COMPANY PROFILE

 HISTORY OF RHB CAPITAL BHD Although formed in 1997, our roots go back in time to the early 90s. Many events since that time have molded us into the bank we are today. Below is a brief run-through of the important dates and events in the history of the RHB Banking Group which include mergers and partnerships with other banks that have ultimately led to the RHB Banking Group that we are today. Kwong Yik Bank Berhad

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1913 - Established with a start-up capital of RM300,000 at the Old Market Square in Kuala Lumpur, making it Malaya's first local bank 1997 - Merges with DCB Bank Berhad, making it the country's biggest ever banking merger at that time

Sime Bank Berhad (formerly known as UMBC Bank)

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1959 - A group of businessmen, led by Mr Chang Ming Thien, a prominent figure in the rubber industry in Malaya and Singapore, sets up the United Malayan Banking Corporation Berhad (UMBC) 1960 - Officially declared open by Prime Minister Tunku Abdul Rahman Putra Al-Haj. It is the first commercial bank to be established in independent Malaya 1996 - UMBC becomes part of Sime Darby Berhad and is renamed Sime Bank Berhad 1999 - Merges with RHB Bank Berhad and becomes part of the RHB Banking Group

DCB Bank Berhad

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1966 - Establishment of Development and Commercial Bank (D&C Bank, later renamed DCB Bank) 1997 - Merges with Kwong Yik Bank Berhad to form RHB Bank Berhad, turning a medium-sized bank into the third largest integrated financial services group in Malaysia

Utama Banking Group (UBG)

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1976 - A licensed commercial bank, is incorporated as a public company 2003 - Merger of RHB Bank Berhad with Bank Utama Berhad into the RHB Banking Group

RHB Banking Group

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1983 - Rashid Hussain secures a broker's licence and sets up Rashid Hussain Securities Sdn Bhd 1996 - Rashid Hussain acquires a 75% stake in Kwong Yik Bank Berhad 1997 - Merger of Kwong Yik Bank Berhad and DCB Bank Berhad to form RHB Bank, then Malaysia's third largest financial services group 1999 - Merger of Sime Bank Berhad and RHB Bank Berhad to form the RHB Banking Group 2003 - Merger of RHB Bank Berhad with Bank Utama Berhad into the RHB Banking Group 2005 - RHB Banking Group received a license for its Islamic Banking arm - RHB Islamic Bank Berhad

 BANKING INDUSTRY IN MALAYSIA RHB CAPITAL BHD was classified ivolved in the banking industry. The banking industry in Malaysia dates back to the early 1900s when rapid economic development, as a result of thriving profits from rubber plantations and the tin industry then, saw the opening of foreign bank branches and the setting up of Malaysias first domestic bank Kwong Yik (Selangor) Banking Corporation (now Malayan Banking Berhad) in 1913. Since then, the banking industry has continued its steady growth and expansion until eventually there was a need for a governing body to oversee the activities and operations of the numerous banks in the country. This led to the establishment of Bank Negara Malaysia (Central Bank), a statutory body which is wholly-owned by the Federal Government. The constitution, functions and powers of Bank Negara are set out in the Central Bank of Malaysia Act 1958. The objectives of Bank Negara are to: Promote monetary stability and a sound financial structure Act as a banker and financial adviser to the Government Issue currency and keep reserves safeguarding the value of the currency Influence the credit situation to the advantage of the country

Financial Institutions Those classified as financial institutions in Malaysia constitute commercial banks, Islamic banks, merchant banks, foreign banks representative offices, finance companies and discount houses. Following the successful restructuring and consolidation of the banking sector in Malaysia in 2003, efforts have shifted to building the domestic financial infrastructure. The industry-wide consolidation of the domestic banking institutions resulted in 54 banking institutions being reduced to ten domestic anchor banking groups: Affin Bank, Alliance Bank, AmBank, Bumiputra-Commerce Bank, EON Bank, Hong Leong Bank, Malayan Banking, Public Bank, RHB Bank, Southern Bank. These banks have finance company subsidiaries. The first round of banking consolidation was initiated by the government when it imposed a RM2 billion capitalization requirement for banks. The second phase of consolidation from 2004 onwards could involve further mergers of individual banks and finance company subsidiaries as well as mergers among the ten banking groups. Banking Products and Services The evolution of the banking industry in Malaysia has led to conventional banking products and services, such as deposits and loans/hire purchase, taking on more sophisticated and advanced features such as phone banking, phone-a-loan, auto pay, auto debit, ATMs and online shopping and banking. These features are facilitated by advanced technological developments that allow bank customers easier and simpler methods and processes of going about their daily banking. In addition to improving banking features and methods, it has also led to the introduction of new products and services like credit and debit cards, investment products (insurance and unit trusts), financing products and services (trade and share financing), trade and credit facilities, remittances, loans to priority sectors and Islamic banking. Base Lending Rate/Interest Rates The Base Lending Rate (BLR) is fixed by Bank Negara Malaysia and is derived from the cost

of funds which fluctuates depending on the economic conditions of the country. Thus, if economic conditions are good, the BLR will be higher and conversely, if economic conditions are poor, the BLR will be lower. Since 1983, with the exception of special loans or priority sectors, all loans charged by banks are at a margin (usually between 0.75% and 2%) above the BLR. This margin is determined by the respective banks depending on the banks own cost of funds and the borrowers credibility. Bank Negara has presently set the BLR at 6%. In Islamic banking, the BLR is known as the base financing rate. Apart from the BLR, which covers loans, other interest rates imposed by banks cover all kinds of deposits. Some banks even offer joint current and savings accounts which also earn interest. These interest rates are determined by the banks and tend to vary according to the economic development of the country. Thus during good times you can expect higher deposit rates but, consequently, loan rates would also go up and vice versa. Banking & Financial Institutions Act 1989 (BAFIA) The Banking and Financial Institutions Act came into force on 1 October 1989 and provides for the licensing and regulation of institutions carrying on banking, finance company, merchant banking, discount house and money-broking businesses. It also provides for the regulation of institutions carrying on scheduled business comprising non-bank sources of credit and finance, such as credit and charge card companies, building societies, factoring, leasing companies and development finance institutions. Lodging a Complaint Against a Financial Institution If your financial institution is unable to resolve your complaint, you can write to Bank Negara Malaysias Banking Mediation Bureau, which handles disputes between customers and financial institutions. All you have to do is write a letter to the bureau stating your complaint and that you were unable to resolve it with your bank. You will also need to complete a standard form allowing your bank to disclose to the bureau any information on your account required for the purpose of investigating your complaint. The Banking Mediation Bureau handles complaints relating to the charging of excessive fees interest or penalties; misleading advertisements; unauthorized ATM withdrawals; unauthorized use of credit cards; and unfair practices of pursuing actions against a guarantor. After receiving your official complaint, the bureau will conduct a thorough investigation and see how best to resolve your complaint. It will speak with you and the officers concerned at your bank before coming to a decision based on its findings. If you choose to accept this decision, the matter is deemed resolved. However, if you choose to reject the decision, your only other recourse will be the judicial process where you can proceed with taking legal action against your bank.

 BUSINESS ACTIVITIES
The RHB Banking Group is currently the fifth largest fully integrated financial service group in Malaysia. Our core businesses are streamlined into seven Strategic Business Groups (SBGs):

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Retail Banking Business Banking Group Transaction Banking Corporate & Investment Banking Islamic Banking Global Financing Banking Group Treasury

Our businesses are offered through our main subsidiaries - RHB Bank Bhd and RHB Investment Bank Bhd, which are wholly owned by RHB Capital, and RHB Insurance Bhd, which is 94.7% owned by RHB Capital. Our Islamic Banking Unit, RHB ISLAMIC Bank Bhd, is wholly owned by RHB Bank, while our asset management and unit trust businesses are held under RHB Investment Management Sdn Bhd, a wholly owned subsidiary of RHB Investment Bank. Retail Banking Retail Banking serves the needs of retail customers. Our forte is "packaged" products, such as Insurance, Wealth Management, Hire Purchase, Cards and Unsecured Loans as well as Secured Loans such as mortgages for individuals. Business Banking Business Banking offers a comprehensive range of products that caters to Commercial and SME customers. These are delivered through a Programme Lending approach for smaller sized commercial customers through working capital and commercial mortgages. Our expertise and experience in structuring project and contract financing as well as trade packages enable us to customize offerings tailored for larger sized commercial customers according to their financing needs. Group Transaction Banking RHBs Group Transaction Banking (GTB) comprises Cash Management, Trade Services and FI & Correspondent Banking, offering transaction-related services. With a state-of-the-art electronic banking and settlement system, RHBs Award Winning Reflex Cash Management System offers clients efficient cash management solutions to execute payments and collections with ease, speed and accuracy. Capable of International Payments and Trade Services in major currencies through an international corresponding banking network and RHBs branch presence in ASEAN countries, the FI & Correspondent Banking Division has established banking relationships with more than 1,400 banks globally. Trade Services offers a comprehensive range of trade products and services that suit the needs of exporters, importers and middlemen in various industries. This encompasses classical trade products, structured trade solutions and electronic trade banking. RHB Bank's Trade Business Desks are supported by trade specialists offering professional trade advisory services. Trade modules are also accessible online via Reflex. A dedicated team of Cash Management, Trade Services and Correspondent Banking specialists offer various transaction solutions to help streamline organizations finance-related operations, optimizing cash flows. Corporate & Investment Banking The CIB Strategic Business Group offers the full range of corporate and investment banking services, comprising corporate finance advisory, equity & debt capital markets, securities & futures broking, asset management, corporate banking, private equity and research. CIB serves public-listed companies, multinationals and large

corporates across all industry types. To date, we have been involved in many of Malaysias multi-billion and highest profile deals and have received numerous industry awards for our achievements. Islamic Banking It all started on March 1st 2005, RHB Banking Group officially received the license for its Islamic Banking subsidiary - RHB Islamic - making it the first commercial banking group in Malaysia to have its full-fledged Islamic Bank. That year, Bank Negara Malaysia's Governor, Tan Sri Dr. Zeti Akhtar Aziz officially handed over the Islamic Bank's operating license to RHB Banking Group. Now, RHB Islamic offers a range of consumer and business banking financial solutions that are Shariah-based. Our services are available at our RHB Islamic branches, as well as all RHB Bank branches. These include over180 branches and more than 500 ATM's throughout the nation, with the added convenience of Phone and Online Banking. As an alternative financial services provider to conventional banking, we are committed to provide our customers with a professional and rewarding banking experience. With the past as our guide and your future success as our focus, we aim to be your trusted provider of Islamic financial solutions. Global Financial Banking RHB Capital's offshore businesses, particularly its commercial banking operations in Singapore, Thailand, Brunei and Vietnam, as well as its non-Ringgit based funding operations in Labuan, are collectively grouped under this SBU. It is our aspiration to deliver superior customer experiences and shareholder value and therefore be recognised and respected as one of the top financial service groups in Asean. The Group hopes to achieve these aspirations by helping its customers to succeed and satisfying all their financial needs as a one-stop centre, simplifying banking for the convenience of all. Group Treasury Group Treasury comprises the Treasury functions of Commercial Bank, Investment Bank and Islamic Bank. Its major activities include:

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Managing cost of liabilities, seeking new sources of higher-yielding investment assets in both the domestic and foreign currencies while managing liquidity and funding requirements of the Banks balance sheet. Directing activities towards the more stable revenue streams through market making and building group synergy by increasing capabilities to support customer-centric activities Providing excellent customer support services through a combination of strategies involving the provision of financial solutions, business relationship development, customer service initiatives and product innovation Providing investment and hedging solutions to fulfill clients requirements for reduced borrowing costs, hedged price risks and enhanced returns through the use of forwards, options and swaps, as well as being the center for structured product development, and for the structuring, warehousing and trading of all derivative instruments Strong distribution capability and extensive investor networking with a proven track record as the primary subscriber and market maker for multi-billion-Ringgit transactions Providing a full range of Islamic products and services to customers ranging from FX services to commodity Murabahah products and tailor-made structured solutions Playing an important role towards developing BNM-initiated ICBU, and providing funding in all noneringgit financing and investments.

 COMPETITORS OF RHB CAPITAL BHD

1. MALAYAN BANKING BHD 2. CIMB BANK BERHAD 3. AMBANK BERHAD

SWOT Analysis for RHB CAPITAL BHD

Strengths 1. 4th largest bank in Malaysia 2. offer a comprehensive rang of financial product and services 3. strong cash flow 4. strong management team 5. strong financial performance 6. strong growth of its Islamic banking SBU 7. ranked in top 30 Malaysia brand 2008 Weaknesses 1. lack of promotions and advertising 2. weak retail layout and web design 3. average volume of branch network 4. weak in consumer financial retail 5. lack of relationship building with community 6. weak image of on line banking 7. ranked 6th in banking industry bank value

Opportunities 1. growing demand of Islamic financial product and services 2. increase of on line banking 3. growing middle income customers market 4. significant expansion in ASEAN region 5. industry consolidation 6. favorable banking industry legislations and policies 7. technological changes Threats 1. aggressive competition strategy among the main banks 2. safety issues of on line banking 3. competition with international bank due to liberalization of domestic market 4. M&A among major competitor 5. economic uncertainty in global market 6. fears on the credibility of Islamic banking ethical compliance and monitoring systems