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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) proudly celebrates 17 years of progressive operation (2008–2025), delivering secure, reliable, and trusted financial services throughout the Lao PDR. Over the years, the Bank has consistently fortified its position through a large network of branches, ATMs, CRMs, electronic banking services (EBS), and continuous innovation in digital banking.

With the introduction of ACLEDA Mobile (AC Super App), our customers can now enjoy a faster, more convenient, and user-friendly banking experience. The platform enables individuals and businesses to perform banking transactions anytime and anywhere, reinforcing our commitment to accessibility and financial inclusion across all segments of the community.

Our aspiration is clear: to be the leading and most trusted commercial bank in the Lao PDR, serving customers with integrity, innovation, and efficiency. ABL has also made meaningful contributions to employment in the banking sector and the broader national economy. This commitment was recognized through the "Excellent" ranking in the Competition Assessment of the Banking Sector 2023, as well as the Award for Good Performance in Tax Payment for 2022 granted by the Ministry of Finance.

We continue to invest in human capital development, digital infrastructure, and advanced banking technologies to ensure that the Bank remains well-positioned to meet the evolving needs of our stakeholders-particularly our valued customers and the SME sector.

Performance in 2025

Competitive environment

ACLEDA Bank Lao Ltd. has continued to expand its digital banking services, particularly through ACLEDA Mobile, widely recognized as "the real bank in your hand", enabling customers to conduct secure and convenient banking transactions anytime and anywhere.

The banking sector in Lao PDR remains highly competitive. Currently, 36 banks operate in the country, including one state-owned commercial bank, two specialized banks, five joint state commercial banks, seven private banks, nine subsidiary banks, and twelve branches of foreign commercial banks. In addition, approximately 281 financial institutions and financial service providers are operating nationwide, including 22 deposit-taking institutions, 127 non-deposit-taking microfinance institutions, 33 savings and credit unions, 31 leasing companies, and 68 pawnshops. Competition has also intensified with the growing presence of financial technology (FinTech) innovations and digital financial services, which continue to reshape customer expectations and service delivery across the industry.

The Bank of the Lao PDR (BOL) has further strengthened the regulatory environment while promoting market-oriented banking operations, including greater flexibility in interest rate mechanisms based on market conditions. At the same time, the depreciation of the local currency and evolving lending conditions have created additional complexities for financial institutions and customers alike. Despite these dynamics, ACLEDA Bank Lao Ltd. remains well positioned in the market through its strong operational infrastructure, with branches across 15 provinces and cities, supported by an extensive network of ATMs, CRMs, electronic banking services, and the ACLEDA Mobile (AC Super App). These capabilities enable the Bank to deliver transparent, efficient, and reliable financial services while maintaining its strategic ambition to become the leading SME-focused bank in the Lao PDR.

Operational Performance

Despite operating in a challenging economic environment, ACLEDA Bank Lao Ltd. delivered stable and sustainable financial performance in 2025 as followed key highlights:

• ACLEDA Bank Lao Ltd. posted the net profit after tax 'NPAT' LAK 133,369,8 10,471 (US$ 6,275,687) under the standard of IFRS 16 in 2025 under the challenge and opportunity of 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 has been registered 213,880 users by December 2025 and upward trend after its public launch on June 25th, 2018;
• Total loans outstanding as at December 2025 was LAK 3,641,066,134,437 (US$ 171,408,819);
• Non-Performing Loan 'NPL' was well managed and far lower than the required limit and plan set;
• ABL maintained the adequate liquidity with noticeable top-record of loans portfolio in 17-Year of operation and optimal business model focusing on diversified SME credit, quick SME loan and larger business scale;
• Total deposit mobilization is at upward trend and increased to LAK 3,795,655,477,183 (US$ 178,686,351). The growth was mainly led by the proactive TEAM 'Together Everyone Achieve More', new strategy and optimal offices networking, 54 ATM and 33 CRMs with 60,360 cards holders and advanced App. ACLEDA mobile with 213,880 registered users;
• The bank's operating efficiency ratio was at 32.31%. The return on average asset 'ROAA' and return on average equity 'ROAE' were 2.69% and 13.48% respectively at the end of 2025.

Strategic Priorities

Looking ahead, ABL continues to focus on the following strategic priorities:

1. Sustainable source of fund with conducive deposit mobilization, proactive interbank market and facility, digital services and fee-based income oriented.
2. SMART goal and productivity to set a clear target of growth projection and maintain a strong capital base with Capital Adequacy Ratios comfortably exceeding regulatory requirements.
3. Human resource asset and capacity building to concentrate on gradual knowledge and morality 'ethic professional' and develop our 'transparency service culture' for customers from all segments and the 5 Good Wordings: speak truly, gently, usefully, right time, and positively.
4. To be the leading SME bank in the Lao PDR with focal point on the quick SME loan, medium and larger business scale with proper credit process.
5. Superior financial service to follow our customers' need providing a comprehensive range of financial innovation as they move up the wealth ladder.
6. Compliance facilities with transparency way, good attitude and impartiality and be tolerated No Corruption.
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 service.
8. Develop and upgrade Electronic Banking System (EBS) with Financial Technology Solutions 'FinTech' and Digital Banking App. 'ACLEDA Mobile or Super App' allowing two ways global access, self-service, and cross-up selling opportunities conveniently.
9. Efficient workflow for customer satisfaction, keep enhancing the digital oriented approach and to be the leading SME bank in the Lao PDR.

The year 2025 marked another milestone in ACLEDA Bank Lao Ltd.'s digital transformation journey. The continued growth of ACLEDA Mobile, our Super App, reflects our commitment to providing customers with secure, convenient, and comprehensive banking services available 24 hours a day, seven days a week. Through the platform, customers can efficiently manage both personal and business finances, conduct transactions, transfer funds, manage payroll, access cash management solutions, and utilize a wide range of financial services with advanced security features. As the leading SME-focused bank in Lao PDR, ABL remains dedicated to supporting customers at every stage of their financial journey by offering diverse banking solutions, including electronic banking services, individual and corporate deposits, consumer and SME loans, large-scale corporate financing, fund transfer and payment services, cash management, payroll services, and bancassurance.

On behalf of ACLEDA Bank Lao Ltd., I would like to express my sincere gratitude to our valued customers, the Board of Directors, shareholders, management team, and staff members for their continued trust, dedication, and support throughout the year. I would also like to extend our appreciation to our professional advisors, the Government of the Lao PDR, and the Bank of the Lao PDR for their ongoing cooperation and guidance. Together, we look forward to a prosperous and sustainable year ahead in 2026.

Mr. Raksmey NGUON
Managing Director & CEO