Growth Through Acquisitions: the Rise of a Sleeping Giant

RHB Capital Bhd Group Managing Director Kellee Kam discusses:

- Declining Net Interest Margins - escalating overheads - management’s two main areas of focus - 2012 - strategy;
- Operating expenses - personnel costs - staff retention expenses - alignment of salaries;
- Cost/income ratios - outlook - growth - future;
- Loan growth of >12% - target - 2012 - details;
- Non-fee business - IPO pipeline - RHB’s proposition - muscled out - CIMB-MBB;
- OSK Merger;
- Tan Sri Ong Leong Huat - dealings - insights;
- Ong family to be 10 per cent owner in RHB Capital going forward - implications;
- Implications - broking fees - earnings;
- Longer-term goal - 40% of profits overseas from just 10% currently;
- OSK - assimilation - people - process - integration;
- Indonesia - Mestika - issues - foreign stake reductions - insights;
- Target - completion by mid-2012;
- Earnings implications - ROE guidance;
- RHB Capital as a target - EPF as 44 per cent owner - CIMB-Maybank bidding war - whether the OSK purchase was designed to fend off acquirors;
- Aabar stake - 25 per cent  -- bought at 10.80 ringgit a share - - whether rules out stake sale;
- Rumours - Jho Low involved - bidding war between CIMB and Maybank;
- Sense - whether Aabar willing to re-enter the fray by lowering its price;
- Appetite for more M&A: details;
- Financial wherewithal;
- Govt - liberalisation - foreign stakes - insight;
- Quick promotion - RHB Group - climbing the pole;
- Remuneration - fraction of Maybank Dato Wahid’s 2-3 million ringgit and DS Nazir’s 14 million ringgit - details;