We refer to the announcement dated 31 March 2023 that RHB Bank and Boost Holdings Sdn Bhd (“Boost Holdings”), an indirect subsidiary of Axiata Group Berhad  had jointly incorporated a company, then known as Boost Berhad, which subject to approval from BNM, will be the legal entity to carry out the digital banking business.

The Board of Directors of RHB Bank is pleased to announce the following:

• BNM had vide its letter dated 3 October 2023 granted the approval pursuant to Section 139 of the Financial Services Act 2013 for Boost Berhad to use the word “bank” in its proposed new name, i.e. Boost Bank Berhad with effect from 4 October 2023. However, the proposed new name was still subject to an approval from the Companies Commission of Malaysia / Minister of Domestic Trade and Cost of Living.  

• The Companies Commission of Malaysia had vide its letter dated 13 December 2023, notified Boost Berhad that the Minister of Domestic Trade and Cost of Living had approved for Boost Berhad to use the word “bank” as part of its proposed new name, i.e. Boost Bank Berhad. On 18 December 2023, Boost Berhad changed its name to Boost Bank Berhad (“Boost Bank”).

• BNM had vide its letter dated 8 January 2024 notified RHB Bank and Boost Holdings that BNM is satisfied with the outcome of the operational readiness review of Boost Bank and the MOF has agreed to the issuance of the physical digital banking licence to Boost Bank and for the said licence to take effect on 15 January 2024.

Boost Bank will leverage on the strengths of Boost Holdings in the fintech sector and RHB Bank in the banking sector respectively, to offer digital banking products and services and shall focus on the underserved and/or unserved segment primarily within Malaysia with the aim of building a more inclusive financial sector in Malaysia.

As part of the conditions imposed by BNM and MOF in granting the approval for Boost Bank to commence operations as a digital bank, RHB Bank , as shareholder of Boost Bank, has given an undertaking to BNM that in the event Boost Bank is wound down and required to implement its exit plan during its foundational phase, RHB Bank shall provide adequate funds proportionate to its shareholding in Boost Bank at the material time, to ensure that Boost Bank has sufficient funds to satisfy all its remaining obligations and liabilities due including customer deposits. A similar undertaking has also been provided by Boost Holdings.

The commencement of operations by Boost Bank as a digital bank is not expected to have a material effect on the consolidated earnings or net assets of RHB Bank for the financial year ending 31 December 2024.

The press release on the digital bank license is attached for information.

This announcement is dated 8 January 2024.