RHB Bank Eyes Commercial Bank In Indonesia

KUALA LUMPUR, May 12 (Bernama) -- RHB Banking Group may expand its presence in Indonesia by establishing a commercial bank, says RHB Capital Bhd Group Managing Director Khairussaleh Ramli. "We already have a merchant bank and asset management in Indonesia. So, potentially, the big piece that is missing is a commercial bank," he told a press conference here Thursday after the company's annual general meeting (AGM). The banking group already has a presence in nine countries in ASEAN in investment banking, asset management and commercial banking businesses, and the group's primary focus now is to harness its position in each country, he said. The bank's goal is to achieve a diversified revenue mix by geography, with international operations to constitute 20 per cent of the group's profitability by 2020. International operations currently constitute 14 per cent of the bank's revenue, Khairussaleh said. "Priority-wise, we are keen to go to Indonesia because it represents one-third of ASEAN's Gross Domestic Product and population. "The group will chew what we can swallow. We are open to expansion inorganically but any merger and acquisition overseas must be at the right price and at the right time," he said. At the AGM, which he considered the last for RHB Capital, Khairussaleh said RHB Bank will assume the listing status of RHB Capital by mid-July 2016. He said the listing of RHB Bank shares is subject to approval from Bursa Securities for the quotation application of RHB Bank shares. This is targeted to be submitted after the shareholders of RHB Capital have passed a resolution for the proposed voluntary winding up of RHB Capital in the forthcoming Extraordinary General Meeting tentatively expected at end-June 2016. "The successful completion of the company's rights issue of US$582.36 million (RM2.34 billion) in December 2015 has strengthened the capital base of the group for growth and regulatory requirements. (US$1 = RM4.01) "On April 14, the internal reorganisation was completed, with RM2.49 billion injected into RHB Bank, and RHB Bank effectively became a new holding company," he added. -- BERNAMA