RHB IB eyes push into Philippine market
KUALA LUMPUR: RHB Investment Bank Bhd (RHB IB) said it's in talks with potential partners in the Philippines to further its push into Southeast Asia's fast-growing economies and boost revenue.
"We'll start with a joint venture first, with a preemptive right to buy out the joint venture probably a few years down the road," said its managing director Mike Chan.
The investment bank, owned by RHB Capital Bhd, wants to increase overseas revenue to as much as 40 per cent by 2017, from 25 per cent now, he said.
The group has expanded its presence in Singapore and Thailand, and gained footholds in Indonesia after buying OSK Investment Bank last year for RM1.95 billion.
RHB IB is following bigger lenders like Malayan Banking Bhd and CIMB Group Holdings Bhd in extending their regional reach. Maybank bought Singapore brokerage Kim Eng Holdings Ltd for S$1.79 billion (RM4.56 billion) in 2011, and CIMB acquired most of Royal Bank of Scotland Group Plc's Asia-Pacific investment banking interests last year.
"We are going to shift the playground from Malaysia to Southeast Asia," said Chan.
In Indonesia, the bank wants to complete its planned acquisition of a stake in PT Bank Mestika Dharma, while increasing its own treasury services and broking platform, he said.
RHB IB wants to extend its presence in Singapore and Thailand with more of its own banking services, Chan said, adding that he would also like to expand in China.
Winson Ng, an analyst at CIMB, named the stock as his top Malaysian banking pick on its regional expansion plan, dislodging Maybank.
He has a price target of RM11.30 and an outperform rating, meaning RHB is expected to show positive total returns of at least 10 per cent over the next 12 months, according to a report from CIMB yesterday. Bloomberg