GRP TO OPEN NEW BANKS IN LAOS & MALAWI BY YEAR END

Financial Group Holdings AG, the holding company for ICB Banking Group, has obtained approval to open new commercial banks in Laos and Malawi by end of this year.

Group chief executive officer Harith Harun said Wednesday the bank planned to open two branches in each country initially, adding that the new banks would be 100 percent owned by the group.

Harith said the move was in line with the bank's strategy to expand its network in emerging economies, where it currently has two banks in Asia and eight in Africa.

He said from the management office based in Malaysia, the group was currently managing banks in 11 countries, namely Indonesia, Bangladesh, Senegal, The Gambia, Guinea, Sierra Leone, Ghana, Mozambique, Tanzania, Djibouti and Albania, with about 130 branches.

He was speaking to reporters after a signing ceremony between the group and SAS Malaysia here to implement the SAS banking intelligence solutions to better streamline and manage banking operations.

On the investment required for the new banks, Harith said: "In terms of capital requirement, Laos required us to invest more." However, he did not disclose any figures.

Asked whether this was right time to open new banks amid uncertainties in the global market, Harith said: "We are still continuing with our plan. We do a thorough study before we invest in any country. Looking at all the fundamentals before we decide whether to enter the country or not. It's not something that we decide in a short time basis."

"We still in the expansion mood. We are also looking at opportunities to expand in neighbouring countries in Asia," he said.

The group, which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange, has allocated US$2 million to implement the SAS solutions in the region, Harith said.

"This is the first phase, with a duration of six to nine months," he said, adding that other countries would be covered in the next phase.

The group is starting with the use of the SAS financial management and management information systems solutions to help it report, manage and improve financial performance.

"With the management office located in Kuala Lumpur, partnering and tying up with SAS Malaysia will bring about about positive synergies and cost effectiveness benefits," Harith said.