Friday, June 4, 2010

KFHMB to grow retail assets to half of total assets in 5 yrs

KUALA LUMPUR: Kuwait Finance House Malaysia Bhd (KFHMB) plans to grow its retail-based assets from 4% now to half of total assets under a five-year business plan under its new CEO Jamelah Jamaluddin.

Jamelah said its total assets now are about RM10 billion, with a tier-one capital of RM2.28 billion. She expected total assets to grow between 8% and 10% this year.

"We operate in four other jurisdictions: Kuwait, Turkey, Bahrain, and Saudi Arabia. We started off with retail.

"It is only in Malaysia that we took the other position, which is starting with corporate investment banking. To say the least, there are unique products from other places we can bring which can serve our niche market here," she told reporters on Tuesday, June 1 after the bank signed an agreement with Malaysian Electronic Payment Systems Sdn Bhd (MEPS) for MEPS-Interbank Giro (IBG) and Shared ATM Network (SAN) services.

Jamelah said KFHMB would be expanding its current branches of seven to 10 by the end of the year.

KFHMB head of retail and consumer banking Attar Salleh expressed confidence in the bank achieving the retail target within five years.

"We are very confident because we have a good new sense of focus. Also, it is simply because it has been done before. For banks in Malaysia, retail was miniscule at the start. But within five to seven years, a lot of them have retail business of up to 50%," said Attar.

Meanwhile, on MEPS, Jamelah said: "Our strategic partnership with MEPS will without a doubt allow us to reach a wider and more diverse market segment, as we deliver our mandate to provide syariah-based products and services. It will also expedite our initiatives to grow the retail and consumer banking business."

MEPS chairman Datuk Seri Abdul Wahid Omar said the SAN service connected 16 banks, 9,000 ATMs nationwide and served more than 26 million cardholders.

"MEPS IBG transactions grew by 21% to 43.8 million in terms of volume and by 22% to RM109.1 billion in terms of value in 2009. In the first quarter of 2010, we recorded approximately 11.1 million transactions valued at RM28.7 billion," said Abdul Wahid.

No comments:

Post a Comment