RHB Capital Bhd to increase loans to SME in 2016
RHB Capital Bhd (RHB Cap) is targeting 8% loan growth in 2016. It plans to expand its small and medium enterprises (SMEs) loan business and reduce the emphasize on corporate to rebalance its lending portfolio. RHB is targeting to increase it’s SME loans portfolio from 15% currently to 20% of total portfolio while reducing corporate loans, which currently make up 27% of its total loan portfolio to in between 22% to 23%.
Corporate loans, though larger than SME loans, tend to be one-off with smaller margins and growing its SME loans will make its loan portfolio more sustainable. For the financial year ending Dec 31, 2016 (FY16), the bank is targeting gross loan growth of 8% aimid challenging economic environment.
RHB Capital Bhd (RHB Banking Group) was incorporated in Malaysia as a public limited company on 24 August 1994 under the name of DCB Holdings Berhad. Today, it is the fourth largest fully integrated financial services group in Malaysia. It provides financial products and services through its main subsidiaries – RHB Bank Berhad, RHB Investment Bank Berhad, OSK Investment Bank Berhad, RHB Insurance Berhad and RHB Islamic Bank Berhad.
February 29, 2016 / /