EON Bank upbeat on growth, better results

EON Bank Bhd, a merger target of Hong Leong Bank Bhd, expects to continue growing and better its financial results, particularly in the consumer and small and medium enterprise (SME) segments.

Chief executive officer Michael Lor said the bank expects a 14 per cent loan growth this year.

He said the proposed takeover by the Hong Leong group has not impacted EON Bank's operations significantly.

The bank is on track to achieve financial growth.

"Despite analysts' expectations of slower growth, we are positive of our business growth especially in the consumer and SME segments," Lor said at the launch of the group's corporate social responsibility (CSR) programme in Kuala Lumpur yesterday.

"In the banking industry, there are some business segments that will see (growth) momentum and some that will be a bit slow. Fortunately for us, we have not seen that yet," he added.

Parent EON Capital Bhd (EONCap) is set to release the group's results for the second half of the year by next week.

Lor, however, hopes that the merger saga would not drag on too long.

"This is something that shareholders will have to decide. Mergers and acquisitions are commercially-driven," he said.

On Tuesday, EONCap received the green light from the Finance Ministry to enter into an agreement with Hong Leong to take control of EON Bank and another subsidiary MIMB Investment Bank.

EONCap will hold an extraordinary general meeting on August 19, despite objections from its largest shareholder Primus Pacific Partners Ltd, for its share holders to vote on a proposed disposal to Hong Leong for RM5.1 billion.

Earlier, EON Bank, together with business analytics solutions provider SAS Institute Sdn Bhd, launched the inaugural "SAS-EON Bank Group Knowledge Discovery Challenge" programme for university students.

The programme is part of the key initiative under the banking group's newly-launched CSR strategy called "Developing Our Youth Today, For Tommorrow".

By Rupinder Singh