RHB Invests RM8.6 Million in Boost Bank, Maintains 40% Stake in Digibank
by Fintech News Malaysia February 19, 2024RHB Bank has further invested RM8.6 million in Boost Bank, subscribing for an additional 8.6 million shares to maintain its 40% stake in the digital banking venture.
According to The Star, this follows Boost Holdings Sdn Bhd’s (BHSB) similar injection of RM12.9 million earlier this month.
The Boost-RHB digital bank consortium was one of five groups awarded digital banking licenses by BNM in April 2022. It officially commenced operations on 15 January 2024 following a thorough operational readiness review validated by the central bank.
Currently, the consortium is undergoing an alpha-testing phase with internal employees, family, friends, and a selected group of customers. This phase aims to refine user experience and product offerings before a wider public launch.
The additional capital infusion aims to fund Boost Bank’s operational and capital expenses for the first half of 2024 and meet the minimum capital requirement set by Bank Negara Malaysia (BNM). With the latest subscriptions, Boost Bank’s paid-up capital reaches RM206.5 million.
According to RHB Bank’s filing with Bursa Malaysia, this investment is not expected to significantly impact its net assets, gearing, or earnings for the year ending 31 December 2024. It also will not affect the bank’s issued share capital or shareholder holdings.
Featured image credit: Edited from RHB
