Fourth-largest: A file picture showing the RHB bank headquarters in Kuala Lumpur. The combination of the two mid-sized financial institutions would create Malaysia’s fourth-largest financial group by assets.
PETALING JAYA: The proposed merger between AMMB Holdings Bhd
and RHB Bank Bhd is credit positive for the former’s main operating bank – AmBank(M) Bhd – because its distribution, funding resources and systemic importance would benefit from being a part of a larger Malaysian banking group, says Moody’s Investors Service.
On a standalone credit basis, AmBank’s funding profile is weaker than that of RHB. AmBank has a materially smaller market share of domestic deposits and a lower percentage of low-cost current and savings account deposits in its deposit mix than RHB.
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