KUALA LUMPUR: RHB Banking Group today unveiled its new three-year strategy 2022-2024 called ‘Together We Progress 24’ (TWP24) in continuing the growth momentum of its previous five-year FIT22 strategy and to drive the group’s ambition to be a leader in Service Excellence.

       Group managing director and group chief executive officer Mohd Rashid Mohamad said FIT22 strategy had built the right foundations to take the group’s segment-led strategy to the next growth phase and as RHB moves forward, it continues to enhance new customer-centric ideation through a strong customer-first culture.

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       FIT22 comprised 22 initiatives and is driven by three key pillars -- Fund Our Journey, Invest To Win and Transform The Organisation.

       He said the TWP24 programmes that will be carried out over the next three years are designed to promote a more robust performance enabled by enhanced digital, information technology (IT), and analytics capabilities, and position the group as a key player in the sustainability space.

       RHB has shortened its strategic planning cycle to three years to address continuous changes in market trends and customer preferences and enhance customer experience, as well as the increased importance of being nimble, he told reporters after unveiling the TWP24 here, today.

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       "Under TWP24, a number of key targets have been set, including an return on equities of 11.5 per cent and cost to income ratio of less than 44.5 per cent by 2024, as well as non-financial targets relating to digital, IT and analytics.

       "The sustainability targets include mobilising RM20 billion in sustainable financial services and a financial inclusion target of empowering two million people by 2026, and for the group to become carbon neutral by 2030,” he noted.

       Each business’ priorities within the TWP24 strategy are centred around enhancing customer excellence driven by digital innovation.

       Elaborating further, Mohd Rashid said the TWP24 strategy will be centred around three strategic objectives, namely to ‘Be Everyone’s Primary Bank’ by building deeper relationships with target customers, ‘Prioritise Customer Experience’ by delivering market leading and differentiated customer experience and service levels, and to ‘Drive Quality Growth’ by concentrating on domestic and international growth, where the group is equipped with the ‘right-to-win’ strategies while focusing on growing business profitably.

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       In paving the way towards the implementation of TWP24, he said the group had recently strengthened its management bench through internal movements and expansion in roles of certain key existing senior management members.

       "This will ensure greater focus in driving key growth areas, (thereby) accelerating the group’s digital journey towards transforming customer experience,” Mohd Rashid said.

       On the TWP24 risks exposure, he commented that the group would be cautiously optimistic as there are still much uncertainties surrounding the market particularly due to the geopolitical tensions and the global rising inflation rate.

       On the ringgit's downtrend, he said the bank's exposure to foreign investment is still small and the focus is still in ringgit, therefore the impact on TWP24 will be minimal.

       However, he is still positive on Malaysia's economic growth after the country recorded first-quarter 2022 Gross Domestic Product growth of five per cent.

       On RHB's loan growth target this year, Mohd Rashid said the bank is targeting a 4-5 per cent growth, slightly lower than the industry's expectation of 5.2 per cent, in anticipation of some uncertainties.

       ”We feel growing 4 to 5 per cent is more realistic at this juncture, as the inflation and Overnight Policy Rate hike will have an impact on borrowings sentiments. But we believe with the continuous growth of the economy, that would be neutralise and people would come back to borrow,” he said.

       Elaborating on the ringgit trend, he said the bank viewed that the local currency will strengthen to 4.10 to 4.15 level in the last quarter of this year, on the back of continuous inflow and economic improvement as the ringgit flows will depend on demand and supply.

       Meanwhile, touching on the digital bank licence with its partner, Boost Holdings Sdn Bhd, Mohd Rashid said it will be a totally different set up from the bank.

       "We are the investee in the new to be formed joint-venture company...I see this as a continuous journey of RHB's digital agenda, wherein the group could leverage as cross referral as well as to help served customers that we are not able to serve currently,” he added. - Bernama