National Bank of Canada is exploring options including a sale of ABA Bank, which could be valued at more than US$2 billion in a deal, according to people familiar with the matter.

The Montreal-based bank has held initial discussions with advisers on a strategic review for one of Cambodia’s biggest lenders, said the people, asking not to be identified as the process is private. Other options include minority or majority stake sales, the people said.

Considerations are at an early stage and National Bank of Canada may still decide not to proceed with a deal, the people said. A representative for National Bank of Canada declined to comment, while ABA Bank didn’t immediately respond to requests for comment.

Founded in 1996 and formerly known as Advanced Bank of Asia Ltd., ABA Bank was Cambodia’s largest commercial bank by assets and deposits in 2022, according to its website. The lender has 94 branches with more than 1,600 self-banking machines.

National Bank of Canada first invested in ABA Bank in 2014, taking an initial 10 per cent interest as part of its plan to expand internationally. It raised its stake to 42 per cent in 2015 and to 90 per cent in 2016. The Canadian lender boosted its holding to 100 per cent in 2019 with an additional investment of US$63 million, according to a press release issued that year. Its investment in ABA Bank totals US$320 million.

ABA Bank posted net income of $343 million in 2023, National Bank of Canada’s annual report shows.

National Bank of Canada, established in 1859 by a group of Quebec City businessman, has grown to become the sixth biggest lender in Canada, its website shows. Its shares have risen about 12 per cent in the past year, valuing the company at US$28 billion.