Cover Sheet – Corporate Finance (FNCE3000)
Contribution Signature
1 1 2 3
2 1 2 3
3 1 2 3
4 1 2 3
Contribution Key: (1) Did less than fair share, (2) Did fair share, (3) Did
more than fair share. Recall that there
...
Cover Sheet – Corporate Finance (FNCE3000)
Contribution Signature
1 1 2 3
2 1 2 3
3 1 2 3
4 1 2 3
Contribution Key: (1) Did less than fair share, (2) Did fair share, (3) Did
more than fair share. Recall that there is a 50% penalty if you did not
contribute your fair share to completion of the project. Please use the
comments section to note any comments you have on the way in which
your team worked on the project, the structure of the project, and possible
improvements for the project in future sessions.
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lOMoARcPSD|3319384Shareholder analysis (15%)
Summary of the Business
RHB Bank Berhad is a fully integrated financial services group in
Malaysia, currently ranked the fourth largest in the country. Initially a public
limted company, it was founded in 1997 after the merging of DCB Bank and
Kwong Yik Bank, with its headquarter situated in Kuala Lumpur. It is now
listed as a Main Board of Bursa Malaysia Securities Berhad, trading as
MYX:1066.1
RHB Bank Berhad’s core business is to provide assistance, particularly
financial service for businesses to grow. With diverse portfolio, the group’s
subsidiaries are involved in multiple industries such as commercial banking,
financial service, investment banking, stock broking, property investments and
offshore banking to enhance their services and achieve their core business.
RHB Band have over 200 branches in Malaysia, consisting of conventional
and Islamic bank branches. The group also have around 2,000 self-service
terminals (SST) and 9 branches oversea.2
In terms of notable achievements, the bank is considered the largest
bank in Malaysia by asset size, with presence in regional countries such. As
Singapore, Cambodia, Thailand, Indonesia and China. Strategic alliances with
global firms allow RHB to gain excess to wider financial products and
services, which can be used to research potential business opportunities.3
Message to the Shareholders
1 “Who We Are”.2020. RHB Group.
https://www.rhbgroup.com/others/about-us/index.html
2 ibid.
3 ibid.
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lOMoARcPSD|3319384The chairman of RHB Bank Berhad, Tan Sri Azlan Zainol has released a
statement of the company’s performance in 2019, claiming that it has been a
“good year” as RHB Bank continues to meet their objectives and improve their
position in the market.
RHB Bank has faced a moderate growth in the country’s banking industry,
largely due to lower demand of loans from companies across most sectors. It
was affected by the slower rate of global growth and trading uncertainties
caused by the tension between the US and China. Though the Malaysian
economy is backed by private organisations, companies are still being
affected as the increasing uncertainty of the global trade environment as well
as lower government spending, the country’s GDP has seen a decline from
the previous year, dropping to 4.3 percent from 4.7 percent in 2018.4
The sustainability initiative which was started in 2018 has continued to
improve in 2019, where they have integrated institutional business practices
with their business and operation, aligned with the company’s Sustainability
Framework. The framework consists of three pillars which are Sustainable
and Responsible Banking, Empowering Communities and Embedding Good
Practices. This ensures that the company responds to the change of
shareholders’ expectations while applying it to their business practices in the
context of Environmental, Social and Governance (ESG).5
Due to strong performance in 2019, RHB Bank Berhad has decided to
increase their dividend by up to 50.1 percent, where the final dividend of 18.5
sen per dividend is combined with the interim dividend of 12.5 sen per
dividend. The dividend of 31.0 sen marks the company’s highest ever
dividend in history.6
The potential target audience of the statement is clearly stated by the
chairman, which is the shareholders, customers and business partners.
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