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The historical miracle of RHB Bank: How did three mergers create the fourth largest bank in Malaysia?
RHB Bank Berhad (MYX: 1066) is a Malaysian bank located in Kuala Lumpur and was established in 1997. As the fourth largest full-service financial services group in Malaysia, RHB Bank has more than 200 branches in the country and provides a variety of banking products and services to individuals, small businesses and corporate customers. RHB Bank is also one of the few banks that offers Islamic banking products through its subsidiary RHB Islamic Bank Berhad. RHB Islamic Bank has an extensive network of branches and automated teller machines (ATMs) across Malaysia and provides banking products and services that comply with Shariah principles. As of August 2022, RHB Bank's market capitalisation on Bursa Malaysia is RM24.77 billion.
History Review
RHB Bank is wholly owned by RHB Capital, a bank formed through three mergers: with Kwong Yik Bank Berhad, Sime Bank Berhad and Elegant Bank Malaysia Berhad. (Bank Utama (Malaysia) Berhad) in 1997, 1999 and 2003. These three mergers shaped the history of RHB Bank and accelerated its growth and development.Kwong Yick Bank was established in 1913 and is the first local bank in Malaya. The bank's founding members include Chen Ronghe, Zhang Yucai and Luo Lao.
In 1997, Kwong Yik Bank merged with DCB Bank Berhad, creating the largest banking merger in Malaysia at that time. As the merger progressed, RHB Bank gradually became an important player in the Malaysian financial sector.
Founded in 1959, the United Malayan Banking Corporation Berhad officially opened for business in 1960 and was the first commercial bank established in independent Malaya. It later became part of Sime Darby Berhad in 1996 and was renamed Sime Bank.
In 1999, Sime Bank merged with RHB Bank to become part of the RHB Banking Group, further expanding the business scope and influence of RHB Bank.
Elegant Bank Malaysia was established in 1976 and merged with Kewangan Utama Berhad in 1998. Subsequently, in 2003, RHB Bank and Elegant Bank Malaysia merged again, marking an important milestone in the bank's development.
While there was a proposal to merge RHB Bank with AmBank Group in 2017, the merger plan was ultimately shelved as the two parties failed to agree on acceptable terms.
Current Situation and Future Outlook
Today, RHB Bank's business covers diversified financial services such as retail banking, commercial banking and investment banking, and it is actively expanding e-banking and digital services to cater to changing customer needs. RHB Bank not only has a strong brand influence in the market, but also excels in service quality and product innovation.
With the steady growth of Malaysia's economy, RHB Bank will play an increasingly significant role in promoting local and regional financial stability and economic development in the future. Through continued digital transformation and optimized customer experience, RHB Bank hopes to attract a younger customer base and increase market share.
In summary, every merger in RHB Bank's development history has added significant value and shaped its current success. Will the rapidly changing financial environment create new merger opportunities?
