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Managing Director & CEO's Report

Mr. Raksmey NGUON, Managing Director & CEO of ACLEDA Bank Lao Ltd.

ACLEDA Bank Lao Ltd. (ABL) is pleased to celebrate the 12-year 2008-2020 anniversary of progressive operations with the most secure financial services, effective office network, expansive ATM availability, Electronic Banking Services (EBS) and sustainable growth together with our loyal customers. To enhance our presence as the leading SME bank in the Lao PDR, we have introduced ACLEDA Mobile App, which has become a popular and user-friendly technology, enabling ABL to serve more customers in all segments of the community to undertake banking transactions anytime anywhere. Ranked as the No.1 commercial bank, contributing to Laotian employment in the industry, and the first bank to facilitate card-less cash withdrawals from ATMs, we have invested in staff capacity building, e-facility, optimum infrastructure and modern banking technology. All of this means the Bank is capable to respond to all stakeholder's needs, our valued customers and the SME sector in particular.

Performance in 2020

Competitive Environment

As a nation rich in beauty and resources, in the last two decades Laos was one of the fastest growing economies in East and Southeast Asia. However, the COVID pandemic, like in many countries around the globe, has cut growth significantly and is posing numerous challenges.

Nonetheless, the Lao PDR remains a market of significant interest for investors in banking and financial services under the current regulatory environment with relative strong competition among 44 banks, 125 licensed microfinances and 59 financial institutions in the MSME sector. Competition remains keen in both price and service facilities in the FinTech arena as well due to innovation and marketing mix. The Bank of the Lao PDR (BOL) has updated additional regulations enhancing free market operations for the banking industry. Notably, players have more flexibility on interest rates, depending on market demand and trends. The required minimum capital, increased by about two-thirds, was revised under the new banking law, which allows for a five-year time frame on implementation. Use of the local currency (Lao Kip or LAK) is being encouraged while there are fewer restrictions on lending in foreign currencies. A new regulation requiring hard land titles as collateral for loans partially limits customer opportunities to access finance at a preferred rate. However, ACLEDA Bank Lao Ltd., with an optimum infrastructure of physical offices in 15 provinces and cities amongst the 18 in Laos, our ATMs, EBS and the advanced App. "ACLEDA mobile", means the Bank remains well positioned as a transparent financial services provider.

Operational Performance

  • ACLEDA Bank Lao Ltd. posted a net profit after tax of US$5,850,930 under the standard of IFRS 16 in 2020 during a challenging operational environment.
  • ABL continued its cost reduction and risk control efforts to maximize income properly.
  • FinTech products integrated ABL's electronic banking infrastructure, offering the Bank's customers a range of choices to manage their financial resources effectively to conduct business transactions, as needed, with a high level of security. ACLEDA mobile registered 64,825 users by December 2020 after its public launch on June 25, 2018.
  • Total loans outstanding as at December 2020 were US$ 147.25 million, up 14%, compared with last year, of which US$23.69 million or 16.09% was lent to the agricultural sector.
  • Non-Performing Loans were well managed and far lower than the allowable limit.
  • ABL maintained an adequate liquidity level with a noticeably strong loan portfolio over 12 years of operations, using an optimal business model focused on diversified SME credit, quick SME loans and helping businesses scale up.
  • Total deposit mobilization, consolidated in US Dollars, is trending upwards and increased about 13.36% to US$127.19 million. This growth was mainly led by the proactive TEAM (Together Everyone Achieve More), strategy, using an optimal office network, 56 ATMs with 47,072 card holders, while advanced App. ACLEDA Mobile has 64,825 registered users.
  • ABL posted a record profit, which resulted, in part, from margin lending to retail businesses. The Bank's operating efficiency ratio was at 44.05%. The Return on Average Asset (ROAA) and Return on Average Equity (ROAE) were 3.10% and 13.09% respectively at the end of 2020.


The COVID-19 pandemic has impacted all business sectors globally as well as businesses in Laos. ACLEDA Bank Lao Ltd. isn't isolated from this either, however our business model focus on SMEs, which are dealing with daily household consumption. means we can manage the growth of our business in line with the current environment.

Strategic Priorities

  1. Sustain our source of funds with conducive deposit mobilization, proactive interbank market and facilities, digital services and a fee-based income orientation.
  2. Set clear targets for growth projection and maintain a strong capital base with Capital Adequacy Ratios comfortably exceeding regulatory requirements.
  3. Continuously support our human resource assets and capacity building to concentrate enhancing knowledge and skill base, while highlighting morality, professional ethics and our ‘transparency service culture' for customers from all segments. Continue to emphasize the Five Good Speech patterns: speak truly, gently, usefully, at the right time, and positively.
  4. To be the leading SME bank in the Lao PDR with a focus on quick SME loans, medium and larger business scale with proper credit processes.
  5. Superior financial services that follow our customers' needs providing a comprehensive range of financial innovation as they move up the wealth ladder.
  6. Compliance facilities with transparency, positive attitudes and impartiality, backed by a No Tolerance For Corruption policy.
  7. Build strategic partnerships with reputable counterparts, domestically and internationally, in areas where they are synergistic with ABL's core business to develop capabilities and financial services.
  8. Develop and upgrade EBS with Financial Technology Solutions ‘FinTech' and Digital Banking App ‘ACLEDA Mobile' allowing two way global access, self-service, and cross selling opportunities conveniently.
  9. Efficient workflow for customer satisfaction; continue to enhance the digital oriented approach to be the leading SME bank in the Lao PDR.

Celebrating the noteworthy year 2020 of sustainable growth, during this challenging period, I would like to highlight the introduction of our most advanced banking App, well known as ‘ACLEDA Mobile'. The App was developed with the purpose to conveniently serve you, your family, colleagues and friends — 24 hours a day, seven days a week. With ACLEDA Mobile, you can now manage your business efficiently and execute your banking transactions anytime anywhere with reliable built-in security. To be the leading SME bank in the Lao PDR, ACLEDA Bank Lao has been fortunate to serve customers at all levels, especially the SME sector with various types of commercial bank products including electronic banking services, individual and corporate deposits, loans to individuals, quick SME loans and larger support to major businesses, fund transfers, cash management, payroll, banc-assurance and more.

To all our customers, my colleagues on the Board of Directors, Shareholders, management and staff, our professional consultants, and not least the Government and the Bank of the Lao People's Democratic Republic, I offer my sincerest thanks both for your support in 2020 and in anticipation of a happy and prosperous 2021.

Mr. Raksmey NGUON
Managing Director & CEO

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Address:#398, Corner of Dongpalane and Dongpina Road, Unit 20, Phonesavanh Neua Village, Sisattanak District, Vientiane Capital, Lao PDR. See map
P.O. Box:1555
Tel:+856 (0)21 264 994 / 264 998
Fax:+856 (0)21 264 995 / 219 228
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