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RHB Bank confident of hitting SME loan target

TheStar Fri, May 24, 2019 08:10am - 4 months ago


Latest offering: (from left) RHB Banking Group group chief operations officer Rohan Krishnalingam, group business and transaction banking head Jeffrey Ng, Khairussaleh, Asian Business Software Solutions Sdn Bhd chief operating officer and acting chief executive officer Grant Morgan, group sales director Rhys Brown and Censof Holdings Bhd group managing director Ameer Shaik Mydin at the launch

Latest offering: (from left) RHB Banking Group group chief operations officer Rohan Krishnalingam, group business and transaction banking head Jeffrey Ng, Khairussaleh, Asian Business Software Solutions Sdn Bhd chief operating officer and acting chief executive officer Grant Morgan, group sales director Rhys Brown and Censof Holdings Bhd group managing director Ameer Shaik Mydin at the launch

KUALA LUMPUR: RHB Bank Bhd, which is targeting to grant RM31bil in financing for small and medium enterprises (SMEs) by 2021, is confident of hitting a third of that target by this year on the back of favourable take-ups so far.

Group managing director Datuk Khairussaleh Ramli said RHB is already on track of surpassing the RM7.2bil worth of financing approved to SMEs last year.

“It will be more than what we approved in 2018. So far this year, in terms of applications, we’ve been able to get more compared with the same period last year.

“So that’s a good sign for us,” he told reporters after the launch of the RHB SME e-Solutions banking platform.

Last month, it was reported that RHB is targeting to grant more than RM31bil in new and additional financing over a three-year period that will benefit about 18,000 SMEs.

“We just need to divide that number by three, so this year’s target should be close to RM10bil,” Khairussaleh said.

RHB posted a record net profit of RM2.31bil in the financial year ended Dec 31, 2018 (FY18), underpinned by higher net fund-based income and lower allowances for credit losses on loans.

The banking group said on Wednesday its net profit rose 18.2% from the RM1.95bil in FY17. Revenue increased by 6.9% to RM12.69bil from RM11.87bil.

In the fourth quarter, its net profit rose at a faster pace of 22.9% to RM564.42mil from RM460.07mil. This was due to higher net fund-based income and lower allowances for credit losses on loans and other assets.

Revenue increased by 7.6% to RM3.31bil from RM3.07bil. Earnings per share were 14.10 sen compared with 11.47 sen previously. It announced a higher dividend per share of 13 sen compared with 10 sen a year ago.

Separately, Khairussaleh said RHB is targeting 10,000 SMEs with its newly launched RHB SME e-Solutions banking platform.

He said the bank has 90,000 SMEs within its e-solutions ecosystem, adding that the new platform would boost the bank’s penetration of the SME segment in Malaysia.

“Over the next 12 months, RHB will introduce more business-friendly features to enable customers to make direct payments.

“RHB will also be expanding tie-ups with new business solutions partners to include point-of-sale solutions, e-wallet operators, payroll providers and inventory management solutions,” he said.

The RHB SME e-Solutions platform, which is a first-of-its-kind, offers SMEs a connected banking ecosystem that simplifies cashflow and financial management.

The banking platform is in collaboration with Financio, a business solutions firm which offers cloud-based accounting software that eliminates the need for SME customers to navigate multiple systems.

   

“It will be more than what we approved in 2018. So far this year, in terms of applications, we’ve been able to get more compared with the same period last year.

“So that’s a good sign for us,” he told reporters after the launch of the RHB SME e-Solutions banking platform.

Last month, it was reported that RHB is targeting to grant more than RM31bil in new and additional financing over a three-year period that will benefit about 18,000 SMEs.

“We just need to divide that number by three, so this year’s target should be close to RM10bil,” Khairussaleh said.

RHB posted a record net profit of RM2.31bil in the financial year ended Dec 31, 2018 (FY18), underpinned by higher net fund-based income and lower allowances for credit losses on loans.

The banking group said on Wednesday its net profit rose 18.2% from the RM1.95bil in FY17. Revenue increased by 6.9% to RM12.69bil from RM11.87bil.

In the fourth quarter, its net profit rose at a faster pace of 22.9% to RM564.42mil from RM460.07mil. This was due to higher net fund-based income and lower allowances for credit losses on loans and other assets.

Revenue increased by 7.6% to RM3.31bil from RM3.07bil. Earnings per share were 14.10 sen compared with 11.47 sen previously. It announced a higher dividend per share of 13 sen compared with 10 sen a year ago.

Separately, Khairussaleh said RHB is targeting 10,000 SMEs with its newly launched RHB SME e-Solutions banking platform.

He said the bank has 90,000 SMEs within its e-solutions ecosystem, adding that the new platform would boost the bank’s penetration of the SME segment in Malaysia.

“Over the next 12 months, RHB will introduce more business-friendly features to enable customers to make direct payments.

“RHB will also be expanding tie-ups with new business solutions partners to include point-of-sale solutions, e-wallet operators, payroll providers and inventory management solutions,” he said.

The RHB SME e-Solutions platform, which is a first-of-its-kind, offers SMEs a connected banking ecosystem that simplifies cashflow and financial management.

The banking platform is in collaboration with Financio, a business solutions firm which offers cloud-based accounting software that eliminates the need for SME customers to navigate multiple systems.








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