AMMB hopes to reach merger agreement with RHB Bank by Sept

KUALA LUMPUR: AMMB Holdings Bhd hopes to reach a merger agreement with RHB Bank Bhd and send the papers to the relevant authority by September.

AMMB’s group chief executive officer, Datuk Sulaiman Mohd Tahir, said talks were still ongoing and both parties had received exclusive negotiations period from Bank Negara Malaysia ( BNM) which would end on Aug 31, 2017.

“As per BNM’s approval, both parties have until December to hold talks, but after August, it will no longer be exclusive and they can talk to other parties as well,” he told reporters after the company’s annual general meeting yesterday.

The potential merger could create the fourth largest banking entity in Malaysia and provide synergy in services like retail banking, investment banking and Islamic banking, he said.

Sulaiman said the merged entity would be the largest fund manager, at least number two in investment banking, and among the top three or four in terms of retail and commercial banking, adding that it would also create the second largest Islamic bank in the country after Maybank Islamic.

Meanwhile, on financial year 2018 outlook, he said, the bank would accelerate penetration into its targeted segments and expand in areas that it was already strong.

AMMB would focus on growing its portfolio of quality assets, deposit mix, maximising fees and optimising and improving our risk-adjusted return,” Sulaiman said.

He said the bank’s focus for financial year 2018 was to unleash its potential and increase its customer base through its digital proposition.

“It will also invest in human capital to nurture internal talents and attract external talent where necessary,” he said. — Bernama