Al Rajhi Bank plans further growth in 2015

26/11/2014 12:35 AST

Al Rajhi Investment and Banking Corporation Malaysia Bhd (Al Rajhi Bank) plans to grow its business in 2015 aided with the capital injection of RM500 million from its parent company Al Rajhi Bank.

Its acting CEO Selamat Haji Sirat said the fresh capital allocation is to ensure there is adequate capital to support its business growth strategy and to be partly finance its network restructuring.

“This is an indication of another work of confidence from our parent company towards the Malaysian economy,” Selamat told reporters at launch of its Musafir Prepaid Card-i’s in Kuala Lumpur yesterday.

Musafir Prepaid Card-i is the first Saudi Riyal prepaid traveller’s card launched by Al Rajhi Bank Malaysia that enables instant cash accessibility at over Al Rajhi 3,800 auto teller machines (ATM) network in Saudi Arabia.

As part of the bank’s business growth strategy for next year, Selamat said the bank target 45,000 prepaid cards to be issued to the pilgrims next year.

The amount for the top-up will be capped at a maximum of RM10,000 and pilgrims will be charged for four Riyal (RM3.57) for each withdrawal made in Saudi Arabia.

“Our direct link with our parent back in Saudi allows ATM network connectivity bypassing conventional international switch like VISA, Mastercard and others, thus making it much cheaper for our customers to withdraw Saudi Riyal while in Saudi,” he said.

Moving forward, Selamat said the bank is projecting a loan growth in 2015 despite being a small market player in the country and a softening in domestic demand.

“In term of percentage, we are still working on the 2015 budget and we shall finalise it by the end of this year,” he said.

On Oct 23, 2014, it was reported that Datuk Azrulnizam Abdul Aziz had quit his post as CEO to pursue his other personal interest after serving for two and a half year tenures for the bank.

A source said the bank is currently in the look for a new successor to fill up the position and already has a few candidates in mind.

She, however, declined to give any name of the candidates while adding the bank is in no rush to select its new head.

“There is no pressure from the shareholders to select the new CEO as the current acting CEO is doing his job well,” she said.

Malaysian Reserve