Latest news with #CIMBGroupHoldings
Business Times
04-06-2025
- Business
- Business Times
CIMB set to appoint former Securities Commission chief Syed Zaid as chairman: sources
[KUALA LUMPUR] CIMB Group Holdings is preparing for a leadership transition, with former Securities Commission Malaysia chairman Syed Zaid Albar expected to take over as chairman of the board, according to a report by Bloomberg. Citing sources, the report said the appointment, which is pending regulatory approval, comes as incumbent chairman Mohd Nasir Ahmad prepares to step down after nearly a decade on the board and six years as chairman. Syed Zaid, who led the Securities Commission from 2018 to 2022, is also a founding partner of law firm Albar & Partners. His return to the financial sector comes at a time when CIMB is navigating a more challenging macroeconomic environment across South-east Asia, where it has significant operations in Indonesia, Thailand, Singapore, and Cambodia. The anticipated change in chairmanship follows the group's steady financial performance in the first quarter of 2025. CIMB posted a net profit of RM2 billion, a 1.9 per cent increase from nearly RM2 billion a year earlier, supported by stronger net interest income (NII). A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up However, revenue fell 2.3 per cent year-on-year to RM5.5 billion, largely due to continued pressure on net interest margins (NIM), though asset growth helped cushion the impact. NII rose slightly to RM3.82 billion on both a quarterly and annual basis. Non-interest income (NOII) climbed 11.1 per cent quarter-on-quarter, supported by a nearly 19 per cent rise in treasury client sales and a 12.6 per cent increase in fee and commission income. In a filing with Bursa Malaysia, CIMB reaffirmed its commitment to its Forward30 strategic plan that was launched in March. This six-year roadmap focuses on strengthening customer experience, improving operational efficiency, and driving sustainability-led initiatives. The group also recently restructured its leadership in Thailand and Cambodia, while identifying those two markets, along with Singapore, as growth engines for regional expansion. Being South-east Asia's fifth-largest lender by assets, CIMB operates 592 retail branches and employs more than 33,000 staff across 10 markets as at end-2024, serving around 28 million customers. Analysts said CIMB's latest results were broadly in line with expectations, though margin compression remains a concern. Kenanga Research's Clement Chua noted that CIMB, alongside AmBank, was one of the few banks in Malaysia to post a sequential uptick in NIMs. However, gains were offset by declining asset yields and elevated funding costs in Indonesia. While the group maintained its full-year NIM guidance of a deterioration of up to five basis points, analysts said it is now more likely to trend toward the lower end of that range, added Chua. Maybank Investment Bank analyst Desmond Ch'ng said CIMB's wide footprint in South-east Asia exposes it to greater regional volatility compared to more domestically focused peers. 'Any slowdown in Malaysia would weigh on earnings, but the group is also vulnerable to monetary and currency trends in Indonesia and Thailand,' he said, noting that further rate cuts in Indonesia or a weaker rupiah could erode margins and reduce the translated earnings from CIMB Niaga. Despite these challenges, RHB Research analysts David Chong and Nabil Thoo said CIMB is entering this phase of uncertainty with a strong liquidity position, better asset quality, and flexibility to manage funding pressures. They pointed to CIMB's ability to reduce campaign deposit rates in Malaysia by 10 to 20 basis points in May and its strategy to wind down costlier wholesale funding. 'Direct exposure to US tariffs is limited, with less than 3 per cent of CIMB's loans linked to trade-related sectors and just 0.4 per cent of customers deriving over 20 per cent of their revenue from the US market,' they said in a note on Monday (Jun 3).
Business Times
28-05-2025
- Business
- Business Times
Malaysian assets to gain as funds slash US exposure: CIMB
[KUALA LUMPUR] Malaysia could end up among the biggest beneficiaries in emerging markets if the Trump administration's disruptive trade policies trigger a further sell-off in US assets, according to a top executive at CIMB Group Holdings. 'We could potentially see a lot of capital freed up and move to emerging markets,' Novan Amirudin, chief executive officer of CIMB, Malaysia's third-largest bank by market value, said. 'Malaysia has all the parameters that tick the boxes for investors as they look at asset allocation and investments,' he said. Uncertainty over US fiscal and trade policy is denting the appeal of US assets, with emerging market investors expecting the asset class to benefit as some of that cash finds its way into stocks and bonds of developing countries. Global funds bought US$45.6 million of Malaysian equities so far this quarter, making the country the only emerging South-east Asian nation to see inflows, according to Bloomberg-compiled data. Novan pointed to Malaysia's political stability and the government's commitment to improving the country's fiscal position as key factors that make the nation stand out. Since taking over as Prime Minister in late 2022, Anwar Ibrahim has accelerated economic and political reforms after a revolving door of leaders from 2018 to 2022 affected investor confidence. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up While Malaysia's economic expansion is expected to come in slightly lower than the 4.5 to 5.5 per cent official growth estimate for the year, strong domestic demand is likely to anchor growth. And though the country kept borrowing costs unchanged earlier in May, traders are pricing in an interest rate cut within the next six months. Bank Negara Malaysia has 'always been very proactive', said Novan, who took charge at CIMB in 2024. He said the government's policies on energy transition, manufacturing and the semiconductor industry would draw more foreign investments. Technology giants including Microsoft and have pledged to invest billions of US dollars in the country's infrastructure, with Malaysia approving a record amount of investments last year. A planned special economic zone with Singapore will also help 'mitigate uncertainties that a lot of businesses and corporations are seeing today', Novan said. BLOOMBERG
