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Tag: CIMB Group

  • CIMB completes Asean footprint

    CIMB completes Asean footprint

    CIMB Group Holdings Bhd is finally completing its operating footprint in Asean with the launch of its banking presence in the Philippines. It has received regulatory approval from the Securities and Exchange Commission of the Philippines for its investment banking joint-venture in the country, CIMB Bancom Capital Corporation.

    CIMB Group CEO (group ventures and partnerships) Effendy Shahul Hamid said CIMB Bancom will look to deliver value added advisory and cross-border capital market services to Philippine corporates looking to expand and grow across Asean, as well as capitalise on CIMB’s strong presence in the region to originate inbound deals to the Philippines.

    CIMB Bank Philippines Inc (CIMB Philippines) aspires to be the nation’s first all-digital and mobile-first bank, promising to make banking simpler, more convenient, and hassle-free, according to the group’s statement.

    “We look forward to bringing a differentiated and digital proposition to the market. Internet and mobile penetration in the Philippines remains one of the highest in the world, a clear sign of the progressive and modern society we hope to serve,” said Effendy.

    CIMB Philippines CEO Vijay Manoharan noted that consumers need innovative financial solutions that are relevant to their needs as well as help them get ahead and advance their financial well-being, but they do not necessarily need a physical bank.

    “By offering most of our products via the Octo app securely, we are offering the next-level any day, any time convenience for our customers by enabling them to effectively ‘carry’ our bank branch in the palm of their hands.”

    CIMB Philippines’ partners include 7-Eleven and DragonPay, with a total of 8,000 convenient customer touchpoints nationwide.

    The CIMB Bank Visa-powered Debit Card is accepted at any of the 20,000 Bancnet, Visa, and Visa Plus automatic teller machine (ATMs) nationwide and two million Visa and Visa Plus ATMs worldwide.

    To cater to those who want to really start preparing for what’s ahead and save for the future, CIMB Bank offers the UpSave Account, which allows greater savings with its high interest rate of 2% per annum (eight times higher than other banks).

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  • CIMB Group Q3 net profit up 4.2%

    CIMB Group Q3 net profit up 4.2%

    CIMB Group Holdings Bhd posted 4.2% higher net profit for the third quarter ended Sept 30, 2018 of RM1.18 billion, compared with RM1.13 billion for the same quarter in 2017 with contribution from all segments except wholesale banking. This was despite group revenue coming in 6.4% lower at RM4.14 billion, compared with RM4.42 billion.

    CIMB Group said the decline in operating in the quarter under review, was attributed to declines in non-interest income and net interest income of 17.0% and 1.6%, respectively.

    Consumer Banking profit before tax (PBT) grew 3.9% year-on-year (Y-o-Y) from better cost management. Regional Commercial Banking PBT rose 450.0% Y-o-Y from the reduction in provisions. Wholesale Banking PBT was 41.7% lower Y-o-Y across all wholesale segments given the weaker capital markets. Group Asset Management and Investments (Gami) PBT was 542.9% higher Y-o-Y from improvement in private markets, while Group Funding for the third quarter ended Sept 30, 2018 PBT was flat Y-o-Y.

    “As 2018 draws to a close, we remain on track to meet our key T18 targets. However, we remain cautious amidst weaker regional economies and global trade tensions. Against this backdrop, we will continue to control asset quality and cost across all businesses and geographies, while we finalise our next mid-term plan to propel CIMB onto a stronger growth trajectory,” said Group Chief Executive Tengku Datuk Seri Zafrul Aziz.

    Net profit for the nine month period was 30.8% higher at RM4.47 billion, compared with RM3.41 billion for the period ended Sept 30, 2017.

    Revenue for the period was also higher at RM13.31 billion, compared with RM13.11 billion.

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  • Nazir Razak steps down as CIMB chairman, succeeded by Mohd Nasir Ahmad

    Nazir Razak steps down as CIMB chairman, succeeded by Mohd Nasir Ahmad

    CIMB Group Holdings Bhd has received Bank Negara Malaysia’s approval for the appointment of Datuk Mohd Nasir Ahmad as the group chairman effective tomorrow. He will succeed Datuk Seri Nazir Razak, who is stepping down last week.

    On Sept 24, Nazir announced his intention to retire from his position as the group chairman and all other positions within the CIMB group of companies by year-end.

    Nazir had served CIMB for 29 years since 1989, including as group CEO for 15 years and as group chairman since 2014. Under his leadership, CIMB grew from a fledgling corporate finance franchise into a top Malaysian investment bank, and was later transformed into a leading universal bank in Asean.

    Meanwhile, Mohd Nasir has been a member of the group’s board of directors (BOD) since 2015, and its senior independent director since April 2016.

    As part of this appointment, he will relinquish his positions as senior independent director and chairman of the audit committee. However, he will remain as a member of the group BOD’s audit committee, risk committee and group nomination & remuneration committee.

    Mohd Nasir is a chartered accountant by training and a fellow of the Association of Chartered Certified Accountants (ACCA), UK. He is also a council member of the ACCA Global Council. He has 39 years of corporate experience through companies such as Tenaga Nasional Bhd, including in CEO positions at Syarikat Permodalan Kebangsaan Bhd and Perbadanan Usahawan Nasional Bhd. He is the group chairman of Media Prima Bhd, as well as an independent director of CIMB Bank Bhd, SIRIM Bhd and Sistem Televisyen Malaysia Bhd.

    “I am delighted that following the Sept 24 announcement of my intention to retire, the board has been able to appoint my successor quickly from within the group board, and someone capable of taking over immediately. I am, therefore, relinquishing all my positions in the CIMB group with effect from today. Naturally, I will make myself available to assist the new chairman in any way to ensure a smooth transition,” Nazir said in a statement on Mohd Nasir’s appointment.

    CIMB group’s BOD and chairperson of group nomination & remuneration committee Teoh Su Yin said Mohd Nasir’s substantial corporate experience in various capacities and leadership roles, coupled with his three-year directorship on the CIMB group board, will provide valuable guidance and continuity during this time of transition and CIMB’s continued evolution.

    “The board looks forward to his stewardship as the group shapes its next mid-term growth strategy. The board would also like to record its appreciation to Nazir under whose tenure CIMB grew and became a leading Asean financial institution, and we wish him all the very best for the future.”

    CIMB group CEO Tengku Zafrul Aziz said the group looks forward to being guided by Mohd Nasir as it starts executing its next mid-term growth plan in 2019, which will focus on, among others, the people, customers, digital and sustainability.

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  • CIMB Thai to target less aggressive loan growth

    CIMB Thai to target less aggressive loan growth

    For the past five years, CIMB Thai Bank has accelerated its loan growth, especially in retail banking, to comply with Malaysia-based CIMB Group’s policy.

    This has been achieved via housing loans in the retail – or individual – segment in order to build up the bank’s customer base, he said.

    The strategy has resulted in a housing-loan portfolio of Bt50 billion to Bt60 billion, against less than Bt10 billion five years ago, giving CIMB Thai Bank a total retail-banking portfolio of nearly Bt100 billion.

    During this period, the bank targeted overall annual loan growth of above 20 per cent, but this was only achieved in 2013, when lending expanded by 23.2 per cent.

    Last year’s loan growth came in at 11 per cent, with growth of just 4.7 per cent being achieved in the first nine months of this year, against a target of 15-20 per cent, said the CEO.

    In terms of asset size, CIMB Thai Bank’s Bt300 billion gives it a ranking of eighth out of the 11 listed banks in Thailand.

    “Singapore-based United Overseas Bank (Thai) has an asset size of Bt350 billion, and they are okay with this size, as well. With the current scale of CIMB Thai Bank, we should not be aggressive and we should keep to [loan] growth of 10 per cent per year,” Subhak said

    “We discussed this with the group in Malaysia and they agreed with our way. The economic slowdown of the past two years [in Thailand] has impacted on retail lending, causing the bank to spend much more time than expected on expanding business to retail clients and resulting in our return on equity being lower than the target of 5 to 6 per cent,” he said.

    CIMB Thai Bank reported a return on equity of 9.58 per cent for 2012, followed by 7.18 per cent for 2013 and 4.44 per cent for last year, while net profit came in at Bt1.58 billion, Bt1.49 billion and Bt988.8 million, respectively.

    For the first nine months of this year, the bank posted net earnings of Bt847 million, down 6 per cent from Bt900 million in the same period last year.

    Subhak said he expected full-year net profit to be similar to or a little higher than last year’s level, because even though it had posted the highest third-quarter percentage growth among its peers, the sum needed to be put aside as additional provisioning, especially during the current economic environment.

    CIMB Thai Bank recorded a year-on-year rise of 81 per cent in third-quarter net profit to Bt498 million.

    However, the Thai unit of CIMB Group hopes to achieve a return on equity of 10-12 per cent in the next three years, by focusing on non-interest income from areas such as investment banking, treasury products, bancassurance and mutual funds, Subhak said.

    While non-interest income at present contributes 30-35 per cent of the bank’s income, it will not overtake interest income as the main contributor despite the planned shift to a lower gear for loan growth in the coming years, he said.

    In the next two to three years, non-interest income should reach 40 per cent, he added.

    CIMB Group is strongly committed to its investment in Thailand, as reflected in its approval of the local bank’s capital increase of Bt3.68 billion via the issuance of new shares, he stressed.

    CIMB Thai Bank will increase its registered capital from Bt10.54 billion to Bt13.7 billion by issuing 6.325 billion new shares.

    The subscription period is October 26-30 and, after the additional funds are mobilised, its capital-adequacy ratio will rise to 15 per cent, from the current 13.7 per cent.

    CIMB Group is happy with the bank’s performance because of the quarterly profit contribution of 8-10 per cent that it makes to the group, he said.

    Furthermore, the Thai unit has a substantial role in strengthening cross-border deals for the Malaysian banking group.

    The bank is one of four institutions mandated as lead arrangers for a syndicated term loan of US$1.25 billion (Bt44.25 billion) to Charoen Pokphand Group, with CIMB Labuan – part of CIMB Group’s Malaysian operations – lending $250 million as part of the deal.

    CIMB Thai Bank, meanwhile, is the onshore security agent for a $400-million loan to Maxtop Management Corp, a TCC Group company.

    CIMB Labuan is the lender and arranger and offshore security agent, while CIMB SG – CIMB Group’s Singaporean arm – provides the bank account for the deal.