PETALING JAYA: RHB Bank Bhd’s wholly owned subsidiary, RHB Islamic has decided not to continue its bancatakaful service arrangement with Syarikat Takaful Malaysia Keluarga Bhd (STMKB).

According to the group’s Bursa filing, the service arrangement, in which RHB Bank distributes family and general takaful products developed by STMKB, is slated to end on July 31, 2020.

RHB said it will start the process to secure a new long-term takaful partner and expects to complete this process before July 31 this year.

The termination is not expected to have any material effect on the bank’s consolidated earnings per share, net assets per share and gearing for the financial year ending Dec 31, 2020.