 2023 at
Thailand Forum DEG (Germany) 07 to 08 September 2023
Bangkok
73
74
PART 3
CODE OF BUSINESS
CONDUCTS PRACTICES
75
A. CODE OF BUSINESS CONDUCTS PRACTICES FOR DIRECTORS AND SENIOR OFFICERS

POLICIES
• Law Enforcement
ACLEDA BANK conducts its business in compliance with applicable laws and regulations and in accordance with the highest ethical
principles. ACLEDA BANK Group requires all directors and employees to comply with all local laws/regulations applicable to the BANK
wherever it does business. Further, each of us must have an understanding of the BANK policies, laws, rules and regulations that apply to
our specific roles. Hence, ACLEDA BANK put in place a Compliance Policy to ensure that, at all times, the BANK complies with the spirit of
the legal environment and the BANK's policies.
• Build Trust and Credibility

Trust and credibility we earn from our stakeholders including but not limit to employees, customers and shareholders are part of our
success in business. We gain credibility by adhering to our commitments, and reaching company goals solely through honorable conduct.
• Code of Conduct Policy

The BANK set up its Code of Conduct Policy to set ethical standards for all staff members of the BANK with the following important
principles:
1. Honesty, Fairness and Integrity: All staff shall act honestly and with integrity in all of their dealings, and staff members will not
discriminate on the grounds of people’s race, religion, gender, marital status, or disability.
2. Personal Transactions: Shall not use the name of ACLEDA BANK to further any personal or other business transaction.
3. Confidentiality of Information: Ensure the confidential information relating to customers, staff and ACLEDA BANK's operations, and
respect the privacy of others.
4. Ensuring the Integrity of Records and Internal Controls.
5. Abiding by the Law: Staff members shall observe and abide by the law, rules and regulations of the Kingdom of Cambodia and internal
policies of ACLEDA BANK at all times.
• Avoid Conflicts of Interest (Conflict of Interest Policy)

The BANK created its conflict of interest policy to enable all staff members of ACLEDA BANK easily identify, prevent, and manage conflict of
interest which may arise in the course of the BANK's business.
• Corporate Disclosure Policy

The BANK put in place the Corporate Disclosure Policy to ensure that Corporate Information is disclosed to the relevant authorities, investors,
customers, creditors, employees and the general public in a timely, accurate, complete, understandable, convenient and affordable manner.
• Insider Trading Policy
The Insider Trading Policy of the BANK is designed:
To protect the interests of investors and the reputation of the BANK

To prevent misuse of Material Non-public information (MNI)
Ensure compliance to the regulatory requirements.
Under this policy, Insiders (directors and employees of the BANK or its subsidiaries, certain consultants, contractors, and agents) who
receive or have access to MNI are prohibited from purchase/ sale/ engage in any transactions, directly or indirectly, involving the Securities
listed on the CSX/ other permitted securities markets. (Securities: refers to securities issued by the BANK or other listed companies if
Insiders have MNI about these through their work with the BANK.)
76
• Liquidity Risk Management Framework

The BANK has set up this framework in order to:
Ensure that the BANK maintains at all times a stable and diversified funding base, which enables the BANK to meet its daily liquidity
needs and covers both expected and unexpected funding requirements at a reasonable cost.
Manage the BANK's liquidity and funding in a way that creates long-term value for the shareholders.
Reduce the severity of potential liquidity problems, lower their impact on the BANK and protect all stakeholders.
• Whistle Blower’s Protection Policy

The BANK has adopted a Whistle Blower’s Protection Policy:
To protect each whistle blower who expresses a concern in good faith, without malice and with no expectations of personal gain.
To encourage all employees to inform the relevant level of management of any activity or matter which is detrimental to the best
interests of the BANK and the general public.
• Environmental, Social and Governance (“ESG”) Policy

The BANK has adopted the ESG policy:
To ensure that the BANK will at all times strive to provide financial services particularly to projects and initiatives that are sustainable
with respect to nature and the environment.
To provide a framework of guidelines within which the BANK can operate in a sustainable manner so that our impact on the environment,
society and governance in which we operate is managed in a responsible way.
To comply with the environmental laws and guidelines of Cambodia.
• Fighting Against Corruption

The BANK prohibits offering or receiving bribes or corrupt payments in any form. Such prohibition has been raised and mentioned some
part in Collective Labor agreement, Internal Regulation, Code of Conduct, Detail in Misconduct and Operating Manual of Gift Commission
and Persuasion of the BANK. All employees shall comply with laws and regulation in force. ACLEDA BANK Group is strongly committed to
conducting our business with honesty, integrity and in accordance with all applicable laws including anti-corruption law. Any employee
who violates the laws and terms of relevant policy will be subject to disciplinary action.
• Policy on Anti-Money Laundering and Combating the Financing of Terrorism (AML & CFT)
In our day to day business activities, we must apply the principles and procedures set out in the AML & CFT Policy. All levels of the BANK
management and staff are obligated to report all types of suspicious transactions and shall be required to keep confidentiality of any
information obtained on suspected customer’s transaction and record has been made. Head of COD obliges to independently submit the
information of suspicious transactions to the Cambodian Financial Intelligence Unit within 24 hours after receive reporting and there is a
reasonable ground of suspicion. Head of COD shall record his/her opinion if such reasonable grounds do not exist.
• Related Working Policy/Internal Rules

We respect all applicable law, including local laws and regulations that apply to our business. The BANK has a clear collective labor
agreement which is made pursuant to the Chapter V of the Labour Laws of the Kingdom of Cambodia.
The collective labor agreement of the BANK set forth the terms and detail conditions of employment, productivity of employees, and
monitor the relationship between Employer and Employees as well as Employer and Shop Stewards.
• Conflict Resolution
The best approach to resolve a conflict in the workplace is to prevent it from happening in the first place. The collective labor agreement of the
BANK also stipulated the grievance procedures for presenting and settling workplace disputes. Raising and recognizing the problems to debate
to clear all unreasonable doubtful and misunderstandings that is a priority work shall be taken action by ACLEDA BANK and the Shop Stewards.
• Fair Dealing
The BANK committed to conducting our business in a transparent, fair and honest manner and also committed to deliver fair dealing outcomes
for our customers by ensuring that all products and services we offer comply with the laws and regulations and are suitable for our customers.
77
B. PUBLISHING OF CODE OF BUSINESS CONDUCTS PRACTICES

The Boards approved the Code of Conduct Policy and it had been implemented since 2014.
C. MECHANISMS AND PROCEDURES FOR ASSESSING CODE OF BUSINESS

CONDUCTS PRACTICES
In order for employees to understand the code of business conduct and the scope of implement, the BANK has set up the procedure as follows:
New Recruit
All new selected recruits and nominated to work in ACLEDA BANK or subsidiaries, must be prepared code of conduct when sign works contract.
She/he must read all points of code of conduct content and clarify understanding and claim the implement by stamping a right thumbprint
as a proof.
Existing Employees
• All changed position staffs, nominated and promoted employees, the latest direct management have to prepare new code of conduct to
employee for rereading all points of content and stamp right thumbprint as a proof.
• All employees come to test at Human Resources Division have to write code of conduct of new position.
• Employees who is earlier or meet the deadline of working appraisal have to do as below:
• Direct management has to give code of conduct to employees for reading deeply the meaning and content stated in the letter attached
with performance appraisal.
• After reading the meaning of code of conduct, employees have to stamp right thumbprint as a proof.
D. RELATED PARTIES TRANSACTIONS

1. Related Parties Transactions Policies
No Related Parties Policies
1 Holding Company None
2 Joint Venture None
3 Subsidiary Operating Manual on Related Party Transaction
4 Majority Shareholders and Controlling Shareholders Operating Manual on Related Party Transaction
5 Directors and Their Family Operating Manual on Related Party Transaction
6 Employees and Their Family Operating Manual on Related Party Transaction
7 Other None
78
2. Important Transactions with Related Parties
Transaction Size
No Name Type of Transactions Transaction Summary
USD KHR’000
1 Shareholder who hold at Balance with related parties 655,991 2,679,723 Deposit with shareholders
least 5% or more shares of Deposit from related parties 4,258,182 17,394,674 Deposit from shareholders
outstanding equity securities
Borrowing from related parties 64,585,867 263,833,267 Borrowing from shareholders
Account Payable (755,903) (3,087,864) Account payable to shareholders
Fee and commission income 115 472 Fee and commission income from
from related parties Shareholders
Interest expense 6,092,700 25,040,997 Interest expense to shareholders
2 Director and Senior Officer Loans and advances 10,496,771 42,879,309 Loans and advance to director and
senior officer
Deposit from related parties 5,417,287 22,129,618 Deposit from director and senior officer
Interest Income 896,019 3,682,638 Interest income from director and senior
officer
Interest Expense 118,301 486,217 Interest expense to director and

senior officer
Fee and Commission Expense 11,343,358 46,621,202 Fee and commission expense to
director and senior officer
Interest Payable (62,473) (255,202) Interest payable to director and

senior officer
3 Immediate family members Loans and advances 2,577,562 10,529,341 Loans and advance to the immediate family
of the director, Senior Officer members of the director, Senior Officer and
and Shareholder who hold at shareholder
least 5% or more shares
Deposit 2,552,213 10,425,790 Deposit from the immediate family
members of the director, Senior
Officer and shareholder
Interest Payable (31,410) (128,310) Interest payable to the immediate

family members of the director,
Senior Officer and shareholder
4 Subsidiary Balance with related parties 15,871 64,833 Deposit with subsidiary
Deposit 6,210,525 25,369,996 Deposit from subsidiary
Account Receivable 449,377 1,835,705 Account receivable from subsidiary
Interest Income 18,247 74,995 Interest income from subsidiary
Fee and Commission Income 26,974 110,862 Fee and commission income from
Subsidiary
Interest Expense 208,101 855,295 Interest expense to subsidiary
Fee and Commission Expense 1,963,126 8,068,448 Fee and commission expense to Subsidiary
Account Payable (18,960) (77,451) Account payable to subsidiary
Other commitment (17,675) (72,644) ECL on financial guarantee on AIB’s

Borrowing
79
PART 4
RISK MANAGEMENT, INTERNAL
CONTROL AND AUDITING
80
A. BRIEF RISK MANAGEMENT SYSTEM OR RISK MANAGEMENT POLICIES

ACLEDA BANK is constantly pursuing efficient risk management system to enhance its effectiveness of risk oversight and control function where
the safety and soundness of the BANK rely on. The BANK’s risk management approach consists of the identification, assessment and mitigation
of key risk and controls is undertaken across all business areas of the BANK. In addition, the BANK supports strong risk governance applied
consistently to a strong emphasis on the concept of "Three Lines Model". The governance structure encompasses accountability, responsibility,
independence, reporting, communication and transparency, both internally and with our relevant external stakeholders. The responsibility for
risk management is resides at all levels of the BANK. This is a functional approach to risk management built on formal control processes which
rely on individual responsibility and independent oversight. Every manager is accountable for managing risk in his or her business area. They
must understand and control the key risks inherent in the business undertaken effectively.
B. BRIEF INTERNAL CONTROL SYSTEM

ACLEDA BANK has established an adequate internal control system by issuing internal control policy, operating manual and other guidelines
for effective risk management and daily activities. The BANK sets up appropriate internal control structure as the Board has the responsibility
to establish the general framework for an appropriate Internal Control system to comply with the present Prakas and regulations.
Senior Management has responsibility for implementing strategies approved by the Board to set appropriate internal control operating
manuals and procedures and monitor effective daily operation.
Compliance officer has responsibility to perform independently to support management in managing compliance risk and monitor the
effectiveness of compliance including corrective action of any compliance breaches.
An effective internal control system and complying with control policies and procedures have been monitored and evaluated by internal audit
and the financial reports were examined independently by an external audit.
C. AUDITING
1. Internal Audit
1.1 Roles and Responsibilities of Internal Auditors
The Role of internal audit is to periodically monitor and comprehensively review the effectiveness of internal control function and implementation
of internal control policy, operating manual and other guidelines for effective risk management and daily activities. Internal audit plan has been
set, performed and reported to the Board Audit Committee.
All audit issues and concerns shall be clearly documented and accompanied by recommendations to Board and management. Pending audit
recommendations shall be periodically, and at least twice a year, reported to the Board Audit Committee's members.
Internal audit function has been placed under responsibility of Senior Group Chief Internal Audit officer who is a secretary and reports to the
Board Audit Committee directly.
Senior Group Chief Internal Audit officer is appointed, evaluated and removed by the Board Audit Committee.
1.2 New Appointment and Remove/Resignation of Head and/or Deputy of Internal Auditors
In the year of 2023, position of Senior Group Chief Internal Audit officer was no new appointment and resignation.
2. External Auditors
The appointment or removal of external audit shall be approved by the Board with the recommendation of the Board Audit committee. External
Audit of ACLEDA BANK PLC. For 2023 By Grant Thornton (Cambodia) limited.
No Name of Audit Firms Appointment Date Auditing Fees Non-audit Fees
1 Grant Thornton (Cambodia) limited 08 September 2023 US$ 45,000.00 -
2 PRICEWATERHOUSE COOPERS 20 September 2023 US$320,000.00 -
• Grant Thornton (Cambodia) limited: Review to evaluate the adequacy and sufficiency of AML/CFT & PF compliance and program of the
Reporting Entities for the period from 1 January 2023 to 31 December 2023.
• PRICEWATERHOUSE COOPERS: Audit Engagement letter of financial audit and audit fee of the year 2024 including the separated financial
audit of the BANK in the period of quarterly and yearly audit and the yearly consolidated financial audit of the group in the period as at 31
December 2024.
81
PART 5
STAKEHOLDERS
82
A. IDENTIFY POLICIES AND ACTIVITIES RELATED TO THE FOLLOWING:

No Contents Policies Actions
1 Customer Welfare 1- Letter No: MKD 019/17 for Promulgation 1- Customer Retention
on the Procedures of Customer Retention • There is a system to manage customers' data
and Cross-Selling & Up-Selling of ACLEDA appropriately.
BANK
• There are target group of customers to retain
including:
Potential customers (Top 20): Platinum category
and served as first priority
Potential customers (Top 21-100): Gold category
served as a second priority
Normal customer: Classic category served as
standard
• In order to be most effective in taking care customers,
we engage customer by the following methods:
special rate offered, wishing cards provided for
special occasions, souvenirs and lunch / dinner
reception and so on.
• Have an effective and clear plan to visit customers
including:
Face to face and indirect contact (telephone and
other electronic means)
Analysis on customers' needs and transactions
with high efficiency.
• Assign responsible officers to follow up implement
plan on customer retention at branches with
professionalism.
• Report the achievement of customer retention to
management
2- Cross-Selling & Up-Selling
• Have an effective and clear plan on Cross-Selling
& Up-Selling plan to be the basis for promoting
sales with potential customers and regular
customers effectively.
• Assign responsible officer for sale acquisition and
retention of all products
Services with all types of customers, both inside
and outside the office to be achieved in
accordance with the business plan.
• There is a system to store the results of Cross-
Selling and Up-Selling which it’s more conveniently
for the responsible officers to daily monitor with
high efficiency.
2- Decision Letter No. 131/19 dated on 24 • Be / to serve customer

January 2019 for the Customer Service’s • Customer Service Quality
Operating Manual of ACLEDA BANK (CCR)
• Means and resolution of customer complaint/
problem.
• Customer Service Model
• Security protection (all both internal and external
customer’s information and bank transactions
are kept secret which not leak to the third party).
83
2 Supplier and Subcontractors • Operating Manual on Procurement • Business Plan Preparation (CapEx Plan)
Selection • Guideline on Procurement • Requirement Business Analysis Report by Project
• Procedure on Printing and Equipment Management Office
Producing
• PMC meeting and approval
• Budgetary Approval
• Procurement Process
Approval without Procurement Committee (The total
amount is equal or less than USD300,000.00)
Announcement for quotation
Check list legal document of supplier
Manufacturer Authorization (MA) letter
Onsite visit supplier location (if any)
Approval by Procurement Committee (The total
amount is over USD300,000.00)
Announcement for quotation/bidding
Check list legal document of supplier
Manufacturer Authorization (MA) letter
Onsite visit supplier location (if any)
(Evaluation and Assessment Criteria for Selecting
Supplier (Legal documents, Tax payment
declaration receipt, Financial report, Human
resource, Consultant personal/ CVs, Approach
& Methodology, Reputation, Service after sale,
Account settlement and using ACLEDA BANK’s
Services)
Procurement Committee meeting and approval
(Based on Price, Goods quality, Working experience
if required and Assessment Criteria above)
• Procurement Form Approval (PCF-15)
• Legal Process (Agreement/Contract)
• Product delivery and payment
84
3 Management and Protection of 1- Internal Regulation and Collective Labour 1- Working day, working hours, overtimes compensation,
Employee Agreement Leaves, job security, Employees’ rights to self-defence,
2- Employee Welfare Operating Manual Anti-harassment, Employee Representative.
3- Whistleblower’s Protection 2- Protect employee health, well-being, work atmosphere,

hygiene, health protection equipment, First-Ad, health
Care Support and Daily Subsistence Allowance (DSA).
3- Employee could report any problems could be
detrimental of the BANK benefit and to his/her
department or authorized person according to his/
her general knowledge. The main issues shall include:
Non-compliance provisions of law and regulatory
framework.
Non-adherence to internal policies and procedures
of ACLEDA BANK.
Exploitation, stealing, deception or other commission.
Corruption, fraud or mismanagement,
non-transparency, nepotism.
Behaviour that causes danger to health and safety
to other people.
Improper or unethical behaviour.
Abuse authority, force or any forms of interruption
and other harassment.
Criminal or other illegal activities, etc.
4 Environment Protection HQ-1614/22 Decision of Promulgation of • The BANK will comply with the relevant environmental
Environmental, Social and Governance laws, regulations on environmental protection and
Policy. natural resource management and other compulsory
requirements applicable in each country in which
we operate.
• The BANK operates in a sustainable manner, minimizing

the negative footprints on the environmental and
society through improving the practices of relevant
framework and guidelines.
• The BANK will not lend to, or otherwise provide

financial services to clients who engage in activities
harmful to the environment or which are listed in
ACLEDA BANK's Exclusion List and/or other relevant
policies.
• The BANK works with regulatory agencies and advisers

as necessary in the implementation of effective
environmental policies, and, where no regulations
exist, we will set our own guidelines according to
internationally accepted best practice.
• The BANK gives priority to the resource use efficiency

and manage all generated waste and pollution
from its operation activities.
• The BANK gives priority to the renewable energy

and energy efficiency sources by financing services.
• The BANK will commit to minimizing energy uses

and associated greenhouse gas emissions from the
facilities and materials through efficient uses.
• The BANK continues to introduce energy efficient

systems into our buildings and to manage sensibly
our energy requirements wherever we operate.
85
5 Community Interaction HQ-1614/22 Decision of Promulgation of • ACLEDA BANK will honour the community and society
Environmental, Social and Governance in which we operate and actively work to promote an
Policy. inclusive culture embracing not just shareholders and
staff, customers and business partners but respect
for the individual within our community.
• ACLEDA BANK believes that the BANK can achieve

this, by ensuring that our activities conform to the
needs of the community and society in a sustainable
manner by:
Providing appropriate products and services

carefully selected and developed for the particular
needs of Cambodian society;
Increasing outreach: opening up banking services

to new communities in new locations by expanding
our network in the provinces and extending
online banking services to mobilize savings;
Participate in programs to educate the public in

financial matters so that they can manage their
resources more effectively, improve their business
skills and be better equipped to qualify for bank
finance;
Provide internships and other forms of training

to students to promote financial inclusion to a
broader audience;
Maintain our focus on providing financial services

to the lower segment of society to provide them
with the wherewithal to improve the quality of
their lives;
Promote career opportunities for women, within

the reasonable constraints of the job requirements,
so as to ensure an appropriate gender balance;
Work with community groups, authorities and

stakeholders to develop new products and services
specifically tailored to their needs, and;
Selectively participate in charitable programs,

where the aim is to 'help the people help themselves'
or facilitate access to education, whether through
direct financial support or 'pro-bono' community
work.
6 Creditors' Rights Protection • Code of Conduct Policy • All staff members of the BANK shall pursue the
• Corporate Disclosure Policy highest standard of ethical conduct in the best
interest of all stakeholders of the BANK.
• The BANK ensures that Corporate Information is
disclosed to all stakeholders including creditors.
7 Anti Corruption Program • Collective Labor Agreement Notice and train all employees related to
• Internal Regulation Anti-corruption
• Details of Misconducts
86
B. CORPORATE SOCIAL RESPONSIBILITIES OF ACLEDA BANK
No Beneficiaries Amount Purposes
1 Preah Sihanouk Raja Buddhist University KHR 1,200,000,000 Donation to build a new school building and meeting hall of
the Preah Sihanouk Raja Buddhist University Phnom Penh
2 Cambodian Red Cross KHR 800,000,000 Donation to the Cambodian Red Cross on their 160th
anniversary of World Red Cross Day on May 8 2023.
3 Samdech Techo Voluntary Youth Doctor KHR 400,000,000 Donate to the Samdech Techo Voluntary Youth Doctor
Association (TYDA) Association (TYDA) to provide free health care services to
Cambodian people nationwide.
4 National Committee for Disaster KHR 40,000,000 Donation to the National Committee for Disaster
Management Management to support rescue equipment on the water.
87
PART 6
DISCLOSURE AND TRANSPARENCY
88
A. IDENTIFY THE FOLLOWING INFORMATION IN THE ANNUAL REPORT:
No Information Yes/No
1 Visions/ Missions/ Objectives Yes
2 Financial Indicator Yes
3 Non-financial Indicator Yes
4 Main Risk Factors Yes
5 Dividend Policy Yes
6 Biography of Directors Yes
7 Training of Directors Yes
8 Number of Board Meetings Yes
9 Attendance of Directors in Board Meetings Yes
10 Remuneration or Compensation for Directors and Senior Officers Yes
B. MECHANISM OF DISCLOSURE INCLUDING MEANS, PROCEDURES AND

RESPONSIBLE PERSON IN CHARGE OF DISCLOSURE
The BANK has adopted a Corporate Disclosure Policy, which is outlined toward the determination of material information and to ensure that
Corporate Information (timely disclosure, periodic report, special disclosure, requested disclosure and other related documents required by
laws and regulations of the relevant regulators/ authorities) is disclosed to the relevant authorities, investors, customers, creditors, employees
and the general public in a timely, accurate, complete, understandable, convenient and affordable manner. It shall be sent to the CSX and/or
the SERC directly or through e-Disclosure system or e-mail or other electronic systems. The Corporate Information shall be submitted at the
same time in Khmer and English. When it is deemed necessary in an urgent case, disclosure of information can be made verbally, by phone or
electronic system and shall be immediately confirmed in writing. Beside Corporate Information to be disclosed to investors pursuant to this
policy, the BANK may submit the document to the CSX and/or the SERC for internal use by stating that “NOT for Public Release”. Nevertheless,
the CSX or the SERC may review the document and request the BANK to release the information to the public if they consider it necessary in
the interest of the investors.
After the Corporate Information releasing on CSX’s website (www.csx.com.kh), the BANK releases such information through the BANK's website
immediately (www.acledabank.com.kh/kh/khm/investor-relation).
In compliance with Prakas 007/18 K.M.K/BB.K. of the SERC, dated October 30th, 2018 on Corporate Disclosure, the BANK appointed and SERC also
recognized the following Public Relation Officer, Disclosure Officer and Assistants of Disclosure Officer:
89
Public Relation Officer
No Name Position
Senior EVP & Group Chief Financial Officer and Group Chief
1 Mrs. Mar Amara
Operations Officer
Disclosure Officer
No Name Position
1 Mrs. Buth Bunseyha EVP & Group Chief of Legal Officer and Corporate Secretary
Assistant of Disclosure Officer
No Name Position
1 Mr. Song Phannou VP & Deputy Head of Legal Division
2 Mrs. Leang Chandara ASVP of Corporate Secretary & Disclosure Division
3 Mr. Sor Sophea Senior Corporate Secretary and Disclosure Specialist
4 Mr. Then Pov Corporate Disclosure Specialist
5 Ms. Voeun Sreyroth Senior Staff of Corporate Disclosure Unit
C. INVESTOR RELATIONS
1. Demonstrate Mechanisms and Procedures for Investor Relations
We acknowledge the importance of maintaining communication with our shareholders and investors through channels like Periodic Report
including annual reports and quarterly reports. Timely Disclosure including press releases and announcements etc. Our quarterly and annual
reports contain details of financial and other information about the Group’s activities. We welcome enquiries about the Group’s activities and
will handle them in a timely manner.
ACLEDA BANK has a wide range of networks to communicate with its customers as well as investors, including homepage, emails, phone calls,
face-to-face meetings and invitations shareholders to shareholders' general meeting.
2. Briefly Describe Investor Relations for the Last Year
ACLEDA BANK is the first commercial bank listed its shares on the Cambodia Securities Exchange on 25 May 2020, attracting a lot of interest from
the public, local and foreign investors. During 2023, ACLEDA BANK has received and answered questions from the public, investors and invited
shareholders to attend the 23rd Annual General Shareholders Meeting which was held on 27 April 2023 and Extraordinary General Shareholders
Meeting which was held on 18 September 2023.
D. SUSTAINABILITY REPORT
Please refer to the annex for Sustainability Report 2023
90
ANNUAL REPORT APPENDIX

FOR ACLEDA BANK
SUSTAINABILITY REPORT 2023
Toward Leading Sustainability Bank
Sustainability Report 2023

Our Core Value
ACLEDA Bank Plc. is a Cambodian bank, operating regionally in CLM (Cambodia, Laos, and
Myanmar) countries that commits and maintains its core values with financial soundness,
safety, competence, integrity, accountability, transparency, honesty, purity and empathy.
These values are clearly defined in the meaning of the letter in Khmer-English “អ-A, ស-C,
ល-L, ដ-D (េអសុីលី -ACLEDA)”.
A Affinity and Empathy: focusing on conducting satisfying and transparent

Affinity and manner to all stakeholders including employees, customers, partners and the
Empathy
publics.
C
Customer
Experience
C
Customer experience with Integrity and Loyalty: focusing on delivering service
With Integrity to customer-public with integrity and professional ethic.
& Loyalty
L
Leverage Quick Leverage Quick & Efficiency: focusing on fast, satisfying service, providing
& Efficiency high confidence to customer-public with efficiency and effectiveness.
D D
Developing:
Deve focusing on secured and innovative product-services with
Developing superiority and prosperity.
ssupe
Our Vision
To be Cambodia's leading and the most
trusted commercial bank serving all
segments of the community.
Our Mission
Our mission is to provide our

customers with secured and
innovative products and services to
manage their financial resources
efficiently. At all times, we observe the
highest principles of ethical behaviour,
respect for society, the law and
environment. By doing so, we aim to
contribute to improving the quality of
lives, ensuring a sustainable and
growing benefits to our stakeholders,
and to support the socio- economic
development of the society as a whole.
Our Slogan
The Bank's Slogan:

The Bank you can trust, the Bank for
the people!
ACLEDA Mobile's Slogan:

The Bank in your hand!
Content
05 Message from President & Group Managing Director
06 About ACLEDA Bank Plc.
08 Financial Highlights
09 Organizational Chart
10 Branch Network
11 Products & Services
12 ACLEDA Bank toward Sustainability Development
13 ACLEDA Bank Sustainability Strategy

16 ESG Highlight
17 Sustainability Governance
18 Stakeholders
19 Materiality Assessment
23 Environmental Aspect
25 Climate Change Risk

33 Environmental Performance Indicators
37 Social Aspect
39 Safety & Working Environment

40 Fair Labour Practices
42 Community Participation and Social Engagement
48 Human Resources Development
50 Financial Inclusion and Literacy
55 Responsible Lending and ESG Integrating
57 Social Performance Indicators
60 Governance Aspect
61 Corporate Governance & Anti-Corruption

63 Business Ethics
65 Data Security & Customer Privacy
67 Risk Management
71 Product Development & Digital Innovation
73 About This Report

Sustainability Report 2023 I 5
MESSAGE FROM PRESIDENT & GROUP MANAGING DIRECTOR
" ACLEDA Bank focus on achieving

A
strong, sustainable financial returns,
while respecting the environment and
"
community within which we live.
Dr. IN Channy
Apart from the COVID-19 crisis, businesses and society toward to build our capability, develop an initial
are encountering critical challenges, including new framework and strengthen our data integrity in this area
technology disruption, global resource security, in order to advance our own sustainability agenda
regulatory change, and particularly alarming impacts of because we do not only want to create a healthy planet,
climate change. but also to ensure the accomplishment of our
transition. Moreover, the Bank also enhanced our risk
Over the past 30 years operation and as one of the
management framework and strategic planning with the
leading financial institutions in Cambodia, we have aware
integration of ESG to assess climate-related risks in our
of the important roles in supporting our clients and
business activities.
community by focusing not only on financial services and
profit but also the business activities to our clients, Lastly, we would like to express our gratitude to
society, and environment which are also important parts shareholders, clients, and all stakeholders for their
of sustainable development. confidence and continued support for the Bank in
creating value that will encourage inclusive and
As stakeholders are increasingly valuing businesses'
overall performance across key environmental, social, sustainable growth, allowing the Bank to achieve its
and governance (ESG) topics. We have also made changes goal to be "Cambodia's leading and the most trusted
to show our willingness to participate in this change and commercial bank".
action on these topics. Therefore, we have evolved to
expand the scope of our environmental and social
reports to meet the needs of stakeholders. We are proud
to present our sustainability report this year as it sets out
our ESG process to ensure transparency, measurement
and accountability to our stakeholders. Dr. In Channy
2023 has been a notable year for ACLEDA Bank's ESG and
ACLEDA BANK PLC.
sustainability approach, while the Bank takes into
accounts of our actions toward sustainability by working
ABOUT ACLEDA BANK PLC.

A. Identity of ACLEDA Bank Plc.
Entity Name in Khmer ធ រ េអសុីលី ភីអិលសុី

In Latin ACLEDA BANK PLC.
Standard Code KH1000100003
Building No 61, Preah Monivong Blvd., Sangkat

Address Srah Chak, Khan Doun Penh, Phnom Penh,
Kingdom of Cambodia
Phone number +855 (0)23 998 777 / 430 999
Fax +855 (0)23 430 555
Website www.acledabank.com.kh
Email acledabank@acledabank.com.kh
00003077 dated 05 June 2000,

Company registration number
issued by Ministry of Commerce
C.B.06 dated 07 December 2023,
License number
issued by National Bank of Cambodia
053/20 SECC/SSR dated 19 March 2020, issued by
Disclosure Document registration Securities and Exchange Committee of Cambodia
number (Currently known as the Securities and Exchange
Regulator of Cambodia “SERC”)
Representative of the listed entity Dr. In Channy
B. Nature of Business
ACLEDA Bank is a commercial bank and first listed bank in Cambodia that has largest branch and
office networks for offering a wide range of financial products and services to the customer such
as credits, deposits, funds transfers, cash management, trade finance, ACLEDA card, credit and
debit card, and digital services including internet banking, ACLEDA mobile (mobile banking app),
e-commerce payment gateway, ACLEDA ATM/POS, and term deposit machine. Currently, it has 4
subsidiaries: (1) ACLEDA Bank Lao Ltd., (2) ACLEDA MFI Myanmar Co., Ltd., (3) ACLEDA Securities
Plc., and (4) ACLEDA University of Business and 1 representative office in Myanmar.
ACLEDA Bank has 6 shareholders who hold at least 5% or more shares of outstanding equity
securities including: (1) AFT, (2) SMBC, (3) COFIBRED (4) ORIX Corporation (5) Public Shareholders
and (6) Shareholders Legalized from ASA, Plc.
Financial Highlights
31/12/19 31/12/20 31/12/21 31/12/22 31/12/23

Change (%)
Units in US$ ‘000 Audited Audited Audited Audited Audited
Consolidated Financial Highlights (CIFRS)

Assets 6,175,162 6,551,494 7,855,252 9,031,163 9,744,040 7.89%
Loans and Advances (net) 3,846,021 4,471,301 5,393,954 6,379,406 6,601,665 3.48%
Liabilities 5,210,700 5,461,868 6,650,217 7,714,515 8,362,020 8.39%
Deposits 4,367,898 4,611,296 5,716,020 6,388,991 7,227,813 13.13%
Share Capital 428,818 433,163 433,163 433,163 433,163 0.00%
Shareholders' Equity 964,462 1,089,626 1,199,042 1,310,588 1,375,999 4.99%
Gross Income 550,128 579,221 636,698 743,831 828,008 11.32%
Profit Before Income Tax 153,523 180,035 204,753 228,308 184,238 -19.30%
Net Profit After Tax 120,860 141,493 166,674 181,815 148,018 -18.59%
Earnings Per Share 0.29 0.33 0.39 0.42 0.34 -19.05%
Dividend Per Share 0.0763$ 0.0981$ 548.6405៛ 685.8985៛ - -
Financial Highlights (CIFRS)
Assets 6,017,303 6,379,484 7,695,163 8,918,446 9,605,647 7.71%
Loans and Advances (net) 3,686,579 4,292,649 5,232,059 6,246,269 6,457,043 3.37%
Liabilities 5,045,025 5,285,458 6,486,071 7,587,359 8,213,001 8.25%
Deposits 4,256,424 4,477,033 5,582,534 6,280,045 7,101,695 13.08%
Share Capital 428,818 433,163 433,163 433,163 433,163 0.00%
Shareholders' Equity 972,279 1,094,026 1,209,092 1,331,086 1,392,646 4.62%
Gross Income 514,933 537,756 594,625 705,214 792,125 12.32%
Profit Before Income Tax 148,226 172,154 201,662 217,423 172,202 -20.80%
Net Profit After Tax 117,887 138,342 162,085 173,406 138,139 -20.34%
Organizational Chart
Branch Network
ACLEDA's network has

264 branches covering all provinces and cities in the kingdom of Cambodia.
37 branches in Lao PDR and 17 branches in the Republic of the Union of
Myanmar.
Products and Services
Credit Cash Management
• Small-Sized Enterprise Loan • Bank Confirmation

• Medium-Sized Enterprise and Corporate Loan • Cashier's Check
• Overdraft • Payroll Service
• Revolving Credit Line • Cash Collection Service
• Trade Finance Facility • Supplier Payment
• Bank Guarantee Facility • Cash Consolidation Accounts
• Personal Loan • Standing Order / Direct Debit
• Car Loan • Foreign/Traveller Cheque Purchasing
• Motorbike Loan • Tax Payment Service
• Student Loan • Forward Exchange Contract
• Housing Loan • Bulk/Package Payment Service
• Home Improvement Loan • Foreign Exchange
• Financial Lease
Funds Transfers
Trade Finance
• Local Funds Transfers
• Documentary Collection
• International Funds Transfers via SWIFT
• Letter of Credit (L/C)
• International Funds Transfers via Western Union
• Bank Guarantee
• International Funds Transfers via MoneyGram
• International Funds Transfers via Thune
• International Funds Transfers via Ria Money Transfer
Deposits
• Savings Account Digital Services

• Demand Deposit Account
• Current Account
• ACLEDA Internet Bank
• Term Deposit
• ACLEDA mobile
• Euro Flex Account
• ACLEDA E-Commerce
• Securities Account
• ACLEDA ATM
• Monk Account and Pagoda Fund Account
• ACLEDA POS
• Future Kid Account
• Term Deposit Machine
• Virtual Teller Machine
• Pay Band
Cards • Virtual Card
• Top Up Service
• Consumer Card • Bill Payment
• ACLEDA Card • Bank Service Order via Email/Fax
• VISA Debit/Credit Card • Message Alert on Account Information.
• Master Debit/ Credit Card
• Master Lady Debit/Credit Card
• JCB Debit Card Securities & Trust Services
• UPI Debit Card
• Custody Services in the Securities Sector
• RTP Operation Service
Financial Health Check • Government Bond Service
• Commercial Trust
• Social Trust
• Public Trust
Corporate Agent Life Insurance • Individual Trust
Service • Financial Trust
ACLEDA BANK TOWARD SUSTAINABILITY DEVELOPMENT
ACLEDA Bank conducts business in accordance with the principles of a sustainable bank that cover
three areas: the economy, society, and environment. Since 2005, the Environment, Social, &
Governance Policy has been developed and officially promulgated with the aims to provide a
framework of guidelines, which could make the Bank operates in a sustainable manner by
minimizing the impact on the environment, society and the community while it is reviewed
annually. All business function units have implemented this policy in their day-to-day operations.
ACLEDA Bank Sustainability Strategy
ACLEDA Bank focuses on achieving strong, sustainable financial returns while respecting the
environmental protection, social responsibility, and robust governance. To achieve this
objective, the Bank will strive to provide sustainable financial products, adhere to the highest
principles of ethical behavior, respect for society, law and reduce the environmental footprints
aiming toward sustainability development goals to improve the quality of lives.
Our Sustainability Pillars
Environmental Social Governance

Committed to minimize the Committed to promote an Committed to integrity and
negative environmental and inclusive culture embracing not fair dealing in all business
climate change impacts from our just only shareholders and activities in compliance with
operations and its associated staff, customers and business applicable laws and
partners’ performance in order to partners but also respect for regulations and upholds the
support and pursue sustainable the individual within our highest standard of corporate
development goals community. governance.
Sustainability Actions
- Reduce carbon footprint in - Respect human rights, - Adhere to the best governance
our operation to align with diversity and gender equality. structure in business operations.
the Cambodia long term - Provide a place to work with - Zero tolerance to any form of
strategies in carbon an environment and hygiene. corruptions.
neutrality.
- Fair labor workforce. - Prioritize in digital
- Encourage all level of
- Provide financial inclusion transformation to enhance
employee to participate in
and literacy to all segments of customer conveniences way in
activities that help reduce
the community. managing their banking needs,
the impact on environment
- Adhere to the code of and reduce the cost of
and climate change.
conduct on lending transaction.
- Provide training and
guidelines. - Protect customer assets & privacy
encourage all level of
employee to participate in - Avoid any activities that may with first class IT and security.
activities that help reduce lead to socially sensitive - Integrate ESG factor in business
the impact on environment behavior and violate the process.
and climate change. regulation limit.
- Transparent in disclosing both
our financial and sustainability
performance.
We committed to adhering to the Cambodian Sustainable Financial Principles by developing and

integrating our sustainable finance approaches while also contributing to the best practice
implementation in line with the United Nations Sustainable Development Goals (SDGs).
Moreover, ACLEDA Bank will organize training and raise awareness of environmental, social and
governance issues among our stakeholders in order to manage risks, promote capacity building,
enhance the implementation of ESMS (Environmental and Social Management System), offer
sustainable financial products, and use all possible means to minimize negative impacts in align
with the international best practices or relevant standards.
Cambodian Sustainable Finance Principles
Protecting the Environment, our People and our cultural

Heritage
Principle 1. Assessing and managing environmental risk

Principle 2. Assessing and managing social risk
Principle 3. Assessing and managing risk to protect
cultural heritage
Financing the Future of Cambodia
Principle 4. Raising financial literacy & customer

protection
Principle 5. Expanding access to finance
Principle 6. Financing innovation with green finance
Leading the Way
Principle 7. Building capacity and raising awareness

Principle 8. Managing our own footprints
Principle 9. Reporting annually on progress against
commitments
Note:
- The 09 principles above are based on the Cambodia Sustainable Finance Principles, which officially launched in 2019.
Timeline of our Sustainability Action
2000 2024
- Established Credit Policy and Exclusion - Update Sustainability Report to align with
List. international best practices or relevant
standard.
- Adhere & comply with BFIs Code of
2002 Conduct.
- Publicly disclosed the Environmental &
Social Sustainability in Annual Report.
2021
- The Bank updated the Environment,
Social, & Community Policy to
Environmental Social and Governance
2005 Policy (ESG).
- The Environment, Social, & Community

2019
Policy had been developed and officially
promulgated. - Became a voluntary Bank that adopted
the Cambodia sustainable finance
principles.
2007 2017
- Established Call Center to receive and - Member of Sustainable Finance
solve customer problem. Committee of Association of Banks in
Cambodia.
- Obtained certification of client
protection from Smart Campaign.
2013
- Established E&S Operating Manual and Procedure for
the purpose of providing framework of guidelines to
staff involved to identify, to assess and to manage
possible E&S risks.
ESG Highlights
AWARD
Awarded by the SME Finance Forum as Asian Leadership Awards for the Bank
the GOLD winner in the "Best Financier with Leading Financial Inclusion
for Women Entrepreneurs" Initiatives.
ESG CREDIT INDICATORS
The rating outlook reflects the strength The Smart Campaign recognized ACLEDA
of the business network operations of Bank Plc. as Client Protection Certified for
ACLEDA Bank by maintaining sustainable meeting strong standards of client care.
development.
Sustainability Governance
ACLEDA Bank recognizes the critical importance of corporate governance in supporting the
Bank's sustainable growth, enhancing the efficiency of the Bank, creating shareholder value, and
securing trust for all stakeholders including shareholders, customers, staff, and the public. The
Board of Directors conduct risk management, culture, oversight by supporting and encouraging
the adoption and implementation of good corporate governance policies, together with a code
of conduct and business ethics. The Board of Directors is responsible for determining the
strategy of the Bank and supervising the conduct of its business and affairs. Its members shall
act in the best interests of the Bank. As proven of our responsibility towards the environment,
society and governance, ACLEDA Bank’s structure, policies and management with respect to ESG
practices and climate-related risks and opportunities have been set up as part of the
sustainability operational processes, as follows:
Board of Directors Executive Management Committee (EXCO)

The Board of Directors approves business The Executive Management Committee (EXCO)
strategies, targets and policies that cover is responsible for recommending objectives
sustainable development operations. The and strategy for the group in the development
Board of Directors also approves the risk of its business regarding the interests of its
management policies and frameworks as well shareholders, customers, employees, and
as determine and oversee the management other stakeholders. Ensure the control,
and monitoring of the Bank’s material ESG coordination, and monitoring within the
factors and scopes that involve with group of risks and the provision of adequate
opportunities and risks related to management development within business
environmental, social and governance as well divisions. They also oversee the management
as the impact of climate-related risks. In and monitoring of risk factors related to the
addition, they also review and approve environmental, social, and governance
relevant disclosure. according to each business function.
Board Risk Management and IT Committee
(BRIC) Credit Management Committee (MCC)
The Board Risk Management and IT Committee The Credit Management Committee has
(BRIC) is accountable for monitoring the overall responsibility of the credit process,
Bank’s risk profile against the risk appetite monitor that credit policies, credit operating
and advises the Board on risk related matters, manuals, procedures, or instructions are in
particularly review the potential risks in light place, up to date, appropriate to the business
of the high standards as set by the Board of and consistent sound lending practice.
Directors on the Environmental, Social, and Moreover, they also monitor portfolio quality,
Governance (ESG) aspects and climate-related identify adverse trend to ensure that the
risks. The committee hold the meeting Bank's portfolio has been align with
quarterly to discuss the relevant risk & sustainability plan well within the lending
opportunities embedded in the daily target and compliance with the regulatory
operation. framework as well as monitor problem
exposures and take appropriate action.
Stakeholders
Our Stakeholders
Our stakeholders are including but not limited to
shareholders, board of directors, customers,
business partners/suppliers, communities,
employees, and regulators.
We identified our stakeholders according to the relationships and the impact which may
have on our operations. We believe that having good relationships and cooperation with
our stakeholders are important for establishing and maintaining mutual values and
interests. Stakeholder engagement is also a significant factor in evaluating the
Key Stakeholder Channel Engagement
Annual general meeting, annual report, sustainability report,

Shareholders
ACLEDA Bank website and social media.
Meeting discussion, annual report, sustainability report, ACLEDA

Board of Directors
Bank website and social media.
Internal communication channels, including email, video

Employees communication, face-to-face conversations between managers
and team, regular team meeting, training and workshop.
Meetings (both formal and informal), surveys, website, social

Customers
media page, call center, annual report, sustainability report.
Business Meetings (both formal and informal), surveys, and joint

Partners/Suppliers agreements.
Direct engagement within the communities in which we operate,

Communities through collaborations, partnerships, voluntaries, donations
activities.
Regulators Meetings, consultation and engagement, annual report.

Materiality Assessment
A materiality assessment is a structured way to identify and prioritize the environmental, social,
and governance (ESG) issues in which stakeholders care about, as well as what is important to
the business. In order to identify the ESG factors which matter most to our business and to our
stakeholders, the Bank conducts its material sustainability & climate-related issues by
collecting, assessing, and benchmarking the national and global context/taxonomy such as
regulatory, international framework, public/customer sentiment, and our internal policy. After
identifying material topics, stakeholders' opinions and suggestions are also gathered in order to
examine the connections between important issues connected to and resulted from the Group
and the Bank's operations.
As a result, twelve materiality risk factors were identified, addressed, and prioritized based on
their importance and effects on the operation of the Group and the Bank. Consequently, this
report describes the Group and the Bank's performance in relation to the risk factors that have
been identified with the goal to respond to the stakeholders' expectations regarding
sustainability and climate-related issues.
The following is the material topics derived from the material matrix that reflect the Group and
the Bank's current strategies, direction, and prioritization in integrating environmental, social,
and governance considerations into business operations:
10
Data Security &
Customer Privacy
9
Climate Change Risk
8
Business Ethics
7 Responsible Lending &

ESG Integrating
Financial Inclusion &
Impact to Stakeholders
6 Literacy
Product Development
5 and Digital Innovation
Community Participation
and Social Engagement
4
Fair Labor Practices Risk Management
3 Safety and
Working Environment
Corporate Governance
2 & Anti-Corruption
Human Resources Development
1
0
0 1 2 3 4 Impact5 to ALCEDA6 Bank 7 8 9 10
Environmental Social Governance

How we determine our material factors
Identify Prioritize Integrate

Material Topics Material Topics Material Topics
Sustainability
Report
1. Identification: Review and identify material topics that may affect our strategy
implementation. Through data collection, and benchmark from national and international
sustainability standards, material related topics are identified. The UN SDGs also assess to
evaluate how significant each of the 17 SDGs within the consolidated and entity level. From
this, we identified ESG factors and trends that are relevant to both the group and the bank.
2. Prioritization: Prioritize these material aspects by considering on the information obtained

from internal and external stakeholders, such as shareholders, customers, and employees
through conducting surveys and questionnaires for analyze and review.
3. Integration: Issues that are material to value creation into our strategy were reviewed by
senior management and responsible division. The final results are used as the basic
information for the development of the sustainability action plan and the sustainability
report 2023.
4. Sustainability Report: Disclose the voluntary information follow the content in the
sustainability report.
Detail materiality assessment factors
Material Factors Stakeholders ACLEDA Bank's Strategic Impact Contributed to the

UN SDGs
Data security and - Shareholders, - Strengthen internal
customer privacy - Board of Directors capacity to protect
Short Medium Long
- Customers customer data and
- Employees privacy.
- Business Partners - Build first-class IT
- Regulators services to support
the Bank business.
Climate change risk - Shareholders - Identifying and

- Customers managing our risks and Short Medium Long
- Employees opportunities in
- Business Partners/ response to the
Suppliers impacts of climate
- Regulators change.
- Collaborate with
stakeholders to
manage climate risk.
- Raise Awareness
regarding climate
change.
Business ethics - Shareholders - Building and

- Customers maintaining an ethical Short Medium Long
- Employees culture of integrity,
- Business transparency and
Partners/Suppliers accountability.
- Training to aviod
misconduct.
Product development - Shareholders - Innovating and
and digital innovation - Customers transforming digital Short Medium Long
- Employees banking products to
- Business Partners/ meet customers’
Suppliers demand.
Responsible lending & - Shareholders - Integrate ESG into

ESG integrating - Employees credit process. Short Medium Long
- Regulators - Enhance on ESMS

- Communities implementation.
- Train staff to identify
and support
sustaianble finance.
Financial inclusion and - Customers - Make banking product

literacy - Communities and services more Short Medium Long
- Regulators accessible and inclusive
to all segment in the
community.
- Focus on digital
marketing by offer
educational resources
to raise awareness
about digital banking,
and provided incentives
to enhance the
customer experience
with digital services and
products, retain their
loyalty, and improve

their financial literacy
Risk management - Shareholders - Strengthen internal

- Board of Directos capacity to identify and Short Medium Long
- Customers management risk,
- Employees - Strong risk
- Business managmeent
Partners/Supplier governance and
- Regulators transparency
Corporate governance - Shareholders, - Maintain highest

& Anti-corruption - Customers standards of Short Medium Long
- Employees governance and risk
- Business culture.
Partners/Suppliers - Adopt zero tolerance to
bribery and corruption.
- Always compply with
banking regulation and
supervision and on time
reporting.
Community - Employees - Encourage social and

participation and social - Communities community Short Medium Long
engagement participation through

voluntary actitivities.
Fair labor practices - Shareholders - Ensure fair treating to

- Board of Directors all empployee. Short Medium Long
- Employees - Ensurie equal

- Regulators opportunity to all
employee through
diverse backgrounds,
age, genders.
Human resources - Shareholders - Strengthen capacity

development - Board of Directors via training and Short Medium Long
- Employees career development.

- Reskilling and
upskilling development
Safety and working - Shareholders - Ensure healthy, safety

environment - Board of Directors workplace and Short Medium Long
- Employees evironmental around

- Regulators and well-being for all
employees.
ACLEDA Bank will operate in a sustainable

manner, minimizing the negative footprints on
the environment through improving the
practices of relevant frameworks and guidelines.
ENVIRONMENTAL ASPECT
Climate Change Risk Contributed to UN SDGs
The climate change issue has raised concerns to the global communities and Cambodia due to
its direct impact on economic development, business, ecosystems, biodiversity, and human
health. Many countries around the world raise this issue and address it through both policies
and institutional processes, despite it being an issue that the United Nations seeks to resolve by
addressing through its sustainable development goals.
The Bank recognizes its own roles and responsibilities to protect and prosper the planet and
acknowledges that the risks of climate change could pose a direct and indirect impact to the
Bank's business operations and the country's economy as whole. As a responsible bank that
takes environmental, social and governance issues into account, ACLEDA Bank is constantly
developing indicators for measuring and reporting our performance and impacts on society and
the environment.
Management Approaches:
- ACLEDA Bank put in place the

environmental, social and governance
policy, environmental and social operating
manual and procedure as framework and
guideline for operating in a sustainable
manner so that our impact on the
environment, society and governance in
which we operate is managed in a
responsible
p way.
y
- ACLEDA's exclusion list is prohibited

business activities that are important to
assess clients' business activities on their
impact on the environment.
- The Bank encourage green business by
providing loans or financing, as part of
promoting sustainable finance as well as
managing climate change.
- Reduce our environmental footprints by promoting working processes and operations that
reduce carbon emissions, such as digitalization which uses less resources and leaves fewer
environmental footprints, including video conferences, digital approval, sensor equipment
etc.
- Become a member of the Sustainable Finance Committee of the Association of Banks in
Cambodia and became a voluntary bank that adopted the Cambodia Sustainable Finance
Principles (CSFPs).
- Integrate Cambodia Sustainable Finance Principles and its implementation guidelines into
our sustainable finance approaches, practices, and decision-making processes.
- Encourage all employees to participate in the implementation of the 5R principles of the

Ministry of Environment aimed to optimize the reduction of plastic pollution.
- Promote awareness on appropriate electricity consumption, such as turning on and off
lights, air conditioners, and other electrical appliances based on operational time.
- Encourage the use of environmentally friendly and renewable energy sources.
- Set out environment indicators as an essential tool for tracking our environmental
performance.
- Put in place the Environmental and Social Management System (ESMS) and governance
structure, policy, operating manuals, procedures and internal capacity resources to identify,
manage, monitor and solve environmental risks posed by project/business operation being
financed by the Bank.
Climate-Related Risk Assessment
The Bank conducts a climate-related risk assessment in order to identify external and internal
risks and opportunities that have an impact on our management, and reflects the results in our
business operations. It assesses not only the impact that sustainability and climate-related
factors may have on the company, but also the impact that corporate business operations may
have on economy, society and the environment.
Identification of Climate-related Risks and Opportunities
Transition risks are risks arise from process of shifting towards a low-carbon economy including
policy and legal, technology, market, reputational risks which could result in financial and non-
financial impacts.
Physical risks are risk arise from climate change, it can be acute (driven by an event such as a
flood or storm) or chronic (arising from longer-term shifts in climate patterns), which could result
in increasing financial risks including damage to assets, interruption of operations, and
disruption to supply chains.
Climate-Related Risks Risk Types Opportunities
Transition Risk - Resources Efficiency

Credit Market
- Policy & Legal Risk Risk - Energy Resources
- Technology
- Market
- Market
- Reputation - Product & Services
Reputational
Physical Risk Risk - Resilience
- Flood
- Droughts
- Contagious Disease Operational Liquidity
- Depletion of natural Risk Risk
resources
Climate-Related Risk
Climate Related Risk Impact on the Business

Risk
Policy and Legal - Non-compliance with laws - Increase indirect operating
Risk or regulations cost
- Enhance sustainability
reporting obligation
- Exposure to litigation
Market Risk - Changing consumer - Decrease asset value or asset

behaviors resulting in useful life
changes in demand and - Affecting sales of goods that
supply cannot keep up with such
- Consumers considering trends, leading to financial
Transition Risks
environmental and global problems

warming issue as another
factor in their buying
decisions
Technology Risk - Technology development in - Costs to adopt/deploy new
transition to low practices and process
greenhouse gas emissions - Need more funds for research
- Unsuccessful investment in and development
new technology
- Costs of transition to lower
emission technology
Reputation Risk - Shift in consumer preferences - Declining confidence of

- Increased stakeholder stakeholders
concern or negative - Reduction in capital
stakeholder feedback availability
Acute - Increase extreme weather - Increase credit risk

events such as droughts and - Direct impact to assets,
floods that tend to occur financials, earnings or
Physical Risks
more often and with reputation.

increased severity - Business interruption
- Increasing costs and
expenditures for prevention of
and recovery from impacts of
natural disasters.
Chronic - Change in precipitation - Increase credit risk

patterns and weather - Direct impact to assets,
pattern financials, earnings or
- Rising mean temperature reputation.
- Rising sea level - Decrease revenues from
lower sale/output
- Write-off and early retirement
of existing assets (e.g.
Damage property and assets)
Climate-Related Opportunity
Climate-Related Types of Opportunity Opportunity on the Business

Opportunity
Resource - Increase the use of energy and - Operating cost reduction through
Efficiency resource efficiency such as the enhancement in energy
water recycling, energy-saving efficiency and minimize
devices greenhouse gas emissions
- Expansion of construction of - Improvement on employees’
green buildings quality of life and livelihoods
Energy Resources - Increase in the use of green

energy sources (renewable
energy)
- Expansion of low-carbon
technologies
Products/Services - Increase in customer preference - Income generation from financial
for green products products and services in support
- Development of green financial of environmentally friendly
products and services businesses
- Development of products that - Expansion of business
can minimize impacts of climate opportunities
changes
Market - Diversify business portfolio
- Creation of new market with
products and services that are
related to climate change
Resilience - Enhancement of energy - Review of business strategies to
efficiency/resource focus on management of the
diversification environment and climate conditions
- adaptation to climate change - Analysis of sustainability &
climate-related risks and
business opportunities.
Climate Risk Analysis
Climate change not only poses risks to economic and financial stability, but also presents
opportunities for growth. Analysis of climate risk helps the Bank better understand the risks and
opportunities associated with climate change. The outcomes of these tests will assist us in
developing preventive or corrective measures that will aid the Bank in addressing the risks posed
by these climate-related risks.
Short Term 0-5 years
Time Horizons
For
Climate Assessment Medium Term 5-15 years
Long Term Over 15 Years
Short term (0 to 5 years): the main risks are associated with transition to low carbon (e.g.
changes in legislation and regulation, changes in technology). For instance, the capacity of
the Bank and customers to achieve the transition to a low-carbon economy. ACLEDA Bank
sees opportunities supporting our clients by financing to them and the potentially increasing
our financing towards green industries (e.g. renewables energy).
Medium term (5 to 15 years): the risks stem from the fundamental change in business models,
the emergence of new technologies, and ongoing regulatory updates which may increase
risks from a physical perspective. Challenges will be presented by both physical and
transition risks. Moreover, technology risks could advance if energy efficiency version is
outdated.
Long term (Over 15 years): Physical risks are main challenges due to their effects on
customers' business models and supply chains, and consequently on their capacity to
mitigate and ensure that repayment capacity is not adversely affected. Numerous long-term
analyses point to significant losses in the event of an uneven climate transition such as flood,
drought, heatwave etc. while it brought huge impact to the client and the Bank's business.
For instance, climate change will influence food production via direct and indirect effects on
crop growth processes while it expected to damage key staple crop yields. Meanwhile, it
would impact the Bank in the way of increased operating costs, credit risk, and business
disruption etc.
Climate Risk Management
Climate risk management is a key component of our overall response to climate change. The
Bank has considered climate-related risk aspects within its analysis exercise, examples of the
rising of global temperature and its impact as credit risk related to climate change which would
affect our loan portfolios. We fully subscribes to international conventions which prohibit the
provision of credit to, or otherwise support, any activities which might harm the environment, be
morally repugnant or jeopardize human rights. Moreover, the Bank adopt preventive or
corrective actions to mitigate these risks by integrated the ESG frameworks or policies into
business and operational perspectives, particularly in the credit assessment to ensure that the
Bank is equipped with the necessary strategies and mitigation plans to manage climate-related
risks.
E&S Management System:
1- Roles and Responsibilities: Separate roles and responsibilities as credit officer,

Environment Unit, E&S Coordinator, E&S Manager.
2- Every loan is required to be screened against ACLEDA's Exclusion list, ACLEDA E&S Operating
Manual and Procedure (ACLEDA E&S Performance Standards) and other requirements from
lenders; and
3- E&S Teams: In case of the bigger size, E&S teams with support from E&S coordinator will
conduct due diligence and make recommendation to E&S Manager then E&S Manager makes
recommendation to Management Credit Committee for final decision.
Loan Assessment:
1- Every loan is assessed and prepared by loan officer; and

2- Credit Analysis Officer independently verify and/or conduct separate analysis then
recommend to approval authority for loan decision;
3- Approval Authority: Review and make final decision.
Approval Authority:
Decentralized/delegated to management level based on experience, loan performance and loan

size.
ACLEDA Bank's Eligible Green Project Categories
Eligible Green Project

Subcategories
Criteria
Renewable Energy Finance the development, construction and operation of facilities that
generate renewable energy including (i) solar energy including
Concentrated Solar Power (CSP) and Photovoltaic (PV) projects, (ii) wind
energy, (iii) biomass energy where the waste-based residue is from
livestock, (iv) waste to energy where the majority of recyclables have
been segregated before energy conversion i.e. waste prevention and
recycling, (v) hydropower, and (vi) energy storage.
Green Buildings Finance the acquisition, development, and construction of residential
and commercial properties and logistics facilities or
refurbishment/retrofit of existing buildings certified by a third party as
green buildings Certification schemes eligible for the allocation of
proceeds including LEED (Gold or above), BREEAM (Excellent or above),
and EDGE (EDGE Certified or above).
Energy Efficiency Finance the installation, operation, and support services to the energy
conservation equipment, including, but not limited to LED lighting,
efficient HVAC (heating, ventilating, and air conditioning), building
insulation and energy demand control systems which improve energy
efficiency.
Clean Transportation Finance the clean energy vehicles as well as public transportation
facilities including electric or hybrid vehicles (motorbikes, motor
tricycles, and cars), electric vehicle re-charge station.
Sustainable Water Finance the construction or operations of clean water treatment plants
and Wastewater and water connections to home and finance the purchase and
Management installation of products or technologies that reduce water consumption
in office buildings including installation, operation and support
services related to water, clean water and/or drinking water
infrastructure construction and maintenances, waste water treatment,
sewages and drainage systems.
Finance the expenditures related to small scale dam/waterway and
irrigation system.
Climate Change Finance the installation, operation, construction of flood and drought
Adaptation protection including building water reservations and big scale
dam/waterway/ irrigation system. This big scale is required to have
vulnerability assessment and adaptation plans in place.
Pollution Prevention Finance the waste collection and recycling facilities, including waste
and Control collection which supports source segregation of waste, waste collection
vehicles which aligned with Clean Transportation category, mechanical
recycling of waste, separating and recycling the waste into
souvenirs/handicrafts. The recycling of e-waste and chemical recycling
of waste are excluded.
Environmental Performance Indicators
In order to establish baselines for the measurement of our efforts to reduce our environmental
impact, ACLEDA Bank has established environmental key performance indicators (KPIs) as an
essential tools for tracking environmental progress, supporting policy evaluation and informing
the public. It will help the Bank manage and communicate the links between environmental and
financial performance. The operating results have been monitored to attain the established
objectives.
GHG Emission
on
n
Scope 1 ACLEDA Bank committed to minimize our carbon
footprint in our business operations by
maintaining the carbon emissions from the
2,963 Mt CO2e Bank's operations in 2024.
In 2023
GHG Emission
on
Our Short Term Target
Scope 2
Reduce 4% Carbon Emission by 2025
20,755 Mt CO2e From baseline year 2023
In 2023
ACLEDA Bank GHG Source
Scope Item ABC ABL AMM AUB DR. Site

Scope 01 Direct GHG emissions from organizational activities and operations
x Fuel Combustion from volume of
gasoline or diesel consumption 9 9 9 9 9
for Bank's generators
x Fuel Combustion from volume of
gasoline or diesel consumption 9 9 9 9 8
for Bank's vehicles
Scope 02 Indirect GHG emissions from the generation of purchased energy consumption
x Purchased Electricity 9 9 9 9 9
Scope 03 Other indirect GHG emissions
x Tap water withdrawn 9 9 9 9 9

x A4 paper consumption 9 9 9 9 8
In efforts to reduce our environmental impact, since 2005 we introduced a tracking system for
resource usage. The results are given under their respective headings below and will be used to
benchmark our future performance
Paper Usage
By establishing new platform of digital

request, e-signature and e-stamp are used
with the aim of reducing paper use from
printing. As a result in 2023, the paper (A4)
usage decreased to 124,360 kg (from
127,920 kg in 2022) of which by 2.55% per
co-worker compared to 2022 as the Bank
continue to strengthen the use of
electronic data by using our system
developed by the Bank’s IT Divisions to
send/receive internal information.
Moreover, we committed to the print less
action.
Meanwhile, in 2023 scrape paper recycle
decreased by 20.00% per co-worker
compared to 2022 due to the fact that most
meeting /training were conducted by
electronic/ online mean instead of onsite.
Target
2019 2020 2021 2022 2023 2024
Paper
Paper in kg/FTE 10.60 10.61 10.18 10.58 10.31 10.00
Scrape Paper Recycled
Scrape paper in kg/FTE 1.03 1.23 2.06 1.80 1.44 1.30
Energy & Fuel Consumption
In 2023, the electricity consumption per co-worker increased by 5.72% compared to 2022 due to
the increasing in human resources and electronic equipment/devices to support daily work.
Gasoline increased by 7.31% in 2023 and lubricants consumption increased by 7.55% due to the
increasing in number of front office staff and vehicles for travelling. However, the use of diesel
decreased by 2.23% per co-worker compared to 2022.
By all means, the Bank tries to raise awareness to all employees regarding energy conservation
which hope to reduce emission in our operation.
Electricity in kWh/FTE Energy Consumption
2,324.81
2,198.95
2,013.46 46.11
1,922.84 43.70 40.15 42.11 41.83 41.17
36.65 38.98
1,679.09 36.27 35.16
1.12 1.25 1.02 1.06 1.14
2019 2020 2021 2022 2023
2019 2020 2021 2022 2023 Gasoline in l/FTE Diesel in l/FTE Lubricant in l/FTE
Target
2019 2020 2021 2022 2023 2024
Energy
Electricity in kWh/FTE 1,679.09 1,922.84 2,013.46 2,198.95 2,324.81 2,100
Gasoline in l/FTE 36.65 36.27 35.16 38.98 41.83 38.06
Diesel in l/FTE 43.70 46.11 40.15 42.11 41.17 40.00
Lubricant in l/FTE 1.12 1.25 1.02 1.06 1.14 1.00
Water consumption
Water consumption per co-worker decreased

6.95% in 2023 compared to 2022 due to the
fact that the Bank keep pursuing a water
conservation effort by installing advanced
water-efficient technologies such as water
sensor tap as well as monitor/ check to make
sure there is no water supply pipe leaked,
damaged and broke. Moreover, the Bank raise
awareness and encourage all employees to
save water by explaining and guiding on the
impacts of wasting water to the environment.
Target
2019 2020 2021 2022 2023 2024
Tap Water Consumption

Water in m3 /FTE 28.21 20.42 22.19 18.70 17.40 17.00
Business Travel
Business Travel
In 2023, the total distance travelled by
2,461.44
car decreased by 0.07%, while
1,979.70
1,838.73 1,845.04
1,705.52
motorcycle travel increased by 24.33%
compared to 2022 due to the economic
resumption and the increased travelling
514.54 565.59 574.28 573.90 for onsite client visit.
367.29
2019 2020 2021 2022 2023
By car in km/FTE By motorcycle in km/FTE
2019 2020 2021 2022 2023

Business Travel
By car in km/FTE 514.54 565.59 367.29 574.28 573.90
By motorcycle in km/FTE 1,838.73 1,845.04 1,705.52 1,979.70 2,461.44
Emission of CO2
2019 2020 2021 2022 2023
Scope 01 (Mt-CO2e) 2,484 2,550 2,339 2,521 2,963
Scope 02 (Mt-CO2e) 12,590 14,406 15,189 16,641 20,755
Full Time Employee (FTE) 11,984 11,975 12,057 12,095 12,067
Note:
- ACLEDA Bank Plc. (ABC), ACLEDA Bank Lao Ltd. (ABL), ACLEDA MFI Myanmar Co.,Ltd. (AMM), ACLEDA University of Business (AUB).
- For CO2 emissions scope 01 and scope 02 from 2019 to 2022 are for ABC only, and 2023 are for the group.
- The emission factor for purchased electricity has been changed in accordance with the grid emission factor of the Ministry of Environment.
- For paper usage, energy consumption, water withdrawn, business travel are for ABC only. There was no disclosure about renewable energy
consumption/production, solid waste, and wastewater recycling because the Bank considered such information not material and non-
availability of data and resources.
ACLEDA Bank will honour the society in which we

operate and will actively work to promote an
inclusive culture embracing not just shareholders
and staff, customers and business partners but
respect for the individual within our community.
SOCIAL ASPECT
ACLEDA Bank will honor the society in which we operate and will actively work to promote an
inclusive culture embracing not just shareholders and staff, customers and business partners. The
Bank will observe a policy of equal opportunity towards all members of society. In particular, the
Bank commit to:
- Prohibit financing or any other support for activities involving harmful or exploitative forms of
forced labour or child labour or discrimination.
- Providing appropriate products and services which are carefully selected, accessible, educable
and developed for the particular needs to improve financial literacy and financial inclusion in
Cambodian society;
- Careful in lending to subprime customers by adhere to best practice of client protection;
- Participate in programs to educate the public in financial matters so that they can manage their
resources more effectively, improve their business skills and be better equipped to qualify for
bank finance;
- Maintain our focus on providing financial services to the lower segment of society to provide
them with the wherewithal to improve the quality of their lives;
- Increasing outreach, opening up banking services to new communities in new locations by

expanding our network in the provinces and extending online banking services to mobilize
savings;
- Promote career opportunities for women, within the reasonable constraints of the job
requirements, so as to ensure an appropriate gender balance;
- Promote the best working environment for all employees and protecting the common interests
of employee and community through improving the implementation of guidelines on labour,
human resource management, occupational health, safety and security for both employees and
communities.
- Support generous social welfare or pension schemes.
- Compliance with tax regimes where the Bank and subsidiaries operate.
- Encourage young generation to attend high education by giving them the chance for better lives.
Safety & Working Environment Contributed to UN SDGs
The Bank pledged to offer a secure and healthy working environment so that our employees can
give their best work. We believe that taking care of their well-being also enables us to increase
our productivity level, motivate our efforts, and maintain our skills for long-term growth. Over
the previous years, the Bank strictly focused on prevention and control of the spread of COVID-
19 in the area of the Bank in accordance with the Ministry of Health.
- In order to support and maintain the health and working environment of our employees, the
Bank promulgated guidelines and procedures such as Guideline and Procedure on
Occupational risk, Guideline of Tidiness and Sanitation, Operating Manual on Office Safety
Management, and Welfare Operating Manual.
- Establish a Disaster Management Committee aimed to reduce the occurrence of disasters
and to reduce the impact of those that cannot be prevented.
- Put in place the procedures for the evacuation of employees from the office in the event of
a fire in the office.
- Regularly conduct air quality assessment in the Bank’s buildings to ensure the good
environment for all staff.
Office –Indoor Temperature

Range from
24 oC -26 oC
Workplace Light Intensity
Range from
300 lux – 500 lux

- Ensure that lighting in the workplace is adequate and appropriate for operations in
compliance with related regulatory requirements.
- Provide a health insurance coverage so that employees feel confident in safety and have
lower healthcare expenses.
- To ensure the well-being of the employee, the Bank equipped water purifiers for use in all
offices.
- Arrange health care consultants, one doctor and two nurses for employees to conveniently
consult and interact with doctor via direct and call or telegram. Moreover, we prepared rest
room for employees to relax when they feel unwell. Healthy and safe work practices are part
of the training provided to all employees under the doctor's supervision.
Fair Labour Practices Contributed to UN SDGs
The Bank adhere a policy of equality in all dealings with the public in general and customers and
staff alike. We are aware that appropriately managing and respecting human rights and treating
employees fairly would promote business growth while also enhance the organization's
competitiveness and fostering sustainable growth.
- The Bank have promulgated the policies and procedure such as Collective Labor Agreement,
Policy on HIV/AIDS, Human Resources Management Operating Manual, Operating Manual of
Salary and Other Fringe Benefits, Performance Appraisal Operating Manual, and guidelines
for effective implementation.
- Implement practical measures such as
training interviewers on recruitment
procedures and the non-discriminatory
recruitment process and disseminating to
managers and staffs on relevant laws and
regulations.
- Promote career opportunities for women
ensuring equal representation of women
in the workplace.
Promoting Gender Diversity
Ensuring equal opportunity As of December 2023,
Female
1,440 4,711
Female Staff
Disabled Employees
Equaled 39.11%
Male Total Staff
1,457
- Promulgate the Rights of People with - We strongly believe that providing

Disabilities Operating Manual to ensure employment opportunities is a means of
the equal opportunities and treatment for advancing social equality and inclusivity.
disabled employees and career ACLEDA Bank offered employment to 2,897
opportunity based on their job roles disabled people nationwide in 2023.
without discrimination.
Note: Criteria for disabled employees based on the Ministry of Social Affairs, Veterans and Youth Rehabilitation.
- Employee career development and

management on compensation and
benefits with fairness, transparency and
non-conflict of interest which aim to
encourage and motivate all workers to
increase their capacity through
knowledge, skills and experience in the
job role.
- The staff is represented by a self-elected Staff Representative Committee, which excludes

management, as a spokesperson to inform the employer of the grievances of individual or
collective workers who are dissatisfied with the implementation of wages, performance of
work, general rules of employment and collective agreements for implementation and
propose all measures that are useful to contribute to the protection of health, improve
security and working conditions of employees.
Classification of Employees by Age
Age 41-60
16.25%
Staff Classified
Age 26-40 by Age
68.71% Age 18-25
15.04%
Classification of Employees by Gender
- Top managers 62.50% 37.50%
- Middle Managers 83.77% 16.23%
- First Line Managers 65.76% 34.24%
- Staff 59.29% 40.71%

Community Participation & Social Engagement Contributed to UN SDGs
ACLEDA recognizes that playing our part as good citizens in the community in which we abide is
vital to our mutual interests and prosperity. Social and community engagement are critical in
creating a vibrant, diverse, and resilient society. It provides a foundation for individuals to
develop a strong social bonds and feel a sense of belonging. Actively engaging in the
communities of the Bank not only benefit society but also increasing social support, improving
mental well-being, and gaining a better understanding of the community's challenges and
opportunities.
- Encourage social responsibility among employees, including volunteerism and community
involvement.
- Collaborate with public, private and civil society such as the Cambodian Red Cross, Kantha
Bopha Foundation, Samdech Techo Voluntary Youth Doctor Association (TYDA), National
Blood Transfusion Center, Cambodia Football Federation, and Association of Banks in
Cambodia to promote quality of lives and overall well-being.
The social and humanitarian activities that ACLEDA Bank Plc. contributed in 2023:
Charity
- Donation KHR800,000,000 to the

Cambodian Red Cross on their 160th
anniversary of World Red Cross Day on May
8th, 2023.
- Donation to the Ministry of Information to
support Kantha Bopha and Krousar Thmey
Foundations, a social affair and
humanitarian activities, and to contribute
with the Royal Government in socio-
economic development and poverty
alleviation.
- Donation to the Airavata Elephant
Foundation to support their program "5 th
Annual Fundraising Gala Dinner".
Education
- Sponsorship of the "Financial Technology

Awareness Program" organized by Rithipul.
- Donation to the Ministry of Education, Youth
and Sport to support their program "Our
Business" for 2023.
- Donation US$300,000 to build a new school
building and meeting hall of the Preah
Sihanouk Raja Buddhist University Phnom
Penh.
- Sponsorship to the 20th Anniversary
Celebration of Western International School.
- Silver sponsorship of the RULE's Education
Fair 2023.
Health
- Donation to the Samdech Techo Voluntary

Youth Doctor Association (TYDA) to
provide free health care services to
Cambodian people nationwide.
- Sponsorship of the Road to Give 2023.
- Gold sponsorship of the Sunrise Japan
Hospital Phnom Penh's 7th anniversary
celebration.
- Sponsorship of the "1st Areyksat Fun Run"
organized by Khmer Amateur Athletics
Federation.
- Silver sponsorship to the Thansur Sokha
Hotel to support their program "The 8 th
Bokor Cycling Tour and Half Marathon
for Kantha Bopha Children's Hospital"
on October 28 th -29 th , 2023.
- Sponsorship to the National Social
Security Fund (NSSF) to support their
program "NSSF Members Pageant 2023".
- In 2023, ACLEDA Bank organized two blood donation events in order to help patients in
emergency situations. Over 1,400 ACLEDA Bank's management & staff nationwide voluntarily
participated in the blood donation to the National Blood Transfusion Center to rescue all
patients who need the blood transfusions in March and December, 2023.
Sport
- Sponsorship of the "Paddy Field Half Marathon"

event.
- Sponsorship to the Football Federation of
Cambodia (FFC) in order to take part in supporting
and developing football in Cambodia.
- Diamond sponsorship to the Association of Banks
in Cambodia to support their program "Bankers'
Cycling 2023 to Promote Khmer Riel and
Sustainability of Banking Sector in Cambodia"
held on October 29th, 2023 in Krong Preah
Sihanouk.
- Sponsorship of the "CSX FUN RUN 2023" organized
by Cambodia Securities Exchange to support
sports and the Cambodia Kantha Bopha
Foundation.
i i
Culture & Traditional
- Sponsorship of the "3rd Thanks Angkor" event organized by APSARA National Authority on
December 7th, 2023.
Sponsor Events
- Sponsorship to the National Social Security

Fund (NSSF) to support their program "NSSF
Members Pageant 2023".
- Sliver sponsorship of the National Science,
Technology, & Innovation Day 2023
organized by the Ministry of Industry,
Science, Technology & Innovation at Koh
Pich Convention & Exhibition Center.
- Gold sponsorship of the CWEA Expo 2023
organized by the Cambodia Women
Entrepreneurs Association in Olympia Mall
on March 29th-30
30th-31
31st, 2023.
- Premium sponsorship to the National Bank of Cambodia to support the 43rd Anniversary of
the Reintroduction of Riel.
- Sponsorship of the "Plate Number Exhibition 2023" organized by the Ministry of Public Works
and Transport.
- Gold sponsorship of "The First Trust Forum 2023: Regulatory Frameworks, Best Practices, and
Opportunities" organized by Trust Regulator.
- Silver sponsorship of the "7th River Festival 2023" under the theme "Our River for Now and
Next" organized by Ministry of Tourism.
- Gold sponsorship of "The First Economic Forum 2023" organized by Cambodia Economic Youth
Association.
- Participation in the inauguration ceremony of the new headquarters of the National Social
Security Fund (NSSF).
- Sponsorship to the National Bank of

Cambodia to support their program
"ASEAN Savings Day" on October 31st,
2023.
- Silver sponsorship of the 10th Sea

Festival under the theme of "Together
For Tourism", held on December 01st -
02nd -03rd, 2023 in Kep Province.
- Sponsorship of the "Cambodia Stock

Market Exhibition (My First Stock)"
organized by Cambodia Securities
Exchange (CSX) on November 16th–19th,
2023
- Sponsorship to the Institute of Banking
& Finance to support their program
"Jobs & Skills Summit 2023" held on
September 29th-30th, 2023.
- Diamond sponsorship of the "Cambodia
Banking Conference 2023" organized by
the Association of Banks in Cambodia.
- Sponsorship of the National Career and
Productivity Fair 2023 on November
10th-11th, 2023.
- Gold sponsorship of the Cambodia
Women Entrepreneur's Day under the
topic: "The Challenges of Taxation on
Women Entrepreneurs and Future
Outlook".
- Sponsorship of the "CamTech Summit
2023" on November 30th, 2023.
As part of economic and society contribution, ACLEDA Bank complying with laws and regulations
across the countries and territories in which we operate. ACLEDA file our tax returns accurately
and in a timely manner, and fulfill our tax obligations appropriately. In 2022, the Bank received
the "Gold" Certificate of Tax Compliance validity for a 2-year period 2022 and 2023 from the
General Department of Taxation for complying with applicable laws and regulations on tax
payment.
Tax Paid Report
In the interests of fiscal transparency, we are pleased to publish our consolidated tax paid report
in the table below:
Unit in US$ 2019 2020 2021 2022 2023 Total*
Patent tax 19,130 19,576 18,942 18,900 18,762 247,727
Signboard tax 64,096 83,562 49,965 54,709 89,120 993,445
Transportation tax 33,643 20,753 43,134 54,966 57,167 507,220
Property tax 7,673 7,636 7,683 9,545 22,616 159,571
Value Added Tax 5,749 22,181 195,574 557,516 775,588 1,566,163
Prepayment of profit tax 5,122,833 5,298,199 - - 6,835,097 49,103,860
Profit tax 11,923,464 28,645,171 26,673,600 34,743,690 34,934,217 305,116,846
WHT-Salary 5,163,212 6,497,199 7,223,313 9,507,189 13,469,471 83,128,122
WHT-Saving Deposits 169,667 160,417 200,324 447,035 1,029,332 4,012,182
WHT-Fixed Deposits 4,758,442 5,129,096 6,310,737 7,873,068 11,651,275 61,733,745
WHT-Asset Rental 1,049,504 1,036,530 1,140,932 1,215,754 1,232,716 13,892,948
WHT-Local Services 335,193 298,033 256,376 328,028 329,739 4,992,456
WHT-Overseas Services 5,865,202 6,519,072 2,937,694 4,259,693 10,394,782 62,936,941
Total Paid 34,517,809 53,737,423 45,058,275 59,070,093 80,839,881 588,391,226
Accumulated amount*
(Year to date) 349,685,554 403,422,977 448,481,251 507,551,345 588,391,226
*Total and Accumulated Amount from year 2000.

Contributed to UN SDGs
Human Resources Development
With the rapid development of the financial services industry, which is shifting to the digital
economy, the Bank is aware that if employee's knowledge falls behind such rapid development
and customer expectations, they may not be supported to work effectively. The Bank is
committed to improving the skills of its employees by expanding the scope of technical
development and knowledge so that they can maintain work efficiency and competitive
opportunities.
- ACLEDA Bank put in place the Employee Training and Development Operating Manual in order
to strengthen the development of knowledge and skills and improve the attitude of ACLEDA's
employees so that they can perform their work effectively.
- Promulgate the Learning Support Operating Manual and Procedure as a guideline to

implement and support to enhance the professional capacity to keep up with the Bank's
development and growth as well as to maintain the advantage over competition, which is an
important strategy for managing and encouraging.
- ACLEDA Bank offer many opportunities for learning by training through combinations of rank-
based and business-related training programs.
- In 2023, the Bank reassessed its training programs for employees and management positions.
We will actively encourage employees to improve their skills through training seminars and
enhance the training's curriculum in accordance with ACLEDA's management strategy.
In 2023, the bank has invested and The Bank raises awareness of
spent on staff training amount environmental, social and governance
to all management and staff via e-
learning.
US$ 3,171,586
11,248 Participations
Average Training Hours per Employees availed further

Employee education support
25.3 Hours 2,364 Employees

- Candidates that are selected to join ACLEDA Bank are formally trained by ACLEDA Bank to
enhance their skills, knowledge, and attitudes in order to integrate them into the work
culture of the Bank and make them feel happy at work and able to work more efficiently.
- ACLEDA Bank promulgate the operating manual and procedure on internship aimed to
provide opportunities and facilitate internship applications of both local and international
students at ACLEDA Bank Plc. and subsidiaries.
In 2023, the ACLEDA Bank conduct

new recruits training program to
607 employees
Internship students at ACLEDA Bank
520 Students
ACLEDA Bank works to increase employee

engagement in the area through organizational
management strategies and initiatives that aim to
promote and integrate risk culture into daily
operations. The Bank specify five areas with
significance to the Bank’s operations as mandatory
courses via e-learning for all staff.
Code of Conduct
Conflict of Interest
AML-CFT Knowledge
g
Whistleblowers Protection
Bank Risk Management

Financial Inclusion & Literacy Contributed to UN SDGs
With its reputation of offering superior banking services, ACLEDA Bank offers a comprehensive
suite of financial services such as credits, deposits, funds transfers, cash management, trade
finance, ACLEDA card, credit and debit card, and digital services including internet banking,
ACLEDA mobile (mobile banking app), e-commerce payment gateway, ACLEDA ATM/POS, and term
deposit machine. With the supported of its digital infrastructure and physical offices, the Bank
is efficiently reaching out to assist farmers to manage their farmland or provide working capital
for SMEs. By narrowing the financing gap, over four million Cambodians today have access to
ACLEDA Bank’s services as it is in the forefront driving financial inclusion in the Kingdom.
In the near future, ACLEDA Bank will be seen as a digital bank with a sophisticated data lakehouse
providing quality, security, and trust. While enabling clients to access financial services, the Bank
actively promotes innovations in financial products and services that are suitable for customers
in all segments. These initiatives not only help to provide funding sources for their business
operations but also help to improve their quality of life, job creation, and the economy as a
whole. The following are notable performances that occurred in 2023:
“ T Bank has worked closely with SMEs and

The
provided them with a wide range of
financial products, in particular a
convenient and safe EBS and digital
services to meet their needs. Moreover,
ACLEDA Bank has mostly financed SMEs to
take part in the sustainable development
of SMEs at large.
e.
”
In 2023, the Bank provide loan to
298,606 SME customers

Amount of US$ 5,204.23 million
(80.43%) of total loan.
The Bank commits to create better and more appropriate financial access channels for all
segments of the community by leveraging innovations and technologies that promote efficiency
and improve financial access anywhere, anytime.
Loan to Agriculture
174,190
Customers
US$ 1,370.05
Million
The Bank promotes sustainable economic growth and job creation by providing financial access
to all segments of the community, including agriculture, housing, student, and personal loans.
Loan to First Home Buyer/Affordable Home Staff Loan & Staff Housing Loan
4,799 US$ 151.71 10,171 US$ 324.84

Customers million Customers million
Loan to Women Loan to Personal
220,716 US$ 3,151.14 81,752 US$ 440.96

Customers million Customers million
In order to promote economic growth, inclusion, and decent work for all by 2023, the Bank
provided loan to 280,187 small business customers with the amount of US$ 2,868.65 million
equivalent to 44.34% of total loan portfolio.
The Bank maintains a diversified

infrastructure of choices with 264
traditional branches (or offices), and
177 self-service banking with 1,393 ATMs
and 4,728 POS terminals.
4,550,582
Deposit Accounts
US$7,101.69 million
Deposit Balance
- In 2023, ACLEDA Bank and the Japan-

Cambodia Association (JCA) organized a
business match between Cambodian and
Japanese investors to exchange knowledge
on financial management, technical
knowledge and key innovations for
Cambodian businesses and Japanese
investors. In addition, this program can
promote local and international business
opportunities for all investors.
- At the end of 2023, we conducted an annual

survey on our small-sized and medium-sized
enterprise loan customers' living standards
that get loans at least twice from ACLEDA
Bank to test the impact of our credit services.
The responses indicated that their income
had generated higher as a result of credit
- Developed diverse financial p products, provided by ACLEDA Bank,
while more convenient channels
channe have
been offered for customers’ access
a to
our various financial services.
ACLEDA Bank Financial Access Channel

ACLEDA Bank keep on improving and making our digital services to be more easily for customer
usage by continuing to innovate new products and services as well as enhancing a variety of
service channels to allow rapid and convenient customer access, anywhere, anytime in response
to customers' demands.
With 264 branches office nationwide

to provide excellent services with a
hearted smiling and professional
manner.
04 branches open from 7:30 AM to 7:00 PM from Monday
to Friday (excluding public holidays)
03 branches in AEON 1, 2, 3 open daily from 9:00 AM to

7:00 PM from Monday to Sunday, including public
holidays
ACLEDA Bank's Self Service Banking,

equipped with machines that enable
customer do transaction 24/7, around
Phnom Penh and provinces.
An electronic machine for using with

KHQR, GLN QR, ACLEDA cards and
other banks' card to pay goods or
services instead of cash safely and
conveniently.
Financial Awareness
To make people financially literate and educated, ACLEDA Bank has been making sustained
efforts to deliver a key message in order to promote financial literacy among students,
customers, employees, and the general public which focused on the financial education for the
next generation via Facebook, Telegram, YouTube, Video Clip, and Radio channels.
Responsible Lending & ESG Integrating
ACLEDA Bank is aware of the crucial role we can play in influencing our customers' transition to
a low-carbon future through our financing practices. By being responsible, the Bank cooperate
to build a more sustainable financial system by taking the ESG and climate risk into account
when making our decisions.
ACLEDA Bank's maintains sustainability growth due to its adherence to the principles of law,
environmental, social and strong governance, and its focus on triple bottom lines: people, profit
and planet as stated in our vision and mission. By adhering to responsible lending practices
while taking ESG factors into consideration by not only supporting businesses and society in
moving toward sustainable development and growth, but also helping to prevent financial,
operational, reputational, and regulatory risks.
- Promulgate Environmental, Social and Governance Policy (ESG Policy), Credit Policy, and
Exclusion list for lending in accordance with the principles of sustainable finance in
Cambodia.
- Since 2013, E&S Operating Manual and Procedure has been established for the purpose of
providing framework of guidelines to staff involved to identify, to assess and to manage
possible E&S risk so that ESG considerations are integrated into our credit evaluation and
approval processes.
- The Bank requires, at the minimum, that all loans must be checked and screened to comply
with ACLEDA's Exclusion list. Where avoidance of environmental impacts is not possible, the
Bank seeks to engage with its clients to minimize such risks and impacts.
Our responsible financing policy prohibits our financing of companies
- Business activities that directly or indirectly cause environmental and social Risks and
Impacts such as deforestation, causing severe flood, drought, and biodiversity loss, hazard
chemical producing, water waste etc.
- Business activities that affect labor and working conditions and community health, safety
and security such as human trafficking or illegal labour, child labour, exploitation, and
working in a dangerous environment etc.
- Business activities that consume resource efficiency and pollution such as large volume of
water, and or power/electricity, papers, GHG emission, CO2, water pollution, and ground
water contamination etc.
- Business activities that could cause land acquisition and involuntary resettlement such as
the land dispute, land loss and loss of right on the land or loss of opportunity to get benefit
from the land etc.
- Business activities that could affect biodiversity conservation and sustainable management
of living natural resources etc.
- Business activities that could cause the loss of cultural heritage and indigenous people.
Environmental and Social Impact Assessment Process
The assessment of the E&S impact breakdown into four levels as below:
- Level 1- ACLEDA’s Exclusion Lists Screening
At an initial stage of inquiry, the credit officer will apply for the ACLEDA’s Exclusion List for
reviewing the target client’s business activities to be financed by the Bank. If the target
client involves any activity on the Exclusion List, the target client will be informed and
further consideration of financing should be terminated.
- Level 2- ACLEDA’s Environmental & Social Performance Standard/APS Screening
Credit Officer required all loans to be checked and screened on site regarding the client’s
business activities to comply with ACLEDA E&S Performance Standard to avoid of
environmental significant impacts as set forth above.
- Level 3- Verification Compliance with National E&S Laws and Regulations
After the target clients have passed the ACLEDA’s Exclusion List and APS screening, a legal
compliance verification will be carried out for the potential client’s business to be financed
by the Bank.
- Level 4- High E&S Risks Screening
Environmental and Social Impact Assessment on the business activity or project will be
additionally screened for high E&S risks by using 2-filter screening system. The outcome of
2-filter screening will be one among three situations below:
x No significant E&S risks
x Further E&S risks assessment is needed
x E&S risks too high
Where the potential clients are identified for E&S risks is too high, the target client will be
informed, and further consideration of financing should be terminated.
Social Performance Indicators
Employee Data
2019 2020 2021 2022 2023
Total Number of Employees 11,997 12,013 12,081 12,083 12,045
Number of Female Employees 4,816 4,761 4,750 4,687 4,711
Number of Male Employees 7,181 7,252 7,331 7,396 7,334
Board of Directors Data
2019 2020 2021 2022 2023
Total Number of Board of Directors 10 9 10 10 9
Number of Female 2 1 1 1 1
% of Female 20% 11% 10% 10% 11%
Number of Male 8 8 9 9 8
% of Male 80% 89% 90% 90% 89%
Top Management Data
2019 2020 2021 2022 2023
Total Number of Top Management 9 9 9 8 8
Number of Female 4 4 4 4 3
% of Female 44% 44% 44% 50% 38%
Number of Male 5 5 5 4 5
% of Male 56% 56% 56% 50% 62%
2019 2020 2021 2022 2023

Ratio of Lowest Paid Employee Against
Minimum Wage 0.95 0.95 0.95 1.00 1.00
Lowest Paid Employee 185 185 185 240 240
Minimum wage 195 195 195 240 240

Data of Disabled Employees
2019 2020 2021 2022 2023
No. of Disabled Employees Male 1,058 981 1,225 1,277 1,457
No. of Disabled Employees Female 1,137 1,049 1,254 1,305 1,440
Total 2,195 2,030 2,479 2,582 2,897
Living Support
2019 2020 2021 2022 2023

No. of Female Employees Who Availed
Living Support 4,834 4,779 4,738 4,697 4,367
No. of Male Employees Who Availed
Living Support 7,157 7,191 7,286 7,358 6,853
Work Related Accident
2019 2020 2021 2022 2023
No. of Employees Injury 258 245 203 217 219

No. of Fatalities - - 2 - -
Fatalities Rate - - 0.99% - -
Social Welfare Fund (NSSF)
2019 2020 2021 2022 2023

Social Welfare Fund 825 806 554 480 511
Social Welfare Fund 165 177 122 135 145
Total no. of employees who availed
social welfare fund 990 983 676 615 656
Monthly Telephone Fee
2019 2020 2021 2022 2023

Monthly Telephone Fee 1,393 1,419 1,495 1,586 1,808
Total No. of Employees Who Availed
Employee Training Hour
2019 2020 2021 2022 2023
Total Training Hours 283,705 227,468 275,972 339,695 304,583
Average Training Hours Per Employee 23.6 18.9 22.8 28.1 25.3
Employee Training and Development
2019 2020 2021 2022 2023

Training – Career Development and
Refresher Programs 5,023 7,293 6,554 7,979 5,313
Training of New Recruits – Induction
Program 940 788 843 776 607
Internships for Local Students 645 237 415 557 520
Internships for International Students 4 5 - - 1

Employee Training
Investment/Expense ( US$) 2,500,564 2,892,983 2,883,690 4,058,026 3,171,586
Further Education /Training Support
2019 2020 2021 2022 2023

Further Education Support 38 26 93 53 208
Further Education Support 38 92 203 213 2,156
Total No. of Employees Who Availed
Further Education Support 144 118 296 266 2,364
ACLEDA Bank recognizes the critical importance of

corporate governance in supporting the Bank's
sustainable growth, enhancing the efficiency of the
Bank, creating shareholder value, and securing
trust for all stakeholders including shareholders,
customers, staff, and the public.
GOVERNANCE ASPECT
Corporate Governance & Anti-Corruption
ACLEDA Bank recognizes the critical importance of corporate governance in supporting the Group and the
Bank's sustainable growth, enhancing the efficiency of the Group and the Bank, creating shareholders'
value, and securing trust for all stakeholders including shareholders, customers, staff, and the public. The
Board of Directors supports and encourages the adoption and implementation of good corporate
governance policies, together with a code of conduct and business ethics.
The Board of Directors is responsible for determining the strategy of the Bank by conducting risk
management, culture, and oversight. Its members shall act in the best interests of the Bank. The Board of
Directors supports and encourages the adoption and implementation of good corporate governance
policies, together with a Code of Conduct and business ethics.
The Board of Directors assumes responsibility for corporate governance and for promoting the success
of the Bank by directing and supervising its business operations and affairs. It appoints and may remove
the President & Group Managing Director, Group Chief Internal Audit Officer, and Head of Compliance
Division. It also ensures that the necessary human resources are in place, established with the
management's strategies and financial objectives to be implemented by the management, and monitors
the performance of management both directly and through the Board Committees. With the following
management strategies, ACLEDA Bank place a strong emphasis on conducting business in accordance with
the good corporate governance and preventing corruption in all its forms with the following management
approaches:
- Stipulate the Corporate Governance Policy which covers the duties and responsibilities of the Boards
of directors, right, transparency, composition, and qualification.
- Stipulate the code of conduct policy to pursue the highest standards of ethical conduct in the best
interest of all stakeholders and as being practiced for all directors, executives, and staff by working
with integrity. Moreover, all staff members will promote honest and ethical conducts, compliance with
applicable rules and regulations, and accountability in adhering to this Policy.
- Establish its conflict of interest policy to enable all staff members of ACLEDA Bank easily identify,
prevent, and manage conflict of interest which may arise in the course of the Bank’s business.
- Adhere to the Banking and Financial Institution

Code of Conduct to maintain the stability and
sustainability in the development of the banking
sector and built on integrity and trust with the
customers and the public. The code covers on 1)
Enhancing Good Governance, 2) Roles of Board
and Executives, 3) Awareness Raising and
Training, 4) Responsible Financing, 5) Conflicts
of Interest, 6) Availability, 7) Accountability and
Reliability, 8) Responsibility and Transparency,
9) Privacy and Consumer Data, 10) Service
Standards, 11) Information, 12) Guarantee, 13)
Advertising, Marketing and Sale, 14) Ethics, 15)
Debt Collection, 16) Aggressive Selling
Techniques, 17) Product and Service Design, 18)
Discrimination, 19) Channel Communication, 20)
Dispute Resolution for Consumers, 21) Dispute
Resolution for Banking and Financial
Institutions.
- The Bank prohibits offering or receiving bribes or corrupt payments in any form. All employees shall
comply with laws and regulation in force. We are strongly committed to conducting our business with
honesty, integrity and in accordance with all applicable laws including anti-corruption law.
- Promulgate the Collective Labour Agreement which mentioned the responsibilities of all employee to
adhere to the business conduct and avoid any form of fraud and corruption.
- Promulgate the Compliance Policy and compliance function in identifying, evaluating, and addressing
compliance risks and will help the Bank to look at and get across business lines and activities of the
organization as a whole and to consider how activities in one area of the Bank may affect the legal
and reputational risks of other business lines and the entire group/enterprise.
- Promulgate the Operating Manual on Gift, Commission and Persuasion in order to prevent improper
behavior among employees, such as bribery, corruption, and other actions that violate ACLEDA Bank
Plc's policies, procedures, and guidelines.
Business Ethics Contributed to UN-SDGs
ACLEDA Bank is committed to implement and serve the customer with highest
ethical standards, while maintaining transparency and accountability at all
levels of operations. It is for this reason that ACLEDA Bank has adopted a Code
of Ethics to ensure that all Directors and employees of ACLEDA Bank shall
pursue the highest standards of ethical conduct in the interests of
shareholders, customers, staff and the public.
All staff members will promote honest and ethical conduct, compliance with applicable rules and
regulations, and accountability in adhering to the code of ethics which is incorporated into the
Collective Labour Agreement. The Bank's code of ethics covers the following important principles
including personal behavior, relationships with colleagues, customers and regulators,
confidentiality, conflicts of interest, acceptance of gifts, money laundering and "whistle blowing".
Whistleblower Protection
The Bank always pays attention to any attitude against to regulations, policies, operating
manuals, procedures, code of ethics which are likely to occur sometimes; therefore, the Bank
established the Whistle Blower's Protection Policy as one of a measure to identify such behavior
and take preventive and corrective actions in order to remove it. Employees are encouraged to
disclose any concerns which is the constructive opinion and could affect and detrimental to the
best interests of ACLEDA Bank Plc. and general public. The Bank has adopted a Whistle Blower’s
Protection Policy aimed to receive the information and protect each whistleblower who
expresses a concern in good faith, without malice and with no expectations of personal gain.
Under the Whistle Blower’s Protection Policy, the Bank offers channels for reporting information
or tips regarding violations of laws, rules, and the Bank's code of conduct, such as cases of
corruption, nepotism, fraud and unethical behaviour etc.
Whistleblower Handling Process
Whistleblower send Compliance Division Disciplinary action will be

information via compile and review, taken if wrongdoing or
employee suggestion while the information of inappropriate behavior is
letter, email, or direct whistleblower is kept found.
call. confidential.
Customer Complaint Channel
For complaint purpose

(Every working day from 7:30 to 16:30)
- Tel: 015 888 654

- E-mail: cmc@acledabank.com.kh
24-hour customer service:
- Tel: 023 994 444, 015 999 233

- E-mail: inquiry@acledabank.com.kh
- Visit the nearest ACLEDA Bank Plc. Branch
- Fulfill the "CUSTOMERS' COMPLAINT" form
Data Security & Customer Privacy Contributed to UN SDGs
Since businesses now need to connect with more external parties, such
as business partners and service providers, cyber threats have remained
a significant risk for ACLEDA Bank. The Group and the Bank committed to
protecting the privacy and confidentiality of personal Information of its
employees, customers, business partners, and other identifiable
individuals.
In order to commit to this, the Group and the Bank specified governance structure that promotes
collaboration from the board of directors, senior management, and employees. Under this
structure, the Board of Directors is responsible for reviewing the related policies and the internal
control system to make sure that they comply with regulations and potential conflict of interest
that deserve special attention.
- Establish IT Steering Committee to assist in governance, risk and control framework; and
directing, monitoring and managing continual improvement of IT Governance
implementation.
- Establish IT Security Division to supervise, monitor and strengthen compliance with IT

security principles of users and monitor physical security related to the organization of
information technology equipment in the Data Center in order to identify risks and lead to
set policies and procedures for prevention in a timely and safe manner.
- Promulgate Data Classification Policy to protect the Bank’s data appropriately and comply
with the relevant laws and regulations related to different types of data. It governs the
confidentiality, integrity, availability, privacy and security of firm’s sensitive data and the
responsibilities of individuals for such data.
- Promulgate Information Security Incident Management Policy to prevent the disruptive short
and long-term effects of security incidents and thereby prevent their recurrence in the Bank.
- Promulgate the Back-Up Policy as the rules for the backup and storage of information and
improve business operations to enable the business continuity plan and recovery of the data
and applications in case of disaster, system failures, and espionage of system operations.
- Promulgate Data Privacy Policy to protect the privacy and confidentiality of Personal
Information about ACLEDA’s employees, customers, business partners and other identifiable
individuals.
ACLEDA Bank declare a Legal and Privacy Notice to inform clients and the public while sternly
enforcing its Data Privacy Policy and Information Security Policy across the entire organization.
Employees of the Bank and its contracted service providers are required to adhere to all relevant
policies and procedures, including those governing the protection, collection, and management
of customer, employee, and other data owners' personal information as required by law. To
prevent violation and unauthorized access to personal information, appropriate safeguards are
put in place when using, sending, or transferring that data. Customer’s consent is required before
the provider shares personal information with any external audience, including credit bureaus.
Establishing a Cyber Risk Awareness Culture
To help employees handle and respond to the cases of privacy breach effectively and
appropriately, the Bank has specified the Information Security Policy and others. Moreover, the
Bank also emphasizes on raising employee awareness through consistent training,
communication, and activities.
1. The Board of Director and Senior Management
- Cyber security management, IT risk management and other main IT issues have been
reported to the Board Risk Management and IT Committee on a quarterly basis.
- High-level executives of ACLEDA Bank participated in a cyber-attack simulation to
familiar with such incidents and develop the procedures they will need to deal with
any future threats.
2. Employees
- E-learning and testing on data security management has been arranged for employees.
- To ensure that our employees have a better awareness and understanding of cyber
threats, IT newsletters on security tips and security alerts have been regularly released
on a PC's screen to all employees.
- Regular phishing exercises have been carried out. Employees of ACLEDA Bank and its
subsidiaries have received fictitious emails as a way to put them to the test, ensure
their awareness, and provide them with training on how to handle the situation.
According to the exercise results, employees are becoming more cautious and aware
of phishing emails.
Reporting of Cybersecurity Performance
In 2023, there were no incidents of leakage, theft, or loss of customer sensitive data as a result
of all cyber threats reported.
IT Security Awareness
In 2023, IT Security Division conducted 2,568 IT security training sessions for ACLEDA Bank
executives and staff members in order to ensure that executives and staff members understood
and were aware of cyber threats in accordance with the Bank's IT security regulations and
policies.
Risk Management Contributed to UN-SDGs
In the competitive business environment along with the rapid evolution and development of
technology and changes in the law, the Group and the Bank is fully aware that today’s business
operations could involve volatility and uncertainty from both internal and external factors, some
of which are uncontrollable, such as the COVID-19 pandemic, domestic and international
economies, unpredictable weather, changes of laws and regulatory requirements, etc. Most of
these factors have either positive or negative impacts on the Group and the Bank's operations.
ACLEDA Bank values the importance of risk management, while we strongly believes that
proactively identifying the risk before it occurs and adapting to future changes could even help
the Bank manage and minimize the potential risk properly efficiently and in a timely manner.
- The Bank integrated risk management into all business process while the risk governance
structure has been developed with well-defined, and consistent lines of responsibility of
employee to all levels in order to manage risk effectively.
- The board of directors is responsible for reviewing and approving on risk management policy
and risk appetite with considering the most significant risk that specifies the nature, types,
and levels that the Bank is willing to assume and provides an outline of the approach to
managing these risks.
- The Board Risk Management and IT Committee (BRIC) that appointed by the Board
responsible for oversight and promote the risk management and risk governance of the bank,
conducts annual review on the adequacy of the risk management framework outlining the
bank wide high-level policies which include the risk identification, risk assessment, risk
treatment and monitoring and reporting.
- Promulgate the Risk Management Policy to set standards for the Bank's enterprise-wide risk
management in a way that optimally balances managing risks while adding value to the Bank.
The policy distinguished different risk categories in line with the categories identified by the
Basel.
- Establish Risk Management Division to ensure that material risks as set out in the risk
management policy are identified, measured, monitored, monitored and reported effectively
and in a timely manner.
- Establish "three lines model" approach to provide structure around risk management and
controls within the Bank by defining roles and responsibilities in different areas and the
relationship between those different areas.
Risk Management Process
ACLEDA Bank has a process in place for managing risks that includes risk identification,
assessment, monitoring, and reporting.
Risk Identification
The risk identification process begins with identifying what could happen and could cause a
potential loss as well as gaining insight into how, where, and why the loss might happen from
each process flow. Moreover, comprehensive identification of risk of risks faced by the Bank is
determined by evaluating on the people, process, system, products, and external events that can
adversely affect the Bank's business strategy and risk profile.
Risk Assessment
Once a risk has been identified, it needs to be assessed and measured. The risk assessment or
measurement enables the Bank to consider the extent of potential events that could affect the
accomplishment process based on two perspectives: likelihood and impact, which are normally
used by the combination of qualitative and quantitative methods. In addition, the identified risks
are plotted onto the risk heat map with three levels i.e. high, medium, and low, based on their
likelihood and impact ratings and control effectiveness.
Risk Mitigation
The results from the risk assessment are then used as the basis to determine the appropriate
treatment of the identified risks. Options for treatment of the risks are evaluated in relation to
Bank's risk appetite and cost-benefit analysis of potential risk response.
Four type of risk mitigation options:
1 Risk Acceptance
The impact of risk is very low or because of the potential benefits bigger than the risk;
therefore the Bank can accept the risk.
Risk Reduction
2 The impact of risk on the Bank is high and the Bank is able to take measures to solve
the problem effectively and low cost; therefore, the Bank chooses this method to
reduce risk.
Risk Transfer
3
This is where the risk is such a high impact on the Bank due to lack of expertise to
manage, high management cost and significant loss; therefore the Bank can transfer
the risk to another party such as buying insurance.
Risk Avoidance
4
This is where the risk is such a very high threat to the business or over the Bank’s current
risk appetite that may lead to stop of operations/systems, high management costs, no
risk transfer solutions are available; therefore the Bank can choose the risk avoidance
strategy.
Risk Categories within the Bank
Credit
Social Risk Market Risk
Capital and
Environmental Risk Liquidity Risk
Risk
Categories Operational Risk
Political Risk
Information Technology
Compliance and Risk
Regulatory Risk
Strategic Risk
Reputational Risk
Risk Management Approach
In order to effectively identify and manage the risk, the Bank set up "three lines model" approach
to providing structure around risk management and controls within the Bank by defining roles
and responsibilities in different areas and the relationship between those different areas.
Three Lines Model
1. First lines roles
The first line roles are both business operations and support functions who are the risk
owners, ultimately responsible to acknowledge and manage day-to-day risk inherent in
the Bank’s business and activities.
2. Second line roles
The second line roles comprise Risk Management Division who are responsible for
developing risk methodologies, templates, and procedures, and providing training and
guidance to the first line roles in order to perform the risk management processes.
3. Third line roles
The internal audit forms as the third line roles are responsible for providing an
independent review and performing regular post checking on the business and operations
activities. It reviews implementation of policies, procedures as well as the effectiveness
and adequacy of risk management.
- The Bank puts in the place the Risk Governance Structure and mapping the risk owner by
the line of business in order to manage the risk effectively and in a timely manner.
- Have set the risk appetite statement and its key metrics within the Bank risk in order to
identify, measure, mitigate, monitor and report in a consistent manner across the Bank.
- Conduct Material Risk Assessment annually in order to manage the Bank’s risks effectively
and to identify the risk before it occurs and minimize the potential risk properly and in a
timely manner.
- Determine the ‘Risk and Control Self-Assessment’ (RCSA) and ‘Key Risk Indicators’ (KRI) as
tools and methods that ACLEDA Bank uses for closely monitoring and assessing various
aspects of all business function risks.
Product Development & Digital Innovation Contributed to UN SDGs
ACLEDA Bank is aware of how critical it is to build competitive capability in today's innovation-
and technology-driven. The plans are to keep on improving and making its digital service to be
more convenient for customer usage by continuing to innovate new products and services and
continuing to update all existing digital products and services. Additionally, ACLEDA Bank plans
to reduce the number of physical branches by establishing the Banking Self-Service, equipped
with machines and enable customers to do transaction 24/7, around Phnom Penh and provinces.
They play a key role in facilitating trade and enabling the efficient use of resources.
The Bank is developing a payment platform to enable licensed partners of all sizes, locally as
well as internationally, to join forces in servicing its customers mutually and beyond borders.
This will not only benefit to our valued customers directly but also their own business partners
and recognizing that they are an important link for extending the Bank’s outreach and growth
together. Meanwhile, the digitized ACLEDA mobile has proved very popular in which the number
of registered users has reached 3.29 million users as at the end of December 2023, all enabling
the rapid circulation of money in the economy.
The Bank supports the development of innovation and digitization based on management
approaches as follows:
- Establish Portfolio Management Committee (PMC) to manage all projects and investments
in a timely manner in accordance with market needs and in accordance with the strategic
plan of the Bank and reserve sufficient resources, equipment and materials to support the
development process effectively.
- Promulgate the Product Development Operating Manual in order to develop and improve a
wide range of IT products and infrastructure, including investment in new product
development, improvement of existing products, development of new technology systems,
or modernization of technology, ease of use and high security to meet market demand.
Product Development Process
1 2 3 4 5 6 7
Project
Fee n
Implementation
Initiation Planning Design Executing Closing
Determination monitoring
process
- Promulgate the software development project management operating manual to serves as

a guidance for stakeholders to refer to throughout the various phases of the project. This
document outlines activities, milestones and deliverables involved in the project
management process. Software development project management process is organized into
five phases, namely initiating, planning, designing, executing and closing.
- Emphasize and educate employees about innovation and technology in order to maximize
their potential and prepare them for new ways of working, such as learning and employing
new technology and data analytics, the agile management method and the scrum method,
and design thinking for long-term success.
- Initiate in the development and adoption of innovations and digital technologies in our
operational processes and customer services to ensure a positive experience for employees,
customers, and relevant stakeholders.
- The mobile banking application (Mobile Number of Users

App) shows its popularity and
competitiveness, in the digital era, with 3,295,128
2,845,886
about two-third (2/3) of banks having
2,278,220
launched their App.
1,782,814
- ACLEDA Mobile is designed to meet the
financial needs of customers of all ages.
Customers can use ACLEDA Mobile
worldwide where WiFi/internet is available,
2020 2021 2022 2023
scan KHQR/QR within Cambodia
countrywide, and cross-border payment
with QR in Thailand, Vietnam, Lao PDR etc. Number of Transaction
The Bank design ACLEDA Mobile by
362,004,609
thinking of a benefit that we can provide
to the users including convenient, fast
and highly secure, reduce cost and save
time by not going to the Bank, decrease 148,799,661
risk of carrying physical cash along for 78,726,895
48,749,599
making payment as well as deducing the
use of paper documents through digital
services. 2020 2021 2022 2023
- In 2022, ACLEDA Bank received the "Data Innovation Leader Award" from Credit Bureau
Cambodia (CBC) at the 10th Anniversary of CBC. The Bank is so proud and honored to receive
this award since the Bank is the leading data innovation in banking and financial sector, in
particular effectively delivering the credit reporting in Cambodia.
ABOUT THIS REPORT

This report is ACLEDA Bank’s Sustainability Report and covers the 2023 financial year. The report
boundaries cover ACLEDA Bank Plc. (“the Bank”) and its subsidiaries (collectively referred to as “the
Group”)’ performance during January 1 - December 31, 2023.
Economic & Governance Information,
Performance of the Group and the Bank that are consistent with our 2023 Annual Report.
Environmental Information,
Reporting boundaries
Direct GHG emissions and indirect GHG emissions from electricity have been reported by ACLEDA Bank,
its branches, subsidiaries and entities where ACLEDA Bank has operational control and through which
ACLEDA Bank conducts its banking and finance business or provides services in support of such business.
Greenhouse Gas Emission (GHG)
The Greenhouse Gas Emission indicated in the report are from ACLEDA Bank's operation and activities
and is calculated based on the reference rates of Intergovernmental Panel on Climate Change 2006 (IPCC)
and greenhouse gas protocol.
All GHG emission figures are in metric tons of carbon dioxide equivalents (CO2e).
Calculation Method
1. The calculation of Scope 1 GHG direct emissions is based on fuel consumption (by weight or quantity),
e.g., the quantity of gasoline/petrol and diesel multiplied by its emission factors.
2. The calculation of Scope 2 GHG indirect emissions is based on the quantity of purchased electricity
multiplied by grid emission factors.
3. The calculation of Scope 3 GHG indirect emissions is not applicable in this report.
Social Information,
Number of ACLEDA Bank Employees
Employees are workers under employment contracts with ACLEDA Bank Plc; they are classified into five
groups, as below:
1. Top Management Level: Includes President & Group Managing Director, and EVP & Group Chief
Officers.
2. Middle Management Level: Includes SVP & Head of Division, VP & Head of Department, and Branch
Manager "A"
3. First-Line Management Level: Includes VP & DH, ASVP, Assistant Head, VP & BM "B", VP & BM "C", AVP
& Manager, AVP & Assistant Manager, AVP & Manager "B"
4. Skilled/Technical Staff: Includes Group Specialist, Group Engineer, Group Vault, Staff, and Clerk.
5. Unskilled Staff: Includes Driver, CSA / Cleaner.
The above employees are also classified in accordance with the employee contracts, i.e., permanent and
temporary employees. Data collection on number of employees (headcount) was collected at the end of
the reporting period.
This sustainability report has been prepared and issued by ACLEDA Bank to whom any comments or
requests for further information should be sent.
Contact Us
Headquarters: Building N⁰ 61, Preah Monivong Blvd., Sangkat Srah Chak, Khan Doun Penh,
Phnom Penh, Kingdom of Cambodia.
P.O. Box: 1149
Tel: +855 (0)23 998 777 / 430 999
Fax: +855 (0)23 430 555
E-mail: acledabank@acledabank.com.kh
Website: www.acledabank.com.kh
SWIFT Code: ACLBKHPP
Call Centre (24/7):

Tel: +855 (0)23 994 444, +855 (0)15 999 233
E-mail: inquiry@acledabank.com.kh
MAPPING TO UN SDGs
Goals Targets Response & Reference

1. No Poverty 1.4 Equal rights to economic resources, as well as access to x Financial Inclusion &
basic services, ownership and control over land and other Literacy , Page 50-54
forms of property, inheritance, natural resources, x Community Participation &
appropriate new technology and financial services, Social Engagement, Page
including microfinance. 42
2. Zero Hungry 2.3 Double the agricultural productivity and incomes of x Financial Inclusion &
small-scale food producers, in particular women, Literacy, Page 50-51
indigenous peoples, family farmers, pastoralists and
fishers, including through secure and equal access to land,
other productive resources and inputs, knowledge,
financial services, markets and opportunities for value
addition and non-farm employment.
3. Good Health and 3.8 Achieve universal health coverage, including financial risk x Safety & Working
Well-being protection, access to quality essential health-care services Environment, Page 39
and access to safe, effective, quality and affordable
essential medicines.
3.C Substantially increase health financing and the x Community Participation

recruitment, development, training and retention of the and Social Engagement,
health workforce. Page 42-44
4. Quality Education 4.3 Equal access for all women and men to affordable and x Fair Labour Practice, Page
quality technical, vocational and tertiary education, 41
including university. x Human Resources
Development, Page 48-49
4.4 Increase the number of youth and adults who have x Human Resources
relevant skills, including technical and vocational skills, for Development, Page 48-49
employment, decent jobs and entrepreneurship.
4.6 Ensure that all youth and a substantial proportion of x Community Participation &
adults, both men and women, achieve literacy and Social Engagement, Page
numeracy. 42
4.7 Learners acquire the knowledge and skills needed to x Human Resources
promote sustainable development, human rights, gender Development, Page 48-49
equality, promotion of a culture of peace and non- x Financial Inclusion and
violence, global citizenship and appreciation of cultural Literacy, Page 50-54
diversity and of culture’s contribution to sustainable
development.
5. Gender Equality 5.5 Full and effective participation and equal opportunities for x Fair Labor Practice, Page
leadership at all levels of decision-making in political, 40-41
economic and public life. x Responsible lending & ESG
Integrating, Page 55
6. Clean Water and Sanitation 6.1 Equitable access to safe and affordable drinking water for x Safety & Working
all. Environment, Page 39
6.3 Improve water quality by reducing pollution, eliminating x Responsible lending & ESG
dumping and minimizing release of hazardous chemicals Integrating, Page 55-56
and materials.
7. Affordable and Clean 7.2 Increase substantially the share of renewable energy. x Responsible lending & ESG
Energy Integrating, Page 55-56
8. Decent Work and Economic 8.2 Higher levels of economic productivity through x Product Development &
Growth diversification, technological upgrading and innovation. Digital Innovation, Page
70-72
8.5 Full and productive employment and decent work for all x Fair Labor Practice, Page
women and men, including for young people and persons 40-41
with disabilities, and equal pay for work of equal value.
9. Industry, Innovation and 9.1 Develop quality, reliable, sustainable and resilient x Safety & Working
Infrastructure infrastructure to support economic development and Environment, Page 39
human well-being, with a focus on affordable and
equitable access for all.
9.3 Increase the access of small-scale industrial and other x Financial Inclusion &
enterprises to financial services, including affordable Literacy, Page 50-54
credit.
10. Reduce Inequalities 10.2 Empower and promote the social, economic and political x Fair Labor Practice, Page
inclusion of all, irrespective of age, sex, disability, race, 40
ethnicity, origin, religion or economic or other status. x Responsible lending & ESG
Integrating, Page 55-56
11. Sustainable Cities and 11.4 Strengthen efforts to protect and safeguard the world’s x Responsible lending & ESG
Communities cultural and natural heritage. Integrating, Page 55-56
11.6 Reduce the adverse per capita environmental impact of

cities, including by paying special attention to air quality
and municipal and other waste management.
12. Responsible Consumption 12.5 Substantially reduce waste generation through prevention, x Climate Change Risk, Page
and Production reduction, recycling and reuse. 25-26, 33-36
13. Climate Action 13.2 Integrate climate change measures into national policies, x Climate Change
strategies and planning Management, Page 33-36
x Responsible lending & ESG
13.3 Improve education, awareness-raising and human and Integrating, Page 55-56
institutional capacity on climate change mitigation,
adaptation, impact reduction and early warning
14. Life Below Water 14.1 Prevent and significantly reduce marine pollution of all x Responsible lending & ESG
kinds, in particular from land-based activities, including Integrating, Page 55-56
marine debris and nutrient pollution.
15. Life On Land 15.a Increase financial resources from all sources to conserve x Responsible lending & ESG
and sustainably use biodiversity and ecosystems. Integrating, Page 55-56
16. Peace, Justice and Strong 16.4 Strengthen the recovery and return of assets and combat x Data Security & Customer
Institutions all forms of organized crime. Privacy, Page 65-66
16.5 Substantially reduce corruption and bribery in all their x Business Ethics, Page 63
forms.
17. Partnerships for the Goals 17.1 Strengthen domestic resource mobilization to improve x Financial Inclusion and
domestic capacity for tax and other revenue collection. Literacy, Page 50-54
x Community Participation &
Social Engagement,
Page 42-46
17.16 Complemented by multi-stakeholder partnerships that x Responsible lending & ESG
mobilize and share knowledge, expertise, technology and Integrating, Page 55-56
financial resources, to support the achievement of the x Product Development &
Sustainable Development Goals Digital Innovation, Page 71
ACLEDA BANK PLC.
AND ITS SUBSIDIARIES
Consolidated and Separate

Financial Statements
As at 31 December 2023 and for the year then ended
and
Independent Auditor's Report on
Financial Statements
ACLEDA BANK PLC. AND ITS SUBSIDIARIES
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2023 AND FOR THE YEAR THEN ENDED
Contents
Pages
Report of the Board of Directors 1–7
Independent auditor’s report 8 – 12
Financial statements:
Consolidated financial statements:
Consolidated statement of financial position 13

Consolidated statements of profit or loss and other comprehensive income 14 – 15
Consolidated statement of changes in equity 16 – 17
Consolidated statement of cash flows 18 – 19
Separate financial statements:
Separate statement of financial position 20

Separate statements of profit or loss and other comprehensive income 21
Separate statement of changes in equity 22 – 23
Separate statement of cash flows 24 – 25
Notes to the financial statements 26 – 195

Headquarters
s
Report of the Board of Directors

The Board of Directors (“the Board” or “the Directors”) hereby submits its report together with the
consolidated financial statements of ACLEDA Bank Plc. (“the Bank”) and its subsidiaries (collectively
referred to as “the Group”) and the separate financial statements of the Bank as at 31 December 2023
and for the year then ended (hereafter collectively referred to as “the financial statements”).
The Group and the Bank

Prior to 1 December 2003, the Bank was a public limited company formed under the laws of the
Kingdom of Cambodia to operate as a specialised bank with its Head Office located in Phnom Penh
and 14 branches in the Kingdom of Cambodia. On 1 December 2003, the National Bank of
Cambodia (“NBC”) issued a license for the Bank to become a private commercial bank for a period
of three years commencing 1 December 2003. The Bank’s license was renewed for an indefinite
period on 28 November 2006. The registered office of the Bank is located at No 61, Preah Monivong
Boulevard, Sangkat Srah Chork, Khan Daun Penh, Phnom Penh, Kingdom of Cambodia. The Bank
may open additional offices in Cambodia and in other countries, and may change the location of its
main registered office upon registering the change with the Ministry of Commerce (“MOC”) and
receiving approval from the NBC.
On 25 May 2020, the Bank was successfully listed in the Cambodia Securities Exchange (“CSX”).
The number of new issued shares are 4,344,865 shares with a par value of KHR4,000 (US$0.98) per
share, at an offering price of KHR16,200 (US$3.97) per share. The Bank received the proceeds from
the initial public offering (“IPO”) amounting to US$17,082,105 and incurred IPO costs of
US$1,031,025, resulting in share premium of US$11,706,215 (KHR48,235,459 thousand).
On 23 November 2020, the shareholders approved the amendment to the Memorandum and Articles
of Association (“MAA”) relating to the capital increase from the IPO. On 18 February 2021, the Bank
submitted a letter to the NBC requesting for its approval on the capital increase, which was approved
on 29 March 2021. Accordingly, the Bank’s amended MAA was approved by the MOC on 12 May
2021.
The Bank and its subsidiaries, ACLEDA Bank Lao Ltd. (“ABL”) and ACLEDA MFI Myanmar Co., Ltd.
(“AMM”), are all in the financial industry sector and have operations across 264 offices covering all
provinces and cities in the Kingdom of Cambodia, 37 offices in the Lao People’s Democratic Republic
(“PDR”), and 17 offices in the Republic of the Union of Myanmar. The Bank’s other subsidiaries,
ACLEDA Securities Plc. (“ACS”) is in the securities sector and ACLEDA Institute of Business Co., Ltd.
(“AIB”) is in the education sector.
On 21 November 2022, the NBC approved the Bank’s request for the issuance of green bonds to
qualified investors in the amount of KHR400 Billion (equivalent to US$100 Million) on the CSX.
On 7 December 2022, the Securities and Exchange Regulator of Cambodia (“SERC”) approved the
Bank's request for its nominated Cash Settlement Agent, Registrar Agent, and Transfer Agent, and
ACS as the Bond Agent when the Bank issues the green bonds in the CSX.
On 13 September 2023, the NBC approved the Bank’s request for the issuance of Thai Baht
Denominated Subordinated Unsecured Debentures in the Thai Bond Market Association amounting
to THB3.5 Billion (equivalent to US$100Million).
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1
Headquarters
s
Principal activities
The Bank operates under the regulations of the NBC with special focus on providing lending and other
financial services to the citizenry and small and medium-sized enterprises and to engage in all other
activities, which the Directors believe support these objectives.
ABL is 99.90% owned by the Bank and its principal business is providing banking and related financial
services in Lao PDR.
ACS is wholly-owned by the Bank and its principal business is providing securities brokerage and
other services approved by Securities and Exchange Commission of Cambodia (“SECC”) (currently,
the SERC).
AIB is 76.609% owned by the Bank. AIB provides training and education for Associate’s degree,
Bachelor’s degree, and Master’s degree in Business Administration, Major in Banking and Finance.
AMM is wholly-owned by the Bank and is permitted to operate as a deposit-taking microfinance

institution providing microfinance services to lower income segments of the Myanmar market and
other activities allowed by the Microfinance Supervisory Authority in Myanmar.
Financial performance
The audited financial performance of the Group and the Bank for the year ended 31 December 2023
are set out in the consolidated statements of profit or loss and other comprehensive income and
separate statements of profit or loss and other comprehensive income on pages 14 – 15 and 21,
respectively.
Share capital and share premium

Share capital and share premium are classified as equity. Incremental costs directly attributable to the
issuance of new share capital are shown in equity as a deduction from the proceeds, net of tax.
Reserves and provisions

There were no material movements to or from reserves and provisions during the year other than
those disclosed in the financial statements.
Bad and doubtful loans

Before the financial statements of the Group and the Bank were drawn up, the Directors took
reasonable steps to ascertain that action had been taken in relation to the write-off of bad loans and
advances or in making provisions for doubtful loans and advances, and satisfied themselves that all
known bad loans and advances had been written off and that adequate provisions have been made
for bad and doubtful loans and advances.
At the date of this report and based on the best of knowledge, the Directors are not aware of any
circumstances which would render the amount written off for bad loans and advances or the amount
of the provisions for bad and doubtful loans and advances in the financial statements of the Group
and the Bank inadequate to any material extent.
2
Headquarters
s
Assets
Before the financial statements of the Group and the Bank were drawn up, the Directors took
reasonable steps to ensure that any assets which were unlikely to be realised in the ordinary course
of business at their values as shown in the accounting records of the Group and the Bank, have been
written down to an amount which they might be expected to realise.
circumstances which would render the values attributed to the assets in the financial statements of the
Group and the Bank misleading in any material respect.
Valuation methods
circumstances that have arisen which would render adherence to the existing method of valuation of
assets and liabilities in the financial statements of the Group and the Bank misleading or inappropriate
in any material respect.
Contingent and other liabilities

At the date of this report, there is:
(a) no charge on the assets of the Group and the Bank which has arisen since the end of the
financial year which secures the liabilities of any other person, and
(b) no contingent liability in respect of the Group and the Bank that has arisen since the end of the
financial year other than in the ordinary course of banking business.
No contingent or other liability of the Group and the Bank has become enforceable, or is likely to
become enforceable within the period of twelve months after the end of the financial year which, in the
opinion of the Directors, will or may have a material effect on the ability of the Group or the Bank to
meet its obligations as and when they become due.
Change of circumstances
At the date of this report, the Directors are not aware of any circumstances, not otherwise dealt with in
this report or the financial statements of the Group and the Bank, which would render any amount
stated in the financial statements misleading in any material respect.
Items of an unusual nature

The results of the operations of the Group and the Bank for the financial year were not, in the opinion
of the Directors, materially affected by any items, transactions or events of a material and unusual
nature except for the continuing impact of the Novel Coronavirus (“COVID-19”) situation.
3
Headquarters
s
Items of an unusual nature (continued)

There has not arisen, in the interval between the end of the financial year and the date of this report,
any items, transactions or events of a material and unusual nature that are likely, in the opinion of the
Directors, to substantially affect the results of the operations of the Group and the Bank for the financial
year in which this report is made.
Coronavirus and continuing impact on expected credit loss
The expected credit loss (“ECL”) was estimated based on a range of forecast economic conditions as
at the reporting date. In 2020, the COVID-19 outbreak has spread across mainland China, Cambodia
and beyond, which caused disruption to business and economic activity. In response to the COVID-
19 situation, the Management provides its best estimate of the continuing impact of COVID-19 on the
Group’s and the Bank's ECL considering the current and future probable economic scenarios.
The Board of Directors and the Executive Committee

The members of the Board of Directors during the year and at the date of this report are:
Mr. Chhay Soeun Chairman (Non-executive Director)

Dr. In Channy Member (Executive Director)
Mr. Kyosuke Hattori Member (Non-executive Director)
Mr. Albertus Bruggink Member (Non-executive Director)
Mr. Kay Lot Member (Non-executive Director)
Mr. Stéphane Mangiavacca Member (Non-executive Director)
Drs. Pieter Kooi Member (Independent Director)
Mr. Van Sou Ieng Member (Independent Director) (retired on 10 October 2023)
Dr. Heng Dyna Member (Independent Director) (effective 11 December 2023)
Ms. Phurik Ratana Member (Independent Director)
The members of the Executive Committee during the year and at the date of this report are:
Dr. In Channy President & Group Managing Director

Dr. So Phonnary Senior EVP & Group Chief Operations Officer
(retired on 6 November 2023)
Mrs. Mar Amara Senior EVP & Group Chief Financial Officer and Group Chief
Operations Officer (appointed on 6 November 2023)
Mr. Ly Thay EVP & Group Chief Administrative Officer
Mrs. Buth Bunseyha EVP & Group Chief Legal Officer and Corporate Secretary
Mr. Mach Theary EVP & Group Chief Information Officer
Dr. Loeung Sopheap EVP & Group Chief Risk Officer
Mr. Yin Virak EVP & Group Chief Treasury Officer
(appointed on 1 January 2023)
4
Headquarters
s
The Management and those charged with governance’s responsibilities

in respect of the financial statements
The Management and those charged with governance are responsible for ensuring that the financial
statements are properly drawn up so as to present fairly, in all material respects, the financial position as
at 31 December 2023, the financial performance and cash flows for the year then ended of the Group
and the Bank in accordance with Cambodian International Financial Reporting Standards (“CIFRSs”)
and guidelines of the NBC.
In preparing these financial statements, the Management and those charged with governance are
required to:
i) adopt appropriate accounting policies which are supported by reasonable and prudent judgments
and estimates and then apply them consistently;
ii) comply with the disclosure requirements of CIFRSs or if there have been any departures in the
interest of true and fair presentation, these have been appropriately disclosed, explained, and
quantified in the financial statements;
iii) maintain adequate accounting records and an effective system of internal controls;
iv) prepare the financial statements on a going concern basis unless it is inappropriate to assume
that the Group and the Bank will continue operations in the foreseeable future;
v) effectively control and direct the Group and the Bank in all material decisions affecting the
operations and performance and ascertain that such have been properly reflected in the financial
statements; and,
vi) safeguard the assets of the Group and the Bank and hence take reasonable steps for the
prevention and detection of fraud and other irregularities.
5
x
-
-
-
x
x x
x
x
x
x
x
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023
2023 2022 2023 2022

Note US$ US$ KHR’000 KHR’000
(Note 5) (Notes 5 & 42)
ASSETS
Cash on hand 7 495,793,568 497,027,041 2,025,316,725 2,046,260,328
Deposits and placements with other banks, net 8 1,509,543,178 846,602,175 6,166,483,882 3,485,461,154
Financial investments, net 9 357,544,384 556,037,532 1,460,568,809 2,289,206,519
Loans and advances, net 10 6,601,665,231 6,379,406,093 26,967,802,469 26,264,014,885
Other assets 11 32,839,518 78,818,566 134,149,431 324,496,036
Statutory deposits 12 548,627,109 482,330,993 2,241,141,740 1,985,756,698
Property and equipment, net 14 147,746,865 140,220,709 603,545,944 577,288,659
Intangible assets, net 15 10,771,018 10,896,541 43,999,609 44,861,059
Right-of-use assets, net 16 32,410,303 28,785,805 132,396,088 118,511,159
Deferred tax assets 17 1,352,626 1,407,258 5,525,477 5,793,681
Derivative financial instruments 23 5,746,686 9,630,593 23,475,212 39,649,151
TOTAL ASSETS 9,744,040,486 9,031,163,306 39,804,405,386 37,181,299,329
LIABILITIES AND EQUITY

LIABILITIES
Deposits and placements of other banks and
financial institutions 18 419,792,620 417,826,399 1,714,852,853 1,720,191,285
Deposits from customers 19 6,808,020,419 5,971,164,302 27,810,763,412 24,583,283,431
Other liabilities 20 85,845,344 141,630,044 350,678,230 583,090,891
Borrowings 21 859,813,550 957,335,868 3,512,338,352 3,941,351,769
Subordinated debts 22 117,053,882 127,762,328 478,165,108 525,997,504
Lease liabilities 24 32,527,687 28,448,770 132,875,601 117,123,586
Employee benefits 25 8,392,621 33,374,198 34,283,857 137,401,573
Current income tax liabilities 32(a) 3,791,516 34,428,462 15,488,343 141,741,978
Deferred tax liabilities 17 26,782,045 2,545,115 109,404,654 10,478,238
TOTAL LIABILITIES 8,362,019,684 7,714,515,486 34,158,850,410 31,760,660,255
EQUITY
Share capital 26 433,163,019 433,163,019 1,732,652,076 1,732,652,076
Share premium 26 11,706,215 11,706,215 48,235,459 48,235,459
Reserves 36 722,627,638 638,862,248 3,005,581,984 2,706,552,320
Retained earnings 208,502,399 226,856,479 834,487,503 908,250,779
Non-controlling interests 6,021,531 6,059,859 24,597,954 24,948,440
TOTAL EQUITY 1,382,020,802 1,316,647,820 5,645,554,976 5,420,639,074
TOTAL LIABILITIES AND EQUITY 9,744,040,486 9,031,163,306 39,804,405,386 37,181,299,329
The accompanying notes on pages 26 to 195 form an integral part of these financial statements.
13
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022 2023 2022

(Note 5) (Note 5)
Interest income 27 755,631,085 670,753,456 3,105,643,759 2,741,369,375

Interest expense 28 (329,001,434) (220,822,466) (1,352,195,894) (902,501,419)
Net interest income 426,629,651 449,930,990 1,753,447,865 1,838,867,956
Fee and commission income 29 46,678,617 47,455,203 191,849,116 193,949,415

Fee and commission expense (3,957,350) (4,564,217) (16,264,709) (18,653,955)
Net fee and commission income 42,721,267 42,890,986 175,584,407 175,295,460
Allowance for impairment losses on loans and advances,

deposits and placements with other banks, other
receivables, and investment securities 10 (41,683,690) (20,581,207) (171,319,966) (84,115,393)
(Allowance for)/reversal of impairment losses on off-balance
sheet commitments 10 (2,180) 2,588 (8,960) 10,577
Net impairment losses (41,685,870) (20,578,619) (171,328,926) (84,104,816)
Income after impairment losses 427,665,048 472,243,357 1,757,703,346 1,930,058,600
Other income, net 30 25,698,536 25,622,725 105,620,983 104,720,077

General and administrative expenses 31 (269,126,054) (269,557,936) (1,106,108,082) (1,101,683,284)
Profit before income tax 184,237,530 228,308,146 757,216,247 933,095,393
Income tax expense 32(b) (36,219,105) (46,493,371) (148,860,522) (190,018,407)
Profit for the year (carried forward to next page) 148,018,425 181,814,775 608,355,725 743,076,986
14
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
(CONTINUED)
2023 2022 2023 2022

(Note 5) (Note 5)
Profit for the year (brought forward from previous page) 148,018,425 181,814,775 608,355,725 743,076,986
Remeasurement of employee benefit obligations 25 - (3,125,546) - (12,774,107)
Exchange differences - - (45,439,046) 54,054,920
Items that are or may be reclassified subsequently to
profit or loss:
Currency translation differences - foreign subsidiaries (5,835,579) (18,481,195) (23,984,230) (75,532,644)
Remeasurement of the effective portion of derivatives
arising from cash flow hedge (3,883,907) 10,136,751 (15,962,858) 41,428,901
Other comprehensive (loss)/income for the year (9,719,486) (11,469,990) (85,386,134) 7,177,070
Total comprehensive income for the year 138,298,939 170,344,785 522,969,591 750,254,056
Profit for the year attributable to:

Owners of the Bank 148,054,791 181,738,358 608,505,189 742,764,670
Non-controlling interests (36,366) 76,417 (149,464) 312,316
148,018,425 181,814,775 608,355,725 743,076,986
Total other comprehensive income attributable to:
Owners of the Bank 138,336,670 170,277,683 523,124,665 749,720,108
Non-controlling interests (37,731) 67,102 (155,074) 533,948
138,298,939 170,344,785 522,969,591 750,254,056
The earnings per share attributable to shareholders of the Bank
during the year:
Basic earnings per share 33 0.34 0.42 1.40 1.71
Diluted earnings per share 33 0.34 0.42 1.40 1.71
15
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders of the Parent

Share capital Share premium Reserves Retained earnings Total Non-controlling interest Total equity
US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000
(Notes 5 & 42) (Notes 5 & 42) (Notes 5 & 42) (Note 5) (Note 5) (Note 5) (Note 5)
As at 1 January 2023, as reclassified 433,163,019 1,732,652,076 11,706,215 48,235,459 638,862,248 2,706,552,320 226,856,479 908,250,779 1,310,587,961 5,395,690,634 6,059,859 24,948,440 1,316,647,820 5,420,639,074
Profit for the year - - - - - - 148,054,791 608,505,189 148,054,791 608,505,189 (36,366) (149,464) 148,018,425 608,355,725
Remeasurement of the effective portion of
derivatives arising from cash flow hedge - - - - (3,883,907) (15,962,858) - - (3,883,907) (15,962,858) - - (3,883,907) (15,962,858)
Currency translation differences - foreign
subsidiaries - - - - (5,834,214) (23,978,620) - - (5,834,214) (23,978,620) (1,365) (5,610) (5,835,579) (23,984,230)
Total comprehensive (loss)/income for the year - - - - (9,718,121) (39,941,478) 148,054,791 608,505,189 138,336,670 568,563,711 (37,731) (155,074) 138,298,939 568,408,637
Transaction with owners:

ABL’s increase in capital - - - - - - (230,017) (945,370) (230,017) (945,370) (597) (2,454) (230,614) (947,824)
Dividends paid - - - - - - (72,695,343) (297,105,865) (72,695,343) (297,105,865) - - (72,695,343) (297,105,865)
Transfer from retained earnings to regulatory
reserves - - - - 93,483,511 384,217,230 (93,483,511) (384,217,230) - - - - - -
Exchange differences - - - - - (45,246,088) - - - (45,246,088) - (192,958) - (45,439,046)
Total transactions with owners - - - - 93,483,511 338,971,142 (166,408,871) (682,268,465) (72,925,360) (343,297,323) (597) (195,412) (72,925,957) (343,492,735)
As at 31 December 2023 433,163,019 1,732,652,076 11,706,215 48,235,459 722,627,638 3,005,581,984 208,502,399 834,487,503 1,375,999,271 5,620,957,022 6,021,531 24,597,954 1,382,020,802 5,645,554,976
16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
Attributable to equity holders of the Parent

Share capital Share premium Reserves Retained earnings Total Non-controlling interest Total equity
US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000
(Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5)
As at 1 January 2022, as reclassified 433,163,019 1,764,706,139 11,706,215 47,691,120 592,403,586 2,431,370,827 161,769,465 641,130,182 1,199,042,285 4,884,898,268 5,992,757 24,414,492 1,205,035,042 4,909,312,760
Profit for the year - - - - - - 181,738,358 742,764,670 181,738,358 742,764,670 76,417 312,316 181,814,775 743,076,986
Remeasurement of employee benefit
obligations - - - - - - (3,120,802) (12,754,718) (3,120,802) (12,754,718) (4,744) (19,389) (3,125,546) (12,774,107)
derivatives arising from cash flow hedge - - - - 10,136,751 41,428,901 - - 10,136,751 41,428,901 - - 10,136,751 41,428,901
subsidiaries - - - - (18,476,624) (75,513,962) - - (18,476,624) (75,513,962) (4,571) (18,682) (18,481,195) (75,532,644)
Exchange differences - - - - - 12,314,612 - - - 12,314,612 - 259,703 - 12,574,315
Total comprehensive (loss)/income for the year - - - - (8,339,873) (21,770,449) 178,617,556 730,009,952 170,277,683 708,239,503 67,102 533,948 170,344,785 708,773,451

ABL’s increase in capital - - - - - - (312,446) (1,276,967) (312,446) (1,276,967) - - (312,446) (1,276,967)
Dividends paid - - - - - - (58,419,561) (237,650,775) (58,419,561) (237,650,775) - - (58,419,561) (237,650,775)
reserves - - - - 54,798,535 223,961,613 (54,798,535) (223,961,613) - - - - - -
Exchange differences - 18,626,010 - 503,367 - 22,351,228 - - - 41,480,605 - - - 41,480,605
Total transactions with owners - 18,626,010 - 503,367 54,798,535 246,312,841 (113,530,542) (462,889,355) (58,732,007) (197,447,137) - - (58,732,007) (197,447,137)
As at 31 December 2022 433,163,019 1,783,332,149 11,706,215 48,194,487 638,862,248 2,655,913,219 226,856,479 908,250,779 1,310,587,961 5,395,690,634 6,059,859 24,948,440 1,316,647,820 5,420,639,074
17
CONSOLIDATED STATEMENT OF CASH FLOWS

2023 2022 2023 2022

(Note 5) (Note 5)
Cash flows from operating activities

Profit for the year before income tax 184,237,530 228,308,146 757,216,247 933,095,393
Adjustments for:
Net impairment losses 10 41,685,870 20,578,619 171,328,926 84,104,816
Depreciation of property and equipment 14 23,541,254 21,991,373 96,754,554 89,878,741
Depreciation of right-of-use assets 16 12,227,167 11,777,321 50,253,656 48,133,911
Seniority indemnity benefits 25(c) 9,610,624 9,260,343 39,499,665 37,847,022
Amortisation of intangible assets 15 2,821,055 3,096,546 11,594,536 12,655,584
Career development expense 25(b) 1,672,985 1,774,997 6,875,968 7,254,413
Provident fund 860,481 71,537 3,536,577 292,372
Unrealised foreign exchange gains 590,010 (2,816,294) 2,424,941 (11,510,194)
Adjustment in property and equipment 364,663 482,341 1,498,765 1,971,328
Adjustment in intangible assets 106,902 (50,152) 439,367 (204,971)
(Reversal of)/provision for retirement benefits 25(a) (121,300) 2,887,044 (498,543) 11,799,349
Dividend income 30 (407,862) (117,333) (1,676,313) (479,540)
Gain on disposals of property and
equipment and lease 30 (426,746) (804,700) (1,753,926) (3,288,809)
Currency translation reserves (5,835,579) (18,481,195) (23,984,230) (75,532,644)
Net interest income (426,629,651) (449,930,990) (1,753,447,865) (1,838,867,956)
Operating loss before changes in working
capital (155,702,597) (171,972,397) (639,937,675) (702,851,185)
Changes in:
Deposits from customers 836,856,117 738,885,609 3,439,478,641 3,019,825,484
Other assets 45,777,932 (50,870,783) 188,147,301 (207,908,890)
Deposits and placements with other banks 11,039,941 (2,239,167) 45,374,158 (9,151,476)
Deposits and placements from other banks
and financial institutions 1,966,221 (65,914,593) 8,081,168 (269,392,942)
Statutory deposits (66,296,116) (66,874,033) (272,477,037) (273,314,173)
Other liabilities (89,199,747) 53,258,432 (366,610,960) 217,667,212
Loans and advances (263,763,061) (1,001,868,648) (1,084,066,181) (4,094,637,164)
Cash flows from/(used in) operations 320,678,690 (567,595,580) 1,317,989,415 (2,319,763,134)
Interest received 751,560,355 667,746,225 3,088,913,059 2,729,078,822

Provident fund paid (860,093) - (3,534,982) -
Career development benefits paid 25(b) (3,882,076) (13,882) (15,955,332) (56,736)
Seniority benefits paid 25(c) (9,766,773) (9,369,932) (40,141,437) (38,294,912)
Retirement benefits paid 25(a) (22,464,315) (253,266) (92,328,335) (1,035,098)
Income tax paid 32(a) (42,669,437) (38,459,561) (175,371,386) (157,184,226)
Interest paid (218,069,981) (152,518,962) (896,267,622) (623,344,998)
Net cash from/(used in) operating activities
(carried forward to next page) 774,526,370 (100,464,958) 3,183,303,380 (410,600,282)
18
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
2023 2022 2023 2022

(Note 5) (Note 5)
(brought forward from previous page) 774,526,370 (100,464,958) 3,183,303,380 (410,600,282)
Cash flows from investing activities

Proceeds from matured investments 57,185,184 1,292,496 235,031,106 5,282,431
Interest received from investments 4,070,729 3,007,229 16,730,696 12,290,545
Proceeds from disposals of property and
equipment 475,133 1,715,852 1,952,797 7,012,687
Dividends received 407,862 117,333 1,676,313 479,540
Purchases of financial investments - (125,397,320) - (512,498,847)
Purchases of intangible assets 15 (2,858,118) (1,946,425) (11,746,865) (7,955,039)
Purchases of property and equipment 14 (31,658,674) (24,674,783) (130,117,150) (100,845,838)
Net cash from/(used in) investing activities 27,622,116 (145,885,618) 113,526,897 (596,234,521)
Cash flows from financing activities

Proceeds from borrowings 142,939,167 518,708,879 587,479,976 2,119,963,188
Proceeds from subordinated debts 14,962,500 - 61,495,875 -
Payment of tax on ABL’s increase capital (230,614) (312,446) (947,824) (1,276,967)
Payments of lease liabilities 24 (14,205,707) (13,405,900) (58,385,456) (54,789,913)
Repayments of subordinated debts (26,000,000) (29,000,000) (106,860,000) (118,523,000)
Interest paid (70,942,605) (61,835,494) (291,574,107) (252,721,664)
Payments of dividends (72,695,343) (58,419,561) (297,105,865) (237,650,775)
Repayments of borrowings (244,700,980) (164,180,530) (1,005,721,028) (671,005,826)
Net cash (used in)/from financing activities (270,873,582) 191,554,948 (1,111,618,429) 783,995,043
Net increase/(decrease) in cash and

cash equivalents 531,274,904 (54,795,628) 2,185,211,848 (222,839,760)
Cash and cash equivalents at the
beginning of the year 1,748,443,669 1,803,239,297 7,198,342,585 7,346,396,896
Cash and cash equivalents at the end of
the year 34 2,279,718,573 1,748,443,669 9,312,650,371 7,198,342,585
During the year ended 31 December 2023, the Group entered into new lease agreements and recognised right-of-use
assets amounting to US$17,886,445 (31 December 2022: US$13,800,949), and pre-terminated right-of-use assets and
lease liabilities amounting to US$1,245,468 (31 December 2022: US$1,479,735) and US$1,306,483 (31 December 2022:
and US$1,491,043), respectively, and recognised a gain from pretermination amounting to US$101,682 (31 December
2022: US$7,424), which is a non-cash transaction.
19
SEPARATE STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023
2023 2022 2023 2022

(Note 5) (Notes 5 & 42)
ASSETS
Cash on hand 7 486,584,317 486,665,483 1,987,696,935 2,003,601,794
Deposits and placements with other banks, net 8 1,478,882,021 828,396,425 6,041,233,056 3,410,508,082
Financial investments, net 9 357,544,384 556,037,532 1,460,568,809 2,289,206,519
Loans and advances, net 10 6,457,043,288 6,246,269,485 26,377,021,831 25,715,891,470
Other assets 11 31,035,271 77,642,135 126,779,083 319,652,671
Statutory deposits 12 543,302,104 479,556,076 2,219,389,095 1,974,332,365
Investments in subsidiaries 13 91,117,716 91,117,716 372,215,870 375,131,637
Property and equipment, net 14 113,709,160 106,286,031 464,501,919 437,579,590
Intangible assets, net 15 9,829,455 10,318,424 40,153,324 42,480,952
Right-of-use assets, net 16 30,852,413 26,525,687 126,032,107 109,206,253
Derivative financial instruments 23 5,746,686 9,630,593 23,475,212 39,649,151
TOTAL ASSETS 9,605,646,815 8,918,445,587 39,239,067,241 36,717,240,484
LIABILITIES AND EQUITY

LIABILITIES
financial institutions 18 386,405,927 390,611,644 1,578,468,212 1,608,148,138
Deposits from customers 19 6,715,289,025 5,889,433,410 27,431,955,667 24,246,797,349
Other liabilities 20 82,983,974 140,022,120 338,989,534 576,471,068
Borrowings 21 843,418,591 944,275,857 3,445,364,944 3,887,583,703
Subordinated debts 22 117,053,882 127,762,328 478,165,108 525,997,504
Lease liabilities 24 30,547,348 26,457,635 124,785,917 108,926,083
Employee benefits 25 8,200,636 32,626,027 33,499,598 134,321,353
Current income tax liabilities 32(a) 2,319,080 33,911,933 9,473,442 139,615,428
Deferred tax liabilities 17 26,782,045 2,258,353 109,404,654 9,297,639
TOTAL LIABILITIES 8,213,000,508 7,587,359,307 33,550,107,076 31,237,158,265
EQUITY
Share capital 26 433,163,019 433,163,019 1,732,652,076 1,732,652,076
Share premium 26 11,706,215 11,706,215 48,235,459 48,235,459
Reserves 36 765,115,248 676,078,984 3,178,952,563 2,858,819,277
Retained earnings 182,661,825 210,138,062 729,120,067 840,375,407
TOTAL EQUITY 1,392,646,307 1,331,086,280 5,688,960,165 5,480,082,219
TOTAL LIABILITIES AND EQUITY 9,605,646,815 8,918,445,587 39,239,067,241 36,717,240,484
20
SEPARATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
2023 2022 2023 2022

(Note 5) (Note 5)
Interest income 27 726,710,020 640,434,867 2,986,778,182 2,617,457,301
Interest expense 28 (321,533,128) (214,047,601) (1,321,501,156) (874,812,545)
Net interest income 405,176,892 426,387,266 1,665,277,026 1,742,644,756
Fee and commission income 29 42,205,729 42,603,133 173,465,546 174,119,005
Fee and commission expense (3,858,699) (4,268,857) (15,859,253) (17,446,819)
Net fee and commission income 38,347,030 38,334,276 157,606,293 156,672,186
Allowance for impairment losses on loans and advances, deposits and
placements with other banks, other receivables, and investment securities 10 (38,466,607) (13,412,953) (158,097,755) (54,818,739)
Reversal of impairment losses on off-balance sheet commitments 10 15,518 66,794 63,779 272,987
Net impairment losses (38,451,089) (13,346,159) (158,033,976) (54,545,752)
Income after impairment losses 405,072,833 451,375,383 1,664,849,343 1,844,771,190
Other income, net 30 23,209,381 22,176,472 95,390,556 90,635,241
General and administrative expenses 31 (256,080,366) (256,128,574) (1,052,490,304) (1,046,797,482)
Profit before income tax 172,201,848 217,423,281 707,749,595 888,608,949
Income tax expense 32(b) (34,062,571) (44,017,496) (139,997,167) (179,899,506)
Profit for the year 138,139,277 173,405,785 567,752,428 708,709,443
Remeasurement of employee benefit obligations 25 - (3,129,039) - (12,788,382)
Item that is or may be reclassified subsequently to profit or loss -
Remeasurement of the effective portion of derivatives arising from cash flow
hedge (3,883,907) 10,136,751 (15,962,858) 41,428,901
Other comprehensive (loss)/income during the year (3,883,907) 7,007,712 (61,768,617) 83,181,339
Total comprehensive income for the year 134,255,370 180,413,497 505,983,811 791,890,782
21
SEPARATE STATEMENT OF CHANGES IN EQUITY

Share capital Share premium Reserves Retained earnings Total equity

US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000
(Notes 5 & 42) (Notes 5 & 42) (Notes 5 & 42) (Note 5) (Note 5)
As at 1 January 2023, as reclassified 433,163,019 1,732,652,076 11,706,215 48,235,459 676,078,984 2,858,819,277 210,138,062 840,375,407 1,331,086,280 5,480,082,219
Profit for the year - - - - - - 138,139,277 567,752,428 138,139,277 567,752,428
Other comprehensive income -
Remeasurement of the effective portion of derivatives
arising from cash flow hedge - - - - (3,883,907) (15,962,858) - - (3,883,907) (15,962,858)
Total comprehensive (loss)/income for the year - - - - (3,883,907) (15,962,858) 138,139,277 567,752,428 134,255,370 551,789,570

Dividends paid - - - - - - (72,695,343) (297,105,865) (72,695,343) (297,105,865)
Transfer from retained earnings to regulatory reserves - - - - 92,920,171 381,901,903 (92,920,171) (381,901,903) - -
Exchange differences - - - - - (45,805,759) - - - (45,805,759)
Total transactions with owners - - - - 92,920,171 336,096,144 (165,615,514) (679,007,768) (72,695,343) (342,911,624)
As at 31 December 2023 433,163,019 1,732,652,076 11,706,215 48,235,459 765,115,248 3,178,952,563 182,661,825 729,120,067 1,392,646,307 5,688,960,165
22
SEPARATE STATEMENT OF CHANGES IN EQUITY (CONTINUED)

Share capital Share premium Reserves Retained earnings Total equity

US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000
(Note 5) (Note 5) (Note 5) (Note 5) (Note 5)
As at 1 January 2022, as reclassified 433,163,019 1,764,706,139 11,706,215 47,691,120 607,375,402 2,491,977,194 156,847,708 621,467,759 1,209,092,344 4,925,842,212
Profit for the year - - - - - - 173,405,785 708,709,443 173,405,785 708,709,443
derivatives arising from cash flow hedge - - - - 10,136,751 41,428,901 - - 10,136,751 41,428,901
Remeasurement of employee benefit obligations - - - - - - (3,129,039) (12,788,382) (3,129,039) (12,788,382)
Exchange differences - - - - - 11,852,753 - - - 11,852,753
Total comprehensive income for the year - - - - 10,136,751 53,281,654 170,276,746 695,921,061 180,413,497 749,202,715

Dividends paid - - - - - - (58,419,561) (237,650,775) (58,419,561) (237,650,775)
Transfer from retained earnings to regulatory reserves - - - - 58,566,831 239,362,638 (58,566,831) (239,362,638) - -
Exchange differences - 18,626,010 - 503,367 - 23,558,690 - - - 42,688,067
Total transactions with owners - 18,626,010 - 503,367 58,566,831 262,921,328 (116,986,392) (477,013,413) (58,419,561) (194,962,708)
As at 31 December 2022 433,163,019 1,783,332,149 11,706,215 48,194,487 676,078,984 2,808,180,176 210,138,062 840,375,407 1,331,086,280 5,480,082,219
23
SEPARATE STATEMENT OF CASH FLOWS

2023 2022 2023 2022

(Note 5) (Note 5)
Cash flows from operating activities

Profit for the year before income tax 172,201,848 217,423,281 707,749,595 888,608,949
Adjustments for:
Net impairment losses 10 38,451,089 13,346,159 158,033,976 54,545,752
Depreciation of property and equipment 14 22,044,132 20,328,111 90,601,383 83,080,990
Depreciation of right-of-use assets 16 11,755,148 11,113,156 48,313,658 45,419,469
Seniority indemnity benefits 25(c) 9,448,722 9,175,310 38,834,247 37,499,492
Amortisation of intangible assets 15 2,622,695 2,848,307 10,779,276 11,641,031
Career development expense 25(b) 1,593,047 1,675,191 6,547,423 6,846,506
Provident fund 845,959 70,410 3,476,891 287,766
Unrealised foreign exchange losses/(gains) 409,096 (438,153) 1,681,385 (1,790,731)
Adjustment in property and equipment 364,663 482,341 1,498,765 1,971,328
Adjustment in intangible assets 106,902 (50,152) 439,367 (204,971)
(Reversal of)/provision for retirement
benefits 25(a) (49,526) 2,803,698 (203,551) 11,458,714
Dividend income 30 (407,862) (117,333) (1,676,313) (479,540)
Gain on disposals of property and
equipment and lease 30 (424,901) (803,422) (1,746,343) (3,283,586)
Net interest income (405,176,892) (426,387,266) (1,665,277,026) (1,742,644,756)
Operating loss before changes in working
capital (146,215,880) (148,530,362) (600,947,267) (607,043,587)
Changes in:
Deposits from customers 825,855,615 762,506,420 3,394,266,578 3,116,363,739
Other assets 46,480,053 (51,676,257) 191,033,018 (211,200,862)
Deposits and placements with other banks 12,468,670 (2,645,888) 51,246,234 (10,813,744)
Deposits and placements of other banks
and financial institutions (4,205,717) (64,995,191) (17,285,497) (265,635,346)
Statutory deposits (63,746,028) (66,569,622) (261,996,175) (272,070,045)
Other liabilities (89,314,969) 53,743,207 (367,084,523) 219,648,487
Loans and advances (249,381,778) (1,026,736,664) (1,024,959,108) (4,196,272,746)
Cash flows from/(used in) operations 331,939,966 (544,904,357) 1,364,273,260 (2,227,024,104)
Interest received 722,639,291 637,427,638 2,970,047,486 2,605,166,757

Provident fund paid (845,679) - (3,475,741) -
Career development benefits paid 25(b) (3,882,076) (13,882) (15,955,332) (56,736)
Seniority benefits paid 25(c) (9,609,515) (9,231,540) (39,495,107) (37,729,304)
Retirement benefits paid 25(a) (21,920,036) (253,266) (90,091,348) (1,035,098)
Income tax paid 32(a) (41,131,732) (35,814,822) (169,051,419) (146,375,178)
Interest paid (212,987,464) (147,407,788) (875,378,477) (602,455,630)
Net cash from/(used in) operating
activities (carried forward to next page) 764,202,755 (100,198,017) 3,140,873,322 (409,509,293)
24
SEPARATE STATEMENT OF CASH FLOWS (CONTINUED)

2023 2022 2023 2022

(Note 5) (Note 5)
(brought forward from previous page) 764,202,755 (100,198,017) 3,140,873,322 (409,509,293)
Cash flows from investing activities

Proceeds from matured investments 57,185,184 1,189,330 235,031,106 4,860,792
Interest received from investments 4,070,729 3,007,229 16,730,696 12,290,545
Proceeds from disposals of property and
equipment 465,316 847,882 1,912,449 3,465,294
Dividend received 407,862 117,333 1,676,313 479,540
Purchases of financial investments - (125,294,154) - (512,077,207)
Purchases of intangible assets 15 (2,238,497) (1,715,997) (9,200,223) (7,013,280)
Purchases of property and equipment 14 (29,856,118) (22,605,798) (122,708,645) (92,389,896)
Net cash from/(used in) investing activities 30,034,476 (144,454,175) 123,441,696 (590,384,212)
Cash flows from financing activities

Proceeds from borrowings 132,955,273 503,765,701 546,446,172 2,058,890,420
Proceeds from subordinated debts 14,962,500 - 61,495,875 -
Payments of lease liabilities 24 (13,521,708) (12,616,442) (55,574,220) (51,563,398)
Repayments of subordinated debts (26,000,000) (29,000,000) (106,860,000) (118,523,000)
Interest paid (69,898,383) (53,181,970) (287,282,354) (217,354,711)
Payments of dividends (72,695,343) (58,419,561) (297,105,865) (237,650,775)
Repayments of borrowings (238,660,802) (144,905,958) (980,895,896) (592,230,650)
Net cash (used in)/from financing activities (272,858,463) 205,641,770 (1,119,776,288) 841,567,886
Net increase/(decrease) in cash and cash

equivalents 521,378,768 (39,010,422) 2,144,538,730 (158,325,619)
Cash and cash equivalents at the beginning
of the year 1,719,370,446 1,758,380,868 7,078,648,126 7,163,643,656
Cash and cash equivalents at the end of the

year 34 2,240,749,214 1,719,370,446 9,153,460,539 7,078,648,126
During the year ended 31 December 2023, the Bank entered into new lease agreements and recognised right-of-use
assets amounting to US$17,331,167 (31 December 2022: US$13,441,138), and pre-terminated right-of-use assets and
lease liabilities amounting to US$1,244,938 (31 December 2022: US$1,454,035) and US$1,324,238 (31 December
2022: US$1,458,441), respectively, and recognised a gain from pretermination amounting to US$76,783 (31 December
2022: US$163), which is a non-cash transaction.
25
NOTES TO THE FINANCIAL STATEMENTS

1. Background information
Prior to 1 December 2003, ACLEDA Bank Plc. (“ABC” or “the Bank”) was a public limited company formed
under the Laws of the Kingdom of Cambodia to operate as a specialised bank with a Head Office located in
Phnom Penh and 14 branches in the Kingdom of Cambodia. On 1 December 2003, the National Bank of
Cambodia (“NBC”) issued a license for the Bank to become a private commercial bank for a period of three
years commencing 1 December 2003. The Bank’s license was renewed for an indefinite period on 28 November
2006. On 25 May 2020, the Bank was successfully listed on the Cambodia Securities Exchange (“CSX”).
On 21 November 2022, the NBC approved the Bank’s request for the issuance of green bonds to qualified
investors in amount of KHR400 Billion (equivalent to US$100 Million) on the CSX.
On 7 December 2022, the Securities and Exchange Regulator of Cambodia (“SERC”) approved the Bank's
request for its nominated Cash Settlement Agent, Registrar Agent, Transfer Agent, and ACLEDA Securities
Plc. (“ACS”), a wholly-owned subsidiary of the Bank, as the Bond Agent when the Bank issues the green
bonds in the CSX.
On 13 September 2023, the NBC approved the Bank’s request for the issuance of Thai Baht (“THB”)
Denominated Subordinated Unsecured Debentures in the Thai Bond Market Association amounting to
THB3.5 Billion (equivalent to US$100Million).
The registered office of the Bank is located at No 61, Preah Monivong Boulevard, Sangkat Srah Chork, Khan
Daun Penh, Phnom Penh, Kingdom of Cambodia.
The Bank operates under the supervision of the NBC with special focus on providing lending and other
financial services to the citizenry and small and medium-sized enterprises and to engage in all other activities,
which the Board of Directors believes support these objectives.
The Bank and its four subsidiaries (collectively referred to as “the Group”) are operating in the Kingdom of
Cambodia, Lao People’s Democratic Republic (“PDR”) and the Republic of the Union of Myanmar. The
principal activities of the subsidiaries are disclosed in Note 13 to the financial statements. Currently, the
Group has 264 offices covering all provinces and cities in the Kingdom of Cambodia, 37 offices in the Lao
PDR, and 17 offices in the Republic of the Union of Myanmar.
As at 31 December 2023, the Group and the Bank have 13,503 and 12,045 employees, respectively (31 December
2022: 13,582 and 12,083 employees, respectively).
2. Material accounting policy information

The material accounting policies adopted in the preparation of the financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation and presentation
The financial statements of the Group and the Bank have been prepared in accordance with Cambodian
International Financial Reporting Standards (“CIFRSs”). The consolidated and separate financial statements
have been prepared on a historical cost basis, except for items which are not prepared under the historical
cost basis such as:
x Financial instruments at amortised cost;
x Financial instruments, including derivatives, which are valued at fair value;
26
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2. Material accounting policy information (continued)
(a) Basis of preparation and presentation (continued)

x Defined benefit asset or obligation; and,
x Provisions measured at its best estimate of the expenditure required to settle the present obligation, with
discounting if the effect of time value of money is material.
The preparation of financial statements in conformity with CIFRSs requires the use of certain critical
accounting estimates. It also requires the Board of Directors to exercise judgment in the process of applying
the Group’s and the Bank’s accounting policies. Areas involving a higher degree of judgment or complexity,
or areas where assumptions and estimations are significant to the financial statements are disclosed in
Note 4.
The Management presents the statement of financial position based on liquidity. Generally, assets and
liabilities over 12 months are considered non-current assets and non-current liabilities, respectively.
(b) Adoption of amended accounting standards

(i) Amended accounting standards effective during the year
The Group and the Bank adopted all accounting standards and interpretations as at 31 December 2023.
The amended accounting standards assessed to be applicable and have no material impact to the Group’s
and the Bank’s financial statements follow:
x Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to
CIAS 12, Income Taxes)
The International Accounting Standards Board (“IASB”) amends CIAS 12 to provide a further exception
from the initial recognition exemption. Under the amendments, an entity does not apply the initial
recognition exemption for transactions that give rise to equal taxable and deductible temporary
differences. Depending on the applicable tax law, equal taxable and deductible temporary differences
may arise on initial recognition of an asset and liability in a transaction that is not a business combination
and affects neither accounting nor taxable profit. For example, this may arise upon recognition of a lease
liability and the corresponding right-of-use asset applying CIFRS 16, Leases, at the commencement date
of a lease. Following the amendments to CIAS 12, an entity is required to recognise the related deferred
tax asset and liability, with the recognition of any deferred tax asset being subject to the recoverability
criteria in CIAS 12.
x Disclosure of Accounting Policies (Amendments to CIAS 1, Presentation of Financial Statements,
and CIFRS Practice Statement 2)
The amendments require that an entity discloses its material accounting policies, instead of its significant
accounting policies. Further amendments explain how an entity can identify a material accounting policy.
Examples of when an accounting policy is likely to be material are added.
27

(b) Adoption of amended accounting standards (continued)

(i) Amended accounting standards effective during the year (continued)
x Definition of Accounting Estimates (Amendments to CIAS 8, Accounting Policies, Changes in Accounting
Estimates and Errors)
The amendments replace the definition of a change in accounting estimates with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements
that are subject to measurement uncertainty.” Entities develop accounting estimates if accounting policies
require items in financial statements to be measured in a way that involves measurement uncertainty.
The amendments clarify that a change in accounting estimate that results from new information or new
developments is not the correction of an error.
The application of these amendments is reflected in the Group’s and the Bank’s financial statements
under Notes 2 and 4.
(ii) Amended accounting standards, which are not yet effective and not early adopted
At the date of authorisation of these financial statements, the following amended accounting standards have
been issued but are not yet effective were assessed to be applicable to the Group and the Bank:
x Classification of Liabilities as Current or Non-current (Amendments to CIAS 1)
x Non-current Liabilities with Covenants (Amendments to CIAS 1)
x Lack of Exchangeability (Amendments to CIAS 21, The Effects of Changes in Foreign Exchange Rates)
The Management does not expect that the adoption of the amendments to the accounting standards listed
above will have a material impact on the financial statements of the Group and the Bank in future periods.
(c) Consolidation
(i) Subsidiaries
Subsidiaries are all entities over which the Bank has control. The Bank controls an entity when the Bank is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power to direct relevant activities of the entity.
The consolidated financial statements include the financial statements of the Bank and all its subsidiaries
made up to the end of the financial year.
Subsidiaries are consolidated from the date on which control is transferred to the Bank and deconsolidated
from the date that control ceases.
All material transactions and balances between each of the Group’s entities are eliminated and the
consolidated financial statements reflect external transactions only. Where necessary, the accounting
policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Group.
28

(c) Consolidation (continued)
(ii) Investments in subsidiaries
In the Bank’s separate financial statements, investments in subsidiaries are carried at cost less any accumulated
impairment losses. On disposal of investments in subsidiaries, the difference between disposal proceeds and the
carrying amounts of investments are recognised in the separate statement of profit or loss and other
comprehensive income.
The amounts due from subsidiaries of which the Bank does not expect repayment in foreseeable future are
considered as part of the Bank’s investments in subsidiaries.
(iii) Disposal of subsidiaries
When the Bank ceases to have control, any retained interest in the entity is remeasured to its fair value at
the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value
is the initial carrying amount for the purposes of subsequently accounting for retained interest as an
associate, joint venture, or financial assets. In addition, any amount previously recognised in other
comprehensive income in respect of that entity are accounted for as if the Bank had directly disposed of the
related assets or liabilities. This may mean that amounts previously recognised in other comprehensive
income are reclassified to profit or loss.
(iv) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests (“NCI”) that do not result in loss in control are accounted for as
equity transactions that is, as transactions with the owners in their capacity as owners. For purchases from
NCI, the difference between any consideration paid and the relevant share in the carrying value of net assets
of the subsidiary acquired is deducted from equity. For disposals to NCI, the difference between any
proceeds received and the relevant share in NCI are also recognised in equity.
(v) Non-controlling interests
NCI is measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of
acquisition.
Changes in Group‘s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions.
An entity has a choice on a combination-by-combination basis to measure any NCI in the acquiree at either
the proportionate share of the acquiree’s identifiable net assets or fair value. The Group has elected to
maintain the former approach.
NCI in subsidiaries is identified separately from the Group’s equity therein. Subsequent to acquisition, the
carrying amount of NCI is the amount of those interests at initial recognition plus the NCI’s share of
subsequent changes in equity.
29

(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). The financial
statements are presented in United States Dollar (“US$” or “USD”), which is the Group’s and the Bank’s
functional and presentation currency.
(ii) Transactions and balances
Transactions in currencies other than USD are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in currencies other than USD are recognised in the statement of profit or loss and
other comprehensive income.
(iii) Group’s companies
The results and financial position of foreign operations (none of which has the currency of a hyper-inflationary
economy) that have a functional currency different from the Bank’s presentation currency are translated into
the presentation currency as follows:
a) assets and liabilities for each statement of financial position presented are translated using the closing
rate at the end of the reporting period;
b) income and expenses for each statement of profit or loss and other comprehensive income presented
are translated using the average exchange rates (unless this average is not a reasonable approximation
of the cumulative effect of the rates prevailing on the transaction dates, in which case, income and
expenses are translated at the rate on the dates of the transactions); and,
c) all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of any net investment in foreign
operations are recognised in other comprehensive income. When a foreign operation is partially disposed of
or sold, exchange differences are reclassified to the statement of profit or loss and other comprehensive income
as gain or loss on sale.
(e) Financial assets and financial liabilities
(i) Recognition and initial measurement
The Group and the Bank initially recognise loans and advances, deposits and placements with other banks,
borrowings and subordinated debts on the date on which they are originated. All other financial instruments
(including regular-way purchases and sales of financial assets) are recognised on the trade date, which is
the date the Group and the Bank become a party to the contractual provisions of the instrument.
A financial asset or financial liability is measured initially at fair value plus, for an item not at fair value through
profit and loss (“FVTPL”), transaction costs that are directly attributable to its acquisition or issue.
30

(e) Financial assets and financial liabilities (continued)

(ii) Classification
On initial recognition, a financial asset is classified as: amortised cost, FVTPL or fair value through other
comprehensive income (“FVOCI”).
A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as FVTPL:
x the asset is held within a business model whose objective is to hold assets to collect contractual cash
flows; and,
x the contractual terms of the financial asset give rise on specified dates to cash flows that are ‘solely
payments of principal and interest’ (“SPPI”).
A debt instrument is measured at FVOCI only if it meets both of the following conditions and is not designated
as FVTPL:
x the asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling the financial assets; and,
x the contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI.
On initial recognition of an equity investment that is not held for trading, the Group and the Bank may
irrevocably elect to present subsequent changes in fair value in other comprehensive income. This election
is made on an investment-by-investment basis. However, the Group and the Bank have not made such
election.
All other financial assets are classified as FVTPL. As at the reporting date, the Group and the Bank do not
have financial assets classified as FVTPL.
In addition, on initial recognition, the Group and the Bank may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortised cost, FVOCI, or FVTPL if doing so eliminates
or significantly reduces an accounting mismatch that would otherwise arise.
Business model assessment
The Group and the Bank make an assessment of the objective of a business model in which an asset is held
at a portfolio level because this best reflects the way the business is managed and information is provided to
the Management. The information considered includes:
x the stated policies and objectives for the portfolio and the operation of those policies in practice. In
particular, whether management’s strategy focuses on earning contractual interest revenue, maintaining
a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities
that are funding those assets or realising cash flows through the sale of the assets;
x how the performance of the portfolio is evaluated and reported to the Group’s and the Bank’s
Management;
x the risks that affect the performance of the business model (and the financial assets held within that
business model) and its strategy on how those risks are managed;
31

(ii) Classification (continued)
Business model assessment (continued)

x how managers of the business are compensated (e.g. whether compensation is based on the fair value
of the assets managed or the contractual cash flows collected); and,
x the frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectations
about future sales activity. However, information about sales activity is not considered in isolation, but as
part of an overall assessment of how the Group’s and the Bank’s stated objective for managing the
financial assets is achieved and how cash flows are realised.
Financial assets that are held for trading or managed and whose performance is evaluated on a fair value
basis are measured at FVTPL because they are neither held to collect contractual cash flows nor held both
to collect contractual cash flows and to sell the financial assets.
Assessment of whether contractual cash flows are SPPI
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial
recognition. ‘Interest’ is defined as the consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for other basic lending
risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.
In assessing whether the contractual cash flows are SPPI, the Group and the Bank consider the contractual
terms of the instrument. This includes assessing whether the financial asset contains a contractual term that
could change the timing or amount of contractual cash flows such that it would not meet this condition.
In making the assessment, the Group and the Bank consider:
x contingent events that would change the amount and timing of cash flows;
x leverage features;
x prepayment and extension terms;
x terms that limit the Group’s and the Bank’s claim to cash flows from specified assets (e.g. non-recourse
loans); and,
x features that modify consideration of the time value of money (e.g. periodical reset of interest rates).
The Group and the Bank hold a portfolio of long-term fixed-rate loans for which the Group and the Bank have
the option to propose to revise the interest rate at periodic reset dates. These reset rights are limited to the
market rate at the time of revision in which the Group and the Bank have an option to either accept the
revised rate or redeem the loan at par without penalty. The Group and the Bank have determined that the
contractual cash flows of these loans are SPPI because the option varies with the interest rate in
consideration for the time value of money, credit risk, and other basic lending risks and costs associated with
the principal amount outstanding.
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(ii) Classification (continued)
Non-recourse loans
In some cases, loans made by the Group and the Bank that are secured by collateral from the borrower limit
the Group’s and the Bank’s claim to cash flows of the underlying collateral (‘non-recourse loans’). The Group
and the Bank apply judgment in assessing whether the non-recourse loans meet the SPPI criterion. The
Group and the Bank typically consider the following information when making this judgement:
x whether the contractual arrangement specifically defines the amounts and dates of the cash payments
of the loan;
x the fair value of the collateral relative to the amount of the secured financial asset;
x the ability and willingness of the borrower to make contractual payments, notwithstanding a decline in
the value of collateral;
x whether the borrower is an individual or a substantive operating entity or is a special-purpose entity;
x the Group’s and the Bank’s risk of loss on the asset relative to a full-recourse loan;
x the extent to which the collateral represents all or a substantial portion of the borrower’s assets; and,
x whether the Group and the Bank will benefit from any upside from the underlying assets.
Reclassifications
Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Group
and the Bank change its business model for managing financial assets.
Financial liabilities
The Group and the Bank classify its financial liabilities, other than financial guarantees and loan
commitments, either at amortised cost or FVTPL. As at the reporting date, the Group and the Bank do not
have financial liabilities classified as FVTPL.
(iii) Derecognition
Financial assets
The Group and the Bank derecognise a financial asset when the contractual rights to the cash flows from
the financial asset expire [see also (iv)], or it transfers the rights to receive the contractual cash flows in a
transaction in which substantially all of the risks and rewards of ownership of the financial asset are
transferred or in which the Group and the Bank neither transfer nor retain substantially all of the risks and
rewards of ownership and do not retain control of the financial asset.
33

(iii) Derecognition (continued)
Financial assets (continued)
On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying
amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received
(including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that
had been recognised in other comprehensive income is recognised in profit or loss.
Any cumulative gain/loss recognised in other comprehensive income in respect of equity investment securities
designated as FVOCI is not recognised in profit or loss on derecognition of such securities. Any interests in
transferred financial assets that qualify for derecognition that is created or retained by the Group and the Bank
are recognised as a separate asset or liability.
The Group and the Bank derecognise a financial liability when its contractual obligations are discharged,
cancelled, or expired.
(iv) Modifications of financial assets and financial liabilities
Financial assets
If the terms of a financial asset are modified, then the Group and the Bank evaluate whether the cash flows
of the modified asset are substantially different. The Group and the Bank consider, among others:
x if the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows
to amounts the borrower is expected to be able to pay;
x whether any substantial new terms are introduced that will affect the risk profile of the loan;
x significant extension of the loan term when the borrower is not in financial difficulty;
x significant change in the interest rate;
x change in the currency the loan is denominated in; and/or,
x insertion of collateral, other security or credit enhancements that will significantly affect the credit risk
associated with the loan.
If the cash flows are substantially different, then the contractual rights to cash flows from the original financial
asset are deemed to have expired. In this case, the original financial asset is derecognised (see (iii)) and a new
financial asset is recognised at fair value plus any eligible transaction costs. Any fees received as part of the
modification are accounted for as follows:
x fees that are considered in determining the fair value of the new asset and fees that represent
reimbursement of eligible transaction costs are included in the initial measurement of the asset; and,
x other fees are included in profit or loss as part of the gain or loss on derecognition.
34

(iv) Modifications of financial assets and financial liabilities (continued)
Financial assets (continued)
If cash flows are modified when the borrower is in financial difficulties, then the objective of the modification
is usually to maximise recovery of the original contractual terms rather than to originate a new asset with
substantially different terms. If the Group or the Bank plans to modify a financial asset in a way that would
result in forgiveness of cash flows, then it first considers whether a portion of the asset should be written off
before the modification takes place [see (vii) for write-off policy]. This approach impacts the result of the
quantitative evaluation and means that the derecognition criteria are not usually met in such cases.
If the modification of a financial asset measured at amortised cost or FVOCI does not result in derecognition of
the financial asset, then the Group and the Bank first recalculate the gross carrying amount of the financial asset
using the original effective interest rate of the asset and recognise the resulting adjustment as a modification gain
or loss in profit or loss. For floating-rate financial assets, the original effective interest rate used to calculate the
modification gain or loss is adjusted to reflect current market terms at the time of the modification. Any costs or
fees incurred and fees received as part of the modification adjust the gross carrying amount of the modified
financial asset and are amortised over the remaining term of the modified financial asset.
If such a modification is carried out because of financial difficulty of the borrower [see (vii)] then the gain or
loss is presented together with impairment losses. In other cases, it is presented as interest income
calculated using the effective interest method [see Note 2(t)].
The Group and the Bank derecognise a financial liability when its terms are modified and the cash flows of the
modified liability are substantially different. In this case, a new financial liability based on the modified terms is
recognised at fair value. The difference between the carrying amount of the financial liability derecognised and
consideration paid is recognised in profit or loss. Consideration paid includes non-financial assets transferred,
if any, and the assumption of liabilities, including the new modified financial liability.
If the modification of a financial liability is not accounted for as derecognition, then the amortised cost of the
liability is recalculated by discounting the modified cash flows at the original effective interest rate and the
resulting gain or loss is recognised in profit or loss.
For floating-rate financial liabilities, the original effective interest rate used to calculate the modification gain
or loss is adjusted to reflect current market terms at the time of the modification. Any costs and fees incurred
are recognised as an adjustment to the carrying amount of the liability and amortised over the remaining
term of the modified financial liability.
35

(v) Offsetting
Financial assets and financial liabilities are offset and the net amount is presented in the statement of financial
position when, and only when, the Group or the Bank currently has a legally enforceable right to set off the
amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability
simultaneously.
Income and expenses are presented on a net basis only when permitted under CIFRSs, or for gains and
losses arising from a group of similar transactions such as in the Group’s and the Bank’s trading activity.
(vi) Fair value measurement
‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous
market to which the Group and the Bank have access at that date. The fair value of a liability reflects its non-
performance risk.
The fair value of a financial liability with a demand feature (e.g. demand deposit) is not less than the amount
payable on demand, discounted from the first date on which the amount could be required to be paid.
The Group and the Bank recognise transfers between levels of the fair value hierarchy as of the end of the
reporting period during which the change has occurred.
(vii) Impairment
The Group and the Bank recognise loss allowances for the expected credit loss (“ECL”) on the following
financial instruments that are not measured at FVTPL:
x financial assets that are debt instruments;
x loans and advances;
x financial guarantee contracts issued; and,
x loan commitments issued.
No impairment loss is recognised on equity investments.
The Group and the Bank measure loss allowances at an amount equal to lifetime ECL, except for the
following, for which they are measured as 12-month ECL:
x debt investment securities that are determined to have low credit risk at the reporting date; and,
x other financial instruments (other than loans and advances) on which credit risk has not increased
significantly since their initial recognition.
Loss allowances for loans and advances are always measured at an amount equal to lifetime ECL.
36


(vii) Impairment (continued)
The Group and the Bank consider a debt investment security to have low credit risk when its credit risk rating
is equivalent to the globally understood definition of ‘investment grade’. The Group and the Bank do not apply
the low credit risk exemption to any other financial instruments.
12-month ECL is the portion of ECL that results from default events on a financial instrument that are possible
within the 12 months after the reporting date. Financial instruments for which a 12-month ECL is recognised
are referred to as ‘Stage 1 financial instruments’.
Life-time ECL is the ECL that results from all possible default events over the expected life of the financial
instrument. Financial instruments for which a lifetime ECL is recognised but which are not credit-impaired
are referred to as ‘Stage 2 financial instruments’.
Measurement of ECL
ECL is a probability-weighted estimate of credit losses. It is measured as follows:

x financial assets that are not credit-impaired at the reporting date: at the present value of all cash shortfalls
(i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash
flows that the Group and the Bank expect to receive);
x financial assets that are credit-impaired at the reporting date: at the difference between the gross carrying
amount and the present value of estimated future cash flows;
x undrawn loan commitments: at the present value of the difference between the contractual cash flows
that are due to the Group and the Bank if the commitment is drawn down and the cash flows that the
Group and the Bank expect to receive; and,
x financial guarantee contracts: at the expected payments to reimburse the holder less any amounts that
the Group and the Bank expect to recover.
The key inputs into the measurement of ECL are the term structure of the following variables:
x Probability of default (“PD”);
x Loss given default (“LGD”); and,
x Exposure at default (“EAD”).
ECL for exposures in Stage 1 is calculated by multiplying the 12-month PD by LGD and EAD. Lifetime ECL
is calculated by multiplying the lifetime PD by LGD and EAD.
The assumptions underlying the ECL calculation are monitored and reviewed monthly and quarterly. There
have been no significant changes in the estimation techniques or significant assumptions made during the
reporting period.
37


Measurement of ECL (continued)
PD provides an estimate of the likelihood that a customer will be unable to meet its debt obligation or default
over a particular time horizon. Financial assets under the general approach requires staging for both 12-
month PD and lifetime PD estimation according to historical data using the migration approach or external
credit rating approach.
LGD is the magnitude of the likely loss if there is a default. LGD is defined as the percentage of exposure
the Group and the Bank might lose in case the customer defaults. These losses are usually shown as a
percentage of EAD, and depend, amongst others, on the type and amount of collateral as well as the type
of customer and the expected recovery from the customers.
With accurate collateral value, which is updated from time to time, the Group and the Bank can consider to
take collateral into LGD calculation for ECL computation. In the event of over-collateralised, a floor LGD shall
be applied for ECL calculation.
EAD is simply the amount outstanding at the point of default. However, EAD is different following the natures
of products:
x Amortised facilities: the current amount allowed under the contract and arising from amortisation
x Revolving facilities: utilisation rate
x Off-balance sheet: credit conversion factors
As described above and subject to using a maximum of a 12-month PD for Stage 1 financial assets, the
Group and the Bank measure ECL considering the risk of default over the maximum contractual period
(including any borrower’s extension options) over which it is exposed to credit risk, even if, for credit risk
management purposes, the Group and the Bank consider a longer period. The maximum contractual period
extends to the date at which the Group and the Bank have the right to require repayment or terminate a
commitment or guarantee.
However, for credit card facilities that include both a loan and an undrawn commitment component, the
Group and the Bank measure ECL over a period longer than the maximum contractual period if the Group’s
and the Bank’s contractual ability to demand repayment and cancel the undrawn commitment does not limit
the Group’s and the Bank’s exposure to credit losses to the contractual notice period. These facilities do not
have a fixed term or repayment structure and are managed on a collective basis. The Group and the Bank
can cancel them with immediate effect but this contractual right is not enforced in the normal day-to-day
management, but only when the Group and the Bank become aware of an increase in credit risk at the facility
level. This longer period is estimated taking into account the credit risk management actions that the Group
and the Bank expect to take to mitigate ECL. These include a reduction in limits, cancellation of the facility
and/or turning the outstanding balance into a loan with fixed repayment terms.
38


Restructured financial assets
If the terms of a financial asset are renegotiated or modified or an existing financial asset is replaced with a
new one due to financial difficulties of the borrower, then an assessment is made of whether the financial
asset should be derecognised [see (iv)] and ECL is measured as follows:
x If the expected restructuring will not result in derecognition of the existing asset, then the expected cash
flows arising from the modified financial asset are included in calculating the cash shortfalls from the
existing asset.
x If the expected restructuring will result in derecognition of the existing asset, then the expected fair value
of the new asset is treated as the final cash flow from the existing financial asset at the time of its
derecognition. This amount is included in calculating the cash shortfalls from the existing financial asset
that are discounted from the expected date of derecognition to the reporting date using the original
effective interest rate of the existing financial asset.
In accordance with the NBC Circular No. B7.021.2314 dated 28 December 2021 on Classification and
Provisioning Requirements on Restructured Loans, the Bank is required to assess the classification of
outstanding restructured loans and to provide provision as follows:
x Restructured loan that is “viable” shall be deemed as “performing” and shall be classified as “Special
Mention” with 3% provisioning, regardless of the number of restructuring.
x Restructured loan that needs “more restructuring” should be deemed as “non-performing” and shall be
classified as “Substandard” with 20% provisioning for loans under the first restructuring, and “Doubtful”
with 50% provisioning for loans under the second restructuring.
x Restructured loan that is “non-viable” shall be deemed as “non-performing” and shall be classified as
“Loss” with 100% provisioning.
Credit-impaired financial assets
At each reporting date, the Group and the Bank assess whether financial assets carried at amortised cost
(and debt financial assets carried at FVOCI, if any) are credit-impaired (referred to as ‘Stage 3 financial
assets’). A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the
estimated future cash flows of the financial asset have occurred.
39



Credit-impaired financial assets (continued)
Evidence that a financial asset is credit-impaired includes the following observable data:
x material financial difficulty of the borrower or issuer;

x a breach of contract such as a default or past due event;
x the restructuring of a loan or advance by the Group and the Bank on terms that the Group and the Bank
would not consider otherwise;
x it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or,
x the disappearance of an active market for a security because of financial difficulties.
A loan that has been renegotiated due to a deterioration in the borrower’s condition is usually considered to
be credit-impaired unless there is evidence that the risk of not receiving contractual cash flows has reduced
significantly and there are no other indicators of impairment. In addition, a retail loan that is overdue for 90
days or more is considered credit-impaired even when the regulatory definition of default is different.
Presentation of allowance for ECL in the statement of financial position
The Group and the Bank present loss allowances for ECL in the statement of financial position as follows:
x financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets;
x loan commitments and financial guarantee contracts: generally, as a provision;
x where a financial instrument includes both a drawn and an undrawn component, and the Group and the
Bank cannot identify the ECL on the loan commitment component separately from those on the drawn
component: the Group and the Bank present a combined loss allowance for both components. The
combined amount is presented as a deduction from the gross carrying amount of the drawn component.
Any excess of the loss allowance over the gross amount of the drawn component is presented as a
provision; and,
x debt instruments measured at FVOCI: no loss allowance is recognised in the statement of financial
position because the carrying amount of these assets is their fair value. However, the loss allowance is
disclosed and is recognised in the fair value reserve.
Write-off
Loans and debt securities are written off (either partially or in full) when there is no reasonable expectation
of recovering a financial asset in its entirety or a portion thereof. This is generally the case when the Group
and the Bank determine that the borrower does not have assets or sources of income that could generate
sufficient cash flows to repay the amounts subject to the write-off. This assessment is carried out at the
individual asset level.
40


Write-off (continued)
Recoveries of amounts previously written off are included in the statement of profit or loss and other
comprehensive income.
Financial assets that are written off could still be subject to enforcement activities in order to comply with the
Group’s and the Bank’s procedures for recovery of amounts due.
Non-integral financial guarantee contracts
The Group and the Bank assess whether a financial guarantee contract held is an integral element of a financial
asset that is accounted for as a component of that instrument or is a contract that is accounted for separately.
The factors that the Group and the Bank consider when making this assessment include whether:
x the guarantee is implicitly part of the contractual terms of the debt instrument;
x the guarantee is required by laws and regulations that govern the contract of the debt instrument;
x the guarantee is entered into at the same time as and in contemplation of the debt instrument; or,
x the guarantee is given by the parent of the borrower or another company within the borrower’s group.
If the Group and the Bank determine that the guarantee is an integral element of the financial asset, then any
premium payable in connection with the initial recognition of the financial asset is treated as a transaction cost
of acquiring it. The Group and the Bank consider the effect of the protection when measuring the fair value of
the debt instrument and when measuring ECL.
If the Group or the Bank determines that the guarantee is not an integral element of the debt instrument, then
it recognises an asset representing any prepayment of guarantee premium and a right to compensation for
credit losses. A prepaid premium asset is recognised only if the guaranteed exposure is neither credit-
impaired nor has undergone a significant increase in credit risk (“SICR”) when the guarantee is acquired.
These assets are recognised in ‘Other assets’. The Group and the Bank present gains or losses on the
compensation outright in profit or loss as ‘Impairment losses on financial instruments’.
(viii) Derivative financial instruments
The Group and the Bank enter into a variety of derivative financial instruments to manage its exposure to
interest rate through interest rate swaps. The use of financial derivatives is governed by the Group’s and the
Bank’s policies approved by the Board of Directors, which provide written principles on the use of financial
derivatives.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are
subsequently remeasured to their fair value at each reporting date. The resulting gain/loss is recognised in
profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which
event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
41


(viii) Derivative financial instruments (continued)
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative
fair value is recognised as a financial liability. Derivatives are not offset in the financial statements unless the
Group and the Bank have both the legal right and the intention to offset.
(ix) Hedge accounting
The Group and the Bank designate certain derivatives as hedging instruments in respect of foreign currency
risk and interest rate risk in fair value hedges, cash flow hedges, or hedges of net investments in foreign
operations, as appropriate. Hedges of interest rate risk on firm commitments are accounted for as cash flow
hedges. The Group and the Bank do not apply fair value hedge accounting on portfolio hedges of interest
rate risk.
At the inception of the hedge relationship, the Group and the Bank document the relationship between the
hedging instrument and the hedged item, along with the risk management objectives and strategy for
undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis,
the Group and the Bank document whether the hedging instrument is effective in offsetting changes in fair
values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging
relationship meets all of the following hedge effectiveness requirements:
x there is an economic relationship between the hedged item and the hedging instrument;
x the effect of credit risk does not dominate the value changes that result from that economic relationship;
and,
x the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged
item that the Group and the Bank actually hedge and the quantity of the hedging instrument that the
Group and the Bank actually use to hedge that quantity of hedged item.
The Group and the Bank rebalance a hedging relationship in order to comply with the hedge ratio
requirements, when necessary.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but
the risk management objective for that designated hedging relationship remains the same, the Group and
the Bank adjust the hedge ratio of the hedging relationship (i.e. rebalances the hedge) so that it meets the
qualifying criteria again.
As at the reporting date, the Group and the Bank only have cash flow hedges for its interest rate swap
agreements.
The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that
are designated and qualify as cash flow hedges is recognised in the Group’s and the Bank’s retained
earnings, but limited to the cumulative change in fair value of the hedged item from the inception of the hedge
less any amounts recycled to profit or loss.
42


(ix) Hedge accounting (continued)
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified
to profit or loss in the period when the hedged item affects profit or loss and in the same line as the recognised
hedged item. If the Group and the Bank no longer expect the transaction to occur, that amount is immediately
reclassified to profit or loss.
The Group and the Bank discontinue hedge accounting only when the hedging relationship (or a part thereof)
ceases to meet the qualifying criteria (after rebalancing, if applicable). This includes instances when the
hedging instrument expires or is sold, terminated or exercised, or where the occurrence of the designated
hedged forecast transaction is no longer considered to be highly probable. The discontinuation is accounted
for prospectively. Any gain/loss recognised in other comprehensive income and accumulated in equity at
that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit
or loss. When a forecast transaction is no longer expected to occur, the gain/loss accumulated in equity is
reclassified and recognised immediately in profit or loss.
(f) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and deposits and placements with other banks with
original terms of three months or less when purchased, and that are readily convertible to known amounts
of cash and subject to an insignificant risk of changes in value.
Cash and cash equivalents are carried at amortised cost in the statement of financial position.
(g) Loans and advances

The ‘Loans and advances’ caption in the statement of financial position includes loans and advances
measured at amortised cost; these are initially measured at fair value plus incremental direct transaction
costs, and subsequently at their amortised cost using the effective interest method.
(h) Financial investments

The ‘Financial investments’ caption in the statement of financial position may include:
x debt investment securities measured at amortised cost; these are initially measured at fair value plus
incremental direct transaction costs, and subsequently at their amortised cost using the effective interest
method;
x debt securities measured at FVOCI; and,
x equity investment securities designated as FVOCI.
For debt securities measured at FVOCI, gains and losses are recognised in other comprehensive income,
except for the following, which are recognised in profit or loss in the same manner as with the financial assets
measured at amortised cost:
x interest revenue using the effective interest method;
x ECL and reversals; and,
x foreign exchange gains and losses.
43

(h) Financial investments (continued)

When debt security measured at FVOCI is derecognised, the cumulative gain or loss previously recognised in
other comprehensive income is reclassified from equity to profit or loss.
The Group and the Bank elect to present in other comprehensive income the changes in the fair value of
certain investments in equity instruments that are not held for trading. The election is made on an instrument-
by-instrument basis on initial recognition and is irrevocable.
Gains and losses on such equity instruments are never reclassified to profit or loss and no impairment is
recognised in profit or loss. Dividends are recognised in profit or loss unless they clearly represent a recovery
of part of the cost of the investment, in which case they are recognised in other comprehensive income.
Cumulative gains and losses recognised in other comprehensive income are transferred to retained earnings
on disposal of an investment.
(i) Other assets

Other assets include prepayments and advances, stationery supplies, receivable from Western Union and
VISA, income tax receivable, and others.
Prepayments and advances include all kinds of expenditure paid in advance, but for which the underlying asset
will not be consumed until a future period and will be cleared subsequently to profit or loss in the relevant
reporting period, while advances include all kinds of refundable deposits and advance payments for the
purchase of goods or services which will be cleared upon receipt of the goods or services.
Stationery supplies include all items of ordinary and necessary administrative supplies for use in day-to-day
operations.
Receivable from Western Union and VISA represents all the balances from fund transfers awaiting
settlement by overseas partners as well as by the all kinds of card scheme partners.
Income tax receivable pertains to tax credit that can be offset against tax liability.
Others include all other current assets, the nature of which are not specified above, such as other receivables
waiting for clearance, solution, and/or settlement with customers, suppliers, or partners as well as with the
other banks.
(j) Share capital and share premium

Share capital and share premium are classified as equity.
Share capital represents the nominal (par) value of shares that have been issued. Other shares, if any, are
classified as equity and/or liability according to the economic substance of the particular instrument.
Distributions to holders of a financial instrument classified as an equity instrument are charged directly to
equity.
Share premium includes any premiums received on the issuance of share capital. Incremental costs directly
attributable to the issuance of new share capital are shown in equity as a deduction from the proceeds, net
of tax.
44

(k) Earnings per share
Basic earnings per share (“EPS”) is determined by dividing the adjusted net profit for the year attributable to
common shareholders by the weighted average number of common stocks outstanding during the year,
after giving retroactive effect to any stock dividends declared in the current year.
Diluted EPS is also computed by dividing net profit by the weighted average number of common stocks
subscribed and issued during the year. However, net profit attributable to common stocks and the weighted
average number of common stocks outstanding are adjusted to reflect the effects of all the dilutive potential
common stocks into common stocks. Currently, there are no potentially dilutive common stocks.
(l) Property and equipment
Property and equipment are stated at cost less accumulated depreciation and accumulated impairment
losses. Cost includes expenditure that is directly attributable to the acquisition of items of property and
equipment. The cost of an item of property and equipment comprises:
x its purchase price, including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates; and,
x any costs directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by the Management.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the Bank and the cost of the item can be measured reliably. The carrying amount of the replaced
part is derecognised. All repairs and maintenance costs are charged to the statement of profit or loss and
other comprehensive income during the financial year in which they are incurred.
The cost of any self-constructed assets includes the cost of materials and direct labour, any other costs
directly attributable to bringing the assets to a working condition for their intended use, costs of dismantling
and removing the items and restoring the site on which they are located, and borrowing costs on qualifying
assets.
Land is not depreciated. The other items of property and equipment are depreciated on a straight-line basis
to write off the cost of these assets to their residual values over their estimated useful lives as follows:
Years
Land improvements 3 to 20
Building and improvements 3 to 20
Leasehold improvements* 3 to 5
Office equipment 3 to 15
Computer equipment 3 to 7
Motor vehicles 3 to 8
* Leasehold improvements are depreciated over the improvements’ useful life of 3 to 5 years or when shorter,
the term of the relevant lease.
45

(l) Property and equipment (continued)
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
Depreciation on assets under construction commences when the assets are ready for their intended use.
Items of property and equipment are reviewed for indication of impairment at each reporting date and
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down
to its recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are
included in profit or loss in the line item ‘Other income, net’.
(m) Intangible assets
Intangible assets include acquired computer software licenses and related costs. An intangible asset is
recognised only when its cost can be measured reliably and it is probable that the expected future economic
benefits that are attributable to it will flow to the Group and the Bank.
Intangible assets are stated at historical cost less accumulated amortisation and accumulated impairment
losses, if any. Intangible assets are amortised using the straight-line method over their estimated useful lives.
The useful life of computer software is five years except for the license of core banking system which has
useful life of ten years.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from its
use. Gains or losses arising from derecognition of an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the
asset is derecognised. Costs associated with maintaining computer software are recognised as expenses
when incurred.
(n) Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and its value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered
impairment are reviewed for possible reversal of the impairment at each reporting date. Impairment losses are
recognised in the statement of profit or loss and other comprehensive income.
46

(n) Impairment of non-financial assets (continued)
Impairment losses recognised in prior periods are assessed at the end of each reporting period for any
indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been
a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only
to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised. A reversal of an
impairment loss is recognised as income.
(o) Reserves
Reserves comprise of general reserves, regulatory reserves, hedging reserve and other reserves.
The general reserves are set up for any overall financial risk. The Board of Directors exercises its discretion
for the use and maintenance of the general reserves. The transfer from retained earnings to general reserves
is subject to the approval of Board of Directors of each entity within the Group.
Regulatory reserves are set up for the variance of provision between impairment in accordance with CIFRSs
(on loans and advances, deposits and placements with other banks, other receivables, investments in debt
securities and off-balance sheet commitments) and regulatory provision (on loans and advances, deposits
and placements with other banks, other receivables and off-balance sheet commitments based on the
prescribed credit grading rate from the NBC). It is transferred between retained earnings and regulatory
reserves.
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging
instruments used in cash flow hedges pending subsequent recognition in profit or loss.
Other reserves are for currency translation differences of the net investment in foreign operations.
(p) Retained earnings

Retained earnings includes all current and prior period retained profits.
(q) Current and deferred income tax

The tax expense for the year comprises of current and deferred tax. Tax is recognised in profit or loss, except
to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this
case, the tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax expense is determined according to the tax laws of each jurisdiction where each entity of the
Group operates and generates taxable income and includes all taxes based upon the taxable profits.
Deferred income tax is recognised in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. However,
deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the transaction affects neither accounting nor taxable
profit or loss.
47

(q) Current and deferred income tax (continued)

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
which the temporary differences and unused tax losses or unused tax credits can be utilised.
Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to off-set tax assets
against tax liabilities and when the deferred taxes relate to the same fiscal authority.
(r) Employee benefits

(i) Short-term employee benefits
The Group and the Bank recognise a liability and an expense for short-term employee benefits. The Group and the
Bank recognise a provision where it is contractually obliged or where there is a past practice that has created a
constructive obligation.
Wages, salaries, bonuses, and other short-term benefits are recognised as an expense in the year in which
the associated services are rendered by the employees of the Group and the Bank.
(ii) Post-employment benefits

Retirement benefits
The Bank and its subsidiaries, except AMM, provide an unfunded retirement benefit plan, which is a defined
benefit plan for eligible employees, upon reaching the retirement age, as follows:
x Eligible employees who have worked for 15 years or more reach a retirement age of 58 years old and 60
years old for unskilled and skilled, respectively, are entitled to retirement benefits equivalent to 12 months
of their last salary; or,
x Eligible employees who have worked for 15 years or more reach the early retirement age of 55 years old
and 57 years old for unskilled and skilled, respectively, are entitled to retirement benefits equivalent to 6
months of their last salary.
No separate fund is maintained for the retirement benefits.
As at 31 December 2022, the liability is recognised in the statement of financial position at the present value
of defined benefit obligation at the reporting period using the Projected Unit Credit method to estimate the
ultimate cost to the Group and the Bank of the benefit that employees have earned in return for their service
in the current and prior periods. The Group and the Bank attribute benefit to periods in which the obligation
to provide retirement benefit arises. That obligation arises as employees render services in return for
retirement benefits that the Group and the Bank expect to pay in the future reporting periods. The present
value of the retirement benefit obligation is determined by discounting the estimated future payments using
the Bank’s long-term fixed deposit interest rate as its reference rate, as there is no deep high-quality corporate
bonds or government bonds currently being offered in the market.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in other comprehensive income and directly in the retained earnings in the period in which they
arise. The cost associated with providing these benefits is recognised in other comprehensive income so as
to spread the cost over the period of employment in which the entitlement to the benefit is earned. Any past-
service costs are recognised immediately in the statement of profit or loss and other comprehensive income.
48


(r) Employee benefits (continued)
(ii) Post-employment benefits (continued)

Retirement benefits (continued)
In 2023, the Group and the Bank amended the Employee Retirement Operating Manual and decided to
terminate the retirement benefit plan due to the Group and the Bank have legal obligation required by the
Royal Government of Cambodia to pay the seniority benefits and provident fund (see Note 25).
(iii) Long term employment benefits
The Group and the Bank have various long term employment benefit schemes as summarised below.
Seniority benefits
In accordance with Prakas No. 443 MoLVT dated 21 September 2018 and Notification Letter No. 042 MoLVT
dated 22 March 2019 issued by the Ministry of Labour and Vocational Training (“MoLVT”), the Bank and its
subsidiaries, except for ACLEDA Bank Lao Ltd. (“ABL”) and ACLEDA MFI Myanmar Co., Ltd. (“AMM”), are
required to pay seniority indemnity to its employees, as follows:
x Current Seniority Indemnity: Employees who have worked from 1 month to 6 months (excluding the
probation period) will receive seniority indemnity equal to 7.5 days in June or December of each year.
x Back Pay Seniority Indemnity: Employees who have worked under permanent contract from 1 month to 6
months in the applicable fiscal year will receive payment of seniority indemnity equal to 3 days; in case of
over 3 months, employees will receive seniority indemnity equal to 15 days. The maximum seniority to be
paid shall not exceed 6 days of the average base salary from each year that shall be compensated from
2008 to 2018 but shall not exceed 156 days. The payment will be made in June and December of each
year.
The liability was recognised at the present value of defined benefit obligation at the reporting period using
the Projected Unit Credit method to better estimate the ultimate cost to the Group and the Bank of the benefit
that employees have earned in return for their service from 2008 to 2018. The Group and the Bank attribute
benefit to periods in which the obligation to provide back pay seniority indemnity benefit arises. That
obligation arises as employees render services in return for back pay seniority indemnity that the Group and
the Bank expect to pay in future reporting periods.
The present value of the back pay seniority indemnity is determined by discounting the estimated future
payments by reference to the Bank’s five-year fixed deposit interest rate.
Provident Fund
Provident fund is both the Bank’s and employee’s obligation. Contributions were made effective 1 October
2022 and these are paid every month to the National Social Security Fund. For the first five years, contribution
to the fund is set at 4% (from KHR400,000 to KHR1,200,000 equivalent US$97 to US$291, respectively),
which is paid both by the Bank and its employees at 2% each (see Note 25).
49

(r) Employee benefits (continued)
(iii) Long term employment benefits (continued)
Career development benefits
The Bank and its subsidiaries provide career development benefits to their employees ranging from US$1,250
to US$6,250 based on the management position level except for ABL which provides career development
benefits to its employees ranging from LAK7,947,000 (equivalent to US$417) to LAK23,372,500 (equivalent to
US$1,226) based on the management position level.
Management position level employees are eligible to receive benefits provided they have been working since
their date of appointment in a management position for two years continuously and their performance
evaluation has been high (i.e. evaluation score equal to or higher than 700 and no warning letter). They will
automatically be entitled to the benefit on the first day of their third year.
The liability is recognised in the statement of financial position at the present value of employee benefit
obligation at the end of each reporting period using the Projected Unit Credit method. The present value is
determined by discounting the estimated future payments by reference to three-year fixed deposit interest
rate, as the period of the benefit entitlement is three years.
(s) Provisions
Provisions are recognised when the Group and the Bank have a present legal or constructive obligation as
a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount of obligation can be reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the obligation. The increase in the provisions due to the passage of time is recognised as
interest expense.
(t) Interest
Effective interest rate
Interest income and interest expense are recognised in profit or loss using the effective interest method. The
‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument to:
x the gross carrying amount of the financial asset; or,
x the amortised cost of the financial liability.
50


(t) Interest (continued)
Effective interest rate (continued)
When calculating the effective interest rate for financial instruments other than purchased or originated credit-
impaired assets, the Group and the Bank estimate future cash flows considering all the contractual terms of
the financial instrument, but not the ECL. For purchased or originated credit-impaired financial assets, a
credit-adjusted effective interest rate is calculated using the estimated future cash flows, including the ECL.
The calculation of the effective interest rate includes transaction costs and fees paid or received that are an
integral part of the effective interest rate. Transaction costs include incremental costs that are directly
attributable to the acquisition or issue of a financial asset or financial liability.
Amortised cost and gross carrying amount
The ‘amortised cost’ of a financial asset or financial liability is the amount at which the financial asset or
financial liability is measured on the initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest method of any difference between that initial amount and
the maturity amount and, for financial assets, adjusted for any ECL.
The ‘gross carrying amount’ of a financial asset is the amortised cost of a financial asset before adjusting for
any ECL allowance.
Calculation of interest income and interest expense
The effective interest rate of a financial asset or financial liability is calculated on initial recognition of a financial
asset or a financial liability. In calculating interest income and interest expense, the effective interest rate is
applied to the gross carrying amount of the financial asset (when the asset is not credit-impaired) or to the
amortised cost of the financial liability. The effective interest rate is revised as a result of periodic re-estimation
of cash flows of floating-rate instruments to reflect movements in market rates of interest. The effective interest
rate is also revised for fair value hedge adjustments at the date the amortisation of the hedge adjustment
begins.
However, for financial assets that have become credit-impaired subsequent to initial recognition, interest
income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If the
asset is no longer credit-impaired, then the calculation of interest income reverts to gross basis.
For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying
the credit-adjusted effective interest rate to the amortised cost of the financial asset. The calculation of interest
income does not revert to gross basis, even if the credit risk of the asset improves.
Presentation
Interest income calculated using the effective interest method presented in the statement of profit or loss and
other comprehensive income may include:
x interest on financial assets and financial liabilities measured at amortised cost;
x interest on debt instruments measured at FVOCI;
51


(t) Interest (continued)
Presentation (continued)
x the effective portion of fair value changes in qualifying hedging derivatives designated as cash flow
hedges of variability in interest cash flows, in the same period as the hedged cash flows affect interest
income/expense; and,
x the effective portion of fair value changes in qualifying hedging derivatives designated as fair value
hedges of interest rate risk.
Interest expense presented in the statement of profit or loss and other comprehensive income may include:
x financial liabilities measured at amortised cost; and,

x the effective portion of fair value changes in qualifying hedging derivatives designated in cash flow
hedges of variability in interest cash flows, in the same period as the hedged cash flows affect interest
income/expense.
Interest income and interest expense on any financial assets and financial liabilities at FVTPL are presented
in the statement of profit or loss and other comprehensive income.
(u) Fee and commission

Fee and commission income and expense are integral part of the effective interest rate calculation of a
financial asset or financial liability.
Other fee and commission income – including account servicing fees, investment management fees, sales
commission, placement fees and syndication fees – are recognised as the related services are performed.
If a loan commitment is not expected to result in the drawdown of a loan, then the related loan commitment
fee is recognised on a straight-line basis over the commitment period.
A contract with a customer that results in a recognised financial instrument in the Group’s and the Bank’s
financial statements may be partially in the scope of CIFRS 9, Financial Instruments, and partially in the
scope of CIFRS 15, Revenue from Contracts with Customers. If this is the case, then the Group and the
Bank first apply CIFRS 9 to separate and measure the part of the contract that is in the scope of CIFRS 9
and then apply CIFRS 15 to the residual.
(v) Recognition of fee and other income
(i) Dividends
Income from dividends is recognised when the right to receive payment is established. Usually, this is the
ex-dividend date for quoted equity securities.
Any dividends on equity instruments designated as FVOCI that clearly represent a recovery of part of the
cost of the investment are presented in other comprehensive income.
52

(v) Recognition of fee and other income (continued)
(ii) Training and consultancy services
The Group and the Bank recognise service revenue when it is probable that economic benefits will flow to
the Group and the Bank and the amount of revenue can be reliably measured. Revenue from training and
consultancy services are recognised when the services are delivered.
(w) Leases
At inception of a contract, the Group and the Bank assess whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
As a lessee
At commencement or on modification of a contract that contains a lease component, the Group and the
Bank allocate the consideration in the contract to each lease component on the basis of its relative stand-
alone prices.
The Group and the Bank recognise a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial direct
costs incurred, and an estimate of costs to dismantle and remove the underlying asset or to restore the
underlying asset or the site on which it is located or restoring the underlying asset to the condition required
by the terms and conditions of the lease, unless those costs are incurred to produce inventories, less any
lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group
and the Bank by the end of the lease term or the cost of the right-of-use asset reflects that the Group and
the Bank will exercise a purchase option. In that case the right-of-use asset will be depreciated over the
useful life of the underlying asset, which is determined on the same basis as those of property and
equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group and the Bank use an incremental borrowing rate. Practically, the Group and the Bank
used the incremental borrowing rate as the discount rate to measure its right-of-use assets and lease
liabilities.
Lease payments included in the measurement of the lease liability comprise of the following:
x fixed payments, including in-substance fixed payments, less any lease incentives;
53

(w) Leases (continued)
As a lessee (continued)
x variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commencement date;
x amounts expected to be payable under a residual value guarantee; and,
x the exercise price under a purchase option that the Group and the Bank are reasonably certain to
exercise, lease payments in an optional renewal period if the Group and the Bank are reasonably certain
to exercise an extension option, and penalties for early termination of a lease unless the Group and the
Bank are reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate; if there is a change in
the Group’s and the Bank’s estimate of the amount expected to be payable under a residual value guarantee;
if the Group and the Bank change its assessment of whether it will exercise a purchase, extension or
termination option or if there is a revised in-substance fixed lease payment; or a lease contract is modified
and the lease modification is not accounted for as a separate lease. When the lease liability is remeasured
in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is
recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less. A
lease that contains a purchase option is not a short-term lease.
A lease of an underlying asset does not qualify as a lease of a low-value asset if the nature of the asset is
such that, when new, the asset is typically not of low value. For example, leases of cars would not qualify as
leases of low-value assets because a new car would typically not be of low value.
The Group and the Bank have elected not to recognise right-of-use assets and lease liabilities for leases of
low-value assets and short-term leases. The Group and the Bank recognise the lease payments associated
with these leases as expense on a straight-line basis over the lease term.
(x) Contingent assets and contingent liabilities
Contingent assets arise from unplanned or other unexpected events that give rise to the possibility of an inflow of
economic benefits to the Group and the Bank. As this may result in the recognition of income that may never be
realised, contingent assets are not recognised in the Group’s and the Bank’s financial statements. Contingent
assets should be disclosed where an inflow of economic benefits is probable.
54

(x) Contingent assets and contingent liabilities (continued)
Contingent liabilities, which include certain guarantees and letters of credit pledged as collateral security, are
possible obligations that arise from past events whose existence will be confirmed only by the occurrence, or
non-occurrence, of one or more uncertain future events not wholly within the control of the Group and the Bank;
or are present obligations that have arisen from past events but are not recognised because it is not probable
that settlement will require the outflow of economic benefits, or because the amount of the obligations cannot
be reliably measured.
Contingent liabilities are not recognised in the financial statements but are disclosed unless the probability of
settlement is remote.
(y) Events after the reporting period
The Group and the Bank identify events, both favourable and unfavourable, that occur between the end of
the reporting period and the date when the financial statements are authorised for issue. The financial
statements of the Group and the Bank are adjusted to reflect those events that provide evidence of conditions
that existed at the end of the reporting period. Non-adjusting events after the end of the reporting period are
disclosed in the notes to the financial statements when material.
(z) Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of
the Group’s other components.
The Group reports separately information about an operating segment that meets any of the following
quantitative thresholds:
x the absolute amount of its reported profit or loss is 10% or more of the greater, in absolute amount, of
the combined reported profit of all operating segments that did not report a loss and the combined
reported loss of all operating segments that reported a loss; or,
x its assets are 10% or more of the combined assets of all operating segments.
Operating segments that do not meet any of these quantitative thresholds may be considered reportable,
and separately disclosed, if the Management believes that information about the segment would be useful
to users of the consolidated financial statements.
For Management purposes, the Group is currently organised into two main business segments: Lending and
Other financial services. These divisions are the basis on which the Group reports its primary segment
information.
Financial information on segment reporting is presented in Note 6.
55

3. Composition of the Group

Details of the Bank’s subsidiaries as at 31 December 2023 and 2022 are presented in Note 13.
The significant financial information on the financial statements of non-wholly owned subsidiary interests of
the Bank that has material non-controlling interest are shown below and in the succeeding page. The
summarised financial information represents amounts before intragroup eliminations.
ACLEDA Institute of Business Co., Ltd.

2023 2022 2023 2022
US$ US$ KHR'000 KHR'000
(Note 5) (Note 5)
Financial position:
Current assets 296,691 1,538,723 1,211,983 6,334,923
Non-current assets 31,433,019 32,117,464 128,403,883 132,227,599
Total assets 31,729,710 33,656,187 129,615,866 138,562,522
Current liabilities 2,793,262 2,134,580 11,410,475 8,788,066
Non-current liabilities 3,179,093 5,600,054 12,986,596 23,055,422
Total liabilities 5,972,355 7,734,634 24,397,071 31,843,488
Equity 25,757,355 25,921,553 105,218,795 106,719,034
Ownership and voting interest held by

non-controlling interest 23.391% 23.391% 23.391% 23.391%
Equity attributable to:
Equity holders of the Parent 19,732,452 19,858,243 80,607,067 81,756,385
Non-controlling interest 6,024,903 6,063,310 24,611,728 24,962,649
Results of operations:
Revenue 4,651,145 5,312,828 19,116,206 21,713,528
Costs and expenses (4,815,343) (4,993,208) (19,791,060) (20,407,241)
(Loss)/profit for the year (164,198) 319,620 (674,854) 1,306,287
Total comprehensive (loss)/income for the year (164,198) 299,314 (674,854) 1,223,296
(Loss)/profit attributable to:

Equity holders of the Parent (125,790) 244,858 (516,997) 1,000,735
Non-controlling interest (38,408) 74,762 (157,857) 305,552
Total comprehensive (loss)/income for the year

attributable to:
Equity holders of the Parent (125,790) 229,301 (516,997) 937,153
Non-controlling interest (38,408) 70,013 (157,857) 286,143
Dividends paid to non-controlling interest - - - -
Cash flows:
Net cash inflows from operating activities 1,514,747 2,222,815 6,225,610 9,084,645
Net cash outflows from investing activities (72,319) (54,479) (297,231) (222,656)
Net cash outflows from financing activities (1,867,480) (1,868,523) (7,675,343) (7,636,654)
Net cash (outflows)/inflows (425,052) 299,813 (1,746,964) 1,225,335
56

4. Critical accounting estimates and judgements in applying accounting policies

The Group and the Bank make estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, rarely equal the related actual results. To enhance the information content of the
estimates, certain key variables that are anticipated to have material impact to the Group’s and the Bank’s
results and financial position are tested for sensitivity to changes in the underlying parameters. The estimates
and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets
and liabilities within the next financial year are outlined in the succeeding page.
(a) Judgements
Information about judgements made in applying accounting policies that have the most significant effects on
the amounts recognised in the financial statements are included in the following notes:
x Note 2(e)(ii): classification of financial assets: assessment of the business model within which the assets
are held and assessment of whether the contractual terms of the financial asset are SPPI on the principal
amount outstanding.
x Note 38.1(f): establishing the criteria for determining whether credit risk on the financial asset has increased
significantly since initial recognition, determining methodology for incorporating forward-looking information
into the measurement of ECL and selection and approval of models used to measure ECL.
x The long-term fixed deposit rate on deposits from customers is used as the discount rate for calculating
lease liabilities (as the incremental borrowing rate) and the defined benefit obligations.
Functional currency
Based on the economic substance of underlying circumstances relevant to the Group and the Bank, the
Management determines the functional currency of the Group and the Bank to be the USD. The USD is the
currency of the primary economic environment in which the Group and the Bank operate.
Leases
The evaluation of whether an arrangement contains a lease is based on its substance. An arrangement is,
or contains, a lease when the fulfilment of the arrangement depends on a specific asset or assets and the
arrangement conveys the right to use the asset.
In assessing whether leases are of low value, the Management considers the economic substance of the
underlying asset as a whole.
Post-employment benefits
In the absence of a bond market and government bonds, the Management used their five-year, six-year and
three-year fixed deposit interest rate as the discount rate to determine the present value of the estimated
future cash outflows expected to be required to settle the seniority indemnity, retirement, and career
development benefit obligations, respectively.
57


(continued)
(b) Assumptions and estimation uncertainties
The following are the key assumptions concerning the future and other key sources of estimation uncertainty
at the end of each reporting period:
Impairment of financial and non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to
sell calculation is based on available data from binding sales transactions in an arm’s length transaction of
similar assets or observable market prices less incremental costs for disposing the asset. The value in use
calculation is based on discounted cash flow model. The cash flows are derived from the budget and do not
include restructuring activities that the Bank and/or the Group is not yet committed to or significant future
investments that will enhance the asset’s performance of the cash generating unit being tested.
The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as
well as the expected future cash inflows and the growth rate used for extrapolation purposes.
x Note 38.1(f): impairment of financial instruments: determining inputs into the ECL measurement models,
including incorporation of forward-looking information.
x Note 39: determination of the fair value of financial instruments with significant unobservable inputs.
x Note 35: recognition and measurement of contingencies: key assumptions about the likelihood and
magnitude of an outflow of resources.
x Note 2(e)(vii): impairment of financial instruments: key assumptions used in estimating recoverable cash
flows.
Following CIAS 36, Impairment of assets, at the end of each reporting period, the Group and the Bank assess
whether there is any indication that non-financial assets may be impaired. If any such indication exists, the Group
and the Bank shall estimate the recoverable amount of the assets and writes down its carrying amount to the
assessed recoverable amount.
In assessing whether there is any indication that an asset may be impaired, the Group and the Bank consider, as
a minimum, the following indications:
x External sources of information
a) Market value of the assets has declined significantly during the period more than what would be expected
as a result of the passage of time or normal use.
b) Significant changes with an adverse effect on the Group and the Bank have taken place during the period,
or will take place in the near future, in the technological, market, economic, or legal environment in which
the Group and the Bank operate or in the market to which an asset is dedicated.
c) Market interest rates or other market rates of return on investments have increased during the period,
and those increases are likely to affect the discount rate used in calculating an asset’s value in use and
decrease the asset’s recoverable amount materially.
d) The carrying amount of the net assets of the entity is more than its market capitalisation.
58


(continued)
(b) Assumptions and estimation uncertainties (continued)
Impairment of financial and non-financial assets (continued)
x Internal sources of information
a) Evidence is available of obsolescence or physical damage of an asset.
b) Significant changes with an adverse effect on the Group and the Bank have taken place during the period,
or are expected to take place in the near future, in the extent to which, or manner in which, an asset is
used or is expected to be used. These changes include the asset becoming idle, plans to discontinue or
restructure the operation to which an asset belongs, and plans to dispose of an asset before the
previously expected date.
c) Evidence is available from internal reporting that indicates that the economic performance of an asset is,
or will be, worse than expected.
In determining the recoverable amount, the Group and the Bank projects future net cash flows for a period of five
years using the Gordon Growth Model. Under this model, the Management determines the weighted average
cost of capital to be the discount rate based on the latest audited financial statements, and is subject to change, if
warranted. Further, the Management assumes that the average ten-year gross domestic product (“GDP”)
growth rate of each country where its subsidiaries operate, is equivalent to the growth rate, and is to be updated
each year.
As at 31 December 2023, the Management believes that the recoverable amounts of its equity investments
and non-financial assets, exceed their carrying amounts. Accordingly, no impairment loss was recognised.
Coronavirus and continuing impact on ECL
The ECL was estimated based on a range of forecasted economic conditions as at the reporting date. In 2020,
the Novel Coronavirus (“COVID-19”) outbreak has spread across mainland China, Cambodia and beyond,
causing disruption to business and economic activity. In response to the COVID-19 situation, the
Management provides its best estimate of the continuing impact of COVID-19 on the Group’s and the Bank's
ECL considering the current and future probable economic scenarios.
Post-employment benefits
The present value of the seniority indemnity, retirement and career development benefit obligations depends
on a number of factors that are determined by the Management using a number of assumptions such as
salary growth rates, turnover rates and mortality rates. The assumptions used in determining the net cost for
post-employment benefits include discount rate. Any changes in these assumptions will impact the value of
defined benefit obligation.
Recognition of deferred tax assets
Deferred tax assets are recognised for all unused tax losses and temporary differences to the extent that it
is probable that future taxable profit will be available against which the losses can be utilized. Significant
estimate is required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and level of future taxable income together with future tax planning strategies.
59


(continued)
(b) Assumptions and estimation uncertainties (continued)
Taxes
Taxes are calculated on the basis of current interpretation of the tax regulations enacted as at the reporting
date. The Management periodically evaluates position taken in tax returns with respect to situations in which
the applicable tax regulation is subjected to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
However, these regulations are subject to periodic variation and the ultimate determination of tax liabilities
will be made following inspection by the tax authorities. Where the final tax outcome of these matters is
different from the amounts initially recorded, such differences will impact the tax liabilities and balances in the
period in which the determination is made.
Estimating cost of right-of-use assets and lease liabilities
Determining the cost of right-of-use assets includes the amount of lease liabilities recognised and the
estimated costs to be incurred in dismantling and removing its underlying assets or restoring to the condition
required by the lease contract.
Lease liabilities are measured at the present value of lease payments to be made over the lease term. In
calculating the lease liabilities, the Group and the Bank use its average incremental borrowing rate which is
based on long-term fixed deposit interest rate at the time of the commencement of the lease term.
Estimating useful lives of assets
The useful lives of the Group’s and the Bank’s assets with definite useful life are estimated based on the
period over which the assets are expected to be available for use. The estimated useful lives of Group’s and
the Bank’s property and equipment and intangible assets are reviewed periodically and are updated if
expectations differ from previous estimates due to physical wear and tear, technical or commercial
obsolescence and legal or other limits on the use of the Group’s and the Bank’s assets. In addition, the
estimation of the useful lives is based on the Group’s and the Bank’s collective assessment of industry
practice, internal technical evaluation, and experience with similar assets. It is possible, however, that future
results of operations could be materially affected by changes in estimates brought about by changes in
factors mentioned above. The amounts and timing of recording of expenses for any period would be affected
by changes in these factors and circumstances. A reduction in the estimated useful lives of the assets would
increase the recognised operating expenses and decrease non-current assets.
Fair value measurement
Management uses various valuation techniques to determine the fair value of financial instruments (where
active market quotes are not available) and non-financial assets. This involves developing estimates and
assumptions consistent with how market participants would price the instrument. Management bases its
assumptions on observable data as far as possible but this is not always available. In that case, Management
uses the best information available. Estimated fair values may vary from the actual prices that would be
achieved in an arm’s length transaction at the reporting date (see Note 39).
60

5. Translation of United States Dollar into Khmer Riel

The financial statements are expressed in USD. The translations of USD amounts into Khmer Riel (“KHR”) are
included solely for compliance with the Law on Accounting and Auditing. Assets and liabilities are translated
using the closing rate as at the reporting date. The statement of profit or loss and other comprehensive income
and the statement of cash flows are translated into KHR using the applicable average rates for the reporting
date. Exchange differences arising from the translation are recognised as “Currency translation differences” in
the other comprehensive income.
The Group and the Bank have used the following exchange rates:
Closing Average
rate rate
31 December 2023 US$1 = KHR4,085 KHR4,110
31 December 2022 US$1 = KHR4,117 KHR4,087
These translations should not be construed as representations that the USD amounts have been, could have
been, or could in the future be, converted into KHR at this or any other rate of exchange.
6. Segment information
The Group’s operations are mainly in the financial industry sector from which the Group’s reporting segments are
identified.
(a) Business segments

The Group’s operating businesses are managed separately according to the nature of services provided (primary
segments) and the different geographical markets served (secondary segments) with a segment representing a
strategic business unit. The Group’s business segments are as follows:
x Lending - provides loans to individual, group, and corporate as well as financial institutions. Products offered
depend on the purpose, feature and size, such as group loan, small loan, medium loan, housing loan, car
loan, motor loan, overdraft loan, revolving loan, financial lease, trade finance loan, etc.
x Other financial services - provides other services such as foreign exchange transaction, debit & credit card
issuing and acquiring service, fund transfer (local & overseas), and cash management services (such as
payroll, cash collection, bills payment, top-up and standing order). These services are leaning toward
modernising the digital banking services via mobile application, internet banking and e-commerce as well as
other digital ways.
These segments are the basis on which the Group reports its primary segment information. Transactions between
segments are conducted at estimated market rates on an arm’s length basis.
Segment revenues and expenses that are directly attributable to primary business segment and the relevant
portions of the Group’s revenues and expenses that can be allocated to that business segment are accordingly
reflected as revenues and expenses of that business segment.
For secondary segments, revenues and expenses are attributed to geographic areas based on the location of
the resources producing the revenues, and on the location where the expenses are incurred.
61

6. Segment information (continued)

(b) Analysis of primary segment information
Primary segment information by business segment on a consolidated basis follows:
2023 2022
Other Other
Lending financial services Total Lending financial services Total
US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000
(Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5)
Revenues
Interest income 755,631,085 3,105,643,759 - - 755,631,085 3,105,643,759 670,753,456 2,741,369,375 - - 670,753,456 2,741,369,375
Interest expense (329,001,434) (1,352,195,894) - - (329,001,434) (1,352,195,894) (220,822,466) (902,501,419) - - (220,822,466) (902,501,419)
Net interest income 426,629,651 1,753,447,865 - - 426,629,651 1,753,447,865 449,930,990 1,838,867,956 - - 449,930,990 1,838,867,956
Non-interest income - - 72,377,153 297,470,099 72,377,153 297,470,099 - - 73,077,928 298,669,492 73,077,928 298,669,492
Total net revenues 426,629,651 1,753,447,865 72,377,153 297,470,099 499,006,804 2,050,917,964 449,930,990 1,838,867,956 73,077,928 298,669,492 523,008,918 2,137,537,448
(c) Analysis of secondary segment information

Secondary information (by geographical locations) follows:
2023 2022
Republic Union of Republic Union of
Kingdom of Cambodia Lao PDR Total Kingdom of Cambodia Lao PDR Total
Myanmar Myanmar
US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000
(Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5)
Profit or loss
Total income 797,311,514 3,276,950,323 26,845,940 110,336,813 6,067,231 24,936,319 830,224,685 3,412,223,455 711,533,289 2,908,036,552 28,208,386 115,287,674 7,467,425 30,519,366 747,209,100 3,053,843,592
Total expense (659,302,676) (2,709,733,998) (18,115,501) (74,454,709) (4,742,684) (19,492,433) (682,160,861) (2,803,681,140) (537,377,514) (2,196,261,900) (21,134,270) (86,375,761) (6,899,084) (28,196,558) (565,410,868) (2,310,834,219)
Net profit 138,008,838 567,216,325 8,730,439 35,882,104 1,324,547 5,443,886 148,063,824 608,542,315 174,155,775 711,774,652 7,074,116 28,911,913 568,341 2,322,808 181,798,232 743,009,373
Other segment
information
Depreciation and
amortisation 37,300,794 153,306,263 1,102,304 4,530,469 204,800 841,728 38,607,898 158,678,461 35,209,729 143,902,162 1,397,973 5,713,516 271,767 1,110,712 36,879,469 150,726,390
62


(c) Analysis of secondary segment information (continued)
Secondary information (by geographical locations) follows: (continued)
2023 2022
Republic Union of Republic Union of
Kingdom of Cambodia Lao PDR Total Kingdom of Cambodia Lao PDR Total
Myanmar Myanmar
US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000
(Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5) (Note 5)
Financial position
Total assets 9,640,091,494 39,379,773,753 181,744,965 742,428,182 19,972,177 81,586,343 9,841,808,636 40,203,788,278 8,954,952,434 36,867,539,171 158,217,647 651,382,053 17,320,296 71,307,656 9,130,490,377 37,590,228,880
Total liabilities 8,219,112,182 33,575,073,263 145,443,101 594,135,068 4,254,070 17,377,877 8,368,809,353 34,186,586,208 7,595,402,710 31,270,272,957 124,579,961 512,895,699 2,926,736 12,049,373 7,722,909,407 31,795,218,029
(d) Reconciliation
Presented below is a reconciliation of the Group’s segment information to the key financial information presented in its consolidated financial statements.
2023 2022 2023 2022

(Note 5) (Note 5)
Revenues
Total segment revenues 830,224,685 747,209,100 3,412,223,455 3,053,843,592
Elimination of intersegment revenues (2,216,447) (3,377,716) (9,109,597) (13,804,725)
Group net revenues as reported in profit or loss 828,008,238 743,831,384 3,403,113,858 3,040,038,867
Profit or loss
Total segment profit 148,063,824 181,798,232 608,542,315 743,009,373
Elimination of intersegment (profit)/loss (45,399) 16,543 (186,590) 67,613
Group net profit as reported in profit or loss 148,018,425 181,814,775 608,355,725 743,076,986
63


(d) Reconciliation (continued)
Presented below is a reconciliation of the Group’s segment information to the key financial information presented in its consolidated financial statements. (continued)
2023 2022 2023 2022
US$ US$ KHR’000 KHR’000
(Note 5) (Note 5)
Assets
Total segment assets 9,841,808,636 9,130,490,377 40,203,788,278 37,590,228,880
Elimination of intersegment assets (97,768,150) (99,327,071) (399,382,892) (408,929,551)
Total assets 9,744,040,486 9,031,163,306 39,804,405,386 37,181,299,329
Liabilities
Total segment liabilities 8,368,809,353 7,722,909,407 34,186,586,208 31,795,218,029
Elimination of intersegment liabilities (6,789,669) (8,393,921) (27,735,798) (34,557,774)
Total liabilities 8,362,019,684 7,714,515,486 34,158,850,410 31,760,660,255
Other segment information

Total segment depreciation and amortisation 38,607,898 36,879,469 158,678,461 150,726,390
Elimination of intersegment depreciation and amortisation (18,422) (14,229) (75,715) (58,154)
Total depreciation and amortisation 38,589,476 36,865,240 158,602,746 150,668,236
64

7. Cash on hand
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
US$ US$ KHR'000 KHR'000 US$ US$ KHR'000 KHR'000
(Note 5) (Note 5) (Note 5) (Note 5)
By currency:
In USD 303,036,520 347,641,854 1,237,904,184 1,431,241,513 301,587,525 346,175,903 1,231,985,040 1,425,206,193
In KHR 151,910,894 113,035,256 620,556,002 465,366,149 151,904,672 113,025,660 620,530,585 465,326,642
In THB 32,204,150 25,283,928 131,553,953 104,093,932 30,583,206 23,581,457 124,932,397 97,084,858
In Euro 576,681 1,819,435 2,355,742 7,490,614 572,521 1,813,640 2,338,748 7,466,756
In other currencies 8,065,323 9,246,568 32,946,844 38,068,120 1,936,393 2,068,823 7,910,165 8,517,345
495,793,568 497,027,041 2,025,316,725 2,046,260,328 486,584,317 486,665,483 1,987,696,935 2,003,601,794
65

8. Deposits and placements with other banks, net

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Balances with local banks:
National Bank of Cambodia 1,389,931,664 493,778,912 5,677,870,847 2,032,887,781 1,389,931,664 493,778,912 5,677,870,847 2,032,887,781
Other banks 248,726 68,717,001 1,016,046 282,907,893 248,726 68,717,001 1,016,046 282,907,893
1,390,180,390 562,495,913 5,678,886,893 2,315,795,674 1,390,180,390 562,495,913 5,678,886,893 2,315,795,674
Balances with overseas banks:

Bank of Lao PDR 27,299,355 15,024,630 111,517,865 61,856,402 - - - -
Other banks 92,179,627 269,389,900 376,553,777 1,109,078,218 88,714,056 266,123,757 362,396,919 1,095,631,508
119,478,982 284,414,530 488,071,642 1,170,934,620 88,714,056 266,123,757 362,396,919 1,095,631,508
Total balances with local and overseas banks 1,509,659,372 846,910,443 6,166,958,535 3,486,730,294 1,478,894,446 828,619,670 6,041,283,812 3,411,427,182
Allowance for impairment losses (116,194) (308,268) (474,653) (1,269,140) (12,425) (223,245) (50,756) (919,100)
1,509,543,178 846,602,175 6,166,483,882 3,485,461,154 1,478,882,021 828,396,425 6,041,233,056 3,410,508,082
Current 1,509,543,178 846,602,175 6,166,483,882 3,485,461,154 1,478,882,021 828,396,425 6,041,233,056 3,410,508,082

Non-current - - - - - - - -
1,509,543,178 846,602,175 6,166,483,882 3,485,461,154 1,478,882,021 828,396,425 6,041,233,056 3,410,508,082
66

8. Deposits and placements with other banks, net (continued)

a) By account types
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
US$ US$ KHR’000 KHR’000 US$ US$ KHR’000 KHR’000
Balances with local banks:
Current accounts 1,390,180,390 494,834,864 5,678,886,893 2,037,235,135 1,390,180,390 494,834,864 5,678,886,893 2,037,235,135
Fixed deposits - 67,661,049 - 278,560,539 - 67,661,049 - 278,560,539
1,390,180,390 562,495,913 5,678,886,893 2,315,795,674 1,390,180,390 562,495,913 5,678,886,893 2,315,795,674
Balances with overseas banks:

Current accounts 118,474,163 154,018,565 483,966,956 634,094,432 88,714,056 136,028,251 362,396,919 560,028,309
Fixed deposits 1,004,819 130,395,965 4,104,686 536,840,188 - 130,095,506 - 535,603,199
119,478,982 284,414,530 488,071,642 1,170,934,620 88,714,056 266,123,757 362,396,919 1,095,631,508
Total balances with local and overseas banks 1,509,659,372 846,910,443 6,166,958,535 3,486,730,294 1,478,894,446 828,619,670 6,041,283,812 3,411,427,182
Allowance for impairment losses (116,194) (308,268) (474,653) (1,269,140) (12,425) (223,245) (50,756) (919,100)
1,509,543,178 846,602,175 6,166,483,882 3,485,461,154 1,478,882,021 828,396,425 6,041,233,056 3,410,508,082
b) By interest rate (per annum)

The Group The Bank
2023 2022 2023 2022
Current accounts Nil Nil Nil Nil
Savings accounts 0.00% - 0.75% 0.00% - 0.50% Nil Nil
Fixed deposits 0.74% - 7.50% 0.14% - 7.50% 4.34% - 6.95% 0.14% - 6.00%
67

8. Deposits and placements with other banks, net (continued)

c) By maturity
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
On demand 1,508,602,147 648,853,430 6,162,639,772 2,671,329,572 1,478,894,446 630,863,115 6,041,283,812 2,597,263,445

Within 1 month 52,405 102,998,141 214,074 424,043,346 - 102,697,683 - 422,806,361
Between 2 to 3 months 502,910 95,058,872 2,054,387 391,357,376 - 95,058,872 - 391,357,376
Between 4 to 6 months 501,910 - 2,050,302 - - - - -
Between 7 to 12 months - - - - - - - -
1,509,659,372 846,910,443 6,166,958,535 3,486,730,294 1,478,894,446 828,619,670 6,041,283,812 3,411,427,182
9. Financial investments, net

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Note US$ US$ KHR'000 KHR'000 US$ US$ KHR'000 KHR'000
Unlisted equity securities at FVOCI (a)
Credit Bureau Holding (Cambodia) Ltd. 153,529 153,529 627,166 632,079 153,529 153,529 627,166 632,079
SWIFT 36,141 36,141 147,636 148,792 36,141 36,141 147,636 148,792
Total financial investments at FVOCI 189,670 189,670 774,802 780,871 189,670 189,670 774,802 780,871
Unquoted financial investments at amortised cost
Negotiable Certificate of Deposits with the NBC (b) 284,890,089 519,982,197 1,163,776,014 2,140,766,705 284,890,089 519,982,197 1,163,776,014 2,140,766,705
Debt securities (c) 73,093,885 36,481,870 298,588,520 150,195,859 73,093,885 36,481,870 298,588,520 150,195,859
357,983,974 556,464,067 1,462,364,534 2,290,962,564 357,983,974 556,464,067 1,462,364,534 2,290,962,564
ECL Allowance (629,260) (616,205) (2,570,527) (2,536,916) (629,260) (616,205) (2,570,527) (2,536,916)
Total financial investments at amortised cost 357,354,714 555,847,862 1,459,794,007 2,288,425,648 357,354,714 555,847,862 1,459,794,007 2,288,425,648
Total financial investments 357,544,384 556,037,532 1,460,568,809 2,289,206,519 357,544,384 556,037,532 1,460,568,809 2,289,206,519
68

9. Financial investments, net (continued)

(a) This represents the Bank’s equity investment in Credit Bureau Holding (Cambodia) Ltd. (“CBC”), directly owned at 5% and indirectly owned at 1% through the Association
of Banks in Cambodia. As at 31 December 2023, the Bank’s investment in CBC is valued at cost amounting to US$153,529 (31 December 2022: US$153,529) and
the Bank’s investment in Society for Worldwide Interbank Financial Telecommunications (“SWIFT”) is valued at cost amounting to US$36,141 (31 December 2022:
US$36,141) as the Management believes the cost of these investments approximates its fair value. Dividend income received from CBC during year ended 31
December 2023 amounted to KHR1,662,534,720 (US$407,862) (31 December 2022: KHR475,200,000 (US$117,333)).
(b) As at 31 December 2023, the Bank has pledged negotiable certificate of deposits (“NCD”) amounting to US$3,038,699 (31 December 2022: US$22,400,230) with the
NBC as collateral for settlement clearing facility. As at 31 December 2023, the other NCD amounting to US$281,851,390 (31 December 2022: US$497,581,967) with
the NBC is made for the purpose of earning interest. The terms of the NCD are for a period of less than or equal to twelve months. As at 31 December 2023, the Bank
is yet to utilise the overdraft on the settlement clearing facility.
(c) On 12 January 2022, the Bank invested in a corporate debt security with a face value of US$30,000,000 guaranteed by Overseas Cambodian Investment Corporation
Ltd, a third party. The debt security earns an interest at the rate of 5.5% per annum and will mature on 11 January 2025. As at 31 December 2023, the carrying amount
of this investment is US$31,604,794 (31 December 2022: US$31,600,274).
The Bank bought the government bonds from the Ministry of Economy and Finance with information below:
Quantity Interest per Yield to Maturity Face value Issuance size
No Value Date Tenure
(Sheets) annum maturity Date (KHR) KHR'000 US$
1 27/01/2023 20,000 3.48% 3.60% 1 27/01/2024 1,000,000 20,000,000 4,895,961
2 24/02/2023 60,000 4.00% 4.10% 2 24/02/2025 1,000,000 60,000,000 14,687,882
3 21/07/2023 10,000 3.48% 3.80% 1 21/07/2024 1,000,000 10,000,000 2,447,980
4 21/07/2023 10,000 3.48% 3.70% 1 21/07/2024 1,000,000 10,000,000 2,447,980
5 18/08/2023 20,000 4.00% 4.30% 2 18/08/2025 1,000,000 20,000,000 4,895,961
6 22/09/2023 8,000 4.50% 5.20% 3 22/09/2026 1,000,000 8,000,000 1,958,384
7 20/10/2023 10,000 3.48% 3.90% 1 20/10/2024 1,000,000 10,000,000 2,447,980
8 20/10/2023 10,000 3.48% 3.80% 1 20/10/2024 1,000,000 10,000,000 2,447,980
9 24/11/2023 10,000 4.00% 4.50% 2 24/11/2025 1,000,000 10,000,000 2,447,980
10 24/11/2023 10,000 4.00% 4.60% 2 24/11/2025 1,000,000 10,000,000 2,447,980
As at 31 December 2023, the amortised cost of the investments in government bonds is KHR169,482,933,554 (US$41,489,090) (31 December 2022:
KHR20,097,529,580 (US$4,881,596)).
69

9. Financial investments, net (continued)

Analysis of maturity of financial investments at amortised cost
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Within 1 month 288,443,092 499,182,241 1,178,290,030 2,055,133,286 288,443,092 499,182,241 1,178,290,030 2,055,133,286
Between 2 to 3 months 3,414,265 22,132,777 13,947,273 91,120,643 3,414,265 22,132,777 13,947,273 91,120,643
Between 4 to 6 months 71,316 300,698 291,326 1,237,974 71,316 300,698 291,326 1,237,974
Between 7 to 12 months 9,761,465 4,848,351 39,875,585 19,960,661 9,761,465 4,848,351 39,875,585 19,960,661
More than 12 months 56,293,836 30,000,000 229,960,320 123,510,000 56,293,836 30,000,000 229,960,320 123,510,000
357,983,974 556,464,067 1,462,364,534 2,290,962,564 357,983,974 556,464,067 1,462,364,534 2,290,962,564
70

10. Loans and advances, net

The Group
2023 2022 2023 2022
Gross carrying ECL Carrying Gross carrying ECL Carrying Gross carrying ECL Carrying Gross carrying ECL Carrying
amount allowance amount amount allowance amount amount allowance amount amount allowance amount
US$ US$ US$ US$ US$ US$ KHR'000 KHR'000 KHR'000 KHR'000 KHR'000 KHR'000
Small Loan 3,010,956,957 27,770,215 2,983,186,742 2,868,926,918 22,413,324 2,846,513,594 12,299,759,169 113,441,328 12,186,317,841 11,811,372,121 92,275,655 11,719,096,466
Medium Loan 2,363,039,566 18,938,304 2,344,101,262 2,507,150,225 14,113,589 2,493,036,636 9,653,016,627 77,362,972 9,575,653,655 10,321,937,476 58,105,646 10,263,831,830
Personal & Others Loan 483,524,761 3,643,801 479,880,960 262,623,532 1,700,385 260,923,147 1,975,198,650 14,884,929 1,960,313,721 1,081,221,081 7,000,485 1,074,220,596
Staff Loan 297,515,093 59,271 297,455,822 289,854,485 82,333 289,772,152 1,215,349,155 242,122 1,215,107,033 1,193,330,915 338,965 1,192,991,950
Overdraft Loan 159,816,406 689,036 159,127,370 161,555,205 310,254 161,244,951 652,850,019 2,814,712 650,035,307 665,122,779 1,277,316 663,845,463
Public Housing Loan 154,400,982 990,876 153,410,106 153,915,879 1,086,746 152,829,133 630,728,011 4,047,728 626,680,283 633,671,674 4,474,133 629,197,541
Credit Card Loan 88,962,172 2,502,209 86,459,963 63,294,403 1,101,478 62,192,925 363,410,473 10,221,524 353,188,949 260,583,057 4,534,785 256,048,272
Revolving Loan 29,992,751 97,276 29,895,475 41,060,604 72,286 40,988,318 122,520,388 397,372 122,123,016 169,046,507 297,601 168,748,906
Staff Housing Loan 31,007,135 26,261 30,980,874 29,013,820 29,394 28,984,426 126,664,146 107,276 126,556,870 119,449,897 121,015 119,328,882
Home Improvement Loan 21,134,005 913,194 20,220,811 23,246,999 1,312,237 21,934,762 86,332,410 3,730,397 82,602,013 95,707,895 5,402,480 90,305,415
Trade Loan 16,962,181 16,335 16,945,846 21,006,685 20,636 20,986,049 69,290,509 66,728 69,223,781 86,484,522 84,958 86,399,564
6,657,312,009 55,646,778 6,601,665,231 6,421,648,755 42,242,662 6,379,406,093 27,195,119,557 227,317,088 26,967,802,469 26,437,927,924 173,913,039 26,264,014,885
71

10. Loans and advances, net (continued)

The Bank
2023 2022 2023 2022
Gross carrying ECL Carrying Gross carrying ECL Carrying Gross carrying ECL Carrying Gross carrying ECL Carrying
amount allowance amount amount allowance amount amount allowance amount amount allowance amount
US$ US$ US$ US$ US$ US$ KHR'000 KHR'000 KHR'000 KHR'000 KHR'000 KHR'000
Small Loan 2,884,157,048 12,673,382 2,871,483,666 2,748,136,582 9,619,193 2,738,517,389 11,781,781,541 51,770,765 11,730,010,776 11,314,078,308 39,602,218 11,274,476,090
Medium Loan 2,349,484,724 18,865,068 2,330,619,656 2,499,495,011 14,081,544 2,485,413,467 9,597,645,098 77,063,803 9,520,581,295 10,290,420,960 57,973,717 10,232,447,243
Personal & Others Loan 480,498,163 3,612,266 476,885,897 258,973,137 1,652,271 257,320,866 1,962,834,995 14,756,107 1,948,078,888 1,066,192,406 6,802,399 1,059,390,007
Staff Loan 293,163,708 44,899 293,118,809 285,038,052 71,760 284,966,292 1,197,573,747 183,412 1,197,390,335 1,173,501,660 295,436 1,173,206,224
Overdraft Loan 158,920,550 684,232 158,236,318 160,552,411 308,800 160,243,611 649,190,447 2,795,088 646,395,359 660,994,276 1,271,330 659,722,946
Public Housing Loan 151,945,600 982,034 150,963,566 151,376,678 1,083,712 150,292,966 620,697,776 4,011,609 616,686,167 623,217,783 4,461,642 618,756,141
Credit Card Loan 88,962,172 2,502,209 86,459,963 63,294,403 1,101,478 62,192,925 363,410,473 10,221,524 353,188,949 260,583,057 4,534,785 256,048,272
Revolving Loan 29,992,751 97,276 29,895,475 41,060,604 72,286 40,988,318 122,520,388 397,372 122,123,016 169,046,507 297,601 168,748,906
Staff Housing Loan 30,933,591 26,254 30,907,337 28,972,643 29,389 28,943,254 126,363,719 107,248 126,256,471 119,280,371 120,995 119,159,376
Trade Loan 16,962,181 16,335 16,945,846 21,006,685 20,636 20,986,049 69,290,509 66,728 69,223,781 86,484,522 84,958 86,399,564
Home Improvement Loan 11,622,338 95,583 11,526,755 16,520,247 115,899 16,404,348 47,477,251 390,457 47,086,794 68,013,857 477,156 67,536,701
6,496,642,826 39,599,538 6,457,043,288 6,274,426,453 28,156,968 6,246,269,485 26,538,785,944 161,764,113 26,377,021,831 25,831,813,707 115,922,237 25,715,891,470
(a) Loans and advances in gross amount by maturity

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Within 1 year 1,600,707,057 1,591,146,359 6,538,888,329 6,550,749,560 1,543,246,088 1,536,853,536 6,304,160,270 6,327,226,008
Later than 1 year but not later than 3 years 2,224,498,064 2,193,502,533 9,087,074,591 9,030,649,928 2,170,793,786 2,136,109,587 8,867,692,616 8,794,363,170
Later than 3 years but not later than 5 years 1,505,478,580 1,583,979,594 6,149,879,999 6,521,243,988 1,476,912,594 1,557,305,827 6,033,187,946 6,411,428,090
Later than 5 years 1,326,628,308 1,053,020,269 5,419,276,638 4,335,284,448 1,305,690,358 1,044,157,503 5,333,745,112 4,298,796,439
6,657,312,009 6,421,648,755 27,195,119,557 26,437,927,924 6,496,642,826 6,274,426,453 26,538,785,944 25,831,813,707
72

10. Loans and advances, net (continued)

During the year, the Group and the Bank recognised the allowance for impairment losses as follows:
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Allowance for/(reversal of) impairment losses on:
Loans and advances 41,824,525 20,045,313 171,898,798 81,925,194 38,676,227 12,763,402 158,959,293 52,164,024
Deposits and placements with other banks (177,657) (157,751) (730,170) (644,728) (199,422) 1,937 (819,624) 7,917
Other receivables 23,768 77,440 97,686 316,497 (23,252) 31,409 (95,566) 128,369
Investments in debt securities 13,054 616,205 53,652 2,518,430 13,054 616,205 53,652 2,518,429
41,683,690 20,581,207 171,319,966 84,115,393 38,466,607 13,412,953 158,097,755 54,818,739
Off-balance sheet commitments 2,180 (2,588) 8,960 (10,577) (15,518) (66,794) (63,779) (272,987)
41,685,870 20,578,619 171,328,926 84,104,816 38,451,089 13,346,159 158,033,976 54,545,752
Movements in allowance for impairment losses on loans and advances during the year were as follows:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
At the beginning of the year 42,242,662 34,621,074 173,913,039 141,046,256 28,156,968 22,588,505 115,922,237 92,025,571
Allowance for impairment losses during the year 41,824,525 20,045,313 171,898,798 81,925,194 38,676,227 12,763,402 158,959,293 52,164,024
Written off during the year (28,099,807) (8,794,470) (115,490,207) (35,942,999) (27,165,405) (6,957,636) (111,649,815) (28,435,858)
Currency translation differences (320,602) (3,629,255) (1,317,674) (14,832,765) (68,252) (237,303) (280,516) (969,857)
Exchange differences - - (1,686,868) 1,717,353 - - (1,187,086) 1,138,357
At the end of the year 55,646,778 42,242,662 227,317,088 173,913,039 39,599,538 28,156,968 161,764,113 115,922,237
73

11. Other assets

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Prepayments and advances 17,493,860 13,054,273 71,462,418 53,744,442 16,768,610 12,353,023 68,499,772 50,857,396
Stationery supplies 5,335,702 4,314,109 21,796,343 17,761,187 5,097,968 4,111,810 20,825,199 16,928,322
Income tax receivable 4,638,694 3,248,578 18,949,065 13,374,396 4,582,366 3,164,522 18,718,965 13,028,337
Receivable from Western Union and VISA 4,226,939 2,344,641 17,267,046 9,652,887 4,196,511 2,310,933 17,142,747 9,514,111
Others 1,161,019 55,908,562 4,742,763 230,175,549 403,602 55,738,749 1,648,716 229,476,431
32,856,214 78,870,163 134,217,635 324,708,461 31,049,057 77,679,037 126,835,399 319,804,597
ECL Allowance (16,696) (51,597) (68,204) (212,425) (13,786) (36,902) (56,316) (151,926)
Total 32,839,518 78,818,566 134,149,431 324,496,036 31,035,271 77,642,135 126,779,083 319,652,671
Current 17,351,501 65,079,070 70,880,882 267,930,531 15,966,836 64,194,634 65,224,526 264,289,309

Non-current 15,488,017 13,739,496 63,268,549 56,565,505 15,068,435 13,447,501 61,554,557 55,363,362
32,839,518 78,818,566 134,149,431 324,496,036 31,035,271 77,642,135 126,779,083 319,652,671
12. Statutory deposits

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Note (Note 5) (Note 5) (Note 5) (Note 5)
With the Central Bank (a) 543,302,104 479,556,076 2,219,389,095 1,974,332,365 543,302,104 479,556,076 2,219,389,095 1,974,332,365
With Other Central Bank (b) 5,043,487 2,532,022 20,602,645 10,424,333 - - - -
Others (c) 281,518 242,895 1,150,000 1,000,000 - - - -
548,627,109 482,330,993 2,241,141,740 1,985,756,698 543,302,104 479,556,076 2,219,389,095 1,974,332,365
Current - - - - - - - -
Non-current 548,627,109 482,330,993 2,241,141,740 1,985,756,698 543,302,104 479,556,076 2,219,389,095 1,974,332,365
548,627,109 482,330,993 2,241,141,740 1,985,756,698 543,302,104 479,556,076 2,219,389,095 1,974,332,365
74

12. Statutory deposits (continued)

(a) With the Central Bank
(i) Reserve requirement

Pursuant to the NBC’s Prakas No. B7-023-005 on the maintenance of reserve requirement against
banking and financial institutions’ deposits and borrowings dated 9 January 2023, the institution shall
maintain reserve requirement against deposits and borrowings in accordance with dates and rates as
follows:
- From 1 January 2023 to 31 December 2023, reserve requirement in foreign currencies shall be at
the rate of 9%.
- From 1 January 2024 onwards, reserve requirement in foreign currencies shall be at the rate of
12.5%.
- The institution shall maintain the reserve requirement in local currency (KHR) at the rate of 7%.
However, in the NBC Letter No. B7-023-2621 Chhor.Tor dated 23 November 2023, the reserve
requirement against deposits and borrowings in foreign currencies was changed at the rate of 7% until
31 December 2024.
Previously, the NBC issued on 18 March 2020 a press release announcing the reduction of the Reserve
Requirement to 7% in order to mitigate the impact of COVID-19 pandemic on Cambodia’s economy.
Pursuant to the NBC’s Prakas No. B7-018-282 on the maintenance of reserve requirement against
commercial banks' deposits and borrowings, reserve requirements for both KHR and other currencies
bear no interest since 29 August 2018.
The reserve requirement amounted to US$499,985,802 as at 31 December 2023 (31 December 2022:
US$436,239,774).
(ii) Capital guarantee

Pursuant to the NBC’s Prakas No. B7-01-136 on Bank’s Capital Guarantee dated 15 October 2001, the
banks are required to maintain 10% of its registered capital as a statutory deposit with the NBC. The
deposit, which is not available for use in the bank’s day-to-day operations, is refundable should the bank
voluntarily ceases its operations in Cambodia. As at 31 December 2023, capital guarantee deposit
amounted to US$43,316,302 (31 December 2022: US$43,316,302). The capital guarantee deposit is
earning at an interest rate of ¼ of the London Inter-bank Offered Rate (“LIBOR”) on a 6-month basis.
Pursuant to the NBC’s Prakas No. B5-021-288 issued on 29 December 2021, banks and financial
institutions are required to use ‘Secured Overnight Financing Rate’ instead of LIBOR starting 3 January
2022.
(b) With Other Central Bank

ABL maintained its compulsory deposits in compliance with the requirements of the Bank of Lao PDR
(“BOL”). Statutory deposits with Central Bank include compulsory reserve and registered capital reserve.
These balances earn no interest. Under regulations of the BOL, banks are required to maintain certain
cash reserves with the BOL in the form of compulsory deposits, which are computed at 5.5% for the Lao
Kip (“LAK”) and 8% for foreign currency (previously, 5% and 5%, respectively), on a bi-monthly basis, of
customers’ deposits having original maturities of less than 12 months.
75

12. Statutory deposits (continued)
(c) Others
In compliance with Article 23 of SERC’s Prakas No. 001/18 SECC/PR.K dated 20 March 2008 on licensing
and supervision of securities, ACS is required to reserve the guarantee capital of KHR1,000,000,000 (which
is equivalent to US$244,798 and US$242,895 as at 31 December 2023 and 31 December 2022,
respectively) in the SERC’s bank account at the NBC to operate as a securities broker in the Kingdom of
Cambodia. On 24 November 2023, ACS added KHR150,000,000 (which is equivalent to US$36,720) in the
SERC’s bank account at the NBC to fulfil the requirements as stated in Prakas No. 003/18 SECC/PR.K dated
29 May 2018 on the licensing and supervision of collective investment scheme business. ACS is waiting for
the official approval from SERC to be a distribution company. This statutory deposit does not bear interest.
13. Investments in subsidiaries

The Bank
2023 2022 2023 2022
Note (Note 5) (Note 5)
Unquoted ordinary shares, at cost
ACLEDA Bank Lao Ltd. (a) 49,389,566 49,389,566 201,756,377 203,336,843
ACLEDA Securities Plc. (b) 2,010,000 2,010,000 8,210,850 8,275,170
ACLEDA Institute of Business Co., Ltd. (c) 19,805,000 19,805,000 80,903,425 81,537,185
ACLEDA MFI Myanmar Co., Ltd. (d) 19,913,150 19,913,150 81,345,218 81,982,439
91,117,716 91,117,716 372,215,870 375,131,637
Details of the Bank’s subsidiaries are as follows:

Ownership and Voting Interest
2023 2022
Name of Subsidiaries Note
ACLEDA Bank Lao Ltd. (a) 99.90% 99.90%
ACLEDA Securities Plc. (b) 100% 100%
ACLEDA Institute of Business Co., Ltd. (c) 76.609% 76.609%
ACLEDA MFI Myanmar Co., Ltd. (d) 100% 100%
(a) ACLEDA Bank Lao Ltd.
ABL was established in Lao PDR on 13 December 2007 under a preliminary license from the BOL. ABL’s
principal business is providing banking and related financial services in Lao PDR. The Bank owned 99.90%
of ABL’s shares. The Bank’s initial investment in 2008 in ABL is US$5,477,399. In 2009, the Bank sold shares
to International Finance Corporation (“IFC”) amounting to US$876,384 which decreased the Bank’s
investments in ABL to US$4,601,015. In 2010, the Bank injected capital to ABL amounting to US$5,966,969,
thereby increasing its investments to US$10,567,984.
76

13. Investments in subsidiaries (continued)

(a) ACLEDA Bank Lao Ltd. (continued)
In 2014, the Bank bought shares from FMO, StichtingTriodosDoen, Tridos Fair Share Fund and IFC
amounting to US$28,875,098 and injected capital to ABL amounting to US$9,946,484, increasing its
investments in ABL to US$49,389,566. As at 31 December 2023, the Bank’s investments in ABL remain the
same.
Status of operations
The BOL will attempt to lower the rate of inflation to 9% or another single-digit figure by the end of next year,
by ensuring that the income earned from exports enters the banking system. The central bank wants at last
70% of export earnings to enter the Lao banking system. The ambitious target was cited by the Governor of
the BOL, when speaking at the start of the National Assembly’s 6th ordinary session. To achieve this goal,
BOL will tighten the enforcement of monetary policy in order to create a larger money supply for circulation
within the country. BOL will also continue to ensure that currency exchange rates are set in line with market
mechanisms and make foreign currency exchange more flexible by improving the services provided by
commercial banks.
BOL mulls solutions to inflation, high currency exchange rates. The main reason for unfavourable foreign
exchange rates and high inflation in Lao PDR is the fact that revenue is low but expenditure is high. This was
the bold statement made by the Governor of the BOL when addressing the National Assembly with the
session. The Governor of the BOL said that the most of the money used for socio-economic development
comes from directly foreign investment, and from loans which the government has to repay. Another
hindrance is that foreign currency reserves are very low, while the policy on foreign currencies is weak,
particularly when it comes to requiring businesses to deposit money in bank accounts.
A high-level economist has stressed the need for Lao PDR to create conditions that favour the inflow of
foreign currency into the money supply, saying it will help to stabilise the value of the LAK by boosting exports,
tourism and foreign investment. In order to stabilise exchange rates and deal with economic challenges, it
needs to bring in more foreign currency by increasing the value of exports, tourism and foreign investment.
The inflow of foreign currency will help to stabilise exchange rates and the value of the LAK. Exporters should
make use of this opportunity and ship more agricultural products on the Laos-China railway to help boost
foreign exchange earnings.
As at 31 December 2023, the situation of inflation rate and fluctuations in the exchange rates still impact ABL’s
performance. Loan portfolio in USD currency is less than the plan by 31%, but in LAK currency, it is less than
plan by only 13%. However, the quality of loan is manageable. ABL is still able to keep its performance grow
in terms of loan portfolio by 7% and of deposits by 13% in comparison to the same period of last year. Thus,
ABL still has the ability to pay its debts, and its liquidity and cash flow levels are still in the good position.
(b) ACLEDA Securities Plc.

On 1 March 2010, ACS was established in the Kingdom of Cambodia and registered with the Ministry of
Commerce (“MOC”) under the Registration No. Co.0448KH/2010. On 20 October 2010, the SERC
(previously known as SECC) granted a brokerage license to ACS. The registered share capital of ACS is
US$2,010,000, divided into 2,010,000 shares with par value of US$1 each. ACS’ principal business is
providing securities brokerage and other services approved by the SERC. ACS is wholly-owned by the Bank.
77


(c) ACLEDA Institute of Business Co., Ltd.
AIB (previously known as ACLEDA Training Center Ltd.) was established in the Kingdom of Cambodia
under a primary license from the MOC under the Registration No. Co.1332KH/2011 dated 8 June 2011.
The registered share capital of AIB is US$17,805,000, divided into 17,805,000 shares with par value of
US$1 each. In 2018, AIB increased its share capital by US$2,000,000 to US$19,805,000. The revised
Memorandum and Articles of Association (“MAA”) was endorsed by the MOC on 14 December 2018.
AIB is recognised as an establishment of a private higher education institution under the Sub-Decree
No. 13 ANKr. BK dated 25 January 2016 from the Royal Government of Cambodia. AIB provides training
and education for Associate’s degree, Bachelor’s degree, and Master’s degree in Business
Administration, Major in Banking and Finance. AIB can open branches, new colleges, new departments,
new specialties, new levels or classes, new types of education and training, change to a new name and
location by submitting relevant documents and by requesting approval from the Ministry of Education,
Youth and Sport.
On 10 February 2021, the NBC approved, on request of the Bank, an increase in the capital of AIB as
invested by ACLEDA Financial Trust (“AFT”), amounting to US$10,000,000, which represents
23.3910% of the total shares registered, equal to 6,047,046 shares at the price of US$1.6537 per share
through a Share Investment Agreement made on 26 February 2021 between the Bank, AIB, and AFT.
Consequently, AIB share capital increased to US$25,852,046 and reduced the Bank’s ownership to
76.6090%, which is equal to US$19,805,000.
On 29 March 2021, AIB submitted a letter to the MOC requesting for its approval on the amendment of
its MAA relating to the capital increase and on 2 December 2022, AIB obtained the approval from the
MOC.
(d) ACLEDA MFI Myanmar Co., Ltd.

AMM was incorporated in the Republic of the Union of Myanmar under the Republic of the Union of
Myanmar Companies Law on 6 September 2012 to provide services per Registration No. 143715094 and
started its operations on 18 February 2013. The financial year of the statutory financial statements of AMM
is from 1 October to 30 September until year 2021 and from 1 April to 31 March from year 2022 onwards
in accordance with the Letter Nº: NgaKaSa/AhMaKha (105/2021) issued on 13 September 2021 on
changing the fiscal year of Myanmar.
AMM is permitted to operate as a deposit-taking microfinance institution providing microfinance services to
lower income segments of the Myanmar market and other activities allowed by the Microfinance Supervisory
Authority at 45 townships in Yangon Region, 28 townships in Bago Region, 3 townships in Mon State and
25 townships in Magway Region.
The Bank’s initial investment in 2013 in AMM is US$9,411,765. In 2014, the Bank sold shares to IFC,
COFIBRED S.A and Kredittanstalt Fur Wiederaufbau (“KfW”) amounting to US$3,659,371, which decreased
its investments in AMM to US$5,752,394.
The Bank acquired 3,600,000 ordinary shares (45% of the total shareholdings) of AMM from KfW,
COFIBRED S.A, and IFC for a consideration of US$6,193,321 as approved by the Board of Directors of
AMM on 25 April 2018. The share transfers, appointment of representative of shareholders, and changing
the Board members were approved on 27 September 2018 by the Secretary of Microfinance Business
Supervisory Committee, The Republic of the Union of Myanmar Government.
78


(d) ACLEDA MFI Myanmar Co., Ltd. (continued)
On 23 September 2019, the Bank injected capital amounting to US$3,969,923 (equivalent to Myanmar
Kyat (“MMK”) of 6,099,390,000) and additional capital of US$3,995,367 (equivalent MMK6,039,396,000),
on 3 December 2019, increasing its ownership to 99.99%, with the remaining interest owned by AIB.
On 12 May 2021, the Bank settled US$2,145 to AIB to hold 100% of common stock of AMM shares
amounting to MMK20,140,000,000 (2019: 99.99% of MMK8,000,000,000). On 5 April 2021, AMM submitted
a request to the regulator for the approval of its amended MAA resulting from the change in ownership.
Microfinance Business Supervisory Committee has approved AMM’s request with Letter No. KaKa-1/6
(467/2021) dated 23 December 2021.
Status of operations
Myanmar's crisis-torn economy is projected to grow by just 1% over the year to March 2024, the World Bank
said in a report published on 6 December 2023, as the rising resistance against Myanmar's military regime
has disrupted its vast border trade. According to the World Bank's semi-annual Myanmar Economic Monitor,
GDP growth is expected to remain stagnant at about 2% next fiscal year.
Fighting has affected Myanmar's trade with its neighbours across land borders, which accounted for 40% of
its exports and 21% of its imports in the six months to September 2023.
The World Bank said that even if the conflict eases, growth is expected to remain subdued over the rest of
2024 and into 2025, citing the slowdown across agriculture, manufacturing and trade. Growth will be limited
as conflict-related uncertainty dampens consumption and investment.
The World Bank’s Country Director for Myanmar said that the economic situation has deteriorated, and
uncertainty about the future is increasing. High food price inflation has had a particularly severe impact on the
poor, who spend a larger portion of their income on food and who tend to live in areas where prices have
risen at a faster pace. The World Bank report said inflation is set to remain at around 20% until March
2024. While several prices eased in the first half of 2023, the recent re-emergence of exchange rate
pressures is likely to see prices continue to rise at a rapid pace in 2024. High logistics costs, restrictions
on trade and foreign exchange, and electricity shortages have increased the cost of doing business and
reduced the garment sector's international competitiveness.
Myanmar's central bank will no longer set exchange rates for foreign currencies and will allow banks and
dealers to decide rates themselves, the state media reported on 6 December 2023, in a rare easing of
some of its tight foreign exchange controls. Authorities have imposed a slew of measures to suppress
demand for foreign currencies, while cracking down on black market trading and revoking more than
140 money changer licenses during the year.
As at 31 December 2023, AMM still operates as usual by focusing on loan collection, loan recovery and
loan disbursement as well as the voluntary saving mobilizing. AMM’s loans outstanding increased by
1.45% and 10.79% compared to September 2023 and December 2022, respectively, along with the
default value decreased by 0.59% and 11.81% compared to September 2023 and December 2022,
respectively, due to the Financial Regulatory Department of Myanmar’s new directive changing the
provision rate from 1% to 3% for arrear loans over 30 days. Month by month, the voluntary saving
increased, and AMM is in good liquidity and favourable cash flow position. Thus, AMM is still able to
support its daily operations smoothly and to support future operations as the national security situation
in Myanmar improves and becomes controllable.
79


(e) ACLEDA Bank Plc. (Representative Office)
On 7 April 2016, the Bank received a foreign bank representative office registration certificate FB/R.O-
1/(04)2016 from the Central Bank of Myanmar and a certificate of incorporation as a representative office
from the Ministry of Planning and Finance in the Republic of the Union of Myanmar on 6 May 2016 with
Permit Nº 58FC/2016-2017 (YGN).
The representation office is permitted for the following activities:
a. Marketing, promotion, negotiation, and documentation for business purposes for customers of the Bank;
b. Referring customer of the Bank to banks operating in Myanmar; and,
c. Monitoring and supervising offshore loans granted by the Bank.
80

14. Property and equipment, net

The Group
Land Building and Leasehold Office Computer Motor Construction
Land improvement improvement improvement equipment equipment vehicles in progress Total
US$ US$ US$ US$ US$ US$ US$ US$ US$
Cost
As at 1 January 2023 14,542,280 1,759,381 99,042,570 9,653,057 83,813,313 90,372,687 21,880,815 2,647,259 323,711,362
Additions - - 40,664 1,450,025 14,194,354 9,532,489 4,031,203 2,409,939 31,658,674
Disposals/write-offs - - (359) (248,172) (1,630,492) (1,575,629) (1,155,645) - (4,610,297)
Reclassifications - - 50,000 593,310 715,288 1,072,962 9,961 (2,441,521) -
Currency translation differences - - - (47,729) (112,336) (619,060) (79,129) (19,052) (877,306)
Adjustments - - - - 12,594 5 - (377,262) (364,663)
As at 31 December 2023 14,542,280 1,759,381 99,132,875 11,400,491 96,992,721 98,783,454 24,687,205 2,219,363 349,517,770
Less: Accumulated depreciation
As at 1 January 2023 - 896,603 31,315,844 5,206,404 61,047,802 69,885,318 15,138,682 - 183,490,653
Charge for the year - 65,717 4,631,352 1,574,182 8,796,795 6,616,539 1,856,669 - 23,541,254
Currency translation differences - (7) (3,258) (41,108) (106,643) (472,570) (75,505) - (699,091)
As at 31 December 2023 - 962,313 35,943,579 6,514,768 68,126,579 74,455,536 15,768,130 - 201,770,905
Carrying value 14,542,280 797,068 63,189,296 4,885,723 28,866,142 24,327,918 8,919,075 2,219,363 147,746,865
In KHR’ 000 equivalent (Note 5) 59,405,214 3,256,023 258,128,274 19,958,178 117,918,190 99,379,545 36,434,421 9,066,099 603,545,944
As at 31 December 2023, fully depreciated property and equipment with total historical cost of US$130,332,368 (31 December 2022: US$122,558,800) are still in active use.
As at 31 December 2023, the Bank’s construction in progress amounting to US$1,316,041 is mostly related to Server IBM Power System; and ABL’s construction in progress
amounting to US$903,322 is mostly related to CRM machines, Palo Alto and Dell firewall, Cisco security for the upgrade of T24 core banking R22 (31 December 2022: the Bank’s
construction in progress amounting to US$2,492,887 is mostly related to purchases of POS machines, development of self-service areas, server, Cisco security and switch; and
ABL’s construction in progress amounting US$154,372 is mostly related to IT projects such as Fire Eyes and Nutanix).
81

14. Property and equipment, net (continued)
The Group
Cost
As at 1 January 2022 14,542,280 1,759,381 98,948,419 7,111,670 72,308,695 83,595,259 19,738,270 12,955,562 310,959,536
Additions - - 87,159 1,721,413 4,502,344 11,198,300 3,995,819 3,169,748 24,674,783
Disposals/write-offs - - (308) (268,699) (2,563,455) (2,750,353) (1,512,880) (846,476) (7,942,171)
Reclassifications - - 7,300 1,317,679 10,080,203 667,719 6,308 (12,079,209) -
Currency translation differences - - - (229,006) (511,242) (2,338,258) (346,702) (79,223) (3,504,431)
Adjustments - - - - (3,232) 20 - (473,143) (476,355)
As at 31 December 2022 14,542,280 1,759,381 99,042,570 9,653,057 83,813,313 90,372,687 21,880,815 2,647,259 323,711,362

As at 1 January 2022 - 828,303 26,708,563 4,488,660 56,181,765 67,921,485 15,399,516 - 171,528,292
Currency translation differences - (32) (13,564) (199,296) (498,528) (1,912,183) (344,817) - (2,968,420)
Adjustments - - - - 3,377 609 - - 3,986
As at 31 December 2022 - 896,603 31,315,844 5,206,404 61,047,802 69,885,318 15,138,682 - 183,490,653
Carrying value 14,542,280 862,778 67,726,726 4,446,653 22,765,511 20,487,369 6,742,133 2,647,259 140,220,709
In KHR’ 000 equivalent (Note 5) 59,870,567 3,552,057 278,830,931 18,306,870 93,725,609 84,346,498 27,757,362 10,898,765 577,288,659
82

The Bank
Cost
As at 1 January 2023 2,328,344 282,726 77,116,208 9,134,971 81,747,217 84,601,903 21,010,084 2,492,887 278,714,340
Additions - - 30,562 1,438,490 14,057,707 9,208,756 3,804,560 1,316,043 29,856,118
Reclassifications - - 50,000 591,271 701,454 772,902 - (2,115,627) -
Adjustments - - - - 12,594 5 - (377,262) (364,663)
As at 31 December 2023 2,328,344 282,726 77,196,411 10,932,179 94,915,864 93,025,844 23,741,433 1,316,041 303,738,842

As at 1 January 2023 - 165,865 28,256,258 4,761,986 59,270,750 65,604,513 14,368,937 - 172,428,309
As at 31 December 2023 - 175,072 32,148,838 6,104,026 66,361,651 70,153,324 15,086,771 - 190,029,682
Carrying value 2,328,344 107,654 45,047,573 4,828,153 28,554,213 22,872,520 8,654,662 1,316,041 113,709,160
In KHR’ 000 equivalent (Note 5) 9,511,285 439,767 184,019,336 19,723,005 116,643,960 93,434,244 35,354,294 5,376,028 464,501,919
As at 31 December 2023, fully depreciated property and equipment with total historical cost of US$124,117,271 (31 December 2022: US$115,146,949) are still in active use.
83

The Bank
Cost
As at 1 January 2022 2,328,344 282,726 77,022,057 6,377,005 69,889,212 76,404,353 18,579,780 12,661,438 263,544,915
Additions - - 87,159 1,689,964 4,364,894 10,236,619 3,915,969 2,311,193 22,605,798
Reclassifications - - 7,300 1,317,679 10,007,595 667,719 6,308 (12,006,601) -
Adjustments - - - - (3,232) 20 - (473,143) (476,355)
As at 31 December 2022 2,328,344 282,726 77,116,208 9,134,971 81,747,217 84,601,903 21,010,084 2,492,887 278,714,340

As at 1 January 2022 - 156,658 24,383,785 3,872,210 54,050,378 62,335,686 14,309,015 - 159,107,732
Adjustments - - - - 3,377 609 - - 3,986
As at 31 December 2022 - 165,865 28,256,258 4,761,986 59,270,750 65,604,513 14,368,937 - 172,428,309
Carrying value 2,328,344 116,861 48,859,950 4,372,985 22,476,467 18,997,390 6,641,147 2,492,887 106,286,031
In KHR’ 000 equivalent (Note 5) 9,585,792 481,117 201,156,414 18,003,579 92,535,615 78,212,255 27,341,602 10,263,216 437,579,590
84

15. Intangible assets, net

The Group The Bank
Computer software Work in progress Total Computer software Work in progress Total
US$ US$ US$ US$ US$ US$
Cost
As at 1 January 2023 39,382,953 2,484,354 41,867,307 37,140,474 2,261,329 39,401,803
Additions 1,391,039 1,467,079 2,858,118 1,158,809 1,079,688 2,238,497
Disposals/write-offs (1,009,305) - (1,009,305) (1,009,305) - (1,009,305)
Reclassifications 1,003,963 (1,003,963) - 863,772 (863,772) -
Currency translation differences (270,065) (27,524) (297,589) - - -
Adjustments - (189,228) (189,228) - (189,228) (189,228)
As at 31 December 2023 40,498,585 2,730,718 43,229,303 38,153,750 2,288,017 40,441,767
Less: Accumulated amortisation

As at 1 January 2023 30,970,766 - 30,970,766 29,083,379 - 29,083,379
Charge for the year 2,821,055 - 2,821,055 2,622,695 - 2,622,695
Disposals/write-offs (1,009,305) - (1,009,305) (1,009,305) - (1,009,305)
Currency translation differences (241,905) - (241,905) (2,131) - (2,131)
Adjustments (82,326) - (82,326) (82,326) - (82,326)
As at 31 December 2023 32,458,285 - 32,458,285 30,612,312 - 30,612,312
Carrying value 8,040,300 2,730,718 10,771,018 7,541,438 2,288,017 9,829,455
In KHR’ 000 equivalent (Note 5) 32,844,626 11,154,983 43,999,609 30,806,774 9,346,550 40,153,324
As at 31 December 2023, the Group’s and the Bank’s fully amortised intangible assets with historical cost of US$25,101,546 and US$23,639,872, respectively (31 December 2022:
US$23,892,574 and US$22,650,495, respectively), are still used actively.
As at 31 December 2023, the Bank’s work in progress amounting to US$2,288,017 is mostly related to Toanchet Loan develop, accounting system, merchant management system,
and software license,SVFE Support and implementation of Chatbot Solution; and ABL’s work in progress amounting to US$442,701 is mostly related to project LAPS Phase II and
software/license upgrading of T24 R12-R22, E-Pin (Smart Vista Implementation Fee), and interlink SFP+10G (31 December 2022: the Bank’s work in progress amounting to
US$2,261,329 is mostly related to the upgrade of T24, card management system, mobile application, and Htrunk software; and ABL’s work in progress amounting to US$223,025 is
mostly related to the upgrade of the service for assessment of core banking, Hi-Ware, and Smart Vista for LAPS).
85

15. Intangible assets, net (continued)
The Group The Bank

Computer software Work in progress Total Computer software Work in progress Total
US$ US$ US$ US$ US$ US$
Cost
As at 1 January 2022 39,924,178 1,666,659 41,590,837 36,464,944 1,637,426 38,102,370
Additions 445,083 1,501,342 1,946,425 428,687 1,287,310 1,715,997
Disposals/write-offs (482,366) (15,233) (497,599) (466,925) - (466,925)
Transfers 707,405 (707,405) - 707,405 (707,405) -
Currency translation differences (1,217,710) (5,007) (1,222,717) - - -
Adjustments 6,363 43,998 50,361 6,363 43,998 50,361
As at 31 December 2022 39,382,953 2,484,354 41,867,307 37,140,474 2,261,329 39,401,803
Less: Accumulated amortisation

As at 1 January 2022 29,304,739 - 29,304,739 26,686,517 - 26,686,517
Charge for the year 3,096,546 - 3,096,546 2,848,307 - 2,848,307
Disposals/write-offs (456,616) - (456,616) (441,175) - (441,175)
Currency translation differences (974,112) - (974,112) (10,479) - (10,479)
Adjustments 209 - 209 209 - 209
As at 31 December 2022 30,970,766 - 30,970,766 29,083,379 - 29,083,379
Carrying value 8,412,187 2,484,354 10,896,541 8,057,095 2,261,329 10,318,424
In KHR’ 000 equivalent (Note 5) 34,632,974 10,228,085 44,861,059 33,171,060 9,309,892 42,480,952
86

16. Right-of-use assets, net

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Right-of-use assets 32,410,303 28,785,805 132,396,088 118,511,159 30,852,413 26,525,687 126,032,107 109,206,253
The Group and the Bank lease office buildings and cars for its operations. Information about leases for which the Group or the Bank is a lessee is presented below:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Additions during the year 17,886,445 13,800,949 73,513,289 56,404,479 17,331,167 13,441,138 71,231,096 54,933,931
Depreciation for the year (12,227,167) (11,777,321) (50,253,656) (48,133,911) (11,755,148) (11,113,156) (48,313,658) (45,419,469)
Lease termination during the year (1,245,468) (1,479,735) (5,118,873) (6,047,677) (1,244,938) (1,454,035) (5,116,695) (5,942,641)
Currency translation differences (789,312) (95,972) (3,244,072) (392,238) (4,355) 55,013 (17,899) 224,838
Exchange differences - - (1,011,759) 1,231,967 - - (956,990) 1,128,528
For the year ended 31 December 2023, the Group and the Bank have recognised expense relating to variable lease payments amounting to US$16,792; while the expense
relating to short-term lease payments is amounting US$834 (31 December 2022: the Group and the Bank have recognised expense relating to variable lease payments
amounting to US$28,643 for the year ended; no short-term-lease payments).
87

16. Right-of-use assets, net (continued)

Amounts recognised in the statement of profit or loss and other comprehensive income:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Depreciation expense 12,227,167 11,777,321 50,253,656 48,133,911 11,755,148 11,113,156 48,313,658 45,419,469
Interest on lease liabilities 1,895,277 1,927,878 7,789,590 7,879,237 1,754,557 1,769,870 7,211,230 7,233,459
Gain on pre-termination of leases (101,682) (7,424) (417,913) (30,342) (76,783) (163) (315,578) (666)
14,020,762 13,697,775 57,625,333 55,982,806 13,432,922 12,882,863 55,209,310 52,652,262
17. Deferred tax assets and deferred tax liabilities
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Deferred tax assets 38,863,319 43,244,262 158,756,658 178,036,627 34,793,939 39,642,675 142,133,241 163,208,893
Deferred tax liabilities (64,292,738) (44,382,119) (262,635,835) (182,721,184) (61,575,984) (41,901,028) (251,537,895) (172,506,532)
(25,429,419) (1,137,857) (103,879,177) (4,684,557) (26,782,045) (2,258,353) (109,404,654) (9,297,639)
88

17. Deferred tax assets and deferred tax liabilities (continued)

2023
Group ABC ABL ACS AIB AMM
US$ KHR’000 US$ KHR’000 US$ KHR’000 US$ KHR’000 US$ KHR’000 US$ KHR’000
Deferred tax assets 1,352,626 5,525,477 - - 753,835 3,079,417 25,087 102,480 103,380 422,307 470,324 1,921,273
Deferred tax liabilities (26,782,045) (109,404,654) (26,782,045) (109,404,654) - - - - - - - -
(25,429,419) (103,879,177) (26,782,045) (109,404,654) 753,835 3,079,417 25,087 102,480 103,380 422,307 470,324 1,921,273
2022
Group ABC ABL ACS AIB AMM
US$ KHR’000 US$ KHR’000 US$ KHR’000 US$ KHR’000 US$ KHR’000 US$ KHR’000
Deferred tax assets 1,407,258 5,793,681 - - 797,641 3,283,888 43,281 178,188 - - 566,336 2,331,605
Deferred tax liabilities (2,545,115) (10,478,238) (2,258,353) (9,297,639) - - - - (286,762) (1,180,599) - -
(1,137,857) (4,684,557) (2,258,353) (9,297,639) 797,641 3,283,888 43,281 178,188 (286,762) (1,180,599) 566,336 2,331,605
The movements in net deferred tax assets/(deferred tax liabilities) during the year are presented as follows:
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
At the beginning of the year (1,137,857) 9,068,606 (4,684,557) 36,945,501 (2,258,353) 7,523,717 (9,297,639) 30,651,623
Charged to profit or loss (24,186,614) (9,921,115) (99,406,984) (40,547,597) (24,523,692) (9,782,070) (100,792,374) (39,979,320)
Currency translation differences (104,948) (285,348) (431,336) (1,166,217) - - - -
Exchange differences - - 643,700 83,756 - - 685,359 30,058
At the end of the year (25,429,419) (1,137,857) (103,879,177) (4,684,557) (26,782,045) (2,258,353) (109,404,654) (9,297,639)
89


The components of and movements in deferred tax assets and deferred tax liabilities during the year presented are as follows:
Deferred tax assets of the Group:
Unrealised
Unamortised Unearned Provision for Other foreign Accelerated
loan fees revenue loan loss provision Staff bonus exchange loss depreciation Lease Others Total
US$ US$ US$ US$ US$ US$ US$ US$ US$ US$
As at 1 January 2023 10,011,636 44,281 13,597,553 9,554,050 2,117,163 1,683,243 473 362,157 5,873,706 43,244,262
(Charged)/credited to profit or loss (1,806,092) 10,312 (493,878) (3,989,484) (481,392) 1,048,303 4,295 (4,087) 1,331,080 (4,380,943)
As at 31 December 2023 8,205,544 54,593 13,103,675 5,564,566 1,635,771 2,731,546 4,768 358,070 7,204,786 38,863,319
In KHR'000 equivalent (Note 5) 33,519,647 223,012 53,528,512 22,731,252 6,682,125 11,158,365 19,477 1,462,716 29,431,552 158,756,658
As at 1 January 2022 8,262,437 29,461 11,296,743 7,788,719 1,802,290 1,086,355 836,941 374,186 5,967,634 37,444,766
Credited/(charged) to profit or loss 1,749,199 14,820 2,300,810 1,765,331 314,873 596,888 (836,468) (12,029) (93,928) 5,799,496
As at 31 December 2022 10,011,636 44,281 13,597,553 9,554,050 2,117,163 1,683,243 473 362,157 5,873,706 43,244,262
In KHR'000 equivalent (Note 5) 41,217,905 182,305 55,981,126 39,334,024 8,716,360 6,929,911 1,947 1,491,000 24,182,049 178,036,627
90


The components of and movements in deferred tax assets and deferred tax liabilities during the year presented are as follows: (continued)
Deferred tax assets of the Bank:
Unrealised
Unamortised Provision for foreign Accelerated
loan fees loan loss Other provision Staff bonus exchange loss depreciation Lease Others Total
As at 1 January 2023 10,011,636 13,597,553 9,392,387 2,117,163 1,682,562 - 359,397 2,481,977 39,642,675
(Charged)/credited to profit or loss (1,806,092) (493,878) (3,887,084) (491,174) 1,048,321 - (8,485) 789,656 (4,848,736)
As at 31 December 2023 8,205,544 13,103,675 5,505,303 1,625,989 2,730,883 - 350,912 3,271,633 34,793,939
In KHR'000 equivalent (Note 5) 33,519,647 53,528,512 22,489,163 6,642,165 11,155,657 - 1,433,476 13,364,621 142,133,241
As at 1 January 2022 8,262,437 11,296,743 7,643,002 1,802,290 1,086,075 834,781 327,720 3,067,046 34,320,094
Credited/(charged) to profit or loss 1,749,199 2,300,810 1,749,385 314,873 596,487 (834,781) 31,677 (585,069) 5,322,581
As at 31 December 2022 10,011,636 13,597,553 9,392,387 2,117,163 1,682,562 - 359,397 2,481,977 39,642,675
In KHR'000 equivalent (Note 5) 41,217,905 55,981,126 38,668,457 8,716,360 6,927,108 - 1,479,637 10,218,300 163,208,893
91


Deferred tax liabilities of the Group and the Bank:
The Group The Bank

Accelerated Unrealised Accelerated
depreciation exchange Others Lease Total depreciation Others Lease Total
As at 1 January 2023 1,728,360 3,243 42,650,516 - 44,382,119 1,263,461 40,637,567 - 41,901,028

Charged/(credited) to profit or loss 654,884 (1,344) 19,238,019 19,060 19,910,619 1,111,957 18,549,887 13,112 19,674,956
As at 31 December 2023 2,383,244 1,899 61,888,535 19,060 64,292,738 2,375,418 59,187,454 13,112 61,575,984
In KHR'000 equivalent (Note 5) 9,735,552 7,757 252,814,666 77,860 262,635,835 9,703,583 241,780,749 53,563 251,537,895
As at 1 January 2022 348,749 765 28,026,646 - 28,376,160 - 26,796,377 - 26,796,377

Charged to profit or loss 1,379,611 2,478 14,623,870 - 16,005,959 1,263,461 13,841,190 - 15,104,651
As at 31 December 2022 1,728,360 3,243 42,650,516 - 44,382,119 1,263,461 40,637,567 - 41,901,028
In KHR'000 equivalent (Note 5) 7,115,658 13,351 175,592,175 - 182,721,184 5,201,669 167,304,863 - 172,506,532
92

18. Deposits and placements of other banks and financial institutions
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Savings deposits 34,860,003 33,733,059 142,403,112 138,879,004 34,103,292 33,033,099 139,311,948 135,997,269
Fixed deposits 300,966,429 305,581,605 1,229,447,863 1,258,079,468 264,586,437 275,616,119 1,080,835,595 1,134,711,561
419,792,620 417,826,399 1,714,852,853 1,720,191,285 386,405,927 390,611,644 1,578,468,212 1,608,148,138
The deposits and placements of other banks and financial institutions are analysed as follows:
a) By maturity
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022

Within 6 months 262,331,052 265,568,387 1,071,622,348 1,093,345,050 245,963,272 255,711,856 1,004,759,966 1,052,765,711
Later than 6 months but not later than 1 year 33,106,046 23,908,026 135,238,198 98,429,343 17,357,868 7,585,299 70,906,891 31,228,676
Later than 1 year but not later than 3 years 38,325,522 21,518,957 156,559,757 88,593,546 37,054,787 20,483,460 151,368,805 84,330,405
Later than 3 years 86,030,000 106,831,029 351,432,550 439,823,346 86,030,000 106,831,029 351,432,550 439,823,346
419,792,620 417,826,399 1,714,852,853 1,720,191,285 386,405,927 390,611,644 1,578,468,212 1,608,148,138
93

18. Deposits and placements of other banks and financial institutions (continued)
The deposits and placements of other banks and financial institutions are analysed as follows: (continued)
b) By relationship
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022

Related parties 51,611 36,648 210,831 150,880 3,840,265 4,245,548 15,687,483 17,478,921
Non-related parties 419,741,009 417,789,751 1,714,642,022 1,720,040,405 382,565,662 386,366,096 1,562,780,729 1,590,669,217
419,792,620 417,826,399 1,714,852,853 1,720,191,285 386,405,927 390,611,644 1,578,468,212 1,608,148,138
c) By interest (per annum)
The Group The Bank

2023 2022 2023 2022
Current accounts 0.00% - 1.50% 0.00% - 0.90% 0.00% - 0.75% 0.00% - 0.50%
Savings deposits 0.00% - 2.00% 0.00% - 1.90% 0.05% - 1.00% 0.00% - 0.75%
Fixed deposits 0.25% - 8.45% 1.00% - 8.20% 0.25% - 8.45% 1.00% - 8.20%
94

19. Deposits from customers

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Current accounts 950,009,201 872,890,504 3,880,787,587 3,593,690,205 937,729,648 861,122,998 3,830,625,612 3,545,243,383
Savings deposits 2,297,291,732 2,097,146,116 9,384,436,725 8,633,950,560 2,272,724,032 2,073,911,840 9,284,077,671 8,538,295,045
Margin deposits 17,263,637 14,970,310 70,521,957 61,632,765 17,163,400 14,913,282 70,112,489 61,397,982
Fixed deposits 3,543,455,849 2,986,157,372 14,475,017,143 12,294,009,901 3,487,671,945 2,939,485,290 14,247,139,895 12,101,860,939
6,808,020,419 5,971,164,302 27,810,763,412 24,583,283,431 6,715,289,025 5,889,433,410 27,431,955,667 24,246,797,349
The deposits from customers are analysed as follows:
a) By maturity
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Within 6 months 4,696,431,675 4,165,205,397 19,184,923,394 17,148,150,619 4,641,685,771 4,117,472,928 18,961,286,374 16,951,636,045
Later than 6 months but not later than 1 year 1,096,888,475 990,262,169 4,480,789,420 4,076,909,350 1,081,642,302 978,895,422 4,418,508,804 4,030,112,452
Later than 1 year but not later than 3 years 688,857,452 606,988,086 2,813,982,691 2,498,969,950 675,049,102 591,933,453 2,757,575,582 2,436,990,026
Later than 3 years 325,842,817 208,708,650 1,331,067,907 859,253,512 316,911,850 201,131,607 1,294,584,907 828,058,826
6,808,020,419 5,971,164,302 27,810,763,412 24,583,283,431 6,715,289,025 5,889,433,410 27,431,955,667 24,246,797,349
95

19. Deposits from customers (continued)

The deposits from customers are analysed as follows: (continued)
b) By relationship
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Related parties 13,291,477 17,059,211 54,295,684 70,232,772 14,597,942 19,639,867 59,632,595 80,857,332
Non-related parties 6,794,728,942 5,954,105,091 27,756,467,728 24,513,050,659 6,700,691,083 5,869,793,543 27,372,323,072 24,165,940,017
6,808,020,419 5,971,164,302 27,810,763,412 24,583,283,431 6,715,289,025 5,889,433,410 27,431,955,667 24,246,797,349
c) By interest rate
The Group The Bank

2023 2022 2023 2022
Current accounts 0.00% - 1.50% 0.00% - 0.90% 0.00% - 0.75% 0.00% - 0.50%
Margin deposits Nil Nil Nil Nil
Savings deposits 0.00% - 15.00% 0.00% - 15.00% 0.05% - 1.00% 0.00% - 0.75%
Fixed deposits 0.25% - 9.50% 0.25% - 9.00% 0.25% - 8.45% 0.25% - 9.00%
96

20. Other liabilities

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Accrued annual leave 27,977,024 25,401,028 114,286,143 104,576,032 27,526,513 24,992,135 112,445,806 102,892,620
Fund transfers 22,829,011 78,920,348 93,256,510 324,915,073 22,578,216 78,918,322 92,232,012 324,906,732
Tax payables 2,628,107 2,364,491 10,735,817 9,734,609 2,600,510 2,338,106 10,623,083 9,625,982
Accrued bonuses 5,271,250 13,419,266 21,533,056 55,247,118 4,700,000 12,714,375 19,199,500 52,345,082
Others 27,139,952 21,524,911 110,866,704 88,618,059 25,578,735 21,059,182 104,489,133 86,700,652
85,845,344 141,630,044 350,678,230 583,090,891 82,983,974 140,022,120 338,989,534 576,471,068
Current 47,206,915 106,889,562 192,840,248 440,064,327 44,788,709 105,668,588 182,961,876 435,037,577

Non-current 38,638,429 34,740,482 157,837,982 143,026,564 38,195,265 34,353,532 156,027,658 141,433,491
85,845,344 141,630,044 350,678,230 583,090,891 82,983,974 140,022,120 338,989,534 576,471,068
97

21. Borrowings
The Group and the Bank have entered into borrowing agreements with various lenders. The repayments of principal and interest are made either on quarterly, semi-annual, or
annual basis based on the repayment schedule of each of the borrowing agreements. The Group and the Bank did not pledge any collaterals for these borrowings.
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Current 160,899,380 256,186,945 657,273,968 1,054,721,653 150,401,659 250,657,658 614,390,777 1,031,957,578

Non-current 698,914,170 701,148,923 2,855,064,384 2,886,630,116 693,016,932 693,618,199 2,830,974,167 2,855,626,125
859,813,550 957,335,868 3,512,338,352 3,941,351,769 843,418,591 944,275,857 3,445,364,944 3,887,583,703
The borrowings are analysed as follows:
a) By relationship
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Related parties 49,491,659 48,847,528 202,173,427 201,105,273 49,491,659 48,847,528 202,173,427 201,105,273
Non-related parties 810,321,891 908,488,340 3,310,164,925 3,740,246,496 793,926,932 895,428,329 3,243,191,517 3,686,478,430
859,813,550 957,335,868 3,512,338,352 3,941,351,769 843,418,591 944,275,857 3,445,364,944 3,887,583,703
b) By interest rate
The Group The Bank
2023 2022 2023 2022
Annual interest rates 2.00% - 13.00% 2.00% - 13.00% 2.00% - 9.80% 2.00% - 8.64%
98

22. Subordinated debts

These are subordinated debts approved by the NBC to be treated as part of complementary capital and represent the outstanding principal and accrued interest payable
amount. The Group and the Bank did not pledge any collaterals for these subordinated debts.
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Current 26,160,421 26,092,801 106,865,320 107,424,061 26,160,421 26,092,801 106,865,320 107,424,061
Non-current 90,893,461 101,669,527 371,299,788 418,573,443 90,893,461 101,669,527 371,299,788 418,573,443
117,053,882 127,762,328 478,165,108 525,997,504 117,053,882 127,762,328 478,165,108 525,997,504
The subordinated debts are analysed as follows:

a) By relationship
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Related parties 15,094,208 - 61,659,840 - 15,094,208 - 61,659,840 -
Non-related parties 101,959,674 127,762,328 416,505,268 525,997,504 101,959,674 127,762,328 416,505,268 525,997,504
117,053,882 127,762,328 478,165,108 525,997,504 117,053,882 127,762,328 478,165,108 525,997,504
b) By interest rate
The Group The Bank
2023 2022 2023 2022
Annual interest rates 5.76% - 7.75% 5.76% - 8.48% 5.76% - 7.75% 5.76% - 8.48%
99

23. Derivative financial instruments

Under existing interest rate swap contracts, the Group and the Bank agree to exchange the difference between fixed and floating rate interest amounts calculated on agreed
notional principal amounts. Such contracts enable the Group and the Bank to mitigate the risk of changing interest rates on the fair value of issued fixed-rate debt and the cash
flow exposures on the issued variable-rate debt. The fair value of interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using
the curves at the end of the reporting period and the credit risk inherent in the contract, and is disclosed below. The average interest rate is based on the outstanding balances
at the end of the reporting period.
The following tables detail the notional principal amounts and the remaining terms of interest rate swap contracts outstanding at the end of the reporting period:
Cash flow hedges
The Group
Outstanding Contracts Average Contracted Rate Fixed Interest Notional Principal Amount Fair Value
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Less than 1 year 2.145% 1.267% 3,750,000 70,000,000 15,318,750 288,190,000 52,811 2,104,484 215,733 8,664,162
1 to 2 years 2.273% 3.036% 99,000,000 11,250,000 404,415,000 46,316,250 1,463,462 144,696 5,978,242 595,714
More than 2 to 5 years 0.565% 0.572% 66,000,000 108,000,000 269,610,000 444,636,000 4,230,413 7,381,413 17,281,237 30,389,275
168,750,000 189,250,000 689,343,750 779,142,250 5,746,686 9,630,593 23,475,212 39,649,151
The Bank
Outstanding Contracts Average Contracted Rate Fixed Interest Notional Principal Amount Fair Value
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Less than 1 year 2.145% 1.267% 3,750,000 70,000,000 15,318,750 288,190,000 52,811 2,104,484 215,733 8,664,162
1 to 2 years 2.273% 3.036% 99,000,000 11,250,000 404,415,000 46,316,250 1,463,462 144,696 5,978,242 595,714
More than 2 to 5 years 0.565% 0.572% 66,000,000 108,000,000 269,610,000 444,636,000 4,230,413 7,381,413 17,281,237 30,389,275
168,750,000 189,250,000 689,343,750 779,142,250 5,746,686 9,630,593 23,475,212 39,649,151
100

23. Derivative financial instruments (continued)

The interest rate swaps are settled concurrent with the due date of the hedged item. The Group and the Bank will settle the differences between the fixed and floating interest
rate on a net basis.
All interest rate swap contracts that exchange floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce the Group’s
and the Bank’s cash flow exposure resulting from variable interest rates on borrowings. The interest rate swaps and the interest payments on the loan occur simultaneously
and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on the debt affect profit or loss.
24. Lease liabilities
Analysis of the Group’s and the Bank’s lease liabilities follows:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Undiscounted lease liabilities
Less than 1 year 12,490,697 11,132,050 51,024,497 45,830,650 12,070,202 10,769,041 49,306,775 44,336,142
1 to 5 years 22,340,588 19,227,169 91,261,302 79,158,255 21,400,227 18,323,677 87,419,927 75,438,578
More than 5 years 3,055,579 3,401,022 12,482,040 14,002,008 228,533 374,011 933,557 1,539,803
Total undiscounted lease liabilities 37,886,864 33,760,241 154,767,839 138,990,913 33,698,962 29,466,729 137,660,259 121,314,523
Present value of lease liabilities

Current 12,094,930 10,777,597 49,407,789 44,371,367 11,688,565 10,429,953 47,747,788 42,940,116
Non-current 20,432,757 17,671,173 83,467,812 72,752,219 18,858,783 16,027,682 77,038,129 65,985,967
Total present value of lease liabilities 32,527,687 28,448,770 132,875,601 117,123,586 30,547,348 26,457,635 124,785,917 108,926,083
101

24. Lease liabilities (continued)

The Group and the Bank lease office building and cars for its operations. Information about leases for which the Group or the Bank is a lessee is presented below:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Additions during the year 17,709,094 13,684,980 72,784,376 55,930,513 17,181,102 13,388,912 70,614,329 54,720,483
Payments for the year (14,205,707) (13,405,900) (58,385,456) (54,789,913) (13,521,708) (12,616,442) (55,574,220) (51,563,398)
Lease terminations during the year (1,306,483) (1,491,043) (5,369,645) (6,093,893) (1,324,238) (1,458,441) (5,442,618) (5,960,648)
Interest charged during the year 1,895,277 1,927,878 7,789,590 7,879,237 1,754,557 1,769,870 7,211,230 7,233,459
Adjustment - 2,000 - 8,174 - 2,000 - 8,174
Currency translation differences (13,264) (144,085) (54,515) (588,875) - - - -
Exchange differences - - (1,012,335) 1,215,837 - - (948,887) 1,123,561
Amounts recognised in the statement of cash flows follow:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Total cash outflows for lease payments 14,205,707 13,405,900 58,385,456 54,789,913 13,521,708 12,616,442 55,574,220 51,563,398
102

25. Employee benefits

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Note (Note 5) (Note 5) (Note 5) (Note 5)
Retirement benefits (a) - 22,581,539 - 92,968,196 - 21,969,800 - 90,449,666
Career development benefits (b) 2,359,069 4,598,006 9,636,797 18,929,991 2,217,834 4,507,750 9,059,852 18,558,407
Seniority indemnity benefits (c) 5,961,627 6,123,116 24,353,246 25,208,868 5,912,112 6,078,067 24,150,977 25,023,402
Provident fund 71,925 71,537 293,814 294,518 70,690 70,410 288,769 289,878
8,392,621 33,374,198 34,283,857 137,401,573 8,200,636 32,626,027 33,499,598 134,321,353
Current 1,591,924 5,182,511 6,503,010 21,336,398 1,493,652 5,165,377 6,101,568 21,265,857

Non-current 6,800,697 28,191,687 27,780,847 116,065,175 6,706,984 27,460,650 27,398,030 113,055,496
8,392,621 33,374,198 34,283,857 137,401,573 8,200,636 32,626,027 33,499,598 134,321,353
103

25. Employee benefits (continued)

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Within 1 month 74,705 396,330 305,170 1,631,690 73,470 395,202 300,125 1,627,046
Between 2 to 3 months 918,568 4,024,160 3,752,350 16,567,467 824,722 4,009,449 3,368,989 16,506,902
Between 4 to 6 months 300,959 327,803 1,229,418 1,349,565 300,381 327,144 1,227,056 1,346,852
Between 7 to 12 months 297,692 434,218 1,216,072 1,787,676 295,079 433,582 1,205,398 1,785,057
More than 12 months 6,800,697 28,191,687 27,780,847 116,065,175 6,706,984 27,460,650 27,398,030 113,055,496
8,392,621 33,374,198 34,283,857 137,401,573 8,200,636 32,626,027 33,499,598 134,321,353
(a) Retirement benefits

(i) The movements in the retirement benefit obligation during the year are as follows:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Current service cost 164,944 1,638,297 677,920 6,695,720 132,997 1,600,215 546,618 6,540,079
Interest cost 145,339 1,238,080 597,343 5,060,033 132,415 1,192,816 544,226 4,875,039
Benefits paid (22,464,315) (253,266) (92,328,335) (1,035,098) (21,920,036) (253,266) (90,091,348) (1,035,098)
Settlement (gain)/loss (431,583) 10,667 (1,773,806) 43,596 (314,938) 10,667 (1,294,395) 43,596
Remeasurement loss during the year - 3,125,546 - 12,774,107 - 3,129,039 - 12,788,382
Currency translation differences 4,076 (151,858) 16,752 (620,644) (238) (30,024) (978) (122,708)
Exchange differences - - (158,070) 898,109 - - (153,789) 871,259
At the end of the year - 22,581,539 - 92,968,196 - 21,969,800 - 90,449,666
104


(a) Retirement benefits (continued)
(ii) The amounts recognised in the statement of profit or loss and other comprehensive income are as follows:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Current service cost 164,944 1,638,297 677,920 6,695,720 132,997 1,600,215 546,618 6,540,079
Interest cost 145,339 1,238,080 597,343 5,060,033 132,415 1,192,816 544,226 4,875,039
Settlement (gain)/loss (431,583) 10,667 (1,773,806) 43,596 (314,938) 10,667 (1,294,395) 43,596
(121,300) 2,887,044 (498,543) 11,799,349 (49,526) 2,803,698 (203,551) 11,458,714
During the year ended 31 December 2023, the Group and the Bank amended the Employee Retirement Operating Manual and decided to terminate the retirement
benefit plan due to the Group and the Bank have legal obligation required by the Royal Government of Cambodia to pay the seniority benefits and provident fund. Thus,
the Group and the Bank have settled the outstanding amounts accrued for the retirement benefits amounting to US$22,464,315 and US$21,920,036, respectively; with
the remaining balance after the settlement of US$350,852 and US$226,845 credited to profit or loss, respectively.
105


(b) Career development benefits
Movements in career development benefits follow:
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Additions (Note 31) 1,672,985 1,774,997 6,875,968 7,254,413 1,593,047 1,675,191 6,547,423 6,846,506
Benefits paid (3,882,076) (13,882) (15,955,332) (56,736) (3,882,076) (13,882) (15,955,332) (56,736)
Currency translation differences (29,846) (27,508) (122,667) (112,425) (887) (5,086) (3,646) (20,786)
(c) Seniority indemnity benefits

Movements in seniority indemnity benefits follow:
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Additions (Note 31) 9,610,624 9,260,343 39,499,665 37,847,022 9,448,722 9,175,310 38,834,247 37,499,492
Benefits paid (9,766,773) (9,369,932) (40,141,437) (38,294,912) (9,609,515) (9,231,540) (39,495,107) (37,729,304)
Currency translation differences (5,340) (25,640) (21,947) (104,791) (5,162) (25,630) (21,216) (104,750)
106

26. Share capital and share premium

As at 31 December 2023, the authorised share capital comprised of 433,163,019 ordinary shares with par value of US$1 each. All issued shares are fully paid by the following
shareholders and their respective interest in the Bank are:
Share capital
2023 2022
Number of % of Number of % of
Shares US$ Shareholding Shares US$ Shareholding
ACLEDA Financial Trust 121,477,368 121,477,368 28.0443% 117,569,958 117,569,958 27.1422%

SMBC 78,259,310 78,259,310 18.0669% 78,259,310 78,259,310 18.0669%
COFIBRED S.A 52,530,223 52,530,223 12.1271% 52,530,223 52,530,223 12.1271%
ORIX Corporation 52,530,223 52,530,223 12.1271% 52,530,223 52,530,223 12.1271%
NHTPE Rumdul 15,160,706 15,160,706 3.5000% 15,160,706 15,160,706 3.5000%
Triodos Microfinance Fund 6,274,582 6,274,582 1.4485% 6,274,582 6,274,582 1.4485%
Triodos Fair Share Fund 5,365,844 5,365,844 1.2388% 5,365,844 5,365,844 1.2388%
Shareholders Legalised from ASA, Plc. 24,916,808 24,916,808 5.7524% 24,916,808 24,916,808 5.7524%
Public Shareholders 76,647,955 76,647,955 17.6949% 80,555,365 80,555,365 18.5970%
433,163,019 433,163,019 100% 433,163,019 433,163,019 100%
In KHR'000 equivalent (Note 5) 1,732,652,076 1,732,652,076
On 15 June 2021, 11,488 actual shareholders of ASA, Plc., one of the institutional shareholders of the Bank, has legalised all its shareholdings of 107,204,547 shares or
24.7492% of the Bank’s outstanding shares in accordance with the relevant measures, laws and regulations of the SERC. After legalisation, 4% of the Bank’s share capital or
17,326,521 shares were floated on the CSX. On 5 April 2022, ASA, Plc. added 64,915,190 floating shares legalised on the CSX equal to 14.9863%.
Share premium
The share premium mainly represents the excess amount received by the Bank over the par value of its shares pursuant to the issuance of shares, net of transaction costs
directly distributable to the issuance.
On 25 May 2020, the Bank was successfully listed on the CSX. The number of new issued shares is 4,344,865 shares with a par value of KHR4,000 (US$0.98) per share, at
an offering price of KHR16,200 (US$3.97) per share. The Bank received the proceeds from the initial public offering (“IPO”) amounting to US$17,082,105 and incurred IPO
costs of US$1,031,025, resulting in share premium of US$11,706,215 (KHR48,235,459 thousand). On 23 November 2020, the shareholders approved the amendment to the
MAA relating to the capital increase from IPO. The MAA was subsequently approved by the NBC and the MOC on 29 March 2021 and 12 May 2021, respectively.
107

26. Share capital and share premium (continued)
Dividend
During the year, the following dividends have been paid by the Bank to its owners:
The Group and the Bank
2023 2022 2023 2022
(Note 5) (Note 5)
- In respect of the year ended 31 December 2022: KHR685.8985 per ordinary share declared on
10 May 2023 and paid on 19 May 2023 72,695,343 297,105,865
- In respect of the year ended 31 December 2021: KHR548.6405 per ordinary share declared on
10 May 2022 and paid on 10 June 2022 58,419,561 237,650,775
27. Interest income

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Loans and advances 727,428,260 659,953,578 2,989,730,149 2,697,230,273 698,514,658 629,631,091 2,870,895,244 2,573,302,269
Financial investments 5,647,416 5,833,352 23,210,880 23,840,910 5,647,416 5,833,352 23,210,880 23,840,910
Deposits and placements with other banks:
Banks inside Cambodia 3,727,455 2,871,913 15,319,840 11,737,509 3,702,102 2,869,594 15,215,638 11,728,029
Banks outside Cambodia 18,281,277 1,935,368 75,136,048 7,909,849 18,299,524 1,941,585 75,211,045 7,935,259
National Bank of Cambodia 546,677 159,245 2,246,842 650,834 546,320 159,245 2,245,375 650,834
755,631,085 670,753,456 3,105,643,759 2,741,369,375 726,710,020 640,434,867 2,986,778,182 2,617,457,301
108

28. Interest expense
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
financial institutions:
Fixed deposits 17,667,546 13,739,608 72,613,614 56,153,778 15,585,737 12,265,258 64,057,379 50,128,109
Savings deposits 102,491 68,447 421,238 279,743 83,358 38,746 342,601 158,355
Current accounts 52,779 50,917 216,922 208,098 52,779 50,917 216,922 208,098
Deposits from customers:

Fixed deposits 200,283,440 134,214,165 823,164,938 548,533,292 196,815,089 130,883,715 808,910,016 534,921,743
Savings deposits 20,723,695 12,551,543 85,174,386 51,298,156 20,091,366 11,967,233 82,575,514 48,910,081
Borrowings 71,480,131 46,138,007 293,783,338 188,566,035 70,355,588 44,940,823 289,161,467 183,673,144

Subordinated debts 8,956,177 10,285,592 36,809,887 42,037,215 8,956,177 10,285,592 36,809,887 42,037,214
Interest expenses on lease 1,895,277 1,927,878 7,789,590 7,879,237 1,754,557 1,769,870 7,211,230 7,233,459
329,001,434 220,822,466 1,352,195,894 902,501,419 321,533,128 214,047,601 1,321,501,156 874,812,545
109

29. Fee and commission income

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Commission fees 11,826,848 15,691,646 48,608,345 64,131,757 11,717,495 14,705,782 48,158,904 60,102,531
ATM fee 11,226,151 10,177,484 46,139,481 41,595,377 11,178,143 10,122,067 45,942,168 41,368,888
Early loan redemption fees 8,388,399 8,031,950 34,476,320 32,826,580 7,117,961 6,494,614 29,254,820 26,543,487
Commission fee collected for assurance agency 6,102,362 4,971,914 25,080,708 20,320,213 6,002,357 4,864,153 24,669,687 19,879,793
Training fees 2,496,162 1,993,159 10,259,226 8,146,041 36,002 37,629 147,968 153,790
Fee income from guarantee 864,089 816,639 3,551,406 3,337,604 863,368 814,280 3,548,442 3,327,962
Deposit fee charged 422,059 762,563 1,734,662 3,116,595 305,557 592,712 1,255,839 2,422,414
Others 5,352,547 5,009,848 21,998,968 20,475,248 4,984,846 4,971,896 20,487,718 20,320,140
46,678,617 47,455,203 191,849,116 193,949,415 42,205,729 42,603,133 173,465,546 174,119,005
Settlement fees amounting to KHR23,627,200 (equivalent to US$5,749) and US$55,814 for the operations of cash settlement agents were recognised for the year
ended 31 December 2023 (31 December 2022: KHR240,020,300 (equivalent to US$58,728) and US$91,788, respectively).
30. Other income, net
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Foreign exchange gain, net 17,488,974 14,202,941 71,879,683 58,047,420 17,490,988 13,991,789 71,887,961 57,184,442
Recovery from loans and advances written off 5,944,257 8,778,650 24,430,896 35,878,343 4,481,745 6,744,513 18,419,972 27,564,825
Dividend income 407,862 117,333 1,676,313 479,540 407,862 117,333 1,676,313 479,540
Gain on disposals of property and equipment and
lease 426,746 804,700 1,753,926 3,288,809 424,901 803,422 1,746,343 3,283,586
Others 1,430,697 1,719,101 5,880,165 7,025,965 403,885 519,415 1,659,967 2,122,848
25,698,536 25,622,725 105,620,983 104,720,077 23,209,381 22,176,472 95,390,556 90,635,241
110

31. General and administrative expenses
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Salaries and wages 145,268,102 137,978,898 597,051,899 563,919,756 138,347,688 130,481,716 568,608,998 533,278,773
Other employee expense 17,909,738 27,644,782 73,609,023 112,984,224 18,383,891 28,972,506 75,557,792 118,410,632
Depreciation of property and equipment
(Note 14) 23,541,254 21,991,373 96,754,554 89,878,741 22,044,132 20,328,111 90,601,383 83,080,990
Repair and maintenance 15,239,611 13,875,030 62,634,801 56,707,248 14,861,561 13,486,809 61,081,016 55,120,588
Depreciation of right-of-use assets (Note 16) 12,227,167 11,777,321 50,253,656 48,133,911 11,755,148 11,113,156 48,313,658 45,419,469
Seniority indemnity (Note 25(c)) 9,610,624 9,260,343 39,499,665 37,847,022 9,448,722 9,175,310 38,834,247 37,499,492
Utilities 5,972,169 5,762,829 24,545,615 23,552,682 5,576,713 5,412,031 22,920,290 22,118,971
Office supplies 5,453,734 5,502,787 22,414,847 22,489,890 5,058,720 5,113,304 20,791,339 20,898,073
Communication 5,145,658 5,399,380 21,148,654 22,067,266 4,098,745 4,247,727 16,845,842 17,360,460
Amortisation charges (Note 15) 2,821,055 3,096,546 11,594,536 12,655,584 2,622,695 2,848,307 10,779,276 11,641,031
Retirement benefit (Note 25(a)) - 2,887,044 - 11,799,349 - 2,803,698 - 11,458,714
Travelling expenses 2,820,791 2,707,511 11,593,451 11,065,597 2,457,538 2,378,971 10,100,481 9,722,854
Career development expense (Note 25(b)) 1,672,985 1,774,997 6,875,968 7,254,413 1,593,047 1,675,191 6,547,423 6,846,506
License fees 1,180,482 1,101,400 4,851,781 4,501,422 1,150,152 1,073,726 4,727,125 4,388,318
Others 20,262,684 18,797,695 83,279,632 76,826,179 18,681,614 17,018,011 76,781,434 69,552,611
269,126,054 269,557,936 1,106,108,082 1,101,683,284 256,080,366 256,128,574 1,052,490,304 1,046,797,482
For the year ended 31 December 2023, the salaries and wages of the Bank's staff, who are responsible for the operations of cash settlement agents, amounted to
US$48,099 (31 December 2022: US$45,148). The above expenses include costs incurred for the operations of cash settlement agents, which consist office supplies
amounting to US$521, expendable costs amounting to US$94, furniture and fixtures amounting to US$1,470, and membership fees amounting to US$12,571
(KHR51,666,667) (31 December 2022: office supplies amounting to US$246, expendable costs amounting to US$759, furniture and fixtures amounting to US$1,128,
and membership fees amounting to US$12,642 (KHR51,666,665).
111

32. Taxation
(a) Current income tax liabilities
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Current income tax liabilities 3,791,516 34,428,462 15,488,343 141,741,978 2,319,080 33,911,933 9,473,442 139,615,428
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Current income tax 12,032,491 36,572,256 49,453,538 149,470,810 9,538,879 34,235,426 39,204,793 139,920,186
Income tax paid (42,669,437) (38,459,561) (175,371,386) (157,184,226) (41,131,732) (35,814,822) (169,051,419) (146,375,178)
Exchange differences - - (335,787) 1,504,959 - - (295,360) 1,478,746
(b) Income tax expense
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Current income tax 12,032,491 36,572,256 49,453,538 149,470,810 9,538,879 34,235,426 39,204,793 139,920,186
Deferred tax 24,186,614 9,921,115 99,406,984 40,547,597 24,523,692 9,782,070 100,792,374 39,979,320
36,219,105 46,493,371 148,860,522 190,018,407 34,062,571 44,017,496 139,997,167 179,899,506
112

32. Taxation (continued)

(c) Reconciliation between income tax expense and accounting profit
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Profit before income tax 184,237,530 228,308,146 757,216,247 933,095,393 172,201,848 217,423,281 707,749,595 888,608,949
Tax calculated at domestic tax rates applicable to
taxable profits in the respective countries 36,890,437 45,685,787 151,619,696 186,717,811 34,440,370 43,484,656 141,549,921 177,721,789
Effect of net (non-taxable income)/non-deductible
expense (671,332) 807,584 (2,759,174) 3,300,596 (377,799) 532,840 (1,552,754) 2,177,717
36,219,105 46,493,371 148,860,522 190,018,407 34,062,571 44,017,496 139,997,167 179,899,506
In accordance with the Sub-decree No. 01 of the Royal Government of Cambodia (“RGC”) dated 4 January 2019, on Tax incentives in Securities Sector, the Bank has
been entitled to a reduction of 50% on the Tax on Income for a period of 3 years from 2020 to 2022 after successful listing (proportion is based on the percentage of
listed shares taking 20.0001% as a base in accordance with the Prakas No. 183 on the implementation guidance on the incentive on tax on profit for the IPO enterprise)
and waiver of other tax liabilities, including Tax on Income and withholding taxes for the period from year N-3 to N-10, where N is the IPO year (“N-3 to N-10”).
(d) Other tax matters

The Bank’s and its subsidiaries’ tax returns are subject to periodic examination by the respective tax authorities.
Some areas of tax laws and regulations may be open to different interpretation; therefore, tax amounts reported in the financial statements could be changed later, upon
final determination of the respective tax authorities.
113

33. Earnings per share

The following table shows the Bank’s profit used in the basic and diluted EPS computations for the year presented:
2023 2022 2023 2022

(Note 5) (Note 5)
Profit attributable to the shareholders of the Bank 148,054,791 181,738,358 608,505,189 742,764,670
Weighted average numbers of shares 433,163,019 433,163,019 433,163,019 433,163,019
Basic EPS 0.34 0.42 1.40 1.71
Diluted EPS 0.34 0.42 1.40 1.71
The Bank has no potentially dilutive ordinary shares as at the reporting date. As such, the diluted EPS is equal to the basic EPS.
34. Cash and cash equivalents
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Cash on hand 495,793,568 497,027,041 2,025,316,725 2,046,260,328 486,584,317 486,665,483 1,987,696,935 2,003,601,794
Deposits and placements with other banks:
Balances with the National Bank of Cambodia:
Current accounts 1,389,931,664 493,778,912 5,677,870,847 2,032,887,781 1,389,931,664 493,778,912 5,677,870,847 2,032,887,781
Negotiable certificate of deposits, term of three months or less 275,270,451 416,565,361 1,124,479,792 1,714,999,591 275,270,451 416,565,361 1,124,479,792 1,714,999,591
Balances with other banks:
Fixed deposits, term of three months or less - 185,997,838 - 765,753,099 - 185,276,487 - 762,783,297
2,279,718,573 1,748,443,669 9,312,650,371 7,198,342,585 2,240,749,214 1,719,370,446 9,153,460,539 7,078,648,126
114

35. Commitments and contingencies

The Group and the Bank had the contractual amounts of the Group’s and the Bank’s off-balance sheet financial instruments that commit it to extend credit to customers,
guarantees, and other facilities as follows:
(a) Loan commitments, guarantees, and other financial liabilities
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Unused portion of overdrafts 209,854,669 175,132,489 857,256,323 721,020,457 209,405,052 174,716,731 855,419,637 719,308,782
Bank guarantees 67,014,005 62,873,329 273,752,210 258,849,495 66,880,923 62,741,984 273,208,570 258,308,748
Letters of credit 2,303,062 9,176,130 9,408,008 37,778,127 2,303,062 9,176,130 9,408,008 37,778,127
279,171,736 247,181,948 1,140,416,541 1,017,648,079 278,589,037 246,634,845 1,138,036,215 1,015,395,657
No material losses are anticipated as a result of these transactions.

(b) Capital expenditure commitments
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Not later than 1 year 8,609,249 6,030,204 35,168,782 24,826,350 4,439,957 5,027,569 18,137,224 20,698,502
Later than 1 but not later than 5 years 115,744 268,961 472,814 1,107,312 - - - -
8,724,993 6,299,165 35,641,596 25,933,662 4,439,957 5,027,569 18,137,224 20,698,502
As at 31 December 2023, the balances of these commitments are related to the Bank’s purchases of property and equipment and intangible assets amounting to
US$4,439,957; AIB’s purchases of other equipment amounting to US$9,906; and ABL’s purchases of other equipment amounting to US$18,884, purchases of computer
software amounting to US$1,010,520; and CRM, Palo Alto 5410, Panorama M-300, Chip Card Acquiring, HBA card for project T24 core banking R22, Palo Alto PAN-SEP-
CG, and External hard disk amounting to US$3,245,726.
115

35. Commitments and contingencies (continued)

(b) Capital expenditure commitments (continued)
As at 31 December 2022, the balances of these commitments are related to the Bank’s purchases of property and equipment and intangible assets amounting to
US$5,027,569; AIB’s purchases of other equipment amounting to US$9,906; and ABL’s purchases of property and equipment and intangible assets amounting to
US$1,002,635, upgrade of Nutanix amounting to US$157,903, Smart Vista implementation fee amounting to US$35,286, development of Numpapa bills payment system
amounting to US$11,847, and development of LAPS System Phase 2 amounting to US$54,019.
(c) Commitments to be received from other banks and other financial institutions (“OFI”) and other financial assets
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Commitment to be received from other banks 146,367,075 18,760,481 597,909,501 77,236,900 146,367,075 18,760,481 597,909,501 77,236,900
Commitment to be received from OFIs - 72,500,000 - 298,482,500 - 72,500,000 - 298,482,500
Other non-performing commitments 748,800 - 3,058,848 - - - - -
147,115,875 91,260,481 600,968,349 375,719,400 146,367,075 91,260,481 597,909,501 375,719,400
(d) Other commitments
On 30 May 2016, the Bank guaranteed to IFC to secure the borrowing obtained by its subsidiary, AIB, amounting to US$13,000,000 maturing on 15 June 2026. As at
31 December 2023, remaining balance is US$4,694,475 (31 December 2022: US$7,234,793). The Bank has made allowance for impairment losses of US$47,542
(31 December 2022: US$65,217) with respect to this guarantee.
116

36. Reserves
The Group
Transactions with
Currency translation Other
General reserves Hedging reserve Regulatory reserves non-controlling Total
reserves reserves
interest
US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 KHR'000 US$ KHR'000
As at 1 January 2023, as reclassified 524,311,587 2,158,590,804 9,630,593 39,649,149 155,706,835 641,045,041 (53,815,086) (221,556,709) 3,028,319 12,467,589 76,356,446 638,862,248 2,706,552,320
derivatives arising from cash flow
hedge - - (3,883,907) (15,962,858) - - - - - - - (3,883,907) (15,962,858)
subsidiaries - - - - - - (5,834,214) (23,978,620) - - - (5,834,214) (23,978,620)
Total comprehensive loss for the year - - (3,883,907) (15,962,858) - - (5,834,214) (23,978,620) - - - (9,718,121) (39,941,478)
Transactions with owners:
reserves - - - - 93,483,511 384,217,230 - - - - - 93,483,511 384,217,230
Exchange differences - (16,777,971) - (211,079) - (7,319,708) - 1,867,939 - (96,906) (22,708,363) - (45,246,088)
Total transactions with owners - (16,777,971) - (211,079) 93,483,511 376,897,522 - 1,867,939 - (96,906) (22,708,363) 93,483,511 338,971,142
As at 31 December 2023 524,311,587 2,141,812,833 5,746,686 23,475,212 249,190,346 1,017,942,563 (59,649,300) (243,667,390) 3,028,319 12,370,683 53,648,083 722,627,638 3,005,581,984
117

36. Reserves (continued)
The Group
Transactions with
Currency translation Other
General reserves Hedging Reserve Regulatory reserves non-controlling Total
reserves reserves
interest
US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 US$ KHR'000 KHR'000 US$ KHR'000
As at 1 January 2022, as reclassified 524,311,587 2,136,045,406 (506,158) (2,062,088) 100,908,300 411,100,413 (35,338,462) (143,968,894) 3,028,319 12,337,371 17,918,619 592,403,586 2,431,370,827
Comprehensive income:
Remeasurement of the effective
portion of derivatives arising from
cash flow hedge - - 10,136,751 41,428,901 - - - - - - - 10,136,751 41,428,901
Currency translation differences -
foreign subsidiaries - - - - - - (18,476,624) (75,513,962) - - - (18,476,624) (75,513,962)
Exchange differences - - - - - - - - - - 12,314,612 - 12,314,612
Total comprehensive income/(loss)
for the year - - 10,136,751 41,428,901 - - (18,476,624) (75,513,962) - - 12,314,612 (8,339,873) (21,770,449)
Transfer from retained earnings to
regulatory reserves - - - - 54,798,535 223,961,613 - - - - - 54,798,535 223,961,613
Exchange differences - 22,545,398 - 282,336 - 5,983,015 - (2,073,853) - 130,218 (4,515,886) - 22,351,228
Total transactions with owners - 22,545,398 - 282,336 54,798,535 229,944,628 - (2,073,853) - 130,218 (4,515,886) 54,798,535 246,312,841
As at 31 December 2022 524,311,587 2,158,590,804 9,630,593 39,649,149 155,706,835 641,045,041 (53,815,086) (221,556,709) 3,028,319 12,467,589 25,717,345 638,862,248 2,655,913,219
118

36. Reserves (continued)

The Bank
Other
General reserves Hedging reserve Regulatory reserves Total
reserves
US$ KHR'000 US$ KHR'000 US$ KHR'000 KHR'000 US$ KHR'000
(Note 5) (Note 5) (Note 5) (Note 5) (Note 5)
Balance at 1 January 2023, as reclassified 510,741,556 2,102,722,986 9,630,593 39,649,156 155,706,835 641,045,040 75,402,095 676,078,984 2,858,819,277
Remeasurement of the effective portion of derivatives arising from
cash flow hedge - - (3,883,907) (15,962,858) - - - (3,883,907) (15,962,858)
Total comprehensive loss for the year - - (3,883,907) (15,962,858) - - - (3,883,907) (15,962,858)
Transfer from retained earnings to regulatory reserves - - - - 92,920,171 381,901,903 - 92,920,171 381,901,903
Exchange differences - (16,343,730) - (211,086) - (7,305,622) (21,945,321) - (45,805,759)
Total transactions with owners - (16,343,730) - (211,086) 92,920,171 374,596,281 (21,945,321) 92,920,171 336,096,144
As at 31 December 2023 510,741,556 2,086,379,256 5,746,686 23,475,212 248,627,006 1,015,641,321 53,456,774 765,115,248 3,178,952,563
Balance at 1 January 2022, as reclassified 510,741,556 2,080,761,099 (506,158) (2,062,088) 97,140,004 395,748,379 17,529,804 607,375,402 2,491,977,194
Remeasurement of the effective portion of derivatives arising from
cash flow hedge - - 10,136,751 41,428,901 - - - 10,136,751 41,428,901
Exchange differences - - - - - - 11,852,753 - 11,852,753
Total comprehensive income for the year - - 10,136,751 41,428,901 - - 11,852,753 10,136,751 53,281,654
Transfer from retained earnings to regulatory reserves - - - - 58,566,831 239,362,638 - 58,566,831 239,362,638
Exchange differences - 21,961,887 - 282,343 - 5,934,023 (4,619,563) - 23,558,690
Total transactions with owners - 21,961,887 - 282,343 58,566,831 245,296,661 (4,619,563) 58,566,831 262,921,328
As at 31 December 2022 510,741,556 2,102,722,986 9,630,593 39,649,156 155,706,835 641,045,040 24,762,994 676,078,984 2,808,180,176
119

37. Related party transactions and balances

(a) Related parties and relationships
The related parties of, and their relationship with, the Bank are as follows:
Related parties Relationship
Subsidiaries of the Bank as disclosed in Note 13 Subsidiaries
Shareholders as disclosed in Note 26 Shareholders

Key management personnel The key management personnel are those persons having the authority and responsibility for planning,
directing and controlling the activities of the Group and the Bank either directly or indirectly. The key
management personnel of the Group and the Bank include all the Directors and members of senior
management of the Group and the Bank.
(b) Related parties balances
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
i) Loans and advances
Key management personnel 13,539,928 14,651,796 55,310,606 60,321,444 13,074,333 14,171,853 53,408,650 58,345,519
ii) Balances with related parties

Shareholders 655,991 725,388 2,679,723 2,986,422 655,991 725,388 2,679,723 2,986,422
Subsidiaries - - - - 15,871 - 64,833 -
655,991 725,388 2,679,723 2,986,422 671,862 725,388 2,744,556 2,986,422
120

37. Related party transactions and balances (continued)

(b) Related parties balances (continued)
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
iii) Receivables from/(payables to)
related parties
Key management personnel
Other payables (106,712) (68,978) (435,919) (283,982) (93,883) (56,820) (383,512) (233,928)
Shareholders
Other payables (755,903) (488,930) (3,087,864) (2,012,924) (755,903) (488,930) (3,087,864) (2,012,924)
Subsidiaries
Other receivables - - - - 449,377 259,910 1,835,705 1,070,049
Other payables - - - - (18,960) (28,709) (77,451) (118,195)
(862,615) (557,908) (3,523,783) (2,296,906) (419,369) (314,549) (1,713,122) (1,294,998)
iv) Deposits from related parties

Shareholders
Savings accounts 68,031 902,605 277,907 3,716,026 68,031 902,605 277,907 3,716,026
Fixed deposits 1,501,423 2,966,448 6,133,313 12,212,866 1,501,423 2,966,448 6,133,313 12,212,866
Subsidiaries
Current accounts - - - - 3,841,059 4,274,570 15,690,726 17,598,404
Savings accounts - - - - 251,289 258,388 1,026,516 1,063,783
Fixed deposits - - - - 2,118,177 3,454,526 8,652,754 14,222,283
13,343,088 17,095,859 54,506,515 70,383,652 18,438,207 23,885,415 75,320,078 98,336,253
v) Borrowings from related parties
Shareholder 49,491,659 48,847,528 202,173,427 201,105,273 49,491,659 48,847,528 202,173,427 201,105,273
vi) Subordinated debts from related parties

Shareholder 15,094,208 - 61,659,840 - 15,094,208 - 61,659,840 -
121

37. Related party transactions and balances (continued)

(c) Related parties transactions
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
i) Interest income from related parties
Loans and advances to key management
personnel 896,111 904,975 3,683,016 3,698,633 896,019 904,154 3,682,638 3,695,277
Deposits with a subsidiary - - - - 18,247 6,217 74,995 25,409
896,111 904,975 3,683,016 3,698,633 914,266 910,371 3,757,633 3,720,686
ii) Fee and commission income from related
parties
Shareholders 115 45,510 472 186,000 115 45,510 472 186,000
Subsidiaries - - - - 26,974 988 110,862 4,037
115 45,510 472 186,000 27,089 46,498 111,334 190,037
iii) Interest expenses to related parties
Deposits of key management personnel 143,107 88,416 588,170 361,356 118,301 49,034 486,217 200,402
Borrowings from shareholders 5,938,804 1,607,499 24,408,484 6,569,848 5,938,804 1,607,499 24,408,484 6,569,848
Deposits of shareholders 153,896 273,046 632,513 1,115,939 153,896 273,046 632,513 1,115,939
Deposits of subsidiaries - - - - 208,101 222,766 855,295 910,444
6,235,807 1,968,961 25,629,167 8,047,143 6,419,102 2,152,345 26,382,509 8,796,633
iv) Fee and remuneration expenses to related
parties
Board of Directors 824,986 748,209 3,390,692 3,057,930 589,578 503,073 2,423,166 2,056,059
Subsidiaries - - - - 1,963,126 3,147,747 8,068,448 12,864,842
13,033,599 12,075,750 53,568,091 49,353,590 13,306,484 13,212,903 54,689,650 54,001,134
v) Other commitments
ECL on financial guarantee on AIB’s debt from IFC - - - - (17,675) (64,114) (72,644) (262,034)
122

38. Financial risk management

(a) Introduction and overview
The Bank is the leading and first listed bank in Cambodia and currently has the largest branch network
and self-service banking which offers multiple products and services to its customers such as credits,
deposits, fund transfers, cash management, trade finance, ACLEDA card, credit and debit cards, and
digital services, including internet banking, ACLEDA mobile (mobile banking app), e-commerce payment
gateway, ACLEDA ATM/POS, and term deposit machine. As disclosed in Note 13, the Bank’s four
subsidiaries are as follows:
a. ACLEDA Bank Lao Ltd.,

b. ACLEDA Securities Plc.,
c. ACLEDA Institute of Business Co., Ltd., and
d. ACLEDA MFI Myanmar Co., Ltd.
In the competitive business environment along with the rapid evolution and development of technology
and difference or change in laws and jurisdictions, the Group and the Bank need to have an effective risk
management in place in order to manage and ensure all risks are within the risk appetite and tolerance.
This also provides reasonable assurance regarding the achievement of the Group’s and the Bank’s
objectives.
The established risk management framework comprises of core components such as (1) effective
governance and oversight by the Board of Directors and senior management; (2) effective
implementation of risk appetite and tolerance; (3) effective implementation of risk management
processes; and (4) effective technology and data infrastructure. It must be integrated into the day-to-day
management of the business and operations to provide transparent and consistent management of risks
across the Group and the Bank.
The Group and the Bank instil proactive risk management by embedding accountability and risk
ownership culture in managing risks for all levels, which includes the Group’s and the Bank’s Board of
Directors, senior management, and employees. This culture is supported by (1) the Bank’s employee’s
policies (ethics and human resource management, code of conduct, conflict of interest, remuneration and
nomination, whistle blower’s protection, managing misconduct, etc.); (2) alignment of compensation
policies with the Bank’s risk appetite and tolerance limits; and (3) availability of risk management training
throughout the Group and the Bank.
Risk management within the Group and the Bank is managed by a Three Lines Model, supported by
sufficient numbers of skilled personnel in the management of risks within all areas across the model.
123

38. Financial risk management (continued)

(b) Objectives and principles
The objectives of the Group’s and the Bank’s risk management are:
x To ensure risks are within the risk appetite and tolerance and to provide reasonable assurance
regarding the achievement of objectives.
x To manage risk effectively and to identify the risk before it occurs and minimise the potential risk
properly and timely.
x To manage risk in a way that optimally balances managing risk while adding value to the Group and
the Bank.
Risk appetite is defined as the amount and type of risk, on a broad level, the Group and the Bank are
willing to accept in pursuit of long-term shareholder value. Risk tolerance refers to the variation amount
of maximum risks which can be accepted, taking into account the appropriate measure to reduce the risk.
The Group’s and the Bank’s risk appetite and tolerance statement is prepared in accordance with its
business strategy and the role of the Bank in the financial system.
The Board of Directors reviews and approves the Group’s and the Bank’s risk appetite and tolerance
statement considering the most significant risks that specify the nature, types, and levels which the Group
and the Bank are willing to assume, and provides an outline of the approach to manage these risks.
The risk management policy defines risk categories in line with the categories identified by the Basel
Committee on Banking Supervision and the nature of the Group’s and the Bank’s business context. The
policy sets risk tolerance/internal targets per individual risk category.
At all times, the Group and the Bank shall adhere to the prudential ratios and requirements as stipulated
by the superintendent.
Unless specifically mentioned otherwise, the Group and the Bank shall adhere at all times to the risk
appetite and tolerance/internal targets, as set by the Board of Directors in the risk management policy, in
order to limit potential loss.
124


(b) Objectives and principles (continued)
The Group’s and the Bank’s activities expose it to a variety of financial risks: credit risk, market risk (including foreign exchange rate risk and interest rate risk), and
liquidity risk. Equity risk and commodity risk are not applicable given that the Group and the Bank do not hold any equity and commodity position.
The Group and the Bank hold the following financial assets and financial liabilities:
a. Financial assets and financial liabilities measured at amortised cost
The Group The Bank

2023 2022 2023 2022 2023 2022 2023 2022
Financial assets
Cash on hand 495,793,568 497,027,041 2,025,316,725 2,046,260,328 486,584,317 486,665,483 1,987,696,935 2,003,601,794
Deposits and placements with other banks, net 1,509,543,178 846,602,175 6,166,483,882 3,485,461,154 1,478,882,021 828,396,425 6,041,233,056 3,410,508,082
Statutory deposits 548,627,109 482,330,993 2,241,141,740 1,985,756,698 543,302,104 479,556,076 2,219,389,095 1,974,332,365
Financial investments 357,354,714 555,847,862 1,459,794,007 2,288,425,648 357,354,714 555,847,862 1,459,794,007 2,288,425,648
Loans and advances, net 6,601,665,231 6,379,406,093 26,967,802,469 26,264,014,885 6,457,043,288 6,246,269,485 26,377,021,831 25,715,891,470
Other assets 8,550,649 44,777,965 34,929,401 184,350,882 8,160,591 44,724,815 33,336,014 184,132,063
Total financial assets 9,521,534,449 8,805,992,129 38,895,468,224 36,254,269,595 9,331,327,035 8,641,460,146 38,118,470,938 35,576,891,422
financial institutions 419,792,620 417,826,399 1,714,852,853 1,720,191,285 386,405,927 390,611,644 1,578,468,212 1,608,148,138
Deposits from customers 6,808,020,419 5,971,164,302 27,810,763,412 24,583,283,431 6,715,289,025 5,889,433,410 27,431,955,667 24,246,797,349
Lease liabilities 32,527,687 28,448,770 132,875,601 117,123,586 30,547,348 26,457,635 124,785,917 108,926,083
Borrowings 859,813,550 957,335,868 3,512,338,352 3,941,351,769 843,418,591 944,275,857 3,445,364,944 3,887,583,703
Subordinated debts 117,053,882 127,762,328 478,165,108 525,997,504 117,053,882 127,762,328 478,165,108 525,997,504
Other liabilities 43,591,008 95,830,215 178,069,268 394,532,995 42,489,918 95,593,093 173,571,315 393,556,764
Total financial liabilities 8,280,799,166 7,598,367,882 33,827,064,594 31,282,480,570 8,135,204,691 7,474,133,967 33,232,311,163 30,771,009,541
Net financial instruments 1,240,735,283 1,207,624,247 5,068,403,630 4,971,789,025 1,196,122,344 1,167,326,179 4,886,159,775 4,805,881,881
125

(b) Objectives and principles (continued)
b. Financial assets and financial liabilities measured at fair value

The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Financial assets
Financial investments 189,670 189,670 774,802 780,871 189,670 189,670 774,802 780,871
Derivative financial instruments 5,746,686 9,630,593 23,475,212 39,649,151 5,746,686 9,630,593 23,475,212 39,649,151
Total financial assets 5,936,356 9,820,263 24,250,014 40,430,022 5,936,356 9,820,263 24,250,014 40,430,022
Net financial instruments 5,936,356 9,820,263 24,250,014 40,430,022 5,936,356 9,820,263 24,250,014 40,430,022
126


38.1 Credit risk
Credit risk is the potential risk that a counterparty would fail to meet its repayment obligations in accordance
with agreed terms. While loans are the most obvious source of credit risk, other sources of credit risk exist
throughout the activities of an institution, including in the banking book and the trading book, in both on and
off-balance sheets. Institutions are facing credit risks in various financial instruments other than loans,
including acceptance, trade financing, commitment and guarantee, interbank transaction, settlement of
transactions, foreign exchange transactions, bonds, equities, and financial derivative instruments.
Principles of the credit risk:
x The Board of Directors recognises that the loan book is the main sources of income for the Group and
the Bank and, conversely, also constitutes the greatest risk of losses.
x The Board of Directors considers that lending to the lower segments of the market of small business
loans, provided the existing policies are implemented properly, carries a credit risk which is smaller than
for larger loans as history has shown that losses due to default on these loans have been minimal. The
Board of Directors considers the risk return equation favourable for loans provided to the lower segments
in the market and considers these loans as the core product of the Group and the Bank.
x The Board of Directors considers that the Management has freedom to adjust, adapt or develop existing
products and product lines but requires that new product lines need to be approved by the Board of
Directors.
x The day-to-day responsibility for the credit risk lies with the senior management of the Credit Sale
Management Division and of the branches.
x The credit risk is regularly measured by calculating the ECL taking probability of customer defaults,
exposure in the event of default, and severity of LGD of the customer base where credit scoring is applied
for.
x The Board of Directors requires that credit risk is spread across different sectors (like trade, agriculture,
services, industrial, infrastructure, etc.) and products to avoid undue overexposure to one particular
sector or industry.
x Systemic risk is the risk of system-wide breakdown of the financial sectors. The Board of Directors
requires that credit risk on counterparty financial institutions should be subject to the same principles of
the prudential assessment and controls as with the other forms of lending and prudential position limits
that should be set to sufficiently protect the Group and the Bank from systemic risk.
Internal targets on the credit risk:
The internal targets on credit products should be set by the Board Risk Management and IT Committee
(“BRIC”) and approved by the Board of Directors. The internal targets will be in line with the risk appetite of
the Board of Directors.
127


38.1 Credit risk (continued)
Internal targets on the credit risk: (continued)
The Risk Management Division regularly reviews all internal targets as set and approved by the Board of
Directors and advises on any change deemed appropriate.
In order to maintain the credit growth in a prudent and reasonable way and to ensure the maintenance of
portfolio quality, various control limits have been imposed to credit products, which must be strictly complied
with:
x Loan exposure ratio: defined as the aggregate amount of loan assets in arrears > 30 days minus loan
loss reserves divided by the net worth; should be less than 25%.
x Ceilings on lending to sectors and by product to put limits on concentration risk.
x The maximum exposure to a single client or group of clients is up to 5% of the net worth.
x Counterparty financial institutions.
(a) Credit risk management
The Board of Directors has delegated responsibility for oversight of credit risk to its BRIC. Credit Division is
responsible for management of the credit risk based on the following:
x Separation of roles between the persons involved in dealing with the clients who are responsible for the
credit application and the persons involved in the authorisation of the credits.
x Separation of roles between the persons involved in dealing directly with clients and the credit
administration.
x Principle of double authorisation to ensure a good balance of the interests of the clients and objectivity
in the risk assessment process.
x Timely and full documentation of the agreements made with the client together with all the needed
information, which is relevant in the assessment and control phase of the credit process.
x Careful credit control systems, with peridical reviews, through which timely signals can be derived for
relevant information regarding risk management.
x Independent control to ensure conformity with approved procedures and regulations in the credit process
(formal control) but also monitoring of the quality of risk aspects and credit control (material control).
x The Group and the Bank will maintain a diversified loan assets portfolio in terms of industry sector,
geographical area, and currency and loan size.
x Loan analysis will strongly focus on the client’s ability and willingness to repay the loan through character
and cash flow-based assessment and in applying green-lining methodology.
128


(a) Credit risk management (continued)
The Group’s and the Bank’s total exposure to a single client or group of clients (one obligor principle) acting
in concert shall not exceed 5% of the Bank’s net worth. “Exposure” includes the aggregate of (i) the face
amount of the assets of the Borrower with respect to which such Person is the obligor and (ii) any claim of
such Person against the Borrower comprising any commitment to provide funds or credit to, or on behalf of
such Person including, but not limited to, loan guarantees, letters of credit, and derivatives.
(b) Internal targets and mitigation policies
The Group and the Bank operate and provide loans and advances to individuals or enterprises within the
Kingdom of Cambodia, Lao PDR, and the Republic of the Union of Myanmar. The Group and the Bank
manage limits and controls concentration of credit risk whenever they are identified. Large exposure is
defined by the NBC as overall exposure to any individual beneficiary which exceeds 10% of the net worth.
The Bank is required, under the conditions of Prakas No. B7-06-226 of the NBC, to maintain at all times a
maximum ratio of 20% between its overall credit exposure to any individual beneficiary and the Bank’s net
worth. The aggregation of large credit exposure must not exceed 300% of the Bank’s net worth.
ABL is required, based on the Letter No. 296 of the BOL, to maintain at all times a maximum ratio of 25%
between its overall credit exposure to any individual beneficiary and its net worth. The aggregation of large
credit exposure must not exceed 500% of its net worth. However, for AMM, there is no requirement by the
Financial Regulatory Department of Myanmar.
The Group and the Bank employ a range of policies and practices to mitigate credit risk. The most traditional
of these is the taking of security in the form of collateral for loans and advances, which is the common
practice. The Group and the Bank implement guidelines on the acceptability of specific classes of collateral
or credit risk mitigation. The principal collateral types to secure for loans and advances are:
x Mortgages over residential properties (land, building, and other properties);

x Charges over business assets such as land and buildings; and,
x Cash in the form of margin deposits.
(c) Maximum exposure to credit risk before collateral held or other credit enhancements
For financial assets reflected in the statement of financial position, the exposure to credit risk equals their
carrying amount. For financial guarantees and similar contracts granted, it is the maximum amount that the
Group and the Bank would have to pay if the guarantees were called upon. For credit-related commitments
and contingents that are irrevocable over the life of the respective facilities, it is generally the full amount of
the committed facilities.
129


(c) Maximum exposure to credit risk before collateral held or other credit enhancements (continued)
The Group The Bank
2023 2022 2023 2022 2023 2022 2023 2022
Credit exposure for on-balance sheet
financial assets:
Cash on hand 495,793,568 497,027,041 2,025,316,725 2,046,260,328 486,584,317 486,665,483 1,987,696,935 2,003,601,794
Deposits and placements with other banks, net 1,509,543,178 846,602,175 6,166,483,882 3,485,461,154 1,478,882,021 828,396,425 6,041,233,056 3,410,508,082
Statutory deposits 548,627,109 482,330,993 2,241,141,740 1,985,756,698 543,302,104 479,556,076 2,219,389,095 1,974,332,365
Financial investments 357,544,384 556,037,532 1,460,568,809 2,289,206,519 357,544,384 556,037,532 1,460,568,809 2,289,206,519
Loans and advances, net 6,601,665,231 6,379,406,093 26,967,802,469 26,264,014,885 6,457,043,288 6,246,269,485 26,377,021,831 25,715,891,470
Derivative financial instruments 5,746,686 9,630,593 23,475,212 39,649,151 5,746,686 9,630,593 23,475,212 39,649,151
Other assets 8,550,649 44,777,965 34,929,401 184,350,882 8,160,591 44,724,815 33,336,014 184,132,063
9,527,470,805 8,815,812,392 38,919,718,238 36,294,699,617 9,337,263,391 8,651,280,409 38,142,720,952 35,617,321,444
Credit exposure for off-balance sheet items:
Unused portion of loan commitments 209,854,669 175,132,489 857,256,323 721,020,457 209,405,052 174,716,731 855,419,637 719,308,782
Bank guarantees 67,014,005 62,873,329 273,752,210 258,849,495 66,880,923 62,741,984 273,208,570 258,308,748
Letters of credit 2,303,062 9,176,130 9,408,008 37,778,127 2,303,062 9,176,130 9,408,008 37,778,127
279,171,736 247,181,948 1,140,416,541 1,017,648,079 278,589,037 246,634,845 1,138,036,215 1,015,395,657
Total maximum credit risk exposure 9,806,642,541 9,062,994,340 40,060,134,779 37,312,347,696 9,615,852,428 8,897,915,254 39,280,757,167 36,632,717,101
The above table represents a worst-case scenario of credit risk exposure to the Group and the Bank as at 31 December 2023 and 2022, without taking into account any collateral held or other
credit enhancements attached. For on-balance financial sheet assets, the exposures set out above are based on net carrying amounts.
130


(c) Maximum exposure to credit risk before collateral held or other credit enhancements (continued)
As shown in the table in the previous page, as at 31 December 2023, 67.32% for the Group and 67.15% for
the Bank of total maximum exposure is derived from loans and advances ( 2022: 70.39% and 70.20% for
the Group and for the Bank, respectively).
The Management is confident in its ability to continue to control and sustain minimal exposure of credit risk
to the Group and the Bank resulting from its loans and advances. Significant credit risk exposure is arising
from loans and advances. In order to mitigate the exposure of credit risk arising from loans and advances,
all loan size limits must not exceed 75% of estimated saleable value of the pledged collateral, except for
other loans authorised by the Management Credit Committee wherein the loan to collateral value exceeds
the 75% threshold. As at 31 December 2023, approximately 94.16% (2022: 96.42%) of these loans and
advances are collateralised.
(d) Concentration of financial assets with credit risk exposure
A concentration of credit risk exists when a number of counterparties are engaged in similar activities and
have similar economic characteristics that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic or other conditions. The Group and the Bank analysed the
concentration of credit risk by geographic purpose and industry sector on the succeeding pages.
131


(d) Concentration of risks of financial assets with credit risk exposure (continued)
(i) Geographical sector
The analysis of credit risk concentrations (without taking into account any collateral held or other credit enhancements) based on the location of the counterparty as at
31 December 2023 and 2022 are as follows:
The Group
Cambodia France Germany Laos Singapore USA Myanmar Others Total
As at 31 December 2023
financial assets:
Cash on hand 486,604,848 - - 8,462,830 - - 725,890 - 495,793,568
Deposits and placements with other banks, net 1,390,225,085 1,886,342 142,614 28,994,985 661,541 79,154,370 71,128 8,407,113 1,509,543,178
Statutory deposits 543,583,622 - - 5,043,487 - - - - 548,627,109
Financial investments 357,544,384 - - - - - - - 357,544,384
Loans and advances, net 6,457,043,288 - - 126,422,018 - - 18,199,925 - 6,601,665,231
Derivative financial instruments 5,746,686 - - - - - - - 5,746,686
Other assets 7,761,342 - - 789,307 - - - - 8,550,649
9,248,509,255 1,886,342 142,614 169,712,627 661,541 79,154,370 18,996,943 8,407,113 9,527,470,805
Unused portion of loan commitments 209,405,052 - - 449,617 - - - - 209,854,669
Bank guarantees 66,880,923 - - 133,082 - - - - 67,014,005
Letters of credit 2,303,062 - - - - - - - 2,303,062
278,589,037 - - 582,699 - - - - 279,171,736
Total maximum credit risk exposure 9,527,098,292 1,886,342 142,614 170,295,326 661,541 79,154,370 18,996,943 8,407,113 9,806,642,541
In KHR’000 equivalent (Note 5) 38,918,196,522 7,705,707 582,578 695,656,407 2,702,395 323,345,601 77,602,512 34,343,057 40,060,134,779
132


(i) Geographical sector (continued)
The Group
financial assets:
Cash on hand 486,719,471 - - 9,705,150 - - 602,420 - 497,027,041
Deposits and placements with other banks, net 566,618,029 356,084 678,730 142,191,142 1,359,010 123,455,386 54,971 11,888,823 846,602,175
Statutory deposits 479,798,971 - - 2,532,022 - - - - 482,330,993
Loans and advances, net 6,246,269,486 - - 117,399,730 - - 15,736,877 - 6,379,406,093
Other assets 44,605,309 - - 172,656 - - - - 44,777,965
8,389,679,391 356,084 678,730 272,000,700 1,359,010 123,455,386 16,394,268 11,888,823 8,815,812,392
Unused portion of loan commitments 174,716,731 - - 415,758 - - - - 175,132,489
Bank guarantees 62,741,984 - - 131,345 - - - - 62,873,329
246,634,845 - - 547,103 - - - - 247,181,948
Total maximum credit risk exposure 8,636,314,236 356,084 678,730 272,547,803 1,359,010 123,455,386 16,394,268 11,888,823 9,062,994,340
In KHR’000 equivalent (Note 5) 35,555,705,709 1,465,998 2,794,331 1,122,079,305 5,595,044 508,265,824 67,495,201 48,946,284 37,312,347,696
133


The Bank
Credit exposure for on-balance sheet financial assets:
Cash on hand 486,584,317 - - - - - - - 486,584,317
Deposits and placements with other banks, net 1,390,168,709 1,886,342 142,614 15,871 661,541 79,154,370 46,936 6,805,638 1,478,882,021
Statutory deposits 543,302,104 - - - - - - - 543,302,104
Loans and advances, net 6,457,043,288 - - - - - - - 6,457,043,288
Other assets 7,914,050 - - - - - 246,541 - 8,160,591
9,248,303,538 1,886,342 142,614 15,871 661,541 79,154,370 293,477 6,805,638 9,337,263,391
Unused portion of loan commitments 209,405,052 - - - - - - - 209,405,052
Bank guarantees 66,880,923 - - - - - - - 66,880,923
278,589,037 - - - - - - - 278,589,037
Total maximum credit risk exposure 9,526,892,575 1,886,342 142,614 15,871 661,541 79,154,370 293,477 6,805,638 9,615,852,428
In KHR’000 equivalent (Note 5) 38,917,356,169 7,705,707 582,578 64,833 2,702,395 323,345,601 1,198,854 27,801,031 39,280,757,168
134


The Bank
Credit exposure for on-balance sheet financial
assets:
Cash on hand 486,665,483 - - - - - - - 486,665,483
Deposits and placements with other banks, net 562,439,847 356,084 678,730 129,964,976 1,359,010 123,455,386 46,776 10,095,616 828,396,425
Statutory deposits 479,556,076 - - - - - - - 479,556,076
Loans and advances, net 6,246,269,485 - - - - - - - 6,246,269,485
Other assets 44,464,905 - - - - - 259,910 - 44,724,815
8,385,063,921 356,084 678,730 129,964,976 1,359,010 123,455,386 306,686 10,095,616 8,651,280,409
Unused portion of loan commitments 174,716,731 - - - - - - - 174,716,731
Bank guarantees 62,741,984 - - - - - - - 62,741,984
246,634,845 - - - - - - - 246,634,845
Total maximum credit risk exposure 8,631,698,766 356,084 678,730 129,964,976 1,359,010 123,455,386 306,686 10,095,616 8,897,915,254
In KHR’000 equivalent (Note 5) 35,536,703,821 1,465,998 2,794,331 535,065,806 5,595,044 508,265,824 1,262,626 41,563,651 36,632,717,101
135


(ii) Industry sectors
The analysis of credit risk concentrations (without taking into account any collateral held or other credit enhancements) at carrying amount as at 31 December 2023
and 2022 based on the industry sectors of the counterparty are as follows:
The Group
Financial Wholesale and
institutions retail Services Housing Manufacturing Agriculture Others Total
US$ US$ US$ US$ US$ US$ US$ US$
financial assets:
Cash on hand 495,793,568 - - - - - - 495,793,568
Deposits and placements with other banks, net 1,509,543,178 - - - - - - 1,509,543,178
Statutory deposits - - - - - - 548,627,109 548,627,109
Financial investments - - - - - - 357,544,384 357,544,384
Loans and advances, net 6,394,966 2,152,440,783 1,597,211,053 204,611,792 235,720,790 1,402,560,696 1,002,725,151 6,601,665,231
Derivative financial instruments 5,746,686 - - - - - - 5,746,686
Other assets 4,231,725 - - - - - 4,318,924 8,550,649
2,021,710,123 2,152,440,783 1,597,211,053 204,611,792 235,720,790 1,402,560,696 1,913,215,568 9,527,470,805
Unused portion of loan commitments - - - - - - 209,854,669 209,854,669
Bank guarantees - - - - - - 67,014,005 67,014,005
Letters of credit - - - - - - 2,303,062 2,303,062
- - - - - - 279,171,736 279,171,736
Total maximum credit risk exposure 2,021,710,123 2,152,440,783 1,597,211,053 204,611,792 235,720,790 1,402,560,696 2,192,387,304 9,806,642,541
In KHR’000 equivalent (Note 5) 8,258,685,851 8,792,720,599 6,524,607,152 835,839,170 962,919,427 5,729,460,443 8,955,902,137 40,060,134,779
136


(ii) Industry sectors (continued)
The Group
financial assets:
Cash on hand 497,027,041 - - - - - - 497,027,041
Deposits and placements with other banks, net 846,602,175 - - - - - - 846,602,175
Loans and advances, net 15,425,874 2,114,982,513 1,589,735,423 203,748,321 225,021,942 1,383,149,948 847,342,072 6,379,406,093
Other assets 2,349,842 - - - - - 42,428,123 44,777,965
1,371,035,525 2,114,982,513 1,589,735,423 203,748,321 225,021,942 1,383,149,948 1,928,138,720 8,815,812,392
Bank guarantees - - - - - - 62,873,329 62,873,329
- - - - - - 247,181,948 247,181,948
137


The Bank
financial assets:
Cash on hand 486,584,317 - - - - - - 486,584,317
Deposits and placements with other banks, net 1,478,882,021 - - - - - - 1,478,882,021
Other assets 4,645,888 - - - - - 3,514,703 8,160,591
1,982,253,879 2,094,550,796 1,567,087,673 193,397,658 230,816,360 1,369,801,023 1,899,356,002 9,337,263,391
Bank guarantees - - - - - - 66,880,923 66,880,923
- - - - - - 278,589,037 278,589,037
138


The Bank
financial assets:
Cash on hand 486,665,483 - - - - - - 486,665,483
Deposits and placements with other banks, net 828,396,425 - - - - - - 828,396,425
Other assets 2,570,844 - - - - - 42,153,971 44,724,815
1,342,645,208 2,059,348,968 1,561,608,892 195,640,567 219,940,343 1,355,583,595 1,916,512,836 8,651,280,409
Unused portion of loan commitment - - - - - - 174,716,731 174,716,731
Bank guarantees - - - - - - 62,741,984 62,741,984
- - - - - - 246,634,845 246,634,845
139


(e) Write-off policy
Financial instruments can be written off under the judgment of the Management Credit Committee when the
Group and the Bank lose control on its contractual rights over that facility or when all or part of the facility is
deemed uncollectible; this is particularly the case when there is no realistic prospect of recovery from the
counterparty or when the Group and the Bank have lost control over its contractual rights on the facility due
to any decision of a court of law. Circumstances where a facility should be written off also include, but are
not limited to:
a) All forms of securities or collateral have been called and realised but proceeds failed to cover the entire
outstanding amount of the facility.
b) The Group and the Bank are unable to collect or there is no longer reasonable assurance that the Group
and the Bank will collect all amounts due according to the contractual terms of the facility agreement.
c) The counterparty has become bankrupt or is undergoing other forms of financial restructuring, and as a
consequence, it will unlikely to service the facility.
d) The facility has been classified under loss category.
(f) Credit quality of financial assets
CIFRS 9 provides ECL of which the Group and the Bank expect to experience on an account over either a
12-month horizon (Stage 1) or a lifetime horizon (Stage 2 and Stage 3). The change in approach to
provisioning introduced by CIFRS 9 is designed to:
x Ensure a timely recognition of credit losses, which is more reflective than the previous Incurred Loss
Model;
x Distinguish between financial instruments that have significantly deteriorated in credit quality and those
that have not; and
x Provide a better estimate of ECL given the macroeconomic environment.
The Group and the Bank apply a three-stage approach based on the change in credit quality since initial
recognition:
3-Stage Stage 1 Stage 2 Stage 3

approach Performing Underperforming Nonperforming
Recognition of ECL 12-month ECL Lifetime ECL Lifetime ECL
No significant Credit risk

Criterion Credit-impaired assets
increase in credit risk increased significantly
Basis of calculation of
On gross carrying amount On gross carrying amount On net carrying amount
profit revenue
140


(f) Credit quality of financial assets (continued)
Recognition of ECL
Financial assets that are measured at amortised cost or through other comprehensive income will be
subjected to impairment assessment.
The Group and the Bank measured ECL by using the general approach and the simplified approach. The
general approach consists of segregating the customers into three different stages according to the staging
criteria by assessing the credit risk. 12-month ECL will be computed for Stage 1, while lifetime ECL will be
computed for Stage 2 and Stage 3. At each reporting date, the Group and the Bank will assess credit risk of
each account as compared to the risk level at origination date.
The Group and the Bank will use the days past due (“DPD”) information and the Central Bank’s classification
for staging criteria. Also, the Group and the Bank will incorporate credit scoring or more forward-looking
elements in the future when information is more readily available. Upon the implementation of credit scoring
system, if the risk level drops by two or more notches as compared to the risk level at origination, the accounts
have to be classified under Stage 2.
As for financial assets that are short-term in nature, simplified approach will be adopted where no staging
criteria is required. It will be either performing (Stage1) or non-performing loan (“NPL”) (Stage 3).
Below is a table showing a summary of credit risk status and period for ECL calculation by stages:
ACLEDA Bank Plc.
NBC’s
Staging Days Past Due Indicator Default Indicator
Classification
LT*: 0൑ DPD ൑29
1 Normal -
ST**: 0൑ DPD ൑ 14 Not in Default /
LT*: 30൑ DPD ൑ 89 Performing
2 Special Mention Hit SICR triggers
ST**: 15൑ DPD ൑ 30
LT*: 90൑ DPD ൑ 179
Substandard
ST**: 31൑ DPD ൑ 60
LT*: 180൑DPD ൑359 Default /
3 Doubtful Hit NPL triggers
ST**: 61൑DPD ൑90 Non-Performing
LT*: DPD ൒ 360
Loss
ST**: DPD ൒ 91
*Long-term facilities; **Short-term facilities
141


Recognition of ECL (continued)
ACLEDA Bank Lao Ltd.
Staging Days Past Due BOL’s Classification Indicator Default Indicator
1 0 ≤ DPD ≤ 29 Normal -
Not in Default /
Performing
2 30 ≤ DPD ≤ 89 Special Mention Hit SICR triggers
90 ≤ DPD ≤ 179 Substandard
Default /
3 180 ≤ DPD ≤ 359 Doubtful Hit NPL triggers
Non-performing
DPD ≥ 360 Loss
ACLEDA MFI Myanmar Co., Ltd.
Financial
Regulatory
Staging Days Past Due Indicator Default Indicator
Department’s
Classification
1 On time Normal -
Not in Default /
Performing
2 0 ≤ DPD ≤ 29 Substandard Hit SICR triggers
30 ≤ DPD ≤ 60 Watch
Default /
3 61 ≤ DPD ≤ 90 Doubtful Hit NPL triggers
Non-performing
DPD ≥ 91 Loss
142


Recognition of ECL (continued)
Credit classification for financial assets
The Bank follows the mandatory loan classification and provisioning as required by the NBC’s Prakas No.
B7-017-344 dated 1 December 2017 and Circular No. B7-018-001 Sor Ror Chor Nor dated 16 February
2018 on Credit Risk Grading and Impairment Provisioning. Loans and advances and other financial assets
are classified into five classifications as described below:
PAYMENT EXPERIENCED
CLASSES/CRITERIA As for facilities, which As for facilities that have

have an original term of an original term of one
more than one year year or less
1 - NORMAL
Timely repayment of an outstanding facility Punctual Punctual
classified in this class is not in doubt. Repayment
is steadily made according to the contractual
terms and the facility does not exhibit any
potential weakness in repayment capacity,
business, cash flow, and financial position of the
counterparty.
143


Credit classification for financial assets (continued)
PAYMENT EXPERIENCED
CLASSES/ CRITERIA As for facilities, which have As for facilities that have an
an original term of more original term of one year or
than one year less
2 - SPECIAL MENTION
A facility in this class is currently protected - When any facility is past - When any facility is past due
and may not be past due but it exhibits due from 30 days to 89 for a maximum of 30 days.
potential weaknesses that, if not corrected days. - When interest payments for
in a timely manner, may adversely affect - When interest payments for a maximum of 30 days have
repayment by the counterparty at a future 30 to 89 days have been been capitalised, refinanced,
date, and warrant close attention by the capitalised, refinanced, or or rolled over into a new
Bank. Examples of such weaknesses rolled over into a new facility.
include, but are not limited to, a declining facility. - In case of overdrafts, excess
trend in the operations of the counterparty of the approval limit is for a
or in its financial position, adverse maximum of 30 days, or the
economic and market conditions that current account has been
might all affect its profitability and its future inactive for a maximum of 30
repayment capacity, or deteriorating days, or the net inflows on
conditions on the collateral. This class has the current account have not
clearly its own rational and should not be been enough to cover
used as a compromise between Normal capitalised interests for a
and Substandard. maximum of 30 days.
144


PAYMENT EXPERIENCED
CLASSES/CRITERIA As for facilities, which have As for facilities that have an

an original term of more than original term of one year or
one year less
3 - SUBSTANDARD
A facility in this class exhibits noticeable - When any facility is past due - When any facility is past due for
weakness and is not adequately from 90 days to 179 days. a maximum of 60 days.
protected by the current business, - When interest payments for - When interest payments for a
financial position, or repayment capacity 90 to 179 days have been maximum of 60 days have been
of the counterparty. In essence, the capitalised, refinanced, or rolled capitalised, refinanced, or rolled
primary source of repayment is not over into a new facility. over into a new facility.
sufficient to service the debt and the - In case of overdrafts, excess of
Bank must look to secondary sources, the approval limit is for a
such as the realisation of the collateral, maximum of 60 days, or the
in relation with the counterparty. Factors current account has been
leading to a Substandard classification inactive for a maximum of 60
include: days.
Inability of the counterparty to meet - The overdraft that had no net
the contractual repayments’ terms. inflow for 60 days must be
Unfavourable economic and market modified into a term loan.
conditions that would affect the
business and profitability of the
counterparty in the future.
Weakened financial condition
and/or inability of the counterparty to
generate enough cash flow to
service the payments.
Difficulties experienced by the
counterparty in repaying other
facilities granted by the Bank or by
other institutions when the
information is available.
Breach of financial covenants by the
counterparty.
145


PAYMENT EXPERIENCED
CLASSES/CRITERIA As for facilities, which As for facilities that have an

have an original term of original term of one year or
more than one year less
4 - DOUBTFUL
A facility classified in this category - When any facility is past - When any facility is past due for
faces similar but more severe due from 180 days to 359 a maximum of 90 days.
weaknesses than one classified as days. - When interest payment for a
Substandard such that its full - When interest payment for maximum of 90 days have been
collection on the basis of existing 180 to 359 days has been capitalised or rolled over into a
facts, conditions, or collateral value is capitalised or rolled over into new facility.
highly questionable or improbable. a new facility. - In case of overdrafts, excess of
The prospect of loss is high, even if the approval limit is for a maximum
the exact amount remains of 90 days, or the current account
undetermined for now. has been inactive for a maximum
of 90 days.
5 - LOSS
A facility is classified as Loss when it - When any facility is past - When any facility is past due for
is not collectible, and little or nothing due from 360 days. a maximum of 180 days.
can be done to recover the - When interest payment for - When interest payment for a
outstanding amount from the 360 days or more have been maximum of 180 days have been
counterparty. capitalised or rolled over into capitalised or rolled over into a
a new facility. new facility.
- In case of overdrafts, excess of
the approval limit is for a maximum
of 180 days, or the current account
has been inactive for a maximum
of 180 days.
With regard to facilities with repayments on a quarterly, semi-annual, or longer basis, facilities must be
classified as Substandard or worse depending on the situation of the counterparty as soon as a default
occurs. For the purpose of the table above, the default will be considered as having occurred 5 working days
after the payment due date. The classification as Substandard will be allowed only in case where the
counterparty has clearly demonstrated that its inability to pay in due time is only temporary.
146


Facilities that are classified Substandard, Doubtful or Loss will be considered as "Non-performing" facilities.
Other facilities will be considered as "Performing.”
The following table sets out information about the credit quality of financial assets measured at amortised
cost. Unless specifically indicated, for financial assets, the amounts in the table represent gross carrying
amounts. For loan commitments and financial guarantee contracts, the amounts in the table represent the
amounts committed or guaranteed, respectively.
2023 2022
Stage 2: Stage 3:
Loans and advances at
Stage 1: Lifetime ECL not Lifetime ECL
amortised cost
12-month ECL credit impaired credit impaired Total Total
US$ US$ US$ US$ US$
The Group
Normal 6,171,625,804 11,147,342 - 6,182,773,146 6,172,570,945
Special mention 803,987 48,054,541 - 48,858,528 62,601,379
Substandard - - 101,891,769 101,891,769 36,876,095
Doubtful - - 143,881,455 143,881,455 33,610,691
Loss - - 179,907,111 179,907,111 115,989,645
Total gross carrying amount 6,172,429,791 59,201,883 425,680,335 6,657,312,009 6,421,648,755
ECL allowance (8,966,649) (5,322,333) (41,357,796) (55,646,778) (42,242,662)
Carrying amount 6,163,463,142 53,879,550 384,322,539 6,601,665,231 6,379,406,093
In KHR’000 equivalent (Note 5) 25,177,746,935 220,097,962 1,569,957,572 26,967,802,469 26,264,014,885
The Bank
Normal 6,047,155,346 4,187 - 6,047,159,533 6,027,814,120
Special mention 799,286 46,778,284 - 47,577,570 61,876,573
Substandard - - 100,870,267 100,870,267 36,270,756
Doubtful - - 142,676,471 142,676,471 32,525,053
Loss - - 158,358,985 158,358,985 115,939,951
Total gross carrying amount 6,047,954,632 46,782,471 401,905,723 6,496,642,826 6,274,426,453
ECL allowance (7,828,861) (3,268,573) (28,502,104) (39,599,538) (28,156,968)
Carrying amount 6,040,125,771 43,513,898 373,403,619 6,457,043,288 6,246,269,485
In KHR’000 equivalent (Note 5) 24,673,913,774 177,754,273 1,525,353,784 26,377,021,831 25,715,891,470
147


2023 2022
Stage 2: Stage 3:
Financial investments at
amortised cost
US$ US$ US$ US$ US$
The Group
Normal 357,983,974 - - 357,983,974 556,464,067
Special mention - - - - -
Substandard - - - - -
Doubtful - - - - -
Loss - - - - -
Total gross carrying amount 357,983,974 - - 357,983,974 556,464,067
ECL allowance (629,260) - - (629,260) (616,205)
Carrying amount 357,354,714 - - 357,354,714 555,847,862
In KHR’000 equivalent (Note 5) 1,459,794,007 - - 1,459,794,007 2,288,425,648
The Bank
Normal 357,983,974 - - 357,983,974 556,464,067
Doubtful - - - - -
Loss - - - - -
ECL allowance (629,260) - - (629,260) (616,205)
Carrying amount 357,354,714 - - 357,354,714 555,847,862
148


2023 2022
Stage 2: Stage 3:
Cash on hand and deposits and
placements with other banks, net
US$ US$ US$ US$ US$
The Group
Normal 2,005,452,940 - - 2,005,452,940 1,343,937,484
Special Mention - - - - -
Doubtful - - - - -
Loss - - - - -
Total gross carrying amount 2,005,452,940 - - 2,005,452,940 1,343,937,484
ECL allowance (116,194) - - (116,194) (308,268)
Carrying amount 2,005,336,746 - - 2,005,336,746 1,343,629,216
The Bank
Normal 1,965,478,763 - - 1,965,478,763 1,315,285,153
Special Mention - - - - -
Doubtful - - - - -
Loss - - - - -
Total gross carrying amount 1,965,478,763 - - 1,965,478,763 1,315,285,153
ECL allowance (12,425) - - (12,425) (223,245)
Carrying amount 1,965,466,338 - - 1,965,466,338 1,315,061,908
149


2023 2022
Stage 2: Stage 3:
Statutory deposits Stage 1: Lifetime ECL not Lifetime ECL
US$ US$ US$ US$ US$
The Group
Normal 548,627,109 - - 548,627,109 482,330,993
Doubtful - - - - -
Loss - - - - -
ECL allowance - - - - -
Carrying amount 548,627,109 - - 548,627,109 482,330,993
The Bank
Normal 543,302,104 - - 543,302,104 479,556,076
Doubtful - - - - -
Loss - - - - -
ECL allowance - - - - -
Carrying amount 543,302,104 - - 543,302,104 479,556,076
150


2023 2022
Stage 2: Stage 3:
Other assets Stage 1: Lifetime ECL not Lifetime ECL
US$ US$ US$ US$ US$
The Group
Normal 8,567,345 - - 8,567,345 44,829,562
Doubtful - - - - -
Loss - - - - -
ECL allowance (16,696) - - (16,696) (51,597)
Carrying amount 8,550,649 - - 8,550,649 44,777,965
In KHR’000 equivalent (Note 5) 34,929,401 - - 34,929,401 184,350,882
The Bank
Normal 8,174,377 - - 8,174,377 44,761,717
Doubtful - - - - -
Loss - - - - -
ECL allowance (13,786) - - (13,786) (36,902)
Carrying amount 8,160,591 - - 8,160,591 44,724,815
151


2023 2022
Stage 2: Stage 3:
Financial guarantee contracts Stage 1: Lifetime ECL not Lifetime ECL
US$ US$ US$ US$ US$
The Group
Normal 67,014,005 - - 67,014,005 62,873,329
Doubtful - - - - -
Loss - - - - -
ELC allowance (14,782) - - (14,782) (12,629)
Carrying amount 66,999,223 - - 66,999,223 62,860,700
The Bank
Normal 79,880,923 - - 79,880,923 75,741,984
Doubtful - - - - -
Loss - - - - -
ECL allowance (62,307) - - (62,307) (77,815)
Carrying amount 79,818,616 - - 79,818,616 75,664,169
152


(g) Amounts arising from ECL
Significant increase in credit risk
The Group and the Bank consider that a significant increase in credit risk occurs no later than when an asset
is more than or equal to 30 days past due for long-term facilities or more than or equal to 15 days past due
for short-term facilities. Days past due is determined by counting the number of days since the earliest
elapsed due date in respect of which full payment has not been received. Due dates are determined without
considering any grace period that might be available to the Borrower.
If there is evidence that there is no longer a significant increase in credit risk relative to initial recognition, then
the loss allowance on an instrument returns to being measured as 12-month ECL. Some qualitative
indicators of an increase in credit risk, such as delinquency, may be indicative of an increased risk of default
that persists after the indicator itself has ceased to exist. In these cases, the Group and the Bank determine
a probation period during which the financial asset is required to demonstrate good behaviour to provide
evidence that its credit risk has declined sufficiently. When contractual terms of a loan have been modified,
evidence that the criteria for recognising lifetime ECL are no longer met includes a history of up-to-date
payment performance against the modified contractual terms.
The Group and the Bank monitor the effectiveness of the criteria used to identify significant increases in
credit risk by regular reviews to confirm that:
x the criteria are capable of identifying significant increases in credit risk before an exposure is in default;
x the criteria do not align with the point in time when an asset becomes past due;
x exposures are not generally transferred directly from 12-month ECL measurement to credit-impaired;
and,
x there is no unwarranted volatility in loss allowance from transfers between 12-month PD (Stage 1) and
lifetime PD (Stage 2).
153


(g) Amounts arising from ECL (continued)
Definition of default
The Group and the Bank consider a financial asset to be in default, as aligned with the NBC Prakas on
Credit Risk Grading and Impairment Provisioning as stated in Article 17 and Article 19, when:
1) The default definition / non-performing facilities’ definition for short-term and long-term facilities where
original tenure is more than a year is as follows:
ACLEDA Bank Plc.
Days Past Due Classification Default Indicator

LT*: 0 ൑ DPD <30
Normal
ST**: 0 ≤ DPD ≤ 14
Not in Default / Performing
LT*: 30൑ DPD ൏ 90
Special Mention
ST**: 15 ≤ DPD ≤ 30
LT*: 90൑ DPD ൏180
Substandard
ST**: 31 ≤ DPD ≤ 60
LT*: 180൑ DPD <360
Doubtful Default / Non-performing
ST**: 61 ≤ DPD ≤ 90
LT*: DPD ൒ 360
Loss
ST**: DPD ≥ 91
*Long-term facilities; **Short-term facilities
ACLEDA Bank Lao Ltd.

0 ൑ DPD <30 Normal
30൑ DPD ൏ 90 Special Mention
90൑ DPD ൏180 Substandard
180൑ DPD <360 Doubtful Default / Non-performing
DPD ൒ 360 Loss
154


Definition of default (continued)
ACLEDA MFI Myanmar Co., Ltd.

On time Normal
0൑ DPD ൏ 30 Substandard
30൑ DPD ൑60 Watch
61൑ DPD ൑90 Doubtful Default / Non-performing
DPD ൒ 91 Loss
2) In addition to the classification according to days past due information, the Group and the Bank also
perform manual classification when there is a sign of deterioration in the credit profile. The Group and
the Bank might classify the loan into Substandard, Doubtful, or Loss even though the days past due is
not falling within the default criteria.
Incorporation of forward-looking information
The Group and the Bank incorporate forward-looking information into both the assessment of whether the
credit risk of an instrument has increased significantly since its initial recognition and in the measurement of
ECL.
The Group and the Bank formulate three economic scenarios: a base case, the median scenario which
assigned a 60% probability of occurring, and two less likely scenarios, 20% for upside and 20% for downside.
The base case is aligned with information used by the Group and the Bank for other purposes, such as
strategic planning and budgeting.
External information considerations include economic data and forecasts published by governmental bodies
and monetary authorities in the countries where the Group and the Bank operate, supranational
organisations, such as the International Monetary Fund and selected private-sector and academic
forecasters.
The Group and the Bank have identified and documented key drivers of credit risk and credit losses for each
portfolio of financial instruments in accordance with each country and, by using an analysis of historical data,
have estimated relationships between macroeconomic variables (“MEVs”) and credit risk and credit losses.
155


Incorporation of forward-looking information (continued)
The economic scenarios of the Bank’s portfolio used included the following key indicators for Cambodia from
years 2023 to 2027:
Exposure 2023 2024 2025 2026 2027

1 - Small Loan
- Domestic credit to private sector (% of GDP)
Base 161.23% 165.72% 167.29% 85.27% 85.27%
Upside 84.04% 88.53% 90.10% 8.08% 8.08%

Downside 238.42% 242.90% 244.48% 162.46% 162.46%
- US 1-year Treasury Yield Curve Rates
Base 1.90 1.23 1.23 1.79 1.79
Upside (11.78) (12.44) (12.45) (11.89) (11.89)

Downside 15.58 14.91 14.90 15.47 15.47
2 - Public Housing Loan
- GDP at Current Price, Industry (Year-on-Year, %)
Base 9.00% 9.00% 10.00% 13.00% 13.00%
Upside 21.00% 21.00% 21.00% 25.00% 25.00%
Downside -3.00% -3.00% -2.00% 2.00% 2.00%

- US 1-year Treasury Yield Curve Rates
Base 20.00% 22.00% 24.00% 71.00% 71.00%
Upside -144.00% -142.00% -140.00% -93.00% -93.00%
Downside 184.00% 186.00% 188.00% 235.00% 235.00%
156


Incorporation of forward-looking information (continued)
Predicted relationships between the key indicators and default and loss rates on various portfolios of financial
assets have been developed based on analysing available historical data over the past 7 years.
Modified financial assets
The contractual terms of a loan may be modified for a number of reasons, including changing market
conditions, customer retention, and other factors not related to a current or potential credit deterioration of
the customer. An existing loan whose terms have been modified may be derecognised and the renegotiated
loan recognised as a new loan at fair value in accordance with the accounting policy set out in Note 2(e)(iv).
When the terms of a financial asset are modified and the modification does not result in derecognition,
the determination of whether the asset’s credit risk has increased significantly reflects comparison of:
x the remaining lifetime PD at the reporting date based on the modified terms; and,
x the remaining lifetime PD estimated based on data on initial recognition and the original contractual
terms.
157


Modified financial assets (continued)
When modification results in derecognition, a new loan is recognised and allocated to Stage 1 (assuming it is not credit-impaired at that time).
The revised terms usually include extending the maturity, changing the timing of interest payments and amending the terms of loan covenants.
Loss allowance
During the year, the allowance for/(reversal of) impairment losses recognised in the statement of profit or loss and other comprehensive income are as follows:
The Group The Bank
Type 2023 2022 2023 2022 2023 2022 2023 2022
Deposits and placements with other banks (177,657) (157,751) (730,170) (644,728) (199,422) 1,937 (819,624) 7,917
Loans and advances 41,824,525 20,045,313 171,898,798 81,925,194 38,676,227 12,763,402 158,959,293 52,164,024
Investments in debt securities 13,054 616,205 53,652 2,518,430 13,054 616,205 53,652 2,518,430
Other assets 23,768 77,440 97,686 316,497 (23,252) 31,409 (95,566) 128,369
41,683,690 20,581,207 171,319,966 84,115,393 38,466,607 13,412,953 158,097,755 54,818,740
Financial guarantee contracts 2,180 (2,588) 8,960 (10,577) (15,518) (66,794) (63,779) (272,987)
Total 41,685,870 20,578,619 171,328,926 84,104,816 38,451,089 13,346,159 158,033,976 54,545,753
158


Loss allowance (continued)
The following tables show balance of the loss allowance by class of financial instrument:
2023 2022
Loans and advances at amortised
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
cost
The Group
Beginning of the year 20,472,766 3,980,711 17,789,185 42,242,662 17,344,703 2,195,419 15,080,952 34,621,074
Transfers to/(deduction from):
Stage 1 (11,557,652) 445,085 11,112,567 - (349,461) 124,555 224,906 -
Stage 2 1,166,834 (3,067,670) 1,900,836 - 606,845 (1,412,526) 805,681 -
Stage 3 182,374 102,361 (284,735) - 183,996 144,744 (328,740) -
Net remeasurement of loss allowance (2,911,872) 1,642,348 37,723,566 36,454,042 2,285,660 3,066,682 12,421,703 17,774,045
New financial assets originated 4,708,102 2,993,374 4,135,212 11,836,688 6,151,753 647,925 1,045,874 7,845,552
Derecognition of financial assets (2,934,355) (760,682) (2,771,168) (6,466,205) (3,106,042) (368,216) (2,100,026) (5,574,284)
Write-offs (3,366) - (28,096,441) (28,099,807) - (243,658) (8,550,812) (8,794,470)
Currency translation differences (156,182) (13,194) (151,226) (320,602) (2,644,688) (174,214) (810,353) (3,629,255)
As at the end of the year 8,966,649 5,322,333 41,357,796 55,646,778 20,472,766 3,980,711 17,789,185 42,242,662
In KHR’000 equivalent (Note 5) 36,628,761 21,741,730 168,946,597 227,317,088 84,286,378 16,388,587 73,238,074 173,913,039
159


2023 2022
Loans and advances at amortised cost Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
The Bank
Beginning of the year 6,861,363 3,832,274 17,463,331 28,156,968 6,781,999 1,696,685 14,109,821 22,588,505
Transfers to/(deduction from):
Stage 1 (637,491) 53,885 583,606 - (287,959) 100,266 187,693 -
Stage 2 1,132,422 (2,935,359) 1,802,937 - 395,756 (1,103,254) 707,498 -
Stage 3 131,590 95,403 (226,993) - 34,154 132,164 (166,318) -
Net remeasurement of loss allowance (2,422,717) 1,838,094 34,754,976 34,170,353 (2,252,411) 2,722,616 10,599,013 11,069,218
New financial assets originated 4,179,508 1,049,752 4,029,335 9,258,595 3,749,825 618,472 1,000,553 5,368,850
Derecognition of financial assets (1,428,577) (661,807) (2,662,337) (4,752,721) (1,546,827) (284,998) (1,842,841) (3,674,666)
Write-offs (3,366) - (27,162,039) (27,165,405) - - (6,957,636) (6,957,636)
Currency translation differences 16,129 (3,669) (80,712) (68,252) (13,174) (49,677) (174,452) (237,303)
As at the end of the year 7,828,861 3,268,573 28,502,104 39,599,538 6,861,363 3,832,274 17,463,331 28,156,968
In KHR’000 equivalent (Note 5) 31,980,897 13,352,121 116,431,095 161,764,113 28,248,231 15,777,472 71,896,534 115,922,237
160


2023 2022
Cash on hand and deposits and placements with
Stage 1 Stage 2 Stage 3 Total Total
other banks, net
US$ US$ US$ US$ US$
The Group
Beginning of the year 308,269 - - 308,269 479,163
Reversal of impairment losses during the year (177,657) - - (177,657) (157,751)
Currency translation differences (14,418) - - (14,418) (13,144)
As at the end of the year 116,194 - - 116,194 308,268
In KHR’000 equivalent (Note 5) 474,653 - - 474,653 1,269,140
The Bank
(Reversal of)/allowance for impairment losses during
the year (199,422) - - (199,422) 1,937
Currency translation differences (11,398) - - (11,398) 1,026
In KHR’000 equivalent (Note 5) 50,756 - - 50,756 919,100

2023 2022
Other assets Stage 1 Stage 2 Stage 3 Total Total
US$ US$ US$ US$ US$
The Group
Allowance for impairment losses during the year 23,768 - - 23,768 77,440
Currency translation differences (58,669) - - (58,669) (33,732)
The Bank
(Reversal of)/allowance for impairment losses during
(23,252) - - (23,252) 31,409
the year
Currency translation differences 136 - - 136 63
161


2023 2022
Investments in debt securities Stage 1 Stage 2 Stage 3 Total Total
US$ US$ US$ US$ US$
The Group
Beginning of the year 616,205 - - 616,205 -
Currency translation differences 1 - - 1 -
The Bank
Beginning of the year 616,205 - - 616,205 -
Currency translation differences 1 - - 1 -
2023 2022
Financial guarantee contracts Stage 1 Stage 2 Stage 3 Total Total
US$ US$ US$ US$ US$
The Group
Allowance for/(reversal of) impairment losses
during the year 2,180 - - 2,180 (2,588)
Currency translation differences (27) - - (27) (107)
The Bank
Reversal of impairment losses during the year (15,518) - - (15,518) (66,794)
Currency translation differences 10 - - 10 (16)
162

(h) COVID-19 and continuing impact on ECL
In response to the COVID-19 situation and the Group’s and the Bank’s expectations of economic impacts,
the key conditions and assumptions utilised in the Group’s and the Bank’s calculation of ECL had been
revisited and recalibrated. The economic scenarios and forward-looking macroeconomic assumptions
underpinning the ECL calculation are outlined in Note 38.1(g). The impacts of COVID-19 have been
reasonably captured using the Group’s and the Bank’s recalibrated ECL models.
The Group’s and the Bank’s ECL models had been constructed and calibrated using historical trends and
correlations as well as forward-looking economic scenarios. The COVID-19 outbreak had negatively
impacted the economic growth resulting in economic variables used in the models to be out of the bounds,
which is also resulted in CIFRS 9 models not commensurate with the accurate outcomes under the COVID-
19 condition. Therefore, the ECL models may generate results that are either overly conservative or overly
optimistic depending on the specific portfolio or segment. As a result, the Group’s and the Bank’s senior
management's judgment was necessary to reflect ECL in a way to avoid underestimation or overestimation
in these conditions.
In identifying the impact of COVID-19 condition to the Group’s and to the Bank’s customers, the Group and
the Bank perform the identification and periodic review of customers experiencing increases in credit risk
and credit impairment, particularly where those customers have accepted payment deferrals and other
reliefs designed to address short-term liquidity issues, or have extended those deferrals, given limitations in
the available credit information on these customers.
Economic forecasts are subject to a high degree of uncertainty in the current environment. This has resulted
in the forecasts and economic models that may not be applicable. This requires a greater reliance on the
forecasts by the NBC, MEF, World Bank, or Asia Development Bank to incorporate into the analysis and
assessment of ECL outcomes.
The Group and the Bank also generate three economic scenarios to reflect economic conditions, starting
with baseline, good, and bad. Each scenario is consistent with a probability of 60%, 20%, and 20%,
respectively, according to the decision of the Group’s and the Bank’s senior management in August 2022
due to that fact that economic growth is expected to continue to return to the pre-pandemic level and the
Bank’s credit management is well-managed.
(i) Sensitivity Analysis on ECL Measurement
Set out in the succeeding page is the Bank’s ECL measurement as at 31 December 2023 and 2022 that
would result from reasonably possible changes in the parameters from the actual assumptions used by the
Bank in its economic variable assumptions.
163

(i) Sensitivity Analysis on ECL Measurement (continued)
Change in MEVs Impact on ECL

Upside Downside Upside Downside Downside Downside
Scenario Scenario Scenario Scenario Scenario Scenario
31 December 2023 US$ US$ KHR’000 KHR’000
1 - Small Loan (405,654) 317,032 (1,657,097) 1,295,076
- Domestic credit to private sector
-77.19% 77.19%
(% of GDP)
- Cambodia CPI, All Items 2006=100 -13.68 13.68
2 - Public Housing Loan (202,675) 392,928 (827,927) 1,605,111
- GDP at Current Price, Industry
12.00% -12.00%
(Year-on-Year, %)
- US 1-Year Treasury Yield Curve
-164.00% 164.00%
Rates
Change in MEVs Impact on ECL

Upside Downside Upside Downside Upside Downside
Scenario Scenario Scenario Scenario Scenario Scenario
31 December 2022 US$ US$ KHR’000 KHR’000
1 - Small (2,224,459) 4,329,470 (9,158,098) 17,824,428
- Domestic credit to private sector
-51.29% 51.29%
(% of GDP)
2 - Public Housing Loan (341,611) 583,546 (1,406,412) 2,402,459
- GDP at Current Price, Industry
12.17% -12.17%
(Year-on-Year, %)
- US 1-Year Treasury Yield Curve
-167.24% 167.24%
Rates
3 - Overdraft (182,719) 200,334 (752,254) 824,775
164

38.2 Market risk
The Group and the Bank are exposed to market risk, which is the risk of losses in on and off-balance sheet
positions arising from movements in the market prices, such as interest rates, equity, foreign currency
exchange rates, derivatives, and options, that could adversely affect the Group’s and the Bank’s future
earnings, capital, or ability to meet business objectives.
The primary categories of market risk for the Group and the Bank are:
(i) Interest rate risk: can lead to losses when there is an imbalance between assets and liabilities on which
interest rates change periodically or at different intervals; and,
(ii) Foreign exchange risk: can lead to losses when there is an imbalance between assets and liabilities in
any particular currency.
Commodity risk and equity risk are not applicable at the moment given that the Group and the Bank do not
hold any commodity or equity position.
The BRIC is established by the Board of Directors to assist in the effective discharge of its responsibilities for
risk management and to regularly review the Management's ability to assess and manage the Group’s and
the Bank's risks.
Market risks are managed based on the following principles and internal targets:
Principles of the market risk:

x In line with sound banking principles, the Group and the Bank actively manage currencies and interest
rate risk positions to hedge positions by matching assets and liabilities.
x The Group and the Bank shall not engage in activities to derive income from proprietary trading or
speculation on the movements in exchange rates, interest rates, or value of securities.
x The position limits as set by the Central Banks are meant to limit the adverse impact of market risk and
are not meant to create an opportunity for proprietary trading.
x The day-to-day responsibility for market risk lies with the senior management of the Treasury
Department.
Internal targets on the market risk:

x The regulatory limits on foreign exchange currency mismatch per currency and cumulative mismatch for
all foreign currencies should be observed at all times.
x The Group and the Bank will have, at all times, internal targets that are lower than the regulatory limits to
allow for a safety margin to ensure permanent full compliance with regulatory limits.
x Setting the level of the internal targets is at the discretion of the Assets and Liabilities Committee
("ALCO") and needs to be both 1) stated and motivated in the ALCO minutes and 2) formally approved
by the President & Group Managing Director.
165

38.2 Market risk (continued)

Internal targets on the market risk: (continued)
x Relevant divisions and departments should regularly assess and monitor the perceived risks of non-
compliance with the targets. Any breaches of internal targets should be reported to the ALCO and
President & Group Managing Director.
x Any change in the level of internal targets will need to be reported by e-mail to the Chair of the BRIC on
the same day the change has been made.
x At all times, the Group and the Bank will have a contingency plan to be executed when it is perceived by
the President & Group Managing Director that the safety margin may not be sufficient and there is a risk
that the regulatory limit on foreign exchange currency mismatch could be reached. Such contingency
plan should be sufficient to ensure that the regulatory limits on foreign exchange currency mismatch will
not be breached.
(i) Interest rate risk
As at 31 December 2023 and 2022, the Group’s and the Bank’s derivative financial instruments and financial
investments designated as FVOCI are valued at fair value in accordance with the methods as disclosed in
Note 39. The Group and the Bank use derivative financial instruments, such as foreign exchange contract
and interest rate swaps to hold its risk exposures.
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because
of the changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial
instrument will fluctuate because of the changes in the market interest rates. Interest margins may increase
as a result of changes but may reduce losses in the event that unexpected movements arise.
The Group’s and the Bank’s interest rate risk arise from borrowings and subordinated debts. Borrowings
issued at variable rates expose the Group and the Bank to cash flow interest rate risk. The Group and the
Bank manage cash flow interest rate risk by using floating-to-fixed interest rate swaps. Such interest rate
swaps have the economic effect of converting borrowings from floating rates to fixed rates and recognising
the interest expense based on that fixed interest rate. The Group and the Bank raise borrowings at floating
rates and swaps them into fixed rate that are lower than those available if the Group and the Bank borrowed
at fixed rates directly. Under the interest rate swaps, the Group and the Bank agree with other parties to
exchange, at specified intervals (primarily semi-annually), the difference between fixed contract rates and
floating rate interest amounts calculated by reference to the agreed notional amounts.
The tables on the next pages summarise the Group’s and the Bank’s exposure to interest rate risks. It
includes the financial instruments at carrying amounts, categorised by the earlier of contractual repricing or
maturity dates.
166


(i) Interest rate risk (continued)
The Group
Up to 1 1-3 3 - 12 1-5 Over 5 Non-interest
month months months years years bearing Total
US$ US$ US$ US$ US$ US$ US$
Financial assets
Cash on hand - - - - - 495,793,568 495,793,568
Deposits and placements with other banks, net 72,437,235 500,000 500,000 - - 1,436,105,943 1,509,543,178
Statutory deposits 43,316,302 - - - - 505,310,807 548,627,109
Financial investments 240,196,361 48,184,822 10,936,496 56,293,836 - 1,932,869 357,544,384
Loans and advances, net
- Performing 159,555,306 278,055,647 1,088,678,442 3,729,976,644 940,614,297 34,751,338 6,231,631,674
- Non-performing - - - - - 425,680,335 425,680,335
- Loss allowance - - - - - (55,646,778) (55,646,778)
Derivative financial instruments - - - - - 5,746,686 5,746,686
Other assets - - - - - 8,550,649 8,550,649
Total financial assets 515,505,204 326,740,469 1,100,114,938 3,786,270,480 940,614,297 2,858,225,417 9,527,470,805
Deposits and placements of other banks and financial institutions 78,009,448 61,522,694 69,505,649 42,858,216 81,450,000 86,446,613 419,792,620
Deposits from customers 2,896,069,709 587,519,319 1,589,074,753 952,489,288 55,048,753 727,818,597 6,808,020,419
Lease liabilities 1,260,820 1,796,766 9,058,299 19,512,969 961,699 (62,866) 32,527,687
Borrowings 100,398,440 315,616,888 206,062,394 218,300,744 4,595,532 14,839,552 859,813,550
Subordinated debts - - 25,855,795 56,194,474 34,698,987 304,626 117,053,882
Other liabilities - - - - - 43,591,008 43,591,008
Total financial liabilities 3,075,738,417 966,455,667 1,899,556,890 1,289,355,691 176,754,971 872,937,530 8,280,799,166
Net interest sensitivity gap (2,560,233,213) (639,715,198) (799,441,952) 2,496,914,789 763,859,326 1,985,287,887 1,246,671,639
In KHR’000 equivalent (Note 5) (10,458,552,676) (2,613,236,584) (3,265,720,374) 10,199,896,913 3,120,365,347 8,109,901,018 5,092,653,644
Unused portion of overdrafts - - - - - 209,854,669 209,854,669
Guarantees, acceptances, and other financial facilities - - - - - 69,317,067 69,317,067
Net interest sensitivity gap - - - - - 279,171,736 279,171,736
In KHR’000 equivalent (Note 5) - - - - - 1,140,416,541 1,140,416,541
167



The Group
Financial assets
Cash on hand - - - - - 497,027,041 497,027,041
Deposits and placements with other banks, net 228,789,351 95,000,000 - - - 522,812,824 846,602,175
- Performing 169,382,025 281,948,019 1,060,271,450 3,798,586,676 884,239,642 40,744,512 6,235,172,324
- Non-performing - - - - - 186,476,431 186,476,431
- Loss allowance - - - - - (42,242,662) (42,242,662)
Other assets - - - - - 44,777,965 44,777,965
Lease liabilities 1,277,407 1,744,792 7,755,399 16,531,505 1,139,667 - 28,448,770
Borrowings 99,917,359 314,532,759 330,654,865 189,998,011 8,825,273 13,407,601 957,335,868
Net interest sensitivity gap (2,015,536,993) (405,104,263) (764,508,729) 2,726,016,792 728,207,153 948,370,550 1,217,444,510

168


The Bank
Financial assets
Cash on hand - - - - - 486,584,317 486,584,317
Deposits and placements with other banks, net 72,437,235 - - - - 1,406,444,786 1,478,882,021
- Performing 155,382,249 268,379,431 1,055,988,462 3,647,706,380 934,065,997 33,214,584 6,094,737,103
- Non-performing - - - - - 401,905,723 401,905,723
- Loss allowance - - - - - (39,599,538) (39,599,538)
Other assets - - - - - 8,160,591 8,160,591
Lease liabilities 1,212,506 1,752,559 8,723,500 18,705,240 153,543 - 30,547,348
Borrowings 100,398,440 312,004,725 199,257,570 212,913,269 4,085,770 14,758,817 843,418,591
Net interest sensitivity gap (2,532,753,375) (634,031,172) (777,735,683) 2,440,631,998 762,156,440 1,943,790,492 1,202,058,700
169


The Bank
Financial assets
Cash on hand - - - - - 486,665,483 486,665,483
Deposits and placements with other banks, net 228,489,351 95,000,000 - - - 504,907,074 828,396,425
- Performing 165,054,126 273,277,147 1,027,180,394 3,714,519,963 876,990,047 32,669,016 6,089,690,693
- Non-performing - - - - - 184,735,760 184,735,760
- Loss allowance - - - - - (28,156,968) (28,156,968)
Other assets - - - - - 44,724,815 44,724,815
Lease liabilities 1,214,525 1,724,891 7,490,537 15,778,746 248,936 - 26,457,635
Borrowings 99,917,360 311,446,441 328,268,612 182,903,434 8,389,125 13,350,885 944,275,857
Net interest sensitivity gap (1,993,746,424) (401,528,070) (755,172,692) 2,668,800,529 726,489,644 932,303,455 1,177,146,442
Guarantees, acceptances, and other financial facilities - - - - - 71918114 71,918,114
170

ABC - Annual Report - 2023 - Eng

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1

P.O. Box: 1149 E-mail: inquiry@acledabank.com.kh

Financial Position (in KHR million)

Total assets 39,804,405 37,181,299 32,002,298

Total liabilities 34,158,850 31,760,660 27,092,985

Total shareholders' equity 5,645,555 5,420,639 4,909,313

Profit / (Loss) (in KHR million)

Total revenue 3,403,114 3,040,038 2,590,086

Profit/ (Loss) before Tax 757,216 933,095 832,937

Profit/ (Loss) after Tax 608,356 743,077 678,031

Total Comprehensive Income 522,970 750,254 635,685

Solvency ratio 18.45% 19.25% 22.36%

Debt to equity ratio 605.06% 585.92% 551.87%

Liquidity Coverage Ratio 180.13% 154.96% 155.65%

Non-performing loans ratio (*) 5.77% 2.90% 2.33%

Loan to deposit ratio 92.11% 100.51% 94.97%

Return on average assets (ROAA) (**) 1.58% 2.15% 2.32%

Return on average equity (ROAE) (**) 11.05% 14.45% 14.61%

Interest Coverage ratio (Times) 1.56 2.03 2.19

Book value per share (KHR) 12,977 12,456 11,277

Earnings per share (KHR) 1,405 1,715 1,568

Dividend per share (KHR) - 686 549

Other Important Ratios - - -

FINANCIAL SUMMARY AND ANNUAL STATISTICAL SUMMARY (CHARTS)

Total Assets Total Liabilities Total Shareholders’ Equity

Total Revenue áɭȶ˪ʋࡸࢎȶɽɽ࢏%ơǉȶɭơþŔˉ áɭȶ˪ʋࡸࢎȶɽɽ࢏ǉʋơɭþŔˉ Total Comprehensive

Financial Ratio (%)

Total Revenue Interest Income Interest Expense

Total Gross Loan Total Deposit

Number of Loan Number of Deposit Account

1,405 1,715 1,568

Book Value Per Share (KHR) Earning Per Share (KHR)

Mr. Chhay Soeun

Mr. Kyosuke Hattori

Dr. Albertus Bruggink

Mr. Stéphane MANGIAVACCA

Mr. Kay Lot

Dr. Heng Dyna

Drs. Pieter Kooi

Ms. Phurik Ratana

Mr. Chhay Soeun

MESSAGE FROM CHAIRMAN

MESSAGE FROM PRESIDENT & GROUP MANAGING DIRECTOR

Operational Highlights in 2023

Financial Services and SME Businesses

Medium and Corporate Businesses

Treasury Local and International

ACLEDA BANK/ the BANK ACLEDA BANK PLC.

the Group ACLEDA BANK PLC. and its Subsidiaries

ABC Association of Banks in Cambodia

ABL ACLEDA Bank Lao Ltd.

ACLEDA Association of Cambodian Local Economic Development Agencies

ACS ACLEDA Securities Plc.

AFT ACLEDA Financial Trust

AGM Annual General Meeting of the Shareholders

AIB ACLEDA Institute of Business (previously ACLEDA Training Center Ltd.)

AMM ACLEDA MFI Myanmar Co., Ltd.

BACO Board Audit Committee

BRENCO Board Remuneration and Nomination Committee

Total Revenue áɭȶ˪ʋࡸࢎȶɽɽ࢏%ơǉȶɭơþŔˉ áɭȶ˪ʋࡸࢎȶɽɽ࢏ǉʋơɭþŔˉ Total Comprehensive

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