KUALA LUMPUR: RHB Bank
Bhd has secured landmark deals, locking in 20-year exclusive bancassurance agreements with Tokio Marine Life Insurance Malaysia Bhd (TMLM) and Syarikat Takaful Malaysia Keluarga Bhd (STMK) worth RM1.62 billion, the largest deal in Malaysia to-date.
In a note today, CIMB Securities Sdn Bhd said these partnerships are expected to generate stable annual fee income of RM140 million-RM145 million from 2026 onwards and boost return on equity by up to 0.3 percentage points.
"The agreements support RHB Banking Group by enhancing non-interest income, digital distribution, and customer experience through continued collaboration with long-standing partners," it said.
On Aug 1, 2025, RHB renewed its bancassurance and bancatakaful agreements with existing partners TMLM and STMK, as well as its subsidiary, Syarikat Takaful Malaysia Am Bhd, on an exclusive basis.
It added that under the renewed agreements, RHB will receive total access fees of up to RM1.62 billion, which will be amortised over 20 years.
"These exclusive bancassurance agreements also take into account projected insurance and takaful business volumes (with forward-looking growth assumptions) and the distribution potential of RHB over the tenure of the agreements (via the branch network and digital channels).
"Based on the initial guidance provided in the announcement of the agreements, the pro forma impact of after-tax non-interest income in the first year of the agreement is estimated at RM36.7 million in 2025," it said.
As such, CIMB Securities has maintained its ‘buy’ call for RHB Bank, albeit with a lower target price of RM7.35 from RM7.50 previously, in view of a five to seven per cent downward revisions to 2025-2027 forecasts. - Bernama
