RHB Indochina Bank Ltd plans to improve its asset quality by targeting mid-market business segments because its non-performing loans (NPLs) rose to five percent (2017: three percent).
Lim Loong Seng, RHB Indochina’s managing director and CEO, spoke at the bank’s 10th anniversary celebration on Friday, Oct.26.
“Our NPLs have increased so we are going to spend a lot of time and effort to improve the asset quality … We want to target mid-market business segments focused on stable and growing sectors.”
The bank will also actualize a robust internal risk management system, while keeping in line with government objectives and stabilizing the economy.
Mr Lim said RHB Indochina, a member of the Malaysia-based RHB Banking Group, which replaced OSK Indochina Bank Ltd in 2008, has seen loan volume grow to $441 million (up 14 percent). The bank’s assets climbed to $709.6 million with a compound annual growth rate (CAGR) of 44%, before tax profits to $11.4 million (CAGR of 62%), and customer deposits to $437 million (CAGR 57%).
Looking toward 2019, RHB aims to increase its small-and-medium enterprise loan portfolio sector by 12 percent, and roll out its deposit campaign to attract more dollar and riel deposits – target: $575 million – while keeping CASA at 45 percent.
RHB is expanding its product and service offerings to meet the growing demands of the business community by introducing Premier Banking, safe deposit boxes and debit cards.
It has launched the RHB Mobile Banking App, which offers simple, fast, and seamless banking experiences by enabling customers to view their accounts online, pay bills, and transfer cash through `RHB Pay Anyone’ using email, phone or Facebook without needing a bank number.