KUALA LUMPUR: EON Bank Bhd can stand alone with or without merger and acquisition (M&A) offers, says group chief executive officer Michael Lor.

“We are in a strong position today to grow, (regardless of) whether there are offers or not.

“As far as the management is concerned, it is business as usual for us,” he said after unveiling EON Bank group’s wealth management campaign for this year.

Lor said the bank’s performance indicators improved steadily over the last 12 months as a result of its transformation programme, aggressive promotions and marketing strategy.

Over the last 12 months, he said, the bank’s credit card segment grew in excess of 20%, hire purchase up by 3%, loan loss coverage rose to 86% from 56% and gross non-performing loans improved to 2% from 4%.

“Based on these growth numbers, the value of the company has significantly appreciated.

“That’s why the board has taken the stand that the Hong Leong Bank Bhd (HLB) offer has significantly undervalued the EON Group,” he said.

Khazanah Nasional Bhd, the Government’s investment arm, with 10% stake, had agreed to sell is equity to HLB. The Employees Provident Fund (EPF) was also prepared to sell its 10.7% stake.

Other shareholders of EON Capital Bhd include Hong Kong-based private equity fund Primus Pacific Partners which held 20.2% stake.

EON Capital is the holding company of EON Bank, which has a network of 140 branches, while HLB is the country’s sixth-largest lender, with 199 branches and sales centres.

It was reported earlier the combined assets of HLB and EON Capital worth RM121.41bil would enable the grouping to overtake assets of the country’s fourth-biggest lender, RHB Capital Bhd, which stood at RM110.5bil.

On EON Bank’s bancassurance segment, Lor said it expected a 19% year-on-year growth to RM200mil from RM105mil last year.

Lor said EON Bank was confident of achieving the target as more innovative products and services would be launched soon with its strategic partners to increase customer loyalty. — Bernama

• 
• 
• 

More News Business Headlines      Malaysia's blue chips fall more than 6pts in early trade      Profit taking may weigh on Malaysian equities      HP raises 2013 outlook as Whitman's plan takes hold      Bernanke says more progress needed before stimulus pullback      Wall Street falters in volatile session on Fed worries      Aeon director: GST won’t affect group      Petronas Chemicals Group to invest RM3bil in capital expenditure      Weak CPO prices hit Boustead profit      April CPI up 1.7% on higher food prices      Report: AirAsia X sets indicative price for IPO      MAEI sees 3%-4% rise in electrical, electronics exports      Cahaya Mata Sarawak to invest in grinding plant      Star to leverage on new, fast-growing businesses      No plans for MBO, says Vincent Lee      Axiata said to weigh bid for Axis Telekom Indonesia      Scomi active as CEO raises stake      Bumi Armada shares rise after a strong Q1      BToto buys RM20m REDtone shares      Ingress gets notice from joint-offerors      Support Line      Axiata Q1 profit improves      Lower net profit for AirAsia      BMW targets 10% growth in sales this year      Forum to highlight on Asia economic ventures      Asean flavour in Invest M’sia confab      Top management changes at APM      ‘Fair value’ of MMHE at RM3.30      Push to limit foreign ownership in banks      EU: FTA will depend on concessions from Beijing      Sony cuts target, to assess spin-off plan      Europe moves closer to ending banking secrecy      China Galaxy soars 11% in debut      Gina Rinehart loses US$7bil      Australia consumer confidence falls  Go

• New crime prevention department to be set up
• Syariah Court can annul child’s marriage, says SIS
• A-G: Prosecution to proceed with statutory rape charges against Riduan
• Women’s groups laud A-G’s promise to press statutory rape charges against Riduan
• Probe into why teen withdrew rape report
• What comes after WYY?
• Prime Minister to address global women conference
• Sabah security is new Defence Minister’s priority
• Gerakan may accept government positions
• EC gazettes official GE13 results
• Only AGM can tell Chua to quit, says Ling
• Mind-blowing feats by mental giant
• PKR mulls postponing party polls
• PSM to review ties with Pakatan after GE13 losses
• Opposition holds first Kedah post-polls rally

• Anti-Islamist protests flare following London attack
• 'British solider' butchered in suspected Islamist attack

• Ice queen Nicol into British Open quarters
• Australia to consider following ban on anchor putters
• Intxausti wins 16th stage, Nibali still keeps pink jersey
• Indonesia drawn to meet China again – in knockout stage
• Results worldwide
• Malacca sprinter Mohd Azam Masri out to create history by winning five events in MSSM meet
• Athletics runs in the veins of Vallabouy family
• Chinese long jumper Jinzhe claims another Olympic scalp
• Dane Jorgensen’s wish is to avoid Chinese ace Lin Dan in World Championships
• National badminton team’s lack of depth a glaring factor in home tourney
• Khim Wah-V Shem perform above expectations in Sudirman Cup debut
• Jindapon aims to qualify for 2016 Olympics
• Kenichi’s goal is to take Japan into Sudirman Cup semi-finals
• Dong-keun shows he’s a capable replacement
• Harrison makes swift U-turn

• Please wait.

• Asean flavour in Invest M’sia confab
• Lower net profit for AirAsia
• Report: AirAsia X sets indicative price for IPO
• Petronas Chemicals Group to invest RM3bil in capital expenditure
• Malaysia's blue chips fall more than 6pts in early trade
• Profit taking may weigh on Malaysian equities
• HP raises 2013 outlook as Whitman's plan takes hold
• Bernanke says more progress needed before stimulus pullback
• Wall Street falters in volatile session on Fed worries
• Australia consumer confidence falls

Copyright © 1995-2013 Star Publications (M) Bhd (Co No 10894-D) - Investor Relations