Malaysia’s RHB Capital pursuing Indonesian expansion
(13 May 2016 – Asia) Malaysian based RHB Capital Bhd (RHBCap) is continuing pursuing commercial business banking opportunities in Indonesia, despite challenges facing the industry.
Speaking at the Group’s recent AGM, its managing director Datuk Khairussaleh Ramli said: “We are still very keen on having an Indonesian domestic commercial banking business and it is a priority in our overseas expansion plan. This is because the country constitutes one-third of the total Asean gross domestic product and has a huge population. But we are not in a rush and nothing is on the table as yet.”
“In this challenging environment, pricing and timing is important. It must also fit into our overall group strategy,” he said.
RHBCap’s regional presence was realised following its acquisition of OSK Investment Bank for RM1.95 billion (A$6.63 million) in 2012. It now has a presence in all ASEAN countries with the exception of the Philippines.
Domestically, Ramli said there are plans to expand its business organically in retail, small and medium-sized enterprise (SME) loans, corporate investment banking and asset management.
“Currently, mortgage and SME loans are still doing well in Malaysia, but in general, overall loans growth is expected to be moderating as compared to last year.
“In this challenging market environment, we are focused on maintaining a healthy asset quality and sufficient capital.
“With the recent completion of our corporate reorganisation exercise, RHB Bank could be considered one of the best-capitalised banks in the country,” he said.
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