RHB Bank continues to transform

Monday July 13, 2009

It wants to be well prepared for imminent economic recovery

PETALING JAYA: RHB Bank Bhd expects to sustain profitability and asset growth this year while raising the bar on service quality as the group continues to reap the benefits of its ongoing transformation exercise amid a challenging economic environment, said the bank’s new group managing director Datuk Tajuddin Atan.

Tajuddin aims to maintain the banking group’s record net profit achieved in financial year ended Dec 31, 2008, which exceeded RM1bil for the first time.

“To sustain at this level would be fantastic in view of the current challenging environment,” he said. “In that way, we would surely make heads turn.’’

He said his immediate priorities were to continue with the group’s five-year transformation programme which started in 2007.

“It is crucial to position ourselves well in order to be prepared for the imminient economic recovery,” Tajuddin told StarBiz.

“RHB already has a strong management team. As a mid-sized bank, it is agile and can respond fast to changes. It is matter of improving efficiency and further reducing costs.”
The various strategic business units have already been restructured and buzzing with activities based on their areas of focus, he said, adding that RHB has passed its first phase of improved efficiency and was now into its second phase of sustainability and higher performance.

Tajuddin succeeded Michael J. Barrett, the former group managing director, on July 1.

He was previously CEO and president of Bank Pembangunan Malaysia Bhd.

Prior to that, Tajuddin was general manager (CEO position) at Bank Simpanan Nasional from October 2004 to November 2007.

He spent his early years at the former Bank Bumiputra, where he served for 16 years, holding various positions such as group treasurer and assistant general manager (treasury) of its New York branch.

RHB plans to strengthen Islamic banking in both aspects of retail and investment banking, Tajuddin said, adding that his main priorities were to ensure that assets and liabilities were well managed, with loans growth targeted at 5% to 7% this year.

“If the business is fundamentally sound, we would look to restructure credit facilities to match cashflows affected by the difficult external environment.

“We have strengthened a clear credit framework and strengthened our collection as well as early tracking mechanism,” he said.

Tajuddin is also stressing on the need to set a high level of service quality at RHB.

“Customers nowadays are very choosy. It is not just about offering a whole range of products or services.

“Competition is the buzzword now. We blink and we would lose potential customers. If someone else blinks, we would get their customers. Not doing anything in the current environment is bad,” he said.

Tajuddin said he used the bank’s products and services himself and sometimes turned up unannounced at some of the bank’s branches as part of efforts to improve the quality of service.
“I need to experience it first-hand. If I find it difficult to use, how would our customers feel?” he asked.

RHB has been looking seriously into customer complaints and will embark on a re-training programme for over 3,000 staff in the areas of service and credit quality.

“We are a recognisable brand, with over 180 branches and a large customer base. But all this means nothing if the service quality is not improved,” he said.

Tajuddin also intends to further improve staff welfare by organising annual dinners, family and sports days.

“We want to get the families involved as we understand that a lot of family time has been sacrificed by our staff,” he said.

http://thestar.com.my/news/story.asp?file=/2009/7/13/business/4300440&sec=business