RHB Bank Group completes corporate restructuring

Bernama
June 28, 2016 12:16 MYT
RHB Banking Group Managing Director Datuk Khairussaleh Ramli said he was pleased with the opening price given the current volatility in the global economy.
RHB Banking Group completed its corporate restructuring exercise when RHB Bank Bhd assumed the listing status of RHB Capital Bhd on the main market of Bursa Malaysia today.
At the opening bell, its shares opened at RM4.64, a discount of five sen against the reference price of RM4.69, with 4,100 shares changing hands.
RHB Cap was last traded on May 30, 2016 at RM6.10 per share with a market capitalisation of RM18.76 billion before being suspended the next day.
Nevertheless, RHB Banking Group Managing Director Datuk Khairussaleh Ramli said he was pleased with the opening price given the current volatility in the global economy.
"As compared to other certain markets which have gone down by seven per cent, (we're) not too bad given the (weak) sentiment globally," he told a press conference after the listing ceremony here.
Khairussaleh said the exercise strengthened the Group's capital position, adding to its competitive edge in growing the Group's profitability and improving its return on equity in the future.
He noted that the restructuring efforts have resulted in a significant amount of savings.
"With the interest savings and other savings that we have, potentially we could save about RM160 million a year.
"We also did a massive career transition scheme last year which projected a take up of RM180 million a year," he said.
In the first quarter of 2016, he said, the Group's cost to income declined to 48.5 per cent from the 56 per cent registered in the last quarter of last year, which translated into a bullish business fundamental.
Going forward, Khairussaleh said the Group was in a good position to withstand any downside risks as the industry was expected to continue to be challenging due to the global economic backdrop.
He said the Group's focus would be on securing asset quality and managing its asset portfolio as best as possible rather than making aggressive growth moves.
"We will look at areas for efficiencies, productivity as well as make certain investments in areas that we believe can bring long-term growth in future," he added.
#Bursa Malaysia #corporate restructuring exercise #listing #RHB Banking Group #RHB Capital Bhd
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