RHB Indochina targets mid-market biz segment

Sangeetha Amarthalingam / Khmer Times No Comments Share:
Lim Loong Seng, RHB Indochina’s CEO, speaks at the ceremony on Friday. KT/Fabian Mouret

RHB Indochina Bank Ltd plans to improve its asset quality by targeting mid-market business segments amid a rise in its non-performing loans (NPLs), said managing director and CEO Lim Loong Seng on Friday.

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He said the bank plans to cut its NPLs – which rose to five percent as of September, compared to three percent a year ago – by half.

“Our NPL has gone up so we are going to spend a lot of time and effort to improve the asset quality, perhaps cut it by half. We want to target mid-market business segments focused on stable and growth sectors,” he told reporters at the bank’s 10th anniversary celebration in Phnom Penh.

The bank will also implement an internal robust risk management system, Mr Loong Seng said.

He said RHB Indochina, a member of Malaysia-based RHB Banking Group – which set foot in Cambodia in 2008 – saw loans grow 14 percent year-on-year to $441 million.

Last year, the bank’s asset value climbed to $709.6 million at a compound annual growth rate (CAGR) of 44 percent from 2008, profit before tax by $11.4 million (CAGR of 62 percent), and customer deposits by $437 million (CAGR 57 percent).

Going forward, it aims to grow its small-and-medium enterprises (SME) loan portfolio sector by 12 percent next year, and roll out a campaign to attract dollar and riel current account and savings account (CASA) deposits.

It also seeks to acquire $575 million in deposits and maintain CASA composition at 45 percent of its business in 2019.

“We are also expanding our product and service offerings to meet the growing demand of the business community and Cambodian population by introducing Premier Banking, safe deposit box and debit cards,” he added.

The bank recently launched the RHB Mobile Banking App, which offers simple, fast and seamless banking experiences.

The app allows customers to view their accounts online, pay bills, and transfer funds using their phones, emails or Facebook accounts.

“Since the soft launch of our internet banking platform in September last year, we have registered more than 4,000 active users,” Mr Loong Seng added.

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