The
competition between the Maybank/Kim Eng and potential RHB/OSK investment
banking groups will likely be in the regional arena, sources said.
Domestically, OSK Holdings Bhd is a strong
name in retail stockbroking, a niche that is expected to boost the new
potential merger with RHB Capital Bhd. OSK also has a presence in the region,
especially in Singapore, Indonesia, Hong Kong and Indochina.
Meanwhile, Kim Eng's strength is in its home
market, which is Singapore, and elsewhere in the region. It is the top
stockbroker in Thailand with 43 branches; elsewhere, it has seven branches in
Vietnam, four in the Phillippines and six in Indonesia. Kim Eng also has a
presence in international financial centres such as Hong Kong, London and New
York.
Their parent companies, Maybank and RHB
Capital, have sizeable broking operations domestically, which are
well-supported by large institutional clients.
Unveiling the new Maybank-Kim Eng Corporate
Identity earlier this month are: (From Left to Right) Kim Eng's Ronald Ooi,
Maybank's Dato' Sri Abdul Wahid Omar and Tengku Dato' Zafrul bin Tengku Abdul
Aziz.
In the region, Maybank has 22 branches in
Singapore, two in Vietnam where it also holds a stake in An Binh Bank (122
braches) and 50 in the Philippines while it owns two banks in Indonesia PT Bank
Internasional Indonesia (344 branches) and PT Bank Maybank Syariah Indonesia
(one branch).
The Maybank/Kim Eng group has revealed its
regional aspirations in Singapore last week at a signing ceremony that marked
its US$1.5bil takeover of Kim Eng.
Meanwhile, the potential deal between RHB and
OSK is still being hammered out and it is expected to be finalised by the
middle of next month. In its aspiration to be the leading broker in the region,
the Maybank/Kim Eng group will tap on the opportunities arising from the
integration of the Asean economic community by 2015.
"Kim Eng's distribution is strong,'' said
the investment banking (IB) group CEO Tengku Datuk Zafrul Tengku Aziz.
"What they lack is higher investments in IB-driven growth.''
Backed by the retail, corporate advisory and
institutional businesses, the new pillars to be developed would be asset
management and derivatives, said Zafrul.
At the same time, underlining the strong
recruitment drive would be an emphasis on the cost income ratio.
"We have done well in Singapore,'' said
the group's executive adviser Ronald Ooi. "We have started feeling some
synergies and will leverage on the balance sheet and client base of Maybank.''
Synergies will cover revenues earned from
retail, corporate and institutional activities; cost savings through
implementation of best practies and an integrated platform while other factors
will include the creation of a regional talent pool.
Project integration teams have been set up;
the first two phases are targeted for completion by year end, following which
the integration programme will be rolled out across the region.
A sales team from Malaysia has been sent to
Singapore for training to launch new products.
"Kim Eng is already successful in
Thailand,'' said Ooi, adding that the group would be upgrading its services in
Malaysia where Maybank had 386 branches.
It would also be launching a regional research
team, he added.
The group's ambitious thrust into the IB
segment comes at a time when the world economy is expected to slow down, and
hence, the need to raise capital may be lower among companies.
"Our plan is for the long term,'' said
Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar.
"This business is driven by fee-based income. Markets will eventually
recover and we will be there to capitalise on the opportunities.
"There is always a need for capital (and
good companies will attract investors),'' said Wahid, referring to the recent
oversubscription by more than 20 times for the Pavilion real estate investment
trust.
Yap Leng Kuen in Petaling Jaya/The Star | ANN
Business & Investment Opportunities
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