Recommend Us | About Us | Back to Bernama.com

News | Financial Calculator | Home Financing | Archived News |

 

  Welcome to Bernama Banking & Finance Special Page     
 
RHB Bank aims to complete insurance arm disposal by Q1 2020
Last update: 26/08/2019

KUALA LUMPUR, Aug 26 (Bernama) -- RHB Bank Bhd hopes to complete the proposed disposal of its insurance arm to Tokio Marine Asia Pte Ltd by the end of the first quarter next year (Q1 2020).

Group managing director Datuk Khairusalleh Ramli said the bank plans to submit its proposal to Bank Negara Malaysia (BNM) by November.

"We have started our discussions with Tokio Marine and they have started their due diligence on RHB Insurance Bhd.

"Hopefully, from what we have so far based on the discussions, we can come out with something that we can put forward to both BNM as well as the Ministry of Finance for their approvals," he told a press conference after announcing RHB's Q2 2019 financial results here, today.

On July 31, RHB obtained the central bank's approval to commence negotiations with Tokio Marine on the proposed disposal of 94.7 per cent of its equity interest in RHB Insurance.

The approval is valid for six months from the date of BNM’s letter, dated July 29.

Khairusalleh said RHB Insurance only contributed around RM70 million to the group’s pre-tax profit of RM1.66 billion achieved during the first half of this year.

On another note, he said RHB's loan growth is expected to increase by five per cent this year, slightly lower than 5.5 per cent recorded last year due to the anticipation of a slower industry growth.

He said the main contributors to the loan growth would be the mortgage and small and medium enterprise segments, as well as its Singapore business.

RHB recorded a higher net profit of RM615.41 million in the second quarter ended June 30, 2019 against RM570.26 million in Q2 2018, thanks to higher non-fund based income and lower expected credit losses on loans.

Revenue rose to RM3.42 billion during the quarter under review from RM3.05 billion previously. 

Its gross loans and financing increased 6.9 per cent y-o-y to RM172.3 billion while domestic loans grew 6.6 per cent y-o-y.

The group declared an interim dividend of 12.5 sen per share, representing a 40.2 per cent payout ratio, the highest ever payout in its history. 

-- BERNAMA


 <Back>

Bank Islam eyes 15 pct rise in foreign remittance volume via swift gpi service
Malaysia eyes opportunity to send Islamic banking graduates to work abroad

 
Islamic finance set to be greater contributor to planet, people, prosperity - Sultan Nazrin

Etiqa urges policyholders to update beneficiary details
Capital Life Insurance Company Limited credit ratings withdrawn - AM Best

 
Zurich Malaysia partners DoctorOnCall for digital healthcare services

CLOSING, TUESDAY, JAN 28
US4.0840/0870
S'pore3.0052/0076
100 Yen3.7526/7557
Sterling 5.3210/3258
Euro4.4985/5035
Source: Bank Negara Malaysia

Reduction in the overnight policy rate (OPR) by Bank Negara Malaysia would be good for consumer spending and investment;
Yes
No
Not sure
 
  Main | News | Insurance

© 2020 BERNAMA. All Rights Reserved. Disclaimer | Privacy Policy| Security Policy
This material may not be published, broadcast, rewritten or redistributed in any form except with the prior written permission of BERNAMA.
Best viewed in Firefox 8.0 & Internet Explorer 8.0 with 1024 x 768 resolution