KUALA LUMPUR: With its restructuring exercise nearing completion, RHB Bank Bhd yesterday assumed RHB Capital Bhd’s (RHBCap) listing on the Main Market of Bursa Malaysia with a commendable debut.
At the close, RHB Bank’s share price rose 15 sen, or 3.2 per cent, to RM4.84, with 11.09 million units traded. It rose as high at RM4.88 during the day.
The benchmark FTSE Bursa Malaysia KLCI, meanwhile, closed 0.28 per cent higher at 1,634.04 from Monday’s 1,629.52.
RHB Bank shares opened at RM4.64, a discount of five sen against the reference price of RM4.69, with 4,100 shares changing hands.
RHBCap was last traded on May 30 at RM6.10 apiece with a market capitalisation of RM18.76 billion before it was suspended the next day.
RHB Banking Group managing director Datuk Khairussaleh Ramli said he was pleased with the opening price, given the current volatility in the global economy.
“Compared to some markets that have dropped by seven per cent, we’re not too bad, given the weak global sentiment,” he said after the listing ceremony, here, yesterday.
Khairussaleh said the group’s restructuring exercise strengthened its capital position, adding to its competitive edge in growing profitability and improving return-on- equity in the future.
He said the restructuring had resulted in a significant amount of savings.
“With the interest and other savings, we could save 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, the group’s cost-to-income ratio declined to 48.5 per cent, from the 56 per cent in the last quarter of last year.
On RHB Bank’s strategies, Khairussaleh said the group was in a good position to withstand any downside risks despite a challenging industry outlook.
“The group’s focus would be on securing asset quality and managing 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.