Jul. 4--With asset prices being flushed down the drain and investors nervous about whether now is the right time to make any major moves, some companies and financial institutions are still willing to take the plunge.

"We currently have a few options on our plate that we are contemplating acquiring in various countries," said Dato Tajuddin Atan, managing director of RHB Bank Berhard of Malaysia.

"This is the best time to buy assets and expand, despite the risks that are involved."

RHB, which currently derives only 5-10 percent of its revenues from outside Malaysia, is aiming to have a presence in every potential market in Southeast Asia by 2020.

"We would be keen on some assets in Thailand as well if the opportunities arise," he said, mentioning ACL Bank Plc as a candidate.

Bangkok Bank this week finalised the sale of a 19 percent stake in ACL, Thailand's smallest bank, to Industrial and Commercial Bank of China, pending regulatory approval.

"What we want is a small or medium-sized bank that we can manage and grow, say no more than 50 or 100-odd branches would be the most appropriate for us," said Mr Atan.

RHB, which has had a presence in Thailand since 1964, was earlier called United Malaysian Banking Corp before a series of mergers resulted in RHB Bank.

RHB is Malaysia's fourth-largest banking group with assets of more than 105 billion ringgit and a market capitalisation of about 8.4 billion ringgit. It employs more than 10,000 staff.

"We have very strong shareholder base who are willing to support the group's expansion if and when it is required," he said.

"Our major shareholders are the Employees Provident Fund and Abu Dhabi Commercial Bank and both are very strong supporter of the bank's operations and plans," he said.

"This is the reason why we are feeling our way in the region for possible expansion."

He said that one goal of the expansion is to build the RHB brand, so it is looking to expand its Bangkok office along with others going forward.

"We are looking at all aspects, be it expansion in the securities business in Vietnam or banks in Indonesia or even here."

He said that the bank's conservative policies over the past few years had helped shield it from the problems that most western and some regional banks are facing.

However, the bank has started to become more aggressive in its lending as it views that the economy is on its bottoming phase.

"For the year we are expecting 5-7 percent growth in our portfolio across the region including the home turf," he said.

Currently Singapore accounts for the bulk of the bank's international operations with Thailand and Brunei the other two markets where it has a presence.

Mr Atan said that despite the poor economy, non-performing loans were not a problem for the group, at a low 2.25 percent net for 2008, and he did not expect much of an increase this year.

-----

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2009, Bangkok Post, Thailand

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

BKKPF,

A service of YellowBrix, Inc.