RHB Group Launches New Islamic Bank

Kuala Lumpur, March 1, 2005: The RHB Group officially received the licence for its Islamic banking subsidiary – the RHB Islamic Bank Bhd (“RHB Islamic Bank”) – today, making it the first commercial banking group in Malaysia to have a full-fledged Islamic bank.

Governor of Bank Negara Malaysia, Tan Sri Dr Zeti Akhtar Aziz, who officially handed over the Islamic bank’s operating licence to RHB Capital Bhd (“RHB Capital”) Executive Chairman Dato Sri Sulaiman Abdul Rahman Taib, also officially launched the new bank.

RHB Islamic Bank, which will open its doors to customers from March 16, 2005, is a wholly-owned subsidiary of RHB Bank Bhd (“RHB Bank”) which, in turn, is a 70% owned subsidiary of RHB Capital.

Also present at the launching ceremony were RHB Bank Chairman Dato’ Ali Hassan, members of the Boards of Directors of the RHB Group of Companies, representatives of major Malaysian banks, business partners, senior management personnel and employees of RHB Group.

RHB Islamic Bank is the third full-fledged Islamic banking institution in Malaysia. It is also the first full-fledged Islamic banking subsidiary of an existing commercial banking group.

“The launching of RHB Islamic Bank takes us another step forward in our quest to become a full-fledged financial services focused group – one that can provide customers with the entire range of financial services, both conventional and Syariah based,” Dato Sri Sulaiman said.

“This is also in line with the government’s aspirations to make Malaysia an Islamic banking hub. A full-fledged Islamic bank will give our customers even greater assurance that their banking transactions will continue to be in accordance with Syariah principles,” Dato Sri Sulaiman added.

Bank Negara Malaysia granted the RHB Group a licence to operate a full-fledged Islamic bank in July 2004, making it one of the first two commercial banking groups in Malaysia to be issued such licences.

Nevertheless, Islamic banking services are not new to the RHB Group. RHB Bank has been providing Islamic banking products and services through its Islamic window, known as Skim Perbankan Islam (SPI) since 1993.

Among the products that were available through the SPI were consumer and commercial financing as well as Treasury products, but based on the interest-free and Syariah principles.

RHB Islamic Bank will have its headquarters at the RHB Centre, Jalan Tun Razak, Kuala Lumpur. Mr Khalid M. Bhaimia, a veteran banker who has served in several financial institutions in Asia and Europe, has been appointed Chief Executive Officer of the new bank. His appointment has been approved by Bank Negara Malaysia. Mr Bhaimia has 15 years of experience in Islamic banking.

The members of the Board of Directors of the new Islamic Bank are Dato Sri Sulaiman, Encik Vaseehar Hassan Abdul Razack, Dato’ Mohd Salleh Haji Harun, Dato’ Othman Jusoh and Encik Abdullah Mat Noh.

Its first branch, known as Cawangan Utama, will be located at the ground floor of RHB Centre. However, customers of the new bank can conduct their banking transactions at any of the existing 208 branches of RHB Bank. They also have access to their accounts at more than 500 ATMs as well as through the Internet.

“Thus, customers or account holders of RHB Islamic Bank can conduct their banking transactions at any RHB Bank branch,” Mr Bhaimia said. “This way, we ensure that all our customers have equal access to any branch to conduct their banking.”

With the opening of RHB Islamic Bank, all customers of RHB Bank’s SPI have now automatically become customers of the new bank.

For the customer, however, the change is seamless. If he has a savings account, he can continue to use the same passbook, and for current account holders, their existing cheque books are still valid.

Customers can continue to get the latest information and updates on products from the new Islamic bank by clicking on the same “Islamic Banking” link on RHB Bank’s website www.rhbbank.com.my.

Alternatively, they can proceed directly to the RHB Islamic Bank’s own website www.rhbislamicbank.com.my.