would like to extend a warm welcome!
With fully support from the Government, under the wise leadership of Samdech Akka Moha Sena Padei Techo HUN SEN, Prime Minister of Royal Government of Cambodia, and the Ministry of Economy and Finance, ARDB has transformed from specialized bank, with only one head quarter, to commercial bank in 2020 with number of mobile units in key provinces, with its philosophy to become digital bank, in order to implement the Government’s policy to be more effective and efficiency, especially to provide financial services with inclusive growth and sustainable development enhancing value added Agricultural value chain in Cambodia.
In 2020, as the world has been severe suffering from Covid-19 pandemic, ARDB has continued to significantly achieve fruitful results in terms of business operation and financial statements. As of the beginning of December 2020, ARDB achieved total loans and advances with more than USD 230 million, with total increases of 33%. The total loans and advances contributed to rice sector 60%, animal raising 12.30%, vegetable and fruit 9.70%, sub-sectors including rubber, pepper, coffee, sugarcane and maize 5.60%, Microfinance 0.90% and others 11.30%. In addition, through special financing program of the Government, ARDB has expanded credit to almost provinces across the country. Particularly in 2019 the bank received total asset’s growth 22%, net profit for the year highly increased 160% as well the increase in capital 121%.
In addition to the significant improvement of business size, ARDB has been working actively with the sharp commitment to participate in addressing issues of Agricultural sector and rural economy, with framework of the Government’s national economic development policy through implementing number of special programs of the Government including the Government’s Special Fund for rice price stability and Special Fund for rice infrastructure.
Along with the successful implementation of special program with total amount of 45 (forty-five) million USD for rice infrastructure; rice storage and drying facility, in Battambang, Kampong Thom, Prey Veng, and Takeo, ARDB has contributed to the increase of storage and processing capacity of rice and paddy for exporting in crucial regions of the country. Also, ARDB has been implementing programs to promote paddy production and rice export, so-called “Climate Resilient Rice Commercialization Sector Development Program” under the Asian Development Bank’s fund with the amount of 10,500,000 (Ten million and Five hundred thousand) USD to support the storage and drying facility building in three main provinces including Battambang, Kampong Thom, and Prey Veng province. These storage and drying facility construction projects will increase collecting capability from farmers. Beside paddy and rice sectors, in the purpose to stimulate farmer’s vegetable production to ensure healthy for people, market for farmer producing safety vegetable, ARDB has cooperated with private sectors, which are vegetable collector companies, and created safe vegetable market, called: “Khmer-safety vegetable market”. Through this mechanism, ARDB provides finances with appropriate interest rate to farmers, agricultural cooperatives, as well the vegetable collector companies.
In 2021, with its new business concept and model, ARDB will accelerate and continue to expand bank operation in order to contribute to promoting financial inclusion and provide maximum social benefit to the people. The business concept and model of ARDB is driven by philosophies such as 1. Digital-First Mindset in serving customers and to improve operational efficiency, 2. Collaboration-Driven Culture to maximize value delivery to customers, 3. Traditional distribution channels to complement digital distribution channels, 4. Agro-preneurs and SME Clusters to drive economic growth, 5. Diversified products and services to fulfill customers’ demand, and 6.Corporate culture and human resources are keys to success. This business concept and model has been established to achieve 4 main goals of ARDB including (i) to become a full-digital bank, without the use of paper and bricks-and-mortar facilities, (ii) to maximize non-interest income from fee-based financial services, (iii) to transform subsistence farmers into agro-preneurs; and (iv) to promote the role of SMEs clusters for agro-processing businesses.
Particularly, I would like to express my deepest appreciation to the Royal Government of Cambodia, under the wise leadership of Samdech Akka Moha Sena Padei Techo HUN SEN, Prime Minister of Royal Government of Cambodia, Ministry of Economy and Finance, and National Bank of Cambodia for their ongoing support and trust ARDB.
On a final note, as always, I would like to express my sincere appreciation to the Board of Directors for their ongoing commitment and recommendation throughout the year, and thank all of our staffs for their dedication and continued efforts, as well thank our loyal customers and development partners for their cooperation with ARDB to contribute to the development of Agricultural sector in Cambodia.