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  • CIMB Niaga partners Liquid Group to support Bank Indonesia’s QR Code standardisation

    CIMB Niaga partners Liquid Group to support Bank Indonesia’s QR Code standardisation

    PT Bank CIMB Niaga Tbk (“CIMB Niaga”) and Liquid Group today announced a strategic partnership to spearhead cross-border QR payment acceptance between Singapore and Indonesia. The partnership was initiated through their joint participation in Bank Indonesia’s Quick Response Indonesian Standard (QRIS) trial for cross-border payment transactions. The QRIS trial was conducted on May 23, 2019 using the CIMB Niaga’s digital banking product “Go Mobile” carried out at selected merchants located at Terminal 3, Singapore Changi Airport.

    Slated to launch in the 3PrdP quarter of 2019, CIMB Niaga and Liquid Group will enable the acceptance of participating QRIS compliant payment apps and e-wallets at Singapore Changi Airport through Liquid’s integrated QR payments and marketing infrastructure launched back in April this year.

    CIMB Niaga and Liquid Group have successfully completed their proof-of-concept with CIMB Niaga’s Go Mobile application and QRIS compliant payment apps and e-wallets. With the integration of Bank Indonesia’s QRIS code into Liquid Group’s cross-border payments platform, Indonesian travellers will be able to use their preferred local payment apps to make purchases at Changi Airport.

    Furthermore, CIMB Niaga and Liquid Group will be looking at opening the Singapore – Indonesia corridor for QR payments, enabling the acceptance of Singapore’s local payment apps and e-wallets at participating merchants in Indonesia.

    Lani Darmawan, Consumer Banking Director, CIMB Niaga, commented: “We are honoured to be the first bank in Indonesia given the opportunity by Bank Indonesia to conduct a cross-border QRIS payment trial. We believe that this initiative will greatly benefit our customers who can enjoy the ease of transacting abroad, starting with Singapore’s Changi Airport, using our Go Mobile QR app. This also offers a perfect solution to our customers who may not travel aboard with credit cards or large amounts of cash. We see great potential in the adoption of QRIS-supported cross-border payments with an increasing number of people travelling aboard.”

    Lani added:” The Go Mobile application will offer customers an attractive and competitive exchange rate at the point of payment, with the option to draw funds from their savings accounts, e-wallets and credit cards.”

    Jeremy Tan, Chief Executive Officer, Liquid Group, commented: “Accelerating the adoption of QR payments across borders is our key mission and we appreciate the vote of confidence given to us by CIMB Niaga in using Liquid Group’s integrated payments and marketing infrastructure at Changi Airport for their QRIS trial. Further to opening up the Singapore – Hong Kong corridor for QR payments last month, we are thrilled to now offer Indonesian consumers the convenience and benefit of cross-border QR payments starting with those stopping over at Singapore Changi Airport. We look forward to expanding the acceptance of QR payment apps and e-wallets from both Singapore and Indonesia on our cross-border payment platform.”

    Ms Teo Chew Hoon, Group Senior Vice President of Airside Concessions at Changi Airport Group, commented: “We continuously find new ways to elevate the shopping experience for our passengers and make their payment journey a frictionless one.  This collaboration with Liquid Group and CIMB Niaga will make Changi Airport the first retail destination to spearhead the acceptance of cross-border QR payments using Liquid Group’s first-of-its-kind unified QR payment infrastructure.”

    Liquid Group and Joint Electronic Teller Services Limited (“JETCO”) has also announced a strategic partnership to enable cross-border QR payment acceptance in Singapore and Hong Kong earlier in May, a month after the launch of the world’s first integrated QR payments and marketing infrastucture at Changi Airport back in April 2019.

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  • CIMB IB Research expects higher operating costs

    CIMB IB Research expects higher operating costs

    CIMB Investment Bank Research (CIMB IB Research) has retained its “reduce” call on AirAsia Group Bhd as it forecasted the company to face higher operating costs and gearing levels until 2021.

    The research house lowered its target price for AirAsia to RM1.50, from RM1.82 previously, as it expects lower core earnings per share and dividend of 13 sen.

    At 11.00am, AirAsia was trading down 1 sen or 0.38% at RM2.64 with 1.55 million shares transacted. Its market capitalisation stood at RM8.86 billion.

    In a note today, CIMB IB Research analyst Raymond Yap pointed out that AirAsia had sold 79 aircraft to lessor BBAM Ltd Partnership in 2018 and is expected to sell a further 25 planes to lessor Castlelake LP by the third quarter of this year.

    Given this, Yap explained that together with other existing operating lease aircraft, AirAsia is expected to capitalise RM11.8 billion worth of borrowings related to the operating leases in financial year 2019, effectively bringing back to the balance sheet what had previously been off-balance sheet.

    “The impact would be to raise reported gross gearing of 19% in FY18 to 198% on a pro forma basis after MFRS 16.

    “The overall impact to P&L (profit and loss) earnings from the above sale and leasebacks (S&LB) is negative because AirAsia would have to pay for the lessors’ profit margin as well as provide for a higher level of maintenance charges based on lessors’ conditions for lease returns, which tend to be strict. The net result would be a squeeze on AirAsia’s profit margins,” he said.

    Yap added that with the squeeze in profitability, AirAsia will experience greater operating leverage from unexpected changes in fuel prices, exchange rates, competitive dynamics, and airport taxes and levies.

  • CIMB partners SimplySiti on halal beauty biz

    CIMB partners SimplySiti on halal beauty biz

    CIMB Islamic Bank Bhd and local beauty brand SimplySiti have announced a collaboration that will see CIMB Islamic enabling SimplySiti to expand its halal beauty care business beyond Malaysian borders. The homegrown brand will also leverage the end-to-end support of the CIMB-Asean Halal Corridor and CIMB’s strong regional network, to meet the demand for quality halal beauty, cosmetics and skincare products across the region.

    CIMB Group Islamic banking CEO Rafe Haneef said for any homegrown business and SME, opportunities for growth are aplenty but the challenge is always on how to scale up.

    “This is where CIMB Islamic’s expertise, the CIMB-Asean Halal Corridor and CIMB’s regional network provide a strong value proposition to our customers. Through this collaboration, we are excited to facilitate SimplySiti’s move into its next growth phase by reaping the vast halal business opportunities within Asean,” he said.

    The CIMB-Asean Halal Corridor is an enhanced trade network linking halal businesses with trade infrastructure and ecosystems across Asean to take advantage of increasing demand for halal products in the region and beyond.

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  • 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 get permission for banking venture with Philippines

    CIMB get permission for banking venture with Philippines

    CIMB Group Holdings Bhd has obtained the green light to establish its investment banking business in the Philippines. In a filing with Bursa Malaysia, the group said its wholly owned subsidiary CIMB Group Sdn Bhd had on Jan 23 received the relevant approvals from the Securities and Exchange Commission of the Philippines, including the Certificate of Incorporation and Certificate of Registration for an investment house licence.

    The investment banking business in the Philippines will be operated via a 60% shareholding in CIMB Bancom Capital Corporation with the remaining 40% stake to be held by local partners Bancom II Consultants, Inc and PLP Group Holdings, Inc.

    The three parties have entered into a joint venture agreement following the receipt of the approvals.

    CIMB shares went down 1 sen or 0.2% to close at RM5.65 today on 13.4 million shares done.

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  • CIMB divests insurance broking business for RM59.6m

    CIMB divests insurance broking business for RM59.6m

    CIMB Group Holdings Bhd’s wholly-owned indirect subsidiary CIG Bhd yesterday entered into a share purchase agreement with HBG Asia Holdings Ltd and HBG Malaysia Sdn Bhd (Howden) to divest its remaining 51% stake in CIMB Howden Insurance Brokers Sdn Bhd (CHIB) to Howden for RM59.6 million.

    The group said approval from Bank Negara Malaysia in relation to the proposed divestment was received by Howden on Nov 27, 2018.

    “CHIB currently operates an insurance broking business and the proposed divestment is in line with CIMB’s aspirations to further streamline and focus on its core banking businesses. As part of the proposed divestment, CHIB will cease to be an associate of CIG,“ CIMB said.

  • CIMB Thai’s FY18 net profit drops on higher tax expenses

    CIMB Thai’s FY18 net profit drops on higher tax expenses

    CIMB Thai Bank PCL’s unaudited con-solidated net profit for the year ended Dec 31, 2018 (FY18) fell 98.2% year on year to 6.9 million baht (RM883,732), dragged down mainly by higher income tax expenses. Profit before tax decreased 44.5% to 271.2 million baht year on year, mainly due to a 9.6% increase in operating expenses and lower net fee and service income and other income of 7.0% and 2.6% respectively. This was offset by a 5.3% growth in net interest income and a 2.6% decline in provisions.

    President and CEO Kittiphun Anutarasoti said CIMB Thai group’s consolidated operating income, on a year-on-year basis, increased 2.9% from 2017 to 13.54 billion baht from higher net interest income of 5.3% on the back of loan expansion and higher interest income on investments.

    Net interest margin over earning assets stood at 3.71% in 2018, compared with 3.89% in 2017 as a result of lower yield on earning asset.

    As at Dec 31, 2018, CIMB Thai’s total gross loans stood at 227.8 billion baht, making an increase of 6.9% from Dec 31, 2017.

    Deposits stood at 234.3 billion baht, an increase of 6.5% from at the end of December 2017. CIMB Thai said the modified loan-to-deposit ratio was higher at 97.2% against 96.8% as at Dec 31, 2017.

    The gross non-performing loan (NPL) stood at 9.9 billion baht, with a lower gross NPL ratio of 4.3% compared with 4.8% as at Dec 31, 2017. The lower NPL ratio was due to more efficient risk management policies, improved asset quality management and loan collection processes as well as the sale of some NPLs in 2018.

  • Outlook for local banking sector remains challenging: Kenanga Research

    Outlook for local banking sector remains challenging: Kenanga Research

    The banking sector’s outlook is challenging due to external concerns while clarity and direction on the domestic front remain murky, according to Kenanga Research, which maintained a neutral stance for the sector as no fundamental change is expected, and the sector lacks concrete catalysts. “We view the industry with caution as uncertainties and headwinds still prevail. The industry remains unexciting, dragged by moderate loan growth and soft capital markets. Prevailing negative sentiment both globally and domestically will continue to drive volatility and uncertainty in the industry. Caution will still prevail due to the soft economy outlook globally,“ the research house said in a note today.

    It said banks with healthy asset quality (hence low impairment allowances) will still be the favour due to their defensive quality.

    “As such, selective asset growth will still be the focus for the banks. Despite stable economic outlook in the domestic environment coupled with low unemployment, we opine that cautiousness and selective assets growth will still prevail in the industry,“ Kenanga Research explained.

    It said loan growth moving forward will still be moderate as uncertainties prevail with fee-based income expected to be soft as a result of the volatile capital market. However, with the stable outlook, this will support a moderate and stable credit charge for the industry.

    “We expect impairment allowances (credit costs) to be stable and consistent (as it had been generally in 2018) which will lend support to the banks’ bottom line. We do not discount another potential up-cycle of impairment allowances, especially those highly exposed to the energy sector (CIMB, Maybank and RHB Bank) as energy prices have been under pressure due to the perceived economic slowdown both domestically and globally.”

    Kenanga Research expects mild compression for net interest margin (NIM) as most of the banks’ loan-to-deposit ratio and loan-to-fund ratio are over 90% and 80%, respectively, as compression will be mitigated by soft credit demand. The deferment of NSFR (net stable funding ratio) into 2020 plus the absence of high credit demand will support the outlook for a stable to mild compression in NIM.

    “However, looking at the slowing momentum in household demand, we do not discount the likelihood of competitive lending rates in the short term as banks strive to achieve their loan growth target. This competition will ultimately lead to further downside pressure on NIM.”

    The research house has revised downwards the 2018/2019 earnings estimates by 80bps/30bps to +6.7%/+5.6% respectively.

    “For 2019, earnings are slower at +5.6% year-on-year (yoy) as we based from these assumptions of credit charge at 0.33%; and slight compression on NIM by 3bps and a higher pace from fee-based income (+6.6% yoy due to a lower base).”

    It also toned its outlook on loan growth for FY18 at +4.7% (from +4.9% previously) on account of revision of prevailing headwinds.

    Kenanga Research reiterated its outperform call for BIMB Holdings Bhd, as its financing portfolio (70% of total financing) is skewed towards household (75% first-time buyers for residential property) with focus on growing its personal financing will minimise NIM compression.

    Another preferred pick is Malaysia Building Society Bhd (MBSB), which is expected to achieve 3-4% growth driven by corporate loans/financing as another RM950 million is expected to be disbursed in Q4 18.

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  • Malaysia’s CIMB to gain RM200m from stockbroking business transfer

    Malaysia’s CIMB to gain RM200m from stockbroking business transfer

    CIMB Group Holdings Bhd is expected to record a gain of disposal of approximately RM200 million from the process of transferring the group’s stockbroking business to its joint venture company with China Galaxy Securities Co Ltd.

    This comes after taking into account the premium on the disposal of approximately RM433 million and goodwill attributable to the business.

    CIMB said the consideration in connection with the proposed business transfer will be satisfied in cash and it was determined based on the future prospects and net asset value of the in-scope business as at Dec 31, 2015, which amounted to RM565.6 million.

    The consideration is subject to closing audit adjustments, if any.

    Jupiter Securities, the subsidiary of China Galaxy Securities Co Ltd (CGS)-CIMB Holdings Sdn Bhd, which is the Malaysian joint venture entity, will operate the stockbroking business.

    CIMB said in a stock exchange filing that its wholly owned subsidiary CIMB Group Sdn Bhd (CIMBG), China Galaxy’s wholly owned unit China Galaxy International Financial Holdings Ltd (CGI), and CGS-CIMB Holdings Sdn Bhd has inked a share subscription agreement for the subscription of new shares in CGS-CIMB Holdings Sdn Bhd.

    The proposed business transfer entails the sale of CIMB Investment Bank Bhd’s cash equities business and 100% equity interest in CIMB Futures Sdn Bhd as well as CIMB Bank Bhd’s equity financing services business and share margin financing granted in connection with the cash equities to Jupiter Securities.

    After the completion of the exercise, CIMBG and CGI will hold 50% stake each in the Malaysian JV entity.

    The exercises are expected to be completed in the first half of 2019.

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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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  • CIMB chairman appointed new chairman

    CIMB chairman appointed new chairman

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

    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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  • 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 to accept payments from six mobile wallets

    CIMB to accept payments from six mobile wallets

    CIMB Bank Bhd will be accepting Quick Response (QR) Payment from six major mobile wallets at its terminals, enabling it to tap into an estimated customer base of about 4.5 million in Malaysia and 520 million registered mainland Chinese.

    This is the first in the market QR payment acceptance for six mobile wallet systems are accepted on a single terminal. The six mobile wallet partners are Alipay, Touch & Go Digital, Boost, KiplePay, Mcash, and Vcash.

    CIMB has partnered with GHL Systems Bhd, a leading payments company in Malaysia and Asean, to introduce the CIMB’s multi-QR terminal acceptance points for both merchants and customers.

    CIMB Group Consumer Banking CEO Samir Gupta said that this move will not only fulfil its customers and merchants’ needs, but also help develop the cashless payment ecosystem in Malaysia, in support of Bank Negara’s vision in promoting a cashless society.

    “We are delighted to enable CIMB merchants to process multiple QR codes via GHL’s unique single payment facility/gateway. Our multi-channel model is not just convenient but also cost-saving to CIMB’s merchants as multiple QR settlements are streamlined into a single payments provider,” said GHL Group CEO Danny Leong.

    The payment method is already available at certain outlets of House of Leather, NSK and Super Seven.

  • CIMB in Top 100 of Thomson Reuters’ Global Diversity & Inclusion Index

    CIMB in Top 100 of Thomson Reuters’ Global Diversity & Inclusion Index

    CIMB Group Holdings Bhd has been ranked top 100 most diverse and inclusive organizations globally by Thomson Reuters’ Diversity & Inclusion (D&I) Index 2018, which measures more than 7,000 companies globally on their environmental, social, and governance (ESG) strategy.

    Thomson Reuters D&I Index provides an additional lens to investment professionals and investors alike to evaluate companies for their ESG strategies, which have a bearing on long-term opportunities and investment risks, as more and more investors value the societal and business benefits of investing in diverse and inclusive organisations.

    “The recognition in Thomson Reuters D&I Index affirms our efforts to create a positive impact not only
    economically, but also socially and environmentally. CIMB takes its commitment to all our stakeholders seriously. In terms of our people, we have consciously transformed CIMB into a workplace that attracts and retains a team of talents, currently comprising 34 nationalities spread across 15 countries. As for ESG-related efforts, our corporate social responsibility arm, CIMB Foundation, has expended over RM120 million to benefit about 700,000 lives since its inception in 2007. All these factors have contributed to the group’s journey in becoming a leading ASEAN bank, and I’m pleased that these efforts are being recognised by the Thomson Reuters D&I Index,” CIMB Group CEO Tengku Datuk Seri Zafrul Aziz said in a statement today.

    Over the years, CIMB has demonstrated great leadership in the banking industry and corporate world by transforming its people policies, as well as strengthening its ESG aspirations. This includes extended maternity leave; flexible work arrangements for parents to young children; 30-day paid paternity leave; and even up to six months’ staff rejuvenation leave, with the staff’s job and seniority assured. Currently, CIMB has a 56% ratio of women in its workforce, with close to 42% representation at senior management level.

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  • CIMB Malaysia expects FY18 to be a record year

    CIMB Malaysia expects FY18 to be a record year

    CIMB Group Holdings Bhd, which posted a record net profit of RM3.29 billion for the first six months ended June 30, 2018 (1H18), expects a record net profit to ensue for the full year on a stronger performance in 2H18 partly driven by improvement in loan growth.

    Group CEO Tengku Datuk Seri Zafrul Aziz said CIMB is on track to meet its loan growth target of 6% for this year, compared with a weaker-than-expected 0.2% last year hit by its Indonesian business.

    It saw a loan growth of 3.4% for 1H18, dragged down by the weakening of rupiah in Indonesia. Excluding foreign exchange fluctuations, its 1H18 loan growth would have been 7%.

    “We’re still keeping our loan growth target. 1H18 was slower and we’re optimistic that in 2H18 we will catch up,” Zafrul said in a press conference after announcing its 1H18 financial results here.

    “For 2H18, we hope to sustain (performance). It’s been a strong two months (July-August), we’ve seen a pickup in capital markets (from slower capital market activities in 1H18), but also in the region in Thailand and Singapore. We’re optimistic. Judging from the pipeline that we have, we should see the same, if not better performance in 2H18,” he added.

    Zafrul said CIMB is focused on achieving its T18 targets, subject to recovery of capital markets, and continued improvement in asset quality across Indonesia, Thailand and Singapore.

    Saying the worst is over for its Indonesian business, he said a rate increase is expected in Indonesia to stabilise the rupiah. On the macro side, it is wary of the currency impact and is also mindful of the election in Indonesia. However he said CIMB Niaga has done well in term of its bottom line, adding that it was the best performing bank in 1H18 in Indonesia.

    “If you look at the numbers on Indonesia, the asset quality is better. The problem is the loan growth and this is something that we need to push further and at the same time we’re tracking the industry.”

    For the second quarter ended June 30, 2018, CIMB’s net profit jumped 80% to RM1.98 billion from RM1.10 billion a year ago bolstered by a RM928 million gain from the sale of 20% of CIMB-Principal Asset Management and 10% of CIMB-Principal Islamic Asset Management. Revenue rose 12% to RM4.86 billion from RM4.33 billion in the previous corresponding quarter.

    CIMB posted a record net profit of RM3.29 billion for the first half of 2018, up 44% from RM2.28 billion a year ago, bolstered by the disposal gain. Excluding the gain, CIMB’s 1H18 earnings was RM2.36 billion, translating to a 3.3% year-on-year growth. Revenue rose 5.5% to RM9.17 billion from RM8.69 billion in the previous year.

    Zafrul said CIMB is finalising its next mid-term growth plan post-T18, which will be premised on customers, people and sustainability, among others. He added that any changes to its management are based on performance and will be decided by the board and not one shareholder.

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