CIMB Group CIMB Group Press Release CIMB Group RM800,000 boost for 10 schools under CIMB Foundation’s PINTAR programme index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D566 Mon, 14 Apr 2014 00:00:00 +0800 Kedah: 10 schools adopted by CIMB Foundation under the auspices of the PINTAR programme will receive a total of RM800,000 financial assistance this year from CIMB Foundation, the corporate social responsibility and philanthropic arm of CIMB Group.

The 10 schools include five schools in Kedah, namely SK Dato’ Seri Syed Ahmad, SK Seri Muda, SJK(C) Tong Yuh, SK Pedu and SK Kelibang, which are newly adopted and launched today at a ceremony graced by the Tunku Panglima Besar of Kedah, Dato’ Seri DiRaja Tan Sri Tunku Puteri Intan Safinaz binti Tuanku Abdul Halim Mu’adzam Shah, Ahli Jemaah Pemangku Sultan Kedah. The other five schools are in Perlis.

“It is indeed gratifying to learn that our existing adopted schools in Perlis have achieved encouraging improvement based on their 2013 Ujian Penilaian Sekolah Rendah (UPSR) results. This has certainly motivated us to adopt five more schools in Kedah, in addition to uplifting our financial support for the programme by over three-fold this year,” said Raja Noorma Othman, Chief Executive Officer, CIMB Foundation at the launch of CIMB Foundation’s PINTAR schools in Kedah.

“Giving back to the community is very much a part of CIMB’s DNA. We are committed to helping the poor and underprivileged, and to ensuring that every child in Malaysia has access to education,” she assured.

Also present at the launch was Tuan Haji Asmee bin Haji Tajuddin, Head of Academic Management Sector, Kedah State Education Department.

CIMB Foundation’s PINTAR programme aims to help the schools improve their overall academic achievement. Particular attention is given to English and each school receives an allocation of RM20,000 per year to run English enhancement programmes. The five newly adopted schools in Kedah have also received 10 units of desktops each to upgrade their computer labs. The computers are equipped with English self-learning kits that make learning of the language more interesting and fun, thus encouraging the students to develop a greater attachment to the language.

“We also help improve and upgrade the schools’ facilities and procure teaching and learning materials. We are heartened to witness that the confidence level of these rural children has increased thanks to the story books, computers and workbooks supplied by us,” Raja Noorma added.

The emphasis placed on improving the students’ command of the English language resulted in a 40% increase in the number of students who scored A in English in 2013’s UPSR as compared to 2012. One of the adopted schools in Perlis, SK Titi Tinggi emerged as the best school with a 52% pass rate in English as compared to 35% in 2012. The school also achieved a 50% overall pass rate as compared to 30% in the year before.

Since its inception in 2007, CIMB Foundation has adopted 15 rural and underperforming schools throughout Malaysia, of which 10 had successfully graduated from the programme. To date, CIMB Foundation has invested approximately RM4.3 million in its PINTAR schools.

Royal touch: Tunku Panglima Besar of Kedah, Dato’ Seri DiRaja Tan Sri Tunku Puteri Intan Safinaz binti Tuanku Abdul Halim Mu’adzam Shah, Ahli Jemaah Pemangku Sultan Kedah (left) striking the gong to mark the official launch of CIMB Foundation's PINTAR schools in Kedah, accompanied by Raja Noorma Othman, Chief Executive Officer, CIMB Foundation (centre) and Tuan Haji Asmee bin Haji Tajuddin, Head of Academic Management Sector, Kedah State Education Department (right).

CIMB leads China Development Bank’s CNH1.0 billion Dim Sum bond issuance in Hong Kong index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D565 Tue, 01 Apr 2014 00:00:00 +0800 Transaction marks China Development Bank’s offshore RMB bond issuance with predominant ASEAN investor base

Kuala Lumpur: CIMB acted as the Joint Global Coordinator and Joint Lead Manager for the CNH1.0 billion Dim Sum bond issued in Hong Kong by China Development Bank Corporation (“CDB”), a wholly-owned policy-based financial institution of the Government of China and the largest RMB bond issuer in Hong Kong.

The 3-year Dim Sum bond issued from CDB’s RMB7.0 billion Debt Issuance Programme launched in November 2013 was completed on an accelerated bookbuilding process, with the order book grew in excess of CNH1.8 billion. The deal managed to garner strong interest from both retail and institutional investors, in particular with 76% allocation to investors from ASEAN, Korean and Japan, with a coupon rate of 3.35%.

“CIMB’s key role in this landmark deal is evidenced by the success of CDB achieving its primary ASEAN focus, as CDB looks to diversify its investor base from its existing North Asia investor group. They are the leading RMB bond market player in Hong Kong, and it is no surprise that they have now taken the lead to tap on ASEAN investors. Having said that, we are pleased to have effectively leveraged our strong ASEAN network and capabilities to pull the right investors for CDB,” said Dato’ Lee Kok Kwan, Chief Executive Officer, Corporate Banking, Treasury & Markets, CIMB Investment Bank.

“It is a classic deal that draws on our unique understanding of Asia and ASEAN in particular, coupled with our Asia-Pacific investment banking capabilities, to demonstrate our ability in intermediating intra-Asian deals. The synergies and strengths of CIMB Group’s investment and universal banking platform across the region evidently gave us the competitive edge to serve our client who was looking to tap into the ASEAN market,” he added.

CIMB Bank introduces the CIMB Preferred Visa INFINITE at the 82nd Financial Advisory Series index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D564 Thu, 27 Mar 2014 00:00:00 +0800 Exclusive credit card completes priority banking offering to members

Kuala Lumpur: CIMB Preferred, the priority banking service of CIMB Bank, had recently introduced the CIMB Preferred Visa INFINITE (PVI) credit card. A launch ceremony was held here in conjunction with the 82nd Financial Advisory Series (FAS) exclusively organised for CIMB Preferred customers.

The ceremony was attended by Aaron Loo, Head of Group Cards and Personal Financing, CIMB Bank and Jade Lee, Head of CIMB Preferred, CIMB Bank. Visa International was represented by its Head of Sales, Ng Kong Boon.

The CIMB PVI card was introduced to provide CIMB Preferred members a host of elite privileges that enhances their lifestyle and banking experience with the bank. Now, this exclusive membership is complete, not only as a gateway to CIMB’s personalised financial advisory and planning services, but also a recognition where preferential rewards await.

As CIMB Preferred members, they are not just equipped with the right information to manage their wealth wisely - delivered via e-newsletter or shared at topic-focused seminars that provide the latest news and views on global economies, financial markets outlooks and trends and innovative products but also treated to a credit card that introduces them to a range of benefits that include travel, dining and shopping across the ASEAN region.

The FAS talk is part of CIMB Preferred’s on-going service to customers, aside from special promotions and banking privileges across the region. Around 200 invited guests attended the FAS session that was the first to be held this year. Apart from Kuala Lumpur, the FAS was also held in Penang on 22 March 2014.

In both FAS sessions, Suresh Kumar Ramanathan, Head of Interest Rate and Currency Strategy, CIMB Investment Bank shared his views with CIMB Preferred members on the contagion currency risks in emerging Asian markets. He believes that the US Dollar will still hold a sound investment amid a measured pace of Quantitative Easing (QE) tapering measures by the US Federal Reserve this year.

The CIMB Preferred members were also enlightened by Binay Chandgothia, a renowned Portfolio Manager for Multi-Asset Advisors, Principal Global Investors Hong Kong, who shared his market expertise in the first FAS session in Kuala Lumpur, explaining the opportunities to be tapped in developed equity markets.

Likewise, these similar insights were shared with the CIMB Preferred members by Lim Kee Yap, Head of Institutional Sales, S&SE Asia in Penang a week later. CIMB Preferred members were also treated to a range of activities and exhibitions by the Bank’s strategic lifestyle merchants at the 82nd FAS in both locations.

For more information, customers can call the CIMB Preferred Call Centre at 1-300-885-300, log on to or visit any CIMB Preferred centres or CIMB Bank branches nationwide.

Jade Lee, Head of CIMB Preferred, CIMB Bank (right) alongside Aaron Loo, Head of Group Cards and Personal Financing, CIMB Bank (left) and Ng Kong Boon, Head of Sales, Visa International (centre) at the launch of the CIMB Preferred Visa INFINITE credit card, in conjunction with the 82nd Financial Advisory Series (FAS) held exclusively for CIMB Preferred members in Kuala Lumpur.

CIMB Bank Issues Eight New Call Warrants index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D563 Wed, 26 Mar 2014 00:00:00 +0800 Kuala Lumpur: CIMB Bank Berhad (CIMB Bank) has issued eight new European-style cash-settled call warrants over the ordinary shares of Coastal Contracts Berhad,Perdana Petroleum Berhad, Yinson Holdings Berhad, Lafarge Malaysia Berhad, Berjaya Auto Berhad, Malaysian Bulk Carriers Berhad, AirAsia X Berhad and Boustead Holdings Berhad.

The warrants are listed today with a tenure of 12 months each and an issue size of 50 million each.

Coastal Contracts, Perdana Petroleum and Yinson Holdings’ shares have been receiving strong interest from investors in recent months, and the current selection of these underlying counters reflects this interest.

In addition, the call warrants on Lafarge Malaysia offer retail investors an opportunity to capitalise on the strong growth of the construction sector. Lafarge Malaysia is the largest cement industry player based on market capitalisation and currently CIMB Bank’s call warrants on Lafarge Malaysia will be the only warrants available on a cement company.

Similarly, there is currently no call warrants available on Berjaya Auto Berhad, which is the sole distributor of Mazda vehicles in Malaysia.

The other call warrants to be listed are replacements for existing CIMB-Bank-issued call warrants that will be expiring soon.

For more information on the call warrants, please visit CIMB Bank’s warrants portal at Additionally, a daily Warrant Digest is available on the portal. Investors can also subscribe to the daily digest by signing up online.

CIMB-Principal rolls out fund with diversified global asset classes index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D562 Mon, 24 Mar 2014 00:00:00 +0800 Aims to provide investors with a smooth and sustainable level of income

Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) today launched the CIMB-Principal Global Multi Asset Income Fund (“Fund”), a fund that aims to provide income and potential capital growth to investors by investing in multiple asset classes through one collective investment scheme.

Speaking at the launch, Munirah Khairuddin, Chief Executive Officer, CIMB-Principal said, “The launch of the CIMB-Principal Global Multi Asset Income Fund today is timely in this low interest rate environment where Malaysian fixed deposits offer yields of only 3.0-3.5%. This Fund seeks to offer a higher potential yield of 5.0% payable on a quarterly basis by investing primarily in high-yielding dividend stocks, investment grade credits and high-grade credits, globally. The Fund utilises a dynamic asset allocation strategy which provides the flexibility to maximise income and total return opportunities. Further, by investing in multiples asset classes, the Fund provides investors with the necessary diversification.”

At the moment, the Fund sees positive momentum in US high-yield and European investment-grade bonds. Expectations that the European Central Bank will continue to be accommodative for a longer period of time augurs well for investment-grade bonds, whilst US high-yield bonds will benefit from the ongoing US recovery. The portfolio is also able to take advantage of any positive outlook in developed markets equity, mainly in the US and Europe, including the UK.

“We believe the unconstrained multi-asset approach in the Fund’s asset allocation strategy allows the Fund to truly take a global view in its search for yield and to offer the best prospective income and total return opportunities,” she added.

This Fund is ideal for those seeking exposure in global mixed assets which is structured via a target fund. In order to achieve its objective, the Fund will invest at least 95% of its Net Asset Value (NAV) in the Schroder International Selection Fund Global Multi-Asset Income (the “Target Fund”); a SICAV domiciled in Luxembourg and established on 18 April 2012. The Fund will also maintain up to a maximum of 5% of its NAV in liquid assets.

“Investing in a global multi-asset fund will provide investors with diversification and can ride on the recovery in the US and Europe regions. We are targeting to raise RM300 million for this Fund by the end of financial year 2014,” stated Munirah, who recently collected a record eight awards at The Edge-Lipper Malaysia Fund Award 2014 on behalf of CIMB-Principal for the company’s overall sterling funds’ performance.

The Fund is available with a minimum subscription of RM10,000 priced at RM1.00 per unit. The Fund is available for investors to subscribe from 20 March 2014 and will be distributed by authorised distributors.

As of 28 February 2014, CIMB-Principal manages a total of 59 retail unit trust funds in which 21 are Shariah-compliant, 12 wholesale funds, 10 Private Retirement Scheme (PRS) funds and two exchange-traded funds (ETFs). CIMB-Principal is also one of the largest institutional money managers and CIMB-Principal’s total assets under management (AUM) stood at RM48.0 billion, an increase of 19.7% from last year’s AUM (RM39.65 billion).

Munirah Khairuddin, Chief Executive Officer, CIMB-Principal (left) and Arnold Lim, Chief Investment Officer (Malaysia), CIMB-Principal (right) officiating the launch of the CIMB-Principal Global Multi Asset Income Fund.

CIMB Junior Squash Development Programme Gets Financial Boost From CIMB Foundation index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D561 Wed, 05 Mar 2014 00:00:00 +0800 Kuala Lumpur: CIMB Foundation today announced that it will give the CIMB Junior Squash Development Programme a financial boost in 2014. It has invested more than RM13 million in the programme since 2008 after the programme was established under CIMB Foundation.

Speaking at the launch of the CIMB Junior Squash Development Programme 2014, Raja Noorma Othman, Chief Executive Officer, CIMB Foundation said, “We are proud to witness the impressive accomplishments of the talented junior squash players under this programme, as clearly shown in the players’ consistent winning performances in international tournaments worldwide. Therefore, in addition to renewing our commitment to sponsor the programme, we are pleased to give it a further boost by upsizing our pledge amount this year, bringing our total sponsorship to RM13.1 million thus far.”

“At CIMB, we believe in investing in talent for today and tomorrow. We started this programme with the aim of elevating Malaysia’s junior squash talent to that of world - class standards, and today we are proud to reward the successes of 29 players with international achievements in the past year,” she added.

The programme celebrated its best results to-date, with the outstanding feat of three talented juniors in the British Junior Open 2014. S.Sivasangari and Aifa Azman did Malaysia proud by bringing home the Girls Under-15 and Girls Under-13 titles respectively. Ng Eain Yow, who was last year’s Under-15 champion, triumphed to an Under-17 runner-up position this year.

Prior to that, the juniors stamped their class by making a complete sweep of all eight titles at the Pontefract Junior Open in England; while at the Asian Youth Games in Nanjing, China, they bagged three out of four gold medals at stake.

To mark the launch of the 2014 programme, Raja Noorma handed over a mock cheque to Dato’ Syed Mustaffa Syed Ali, President of the Squash Racquet Association of Malaysia (SRAM). She also presented certificates of excellence and cash rewards to the juniors at the launch event.

Also present at the launch event was Huang Ying How, Deputy President of SRAM, who said, “We started the CIMB Junior Squash Development Programme with only 400 juniors. Currently, there are about 1,000 juniors under the programme, but all in all, more than 4,200 juniors have benefited from the programme over the years. We thank CIMB for their fantastic support in helping us nurture the young talents. We will continue to focus on developing the national junior squad to win the World Juniors 2016/17 championships. To meet this goal, CIMB has come up with a high performance programme for the elite junior players and is working with us to implement it, including having customised support to meet each elite player’s requirement in enhancing their performance to compete on the international stage.”

The event also marked the launch of the 9th CIMB Rising Stars National Junior Circuit (Under 9, 11 and 13 categories) and the 5th CIMB National Junior Circuit (Under 15, 17 and 19 categories) by SRAM and title sponsor, CIMB Foundation. Both circuits are part of the CIMB Junior Squash Development Programme 2014.

Both circuits will have three legs each and each leg will be held in different states throughout the country to promote the sport nationwide. The joint grand finals (final leg) will be held at the National Squash Centre, Bukit Jalil on 7-10 August 2014. Around 800 juniors nationwide are expected to participate in the circuits this year.

In addition to the junior circuits, CIMB Junior Squash Development Programme 2014 will continue to comprise Project 100, a programme to fund top junior players’ tournament participations to break into the Top 100 professional rankings; incentives for leg winners and the overall champions of the CIMB junior circuits; overseas incentives to provide tickets for the winners of the Malaysian Junior Open and Asian Junior Individual Championships to the British Junior Open; and the State Junior Development Programme to fund state-wide squash development projects.

Calendar for the 9th CIMB Rising Stars National Junior Circuit 2014:

1st Leg6th – 9th MarchNational Squash Centre, Bukit Jalil, Kuala Lumpur
2nd Leg17th – 20th AprilStadium Hang Jebat, Melaka Grand Finals 7th – 10th August National Squash Centre, Bukit Jalil, Kuala Lumpur

Calendar for the 5th CIMB National Junior Circuit 2014:

1st Leg3rd – 6th AprilMajlis Bandaraya Ipoh Squash Courts, Ipoh, Perak
2nd Leg1st – 4th MayMSP Squash Courts, Kuantan, Pahang Grand Finals 7th – 10th August National Squash Centre, Bukit Jalil, Kuala Lumpur

Raja Noorma Othman, CEO of CIMB Foundation (middle in red), Dato' Syed Mustaffa Syed Ali, President of SRAM (middle in stripped tie), and Dato' A. Sani Karim, Former President of SRAM (middle in grey suit) celebrating the successes of players with outstanding international achievements under the CIMB Junior Squash Development Programme.

Raja Noorma Othman, CEO of CIMB Foundation (right) handing over the Title Sponsor mock cheque to Dato' Syed Mustaffa Syed Ali, President of SRAM (left) to mark the launch of the CIMB Junior Squash Development Programme 2014.

Team Innogen from Sunway University is the top trailblazer at the inaugural CIMB Talent Trail index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D560 Sat, 01 Mar 2014 00:00:00 +0800 Kuala Lumpur: Team Innogen from Sunway University beat 57 other teams of “talent trailblazers” from 18 universities to win the top prize of RM5,000 cash at the inaugural CIMB Talent Trail 2014 that was jointly organised by CIMB Group and Talent Corporation Malaysia (TalentCorp) today.

A total of RM25,000 cash prizes were given out to 28 winning teams while the International Medical University as the university with the most number of registering teams was rewarded with an LED television.

The trail involves half-a-day of fun and games in English, with emphasis on employability skills such as clear communications, teamwork, self-confidence, preparedness in facing challenges, and not least, physical fitness, as the participants needed to traverse around Kuala Lumpur on foot or on Rapid buses, Light Rail Transits (LRT) or monorail.

Participants were given a pre-loaded Touch n Go card each before they were flagged off as early as 7.30 am at Menara Bumiputra-Commerce by Hamidah Naziadin, Group Chief People Officer, CIMB Group and Johan Mahmood Merican, Chief Executive Officer, TalentCorp. Participants score points were based on the successful completion of activities, quality of activities performed, and all things being equal, speed.

Meanwhile, Team Unbeatopus from Tunku Abdul Rahman College took the second prize worth RM3,000 and the third place went to The 4-Aces Team of Multimedia University who went home with RM2,000.

“The CIMB Talent Trail is one of CIMB’s many efforts towards enhancing the talent landscape of Malaysia. We are really pleased to be working with Talent Corporation Malaysia on this endeavour,” commented Hamidah.

Hamidah said the trail provides a fun avenue for university students to use English and discover the qualities of an employable graduate. She also felt that learning is most effective when it is both enjoyable and challenging; hence, the manner CIMB Talent Trail was conceptualised.

“We hope this challenge will spur them on to actively use English when they get back to campus. English is the language of international commerce, and it opens the door to many career opportunities,” added Hamidah.

Meanwhile, Johan said, “The CIMB Talent Trail is a fun way for our young Malaysian graduates to work on employability skills. Kudos to CIMB on this innovation in engaging graduates. TalentCorp is proud to once again team up with CIMB, on this collaboration between a leading employer and the Government to help young Malaysian talent entering the job market realise their full potential.”

Even in its first year, the challenge received encouraging response as students started signing up for the Trail when registration opened up in early February. They were required to answer a set of questions on CIMB Group and TalentCorp as part of their registration. Of the 149 teams who registered, only 60 teams qualified to participate in the challenge.

More information about the CIMB Talent Trail 2014 can be found on

Hamidah Naziadin, Group Chief People Officer, CIMB Group (left) and Johan Merican (right) Chief Executive Officer, TalentCorp Malaysia with the Champions of the Inaugural CIMB Talent Trail 2014 (second from left): Wong Keit Sean, Tham Kar Kei, Mayee Chen and Julian Lee of Team Innogen from Sunway University.

And they're off! - Johan Merican and Hamidah Naziadin blew the horn to flag-off the CIMB Talent Trailblazers.

CIMB Talent Trailblazer - Aisyah Nasir (right) from Universiti Islam Antarabangsa Malaysia were tested on her presentation skills during the short speech task.

CIMB Talent Trailblazer -Velenrine Kou from Sunway University was videotaped as she market her strengths as an employable graduate which forms one of the tasks required for the Challenge.

CIMB Named Title Sponsor of the 29th Women’s World Championship in Penang index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D559 Thu, 27 Feb 2014 00:00:00 +0800 CIMB ambassador and homegrown World No. 1, Dato’ Nicol David to spearhead top-class field

Kuala Lumpur: CIMB Group today announced that it has signed on as the title sponsor of the 29th Women’s World Squash Championship in Penang. Part of the Women’s Squash Association (WSA) World Series Platinum, the Penang-CIMB Women’s World Championship will take place at the Subterranean Penang International Conference and Exhibition Centre (sPICE) from 14 to 23 March 2014. The tournament field will be spearheaded by women's World No. 1 Dato’ Nicol David and will feature all of the Top 10 players in the world.

A signing ceremony was held earlier here between CIMB and the State Government. CIMB was represented by its Group Chief Marketing and Communications Officer, Effendy Shahul Hamid whilst Chong Eng, Penang State EXCO for Youth and Sports, Women, Family and Community Development, signed on behalf of the Penang State Government. The signing ceremony was witnessed by the Chief Minister of Penang, Lim Guan Eng.

At the ceremony, Lim said, “We are excited that the Women’s World Championship has returned after a brief break last year, and Penang has been given the opportunity to host this year." "Malaysia is well known as a host to many international sporting events, and this will certainly add one more to the list and boost the country as one of the world’s major tourist destinations, as well as promoting Visit Malaysia Year 2014. Penang is the perfect place to host an international event like this with great sporting facilities, amenities and infrastructure as well as the experience to organise a world championship. Besides, this will also be ideal for Nicol to defend her title on home ground,” Lim added.

Commenting on the sponsorship, Effendy said, “We are thrilled to be involved. CIMB is no stranger to the world of squash and it is only natural for us to play a leading role in a World Championship event. Since 2005, through a strong partnership with Squash Rackets Association of Malaysia (SRAM), we have involved ourselves in all aspects of the sport ranging from junior development programmes to sponsorship of the national open. Without a doubt, one of our most visible commercial programmes is being Nicol David's main sponsor and we are excited she will be defending her world title."

"We have a large presence in Penang and as such we have some special activities lined up for our customers, including a private meet and greet session with Nicol David. Really looking forward to the week," Effendy concluded.

The tournament that boasts a prize money of US$120,000 (RM394,000) will be organised by Nusmetro, as the official event organiser.

Effendy Shahul Hamid, Group Chief Marketing & Communications Officer, CIMB Group (left) and Chong Eng, Penang State EXCO for Youth and Sports, Women, Family and Community Development (right), exchanging documents after the signing ceremony to announce CIMB as the Title Sponsor of the Penang-CIMB 29th Women's World Squash Championship, witnessed by Lim Guan Eng, the Chief Minister of Penang (centre).

CIMB is No. 1 Banking Brand in Malaysia index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D558 Wed, 26 Feb 2014 00:00:00 +0800 Kuala Lumpur: In Brand Finance's annual ranking of the 500 most valuable banking brands globally, CIMB - with an improved brand value of US$ 2.041 billion - was ranked No. 1 in Malaysia and 4th in ASEAN.

The Banker/BrandFinance® Banking 500 is an annual ranking of the most valuable brands in banking conducted by leading brand valuation consultancy, Brand Finance, and its results were revealed in the latest edition of the „The Banker? magazine.

CIMB contributed 29% of the US$ 7.11 billion brand value commanded by Malaysian banks. It is also the only bank in Asia ex-Japan to be awarded the “AAA-” rating - a benchmark that is conceptually similar to a credit rating but instead reflects the strength, risk and potential of a brand relative to its competitors.

Samir Dixit, Managing Director of Brand Finance Asia Pacific, said, “CIMB is a growing brand with strong fundamentals. They are the only Bank in Asia (excluding Japan) to have a AAA- brand strength rating. The AAA rating is enjoyed by only 18 banks worldwide so this is a fantastic achievement. Furthermore, CIMB is also amongst the top 5 banks in ASEAN with a brand value exceeding US$ 2 billion. This is no mean feat given the tough competition in the banking sector in the region. Given the economic slowdown and the margin stress in the industry, the brand will play a very crucial role in the overall success of a bank and that is where CIMB will likely benefit more than others”.

With its enlarged presence in ASEAN, CIMB had embarked on a more concerted effort in building up its brand equity and adopted a more cohesive regional branding strategy. The move was in tandem with CIMB?s aspiration of becoming a leading banking franchise in ASEAN.

Effendy Shahul Hamid, Group Chief Marketing and Communications Officer of CIMB Group, said, "External validation is always good, and it's nice to be recognised as the top banking brand in Malaysia and 4th in ASEAN. This recognition is based on the success of the uniquely ASEAN position our business and brand has taken, and we look forward to delivering differentiated solutions to our customers across the region and beyond.”

Effendy Shahul Hamid, Group Chief Marketing and Communications Officer of CIMB Group (right) receiving the award for being Malaysia’s No. 1 as well as ASEAN's 4th most valuable banking brands by BrandFinance® Banking 500 from Samir Dixit, Managing Director of Brand Finance Asia Pacific (left).

CIMB Group announces RM4.54 billion Net Profit for FY13 index.php%3Fch%3Dg2_mc%26pg%3Dg2_mc_news%26ac%3D557 Tue, 25 Feb 2014 00:00:00 +0800 1) Summary

CIMB Group Holdings Berhad (“CIMB Group”) today reported a record net profit of RM4.54 billion for Financial Year 2013 (“FY13”), representing a 4.5% year-on-year (“Y-o-Y”) growth and equivalent to net earnings per share (“EPS”) of 60.0 sen and net return on average equity (“ROE”) of 15.5%. The Group announced a second interim dividend of 11.0 sen in the form of cash or an optional Dividend Reinvestment Scheme (“DRS”). For FY13, the total dividends amounted to 23.82 sen or RM1.826 billion, translating to a dividend payout ratio of 40% of FY13 profits.

For the fourth quarter FY13 (“4Q13”) alone, the Group’s net profit of RM1.038 billion was 2.3% lower than 3Q13, and 4.1% lower compared its 4Q12 net profit of RM1.082 billion.

"The 2013 operating environment was far more challenging than we expected, especially in Indonesia and regional financial markets, so we are pleased with our overall performance." said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group. "With the decline in contribution from CIMB Niaga and our markets businesses, our other divisions stepped up well. Our earnings complexion improved as regional consumer and corporate banking accounted for 67% of core PBT compared to 59% in 2012 and earning assets grew 15.5% year on year (excluding foreign exchange fluctuations). A lot of foundation work was completed this year to reduce structural costs, enhance systems, optimize internal synergies, especially across countries, and strengthen our franchise in new markets."

2) CIMB Group Y-o-Y Results

For FY13, CIMB Group’s revenues were 8.7% higher Y-o-Y at RM14.672 billion, with net interest income growing by 6.8%. Non-interest income was 12.3% higher Y-o-Y, although it would have grown 1.3% Y-o-Y after excluding the RM515 million gain from the sale of the 51% interest in CIMB Aviva in 1Q13. Over the year the Rupiah declined 15% against the Ringgit and reduced translated Indonesian income by an average of 8.1%.

The Group’s profit before tax (“PBT”) was 3.0% higher at RM5.849 billion, but would be 2.2% lower after excluding the one-off gain and RM217 million in organisational restructuring charges.

The Group’s regional Consumer Bank PBT expanded by 11.2% Y-o-Y to RM2.285 billion, representing 41% of core Group PBT (from 36% in FY12). PBT from the Malaysian consumer operations rose 6.0% Y-o-Y as good revenue growth and cost reductions were partially offset by lower provision write-backs. It was a good year for the Singapore consumer operations which posted its maiden full-year pre-tax profit of RM20 million. The consumer banking operations’ PBT in Indonesia rose by 28.2% Y-o-Y despite the weaker Rupiah, due to strong non-interest income growth from bancaassurance and foreign exchange products. The Thai consumer operations posted a RM16 million loss for FY13 despite strong asset growth due to higher provisions.

The Group’s Regional Wholesale Banking PBT declined by 9.9% Y-o-Y to RM2.788 billion, as the volatile credit markets and slower treasury flows brought about the 21.0% Y-o-Y decline in Treasury & Markets PBT to RM1.157 billion. Investment Banking PBT declined by 33.6% Y-o-Y to RM202 million as 2012 was a bumper year for Malaysian IPOs. Corporate Banking showed good progress as its PBT was 7.8% higher Y-o-Y at RM1.429 billion with steady lending growth in all markets bar Indonesia and lower provisions. Corporate Banking contribution to Group core PBT increased to 26% from 23% in FY12 while Treasury & Markets and Investment Banking contribution dropped to 20% and 4% respectively.

Investments PBT was 46.7% higher Y-o-Y at RM776 million mainly due to the net RM298 million gain arising from the sale of the 51% interest in CIMB Aviva less organisational restructuring charges.

Non-Malaysian core PBT was lower at 39% in FY13 from 41% in FY12. CIMB Niaga’s PBT rose 0.8% Y-o-Y to IDR5,832 billion but its contribution to the Group declined 7.3% Y-o-Y to RM1,766 million due to the Rupiah depreciation. Thailand's PBT contribution to the Group grew by 40.3% Y-o-Y at RM336 million with better performance at both CIMB Thai and CIMB Securities Thailand. Total PBT contribution from Singapore increased 49.9% to RM232 million as CIMB Bank Singapore continued to grow very strongly.

Total Group gross loans and credit (excluding the declining bad bank loan book) expanded 13.0% and 12.2% Y-o-Y respectively. After adjusting for foreign exchange fluctuations, the Group’s total gross loans and credit were 16.5% and 15.5% higher Y-o-Y respectively. Commercial banking loans increased 18.5% while retail loans and corporate loans grew 13.3% and 10.0% respectively. From a geographical perspective, Singapore gross loans growth was strongest at 69.1% while Thailand and Indonesia expanded by 23.2% and 8.0% respectively, in local currency terms. Malaysia loans were 12.3% higher Y-o-Y.

The Group’s total deposits grew by 7.3% Y-o-Y but were 10.2% higher Y-o-Y after excluding foreign exchange fluctuations. This was primarily driven by the 9.5% expansion in corporate and treasury deposits. Commercial banking and retail deposits posted a 6.0% and 5.7% Y-o-Y growth respectively. Geographically, deposit growth was strongest in Singapore at 36.1%. The Group’s CASA rose by 5.8% while the CASA ratio stood at 34.2% from 34.7% in FY12. Overall net interest margins were lower at 2.85% from 3.07% last year mainly due to the higher Rupiah deposit costs.

The Group’s total loan impairment of RM660 million in FY13 was 100.6% higher than the RM329 million in FY12 due to an uptick in provisioning in CIMB Thai, significantly lower recoveries and write-backs, as well as the exceptionally low level of provisions in the Malaysian consumer bank in 2012. The Group’s total credit charge was 0.28% for FY13, well below its original estimate of 0.4%.

The Group’s FY13 gross impairment ratio improved to 3.2% from 3.8% in FY12, with an allowance coverage (including regulatory reserve) of 108.3%. The Group’s cost to income ratio was higher at 57.6% compared to 56.4% in FY12 from the one-off organisational restructuring charges and new acquisitions.

As at 31 December 2013, CIMB Group’s total capital ratio stood at 13.7% while its Common Equity Tier 1 (CET 1) capital ratio stood at 8.1%, just above its internal target of 8%, due to the impact of the Rupiah depreciation. On 13 January 2014 the Group undertook a private placement of new equity raising RM3.55 billion and lifting its proforma CET 1 to 9.5%.

3) CIMB Group Q-on-Q Results

The Group’s 4Q13 revenues of RM3.797 billion was 9.0% higher than 3Q13, lifting pre-provision profits up by 16.4% but net profit was 2.3% lower Q-o-Q at RM1.038 billion owing to a 54.0% Q-o-Q increase in loan impairment. Net interest income was 0.8% higher but non-interest income grew a stronger 26.6% Q-o-Q. Overheads rose 3.8% Q-o-Q.

The Group’s Consumer Banking PBT was 3.2% lower Q-o-Q, at RM572 million, as higher provisions and lower recoveries at the Malaysia consumer bank brought about a 5.0% Q-o-Q PBT decline. However, Wholesale Banking PBT grew 7.0% Q-o-Q to RM705 million as Investment Banking PBT improved on the back of stronger deal flows. Treasury & Markets PBT rose by 7.5% Q-o-Q while Corporate Banking was 1.2% lower. PBT from Investments declined 40.4% Q-o-Q due to the gains recognized in 3Q13 from the Tune Insurance Holdings Berhad listing. CIMB Niaga's contribution fell 9.0% Q-o-Q as the Rupiah continued to decline.

4) CIMB Niaga Results

On 18 February 2014, CIMB Niaga reported a FY13 net profit of IDR4,282 billion, a 1.2% Y-o-Y increase, with a FY13 net ROE of 17.7%. Several sharp hikes in interest rates and various new liquidity rules resulted in a 53bp drop in the bank's net interest margins (“NIM”) and at the same time the bank prudently slowed down its loan growth to 8.0% (compared to a CAGR of 17.1% over the previous 5 years and industry average of 18.7% year-to-November 2013).

Sequentially, the 4Q13 net profit was relatively unchanged compared to 3Q13. The FY12 loan loss charge of 0.8% was flat versus FY12.

The Gross NPL of 2.2% as at end-December 2013 was slightly better than the 2.3% in FY12. CIMB Niaga’s loan loss coverage (based on BI definition) stood at 118.5% as at end-FY13 compared to 114.2% as at end-FY12.

CIMB Niaga’s core capital and risk weighted capital ratios stood at 13.0% and 15.4% respectively as at 31 December 2013.

5) CIMB Thai Results

On 17 January 2014, CIMB Thai announced a 14.1% Y-o-Y growth in FY13 net profit to THB1,490 million. The growth was underpinned by healthy loan growth, relatively stable NIMs and stronger non-interest income. Loan loss charge for FY13 increased to 1.6% from 1.0% the previous year as CIMB Thai lifted its loan loss coverage ratio to 107.8% from 85.1% at the end of 2012 in anticipation of more difficult operating conditions.

CIMB Thai’s 4Q13 net profit rose 27.0% to THB530 million on the back of the THB1,101 million share of recoveries from bad loans managed by the Thai Asset Management Company (“TAMC”).

As at 31 December 2013, CIMB Thai’s Tier 1 capital and total capital ratios were at 9.9% and 14.1% respectively. CIMB Thai’s net NPL ratio fell to 1.5% compared to 2.0% as at 31 December 2012.

6) CIMB Islamic

CIMB Islamic’s Y-o-Y PBT decreased by 8.3% Y-o-Y to RM491 million due to lower Islamic capital markets activity. CIMB Islamic’s gross financing assets grew 6.6% Y-o-Y, accounting for 15.1% of total Group loans. Total deposits grew by 9.1% Y-o-Y to RM38.5 billion.

7) Geographic Expansion

In 2013, the Group expanded its investment banking presence to Korea, Taiwan and India to complete its APAC platform. The Group did not proceed with its proposed acquisition of Bank of Commerce in the Philippines.

8) Market Shares and other highlights

The Group retained its overall leadership of investment banking in Malaysia and ASEAN. These include being number 1 across almost all segments of the Malaysian debt and equity capital markets, number 1 brokerage in Singapore, and number 2 brokerage in Indonesia. The Group made significant advances in equity capital markets and brokerage in APAC and was acknowledged by International Financing Review (“IFR”) as the Best Domestic Bank in Asia for establishing itself as a leading Asian IB in APAC. 2013 was the first year CIMB won “best deal” awards in 4 countries – Australia, Indonesia, Malaysia and Taiwan.

In Consumer Banking, the Group made market share advances in selective areas most notably in credit cards in Indonesia and Malaysia; SME, ASB loans and wealth management products in Malaysia and commercial loans in Singapore. In Malaysia and Indonesia, CIMB has positioned itself as a leader in digital banking, launching a series of innovative products and service propositions including CIMB Niaga's Rekening Ponsel and CIMB Bank Malaysia’s KWIK account and Plug & Pay.

Other highlights for 2013 were the successful completion of the Mutual Separation Scheme in Malaysia which saw staff count reduce by 1,217 and the implementation of 1Platform, the Group's region-wide new core banking system, in Malaysia, which was completed in February 2014.

9) Outlook

"2014 will be a fascinating year. In global terms, we are in an era of unprecedented transition – potentially massive capital flow back from emerging to developed markets, shift in growth momentum from east to west, and so on. These trends will impact countries differently and in the region, Indonesia had it hardest in 2013 while so far, the prognosis for 2014 is weakest for Thailand as the situation is compounded by domestic political turmoil,” said Nazir. “Malaysia and Singapore are expected to show higher GDP growth on the back of stronger exports but have to contend with inflationary pressures which will impact consumer demand. Indonesia seems to be showing signs of stabilization but growth is expected to slow and industry NPLs rise in 2014.”

“After being surprised by the Indonesian Rupiah and interest rates last year, we hope that we have positioned the firm better for 2014. Our capital position is now strong, our earning asset base grew well last year and our operating foundations have been improved. Furthermore, we have already mobilised to manage asset quality more closely,” Nazir added.

“We think we will continue to grow strongly in Singapore, recover some momentum in Indonesia and grow steadily in Malaysia. In Thailand, we will need to be very focused and agile to navigate the uncertain environment. With the completion of the APAC platform, markets permitting, IB will do better as a whole and we don't expect regional treasury markets to be as challenging as they were in 2013," said Nazir.

Following the enlargement of its capital base and given the uncertain environment, the Group has set a ROE range of 13.5-14.0% for 2014.