CIMB Group Holdings Berhad () is a
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
n
universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank as well as providing other financial services such as insurance.Kuala Lumpur
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and operating in high growth economies in
ASEAN
ASEAN ( , ), officially the Association of Southeast Asian Nations, is a political and economic union of 10 member states in Southeast Asia, which promotes intergovernmental cooperation and facilitates economic, political, security, militar ...
. CIMB Group is an indigenous ASEAN
investment bank
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.
In finance, the purpose of investing is ...
. CIMB has a wide retail branch network with 1,080 branches across the region.
The group operates under several entities, which include CIMB Investment Bank, CIMB Bank, CIMB Islamic,
CIMB Niaga, CIMB Securities International and CIMB Thai. The group's business activities are primarily in the areas of Consumer Banking, Wholesale Banking, comprising
Investment Banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
and Corporate Banking, Treasury & Markets, and Group Strategy & Strategic Investments, with its core markets being Malaysia, Indonesia, Singapore and Thailand. CIMB Islamic operates in parallel with these businesses, in line with the group's dual banking model.
[CIMB Group Annual Reports](_blank)
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The group has around 33,000 employees in 18 countries, covering ASEAN and major global financial centres, as well as countries in which its customers have significant business and investment dealings.
CIMB Group. URL assessed on 7 November 2014
The group's geographical reach and its products and services are complemented by partnerships. Its partners include the Principal Financial Group
Principal Financial Group is an American global financial investment management and insurance company headquartered in Des Moines, Iowa, U.S.
Business operations
Four segments comprise the company: Retirement and Income Solutions, Principal G ...
, Bank of Tokyo-Mitsubishi UFJ
is the largest bank in Japan. It was established on January 1, 2006, following the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd. MUFG is one of the three so-called Japanese "megabanks" (along with Sumitomo Mitsui Banking Corp ...
, Standard Bank
Standard Bank Group Limited is a major South African bank and financial services group. It is Africa's biggest lender by assets. The company's corporate headquarters, Standard Bank Centre, is situated in Simmonds Street, Johannesburg.
History ...
and Daewoo Securities
Mirae Asset Securities Co., Ltd. () is the largest investment banking and stock brokerage company by market capitalization in South Korea. Mirae Asset Securities has been merged with Daewoo Securities as the end of December 2016.
Overview
Mira ...
, among others.
Name
CIMB is an abbreviation for Commerce International Merchant Bankers.
History
The bank was formed from the merging of various banks that had existed throughout the decades:
* Bian Chiang Bank, established in 1924 in Kuching
Kuching (), officially the City of Kuching, is the capital and the most populous city in the States and federal territories of Malaysia, state of Sarawak in Malaysia. It is also the capital of Kuching Division. The city is on the Sarawak River ...
by Wee Kheng Chiang
Wee Kheng Chiang (; 1890–1978) was a Malaysian Chinese businessman of Quemoy Bân-lâm Hokkien ancestry who founded the United Chinese Bank (now United Overseas Bank). He is the father of Wee Cho Yaw, Chairman Emeritus & Adviser of the Uni ...
. Its primary activities were business financing and the issuance of bills of exchange. It was renamed Bank of Commerce Berhad (BCB) following its purchase by the UMNO
The United Malays National Organisation (Malay: ; Jawi: ; abbreviated UMNO () or less commonly PEKEMBAR), is a nationalist right-wing political party in Malaysia. As the oldest continuous national political party within Malaysia (since its in ...
-owned Fleet Group (then part-owner of TV3 Channel 3 or TV 3 may refer to:
Television
*Canal 3 (Burkina Faso), a commercial television channel in Burkina Faso
*Canal 3 (Guatemala), a commercial television channel in Guatemala
*Channel 3 (Algeria), a public Algerian TV channel owned by EPTV ...
, NSTP, and Celcom
Celcom Axiata Berhad, DBA Celcom, is the oldest mobile telecommunications provider in Malaysia. Celcom is a member of the Axiata group of companies.
Being one of the very few companies in Malaysia to originally obtain a cellular phone licens ...
) in 1979. The bank had RM367 million in total assets and total shareholders' funds of RM12.8 million in 1982.
* Ban Hin Lee Bank (BHLB), established 1935 in Penang
Penang ( ms, Pulau Pinang, is a Malaysian state located on the northwest coast of Peninsular Malaysia, by the Malacca Strait. It has two parts: Penang Island, where the capital city, George Town, is located, and Seberang Perai on the Malay ...
by Yeap Chor Ee. Its original focus was serving local businessmen in their trading and merchant activities. In the 1960s it branched out into real estate and home financing and by 1990 it had become a modern financial institution. It was then listed on the Kuala Lumpur Stock Exchange The Kuala Lumpur Stock Exchange (KLSE; ms, Bursa Saham Kuala Lumpur) dates back to 1930 when the Singapore Stockbrokers' Association was set up as a formal organisation dealing in securities in Malaya. In 1937, it was re-registered as the Malayan ...
on 7 January 1991.
* Bank Lippo: founded in 1948 with its headquarters in Tangerang, Indonesia.
* Bank Niaga: established as a national private bank in 1955, it later expanded to become a full-service bank in 1974.
* Southern Bank Berhad (SBB): founded as Southern Banking Ltd in 1965, starting out in Penang and expanded to Kuala Lumpur. Its products included wealth-management products, credit cards and loans for small and medium enterprises (SME).
*Bank Bumiputra Malaysia Berhad
Bank Bumiputra Malaysia Berhad was a Malaysian bank, established in 1965. It was merged into Bumiputra-Commerce Holdings in 1999.
The Inception
On 4 June 1965, "Kongres Ekonomi Bumiputra" (Bumiputra Economic Congress), sponsored by the Ministry ...
(BBMB), incorporated in 1965. Set up in line with government initiatives to increase Bumiputra
''Bumiputera'' or ''Bumiputra'' ( Jawi: ) is a term used in Malaysia to describe Malays, the Orang Asli of Peninsular Malaysia, and various indigenous peoples of East Malaysia (see official definition below). The term is sometimes controver ...
participation in the national economy, the bank grew to be one of the largest, with branches throughout the country. By 1980 it had become the largest bank in the country in terms of assets and was the first domestic bank to have operations in New York, London, Tokyo, Bahrain and Hong Kong.
* United Asian Bank Berhad (UAB), established in Kuala Lumpur in 1972. UAB created out of the merger of the Malaysian operations and branches of three Indian-owned banks: Indian Overseas Bank
Indian Overseas Bank (IOB) is an Indian public sector bank based in Chennai. It has about 3,214 domestic branches, about 4 foreign branches and representative office. Founded in February 1937 by M. Ct. M. Chidambaram Chettyar with twin object ...
, Indian Bank
Indian Bank is an Indian public sector bank, established in 1907 and headquartered in Chennai. It serves over 100 million customers with 39,734 employees, 5,721 branches with 5,428 ATMs and Cash deposit machines. Total business of the bank has ...
, and United Commercial Bank
United Commercial Bank (Chinese: 聯合銀行) was an overseas Chinese bank in the United States, based in San Francisco, California. It was a subsidiary of UCBH Holdings. Founded in 1974 as United Federal Savings and Loan Association, it cha ...
. The Government of India had nationalised the largest banks in India, including these three, and Malaysian law prohibited the operation in Malaysia of branches of government-owned foreign banks. UAB's primary purpose was to encourage enterprise among less prosperous sections of the country.
* Pertanian Baring Sanwa Multinational Berhad (PBS); incorporated by Bank Pertanian, Baring Brothers
Barings Bank was a British merchant bank based in London, and one of England's oldest merchant banks after Berenberg Bank, Barings' close collaborator and German representative. It was founded in 1762 by Francis Baring, a British-born member ...
, Multinational Bank of the United Kingdom, and Sanwa Bank of Japan in 1974. It was managed by Baring Brothers and provided corporate advisory and funding services to multinationals. It was renamed Commerce International Merchant Bankers Berhad (CIMB) in 1986 as a result of BCB replacing Bank Pertanian as the controlling shareholder of PBS. Corporate finance remained CIMB's main focus and stock broking was added to its range of services.
Bank of Commerce acquired UAB in 1991, in which consequently increased Bank of Commerce's branch network almost fourfold. The listed holding company was then renamed Commerce-Asset Holdings Berhad (CAHB). BBMB merged with CAHB to form the Bumiputra-Commerce Bank in 1999. SBB acquired Ban Hin Lee Bank Berhad and two smaller finance companies, Perdana Finance Berhad and Cempaka Finance Berhad in 2000 as part of a government initiated banking consolidation plan.
CIMB was listed on the main board of the Kuala Lumpur Stock Exchange The Kuala Lumpur Stock Exchange (KLSE; ms, Bursa Saham Kuala Lumpur) dates back to 1930 when the Singapore Stockbrokers' Association was set up as a formal organisation dealing in securities in Malaya. In 1937, it was re-registered as the Malayan ...
in 2003. In the same year, CIMB Islamic was launched providing customers with Syariah compliant solutions. A year later, it acquired 70% of Commerce Trust Berhad (CTB) and Commerce Asset Fund Managers Berhad (CAFM), leading to the formation of CIMB-Principal, a joint venture with the Principal Group of the United States. Then in 2005, CIMB acquired Singapore based G.K. Goh, which was established in 1979 as an international stock broker. This led to the formation of CIMB-GK, CIMB's international investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
operations.
In 2005, CAHB announced a decision to create a universal bank by combining its commercial and investment banks. Following this announcement, Bumiputra-Commerce Group was acquired by CIMB. As part of the exercise, CAHB was renamed Bumiputra-Commerce Holdings and it completed its restructuring exercise in January 2006. The new CIMB Group was known as a universal bank. It made a transition to a full-service banking provider serving corporates to individuals. Then in March, CIMB Group acquired SBB after extensive negotiations. After the acquisition, on 7 September 2006, CIMB Group was launched by the then Prime Minister of Malaysia, Dato' Seri Abdullah Ahmad Badawi
Tun Abdullah bin Ahmad Badawi ( Jawi: عبد الله بن احمد بدوي; born 26 November 1939) is a Malaysian politician who served as the 5th Prime Minister of Malaysia from October 2003 to April 2009. He was also the sixth president of ...
.
In 2007, CIMB Group launched its presence in both Thailand and USA through the establishment of CIMB-GK Securities (Thailand) Ltd. and CIMB-GK Securities (USA) Inc. In November, CIMB Foundation launched as a not-for-profit organisation that will carry out the group's corporate social responsibility.
2008: CIMB Group entered into an agreement for a 19.99% stake in Bank of Yingkou adding mainland China to the Group's network. In the same year CIMB Group undertook the merger of PT Bank Niaga TBK with PT Bank Lippo Tbk to create the sixth-largest bank in Indonesia. CIMB Group and the Principal Financial Group launched CIMB-Principal Islamic Asset Management also in that year. Lastly, CIMB Group entered into an agreement with Financial Institutions Development Fund to purchase a 42.13% stake in Bank Thai Public Company.
In 2009, CIMB Bank and CIMB Islamic moved to a new headquarters, the 39-storey Menara Bumiputra-Commerce which houses CIMB Group's consumer banking franchises. The building site was the location of the bank's predecessors, Bank Bumiputra and the United Asian Bank. In the same year, CIMB Thai was officially launched with its new brand and logo unveiled to the public in May 2009 by Khun Korn Chatikavanji, Thailand's Minister of Finance. In September, CIMB Group set up retail banking services in Singapore through CIMB Bank Singapore.
CIMB Group expanded to Cambodia
Cambodia (; also Kampuchea ; km, កម្ពុជា, UNGEGN: ), officially the Kingdom of Cambodia, is a country located in the southern portion of the Indochinese Peninsula in Southeast Asia, spanning an area of , bordered by Thailand t ...
through the fully owned subsidiary CIMB Bank Plc in 2010. The first branch, which also serves as the headquarters, was officially launched in Phnom Penh
Phnom Penh (; km, ភ្នំពេញ, ) is the capital and most populous city of Cambodia. It has been the national capital since the French protectorate of Cambodia and has grown to become the nation's primate city and its economic, indus ...
on 19 November 2010. In 2012, CIMB Group purchased the Asian investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
business of Royal Bank of Scotland
The Royal Bank of Scotland plc (RBS; gd, Banca Rìoghail na h-Alba) is a major retail and commercial bank in Scotland. It is one of the retail banking subsidiaries of NatWest Group, together with NatWest (in England and Wales) and Ulster Bank ...
, including the RBS franchise in Australia for GBP
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...
173.9 million ( MYR849.4 million). CIMB claimed to become the largest investment banking franchise based in Asia Pacific (ex-Japan). CIMB ranked at 10 for the world's largest Islamic banks in 2020, moving up two spots from the previous year.
Businesses
Consumer banking
CIMB Group has full-fledged consumer banking services across its main operating markets in Malaysia, Indonesia, Singapore, Thailand, Cambodia and Philippines. The divisions which comprise Consumer Banking are:
* Consumer Sales and Distribution which oversees the sales network including branches and mobile sales teams
* Retail Financial Services which is responsible for most of the retail banking
Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking. Banking servi ...
as well as enterprise banking products
* Commercial Banking which is responsible for SME and mid-size companies
* Group Cards and Personal Financing which is responsible for credit cards businesses and personal loans portfolio
Wholesale banking
The wholesale banking business comprises two divisions: Investment Banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
and Corporate Banking, Treasury & Markets.
Investment Banking comprises Corporate Client Solutions, which covers the bank's institutional and corporate clients and Sector Specialists in real estate and agribusiness; the Advisory business unit which consists of Corporate Finance and Project Advisory; the Group Equities business unit comprising Equity Capital Markets (ECM), Institutional Sales, Research, Retail Equities, Futures Broking and Securities Services; and the Group Asset Management business unit which is the bank's retail and institutional fund management arm.
Corporate Banking, Treasury and Markets is responsible for corporate banking; transaction banking; the group's markets, sales and trading businesses in interest rates, credit, foreign exchange, commodities, equities and their derivatives; debt capital markets; fixed income investments; and treasury and funding operations for the group.
Group Strategy and Strategic Investments
Group Strategy and Strategic Investments consists of Group Strategy, Private Equity and Strategic Investments. The division is responsible for undertaking the bank's initiatives in important regional markets.
Islamic banking
CIMB Islamic is CIMB Group's global Islamic banking and finance franchise. It offers the full complement of Shariah-compliant financial solutions, operating in parallel with the group's universal banking franchise.
CIMB Group's Brands
* CIMB Group represents its universal banking franchise.
* CIMB represents its investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
services, asset management and private banking franchise.
* CIMB Bank represents its consumer bank and corporate banking franchise in Malaysia, Singapore, Cambodia and Philippines.
* CIMB Niaga represents its consumer and corporate banking franchise in Indonesia.
* CIMB Thai represents its consumer and corporate banking franchise in Thailand.
* CIMB Islamic is its Islamic banking franchise, incorporating products and services in compliance with Shariah principles.
Corporate profile
CIMB Group Holdings Berhad
CIMB Group Holdings Berhad has been listed on the Main Market of Bursa Malaysia since 1987 with a market capitalisation of RM38.7 billion. Total assets at the end of 2015 were RM461.6 billion, with total shareholders’ funds of RM41.1 billion and total Islamic assets of RM70.7 billion.[ ]Bursa Malaysia
Bursa Malaysia is the stock exchange of Malaysia. It is one of the largest bourses in ASEAN. It is based in Kuala Lumpur and was previously known as the Kuala Lumpur Stock Exchange (KLSE). It provides a full integration of transactions, offeri ...
. URL assessed on 8 September 2016.
CIMB Group
The group is a regional universal bank with ASEAN as its core market. The group is headquartered in Kuala Lumpur, Malaysia. It has 1,080 branches across eight out of the 10 ASEAN nations. Its wholesale division encompasses its indigenous investment bank in ASEAN plus corporate banking, treasury and markets, and group strategy and strategic investments.
Products and services are complemented with partnerships with various companies including the Principal Financial Group, Bank of Tokyo-Mitsubishi UFJ, Daewoo Securities, Sun Life Assurance, Allianz Insurance, Thai Life Insurance, Sri Ayudhya General Insurance, Kotak Mahindra Group, Mapletree Investments, and TrustCapital Advisors. Outside ASEAN, CIMB Group has representation in China (mainland and Hong Kong), the United States, Bahrain, the United Kingdom, India and Sri Lanka.
CIMB Bank
The group has full-fledged consumer banking services across its four main operating markets of Malaysia, Indonesia, Singapore and Thailand, plus a growing presence in Cambodia and the Philippines.
CIMB Bank's Authorized Agent Banks (AAB's) directly cover Malaysia and Singapore. BDO Universal Bank Inc. directly covers the Philippines and is an (AAB) Authorized Agent Bank for International Treaty Tax Collection.
Malaysia is the largest market for CIMB Bank and there were 294 branches, 7.8 million customers, 2,199 ATMs, and over 20,000 staff at the end of 2011.
The all-digital CIMB Bank Philippines was established in December 2018 and officially launched in 2019, using a mobile app called OCTO as a platform through which users can open accounts and manage transactions.
CIMB Bank in Singapore had two branches, 277,000 customers, six ATMs and over 1,300 staff at the end of 2011. CIMB Bank in Cambodia had seven branches, 3,100 customers, 10 ATMs and over 90 staff at the end of 2011.
CIMB Investment Bank
CIMB Investment Bank is the investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
arm of CIMB Group with offices in Malaysia, Singapore, Indonesia, China (Hong Kong and Shanghai), Thailand, Australia, Korea, India, the United Kingdom, the United States, Sri Lanka, and Myanmar.
The investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
products and services offered by CIMB Investment Bank cover corporate advisory, corporate finance, equity markets, debt markets, research, private equity, real estate investment management, fund management, wealth management and private banking services.
CIMB has remittance tie ups with BDO Universal Bank in the Philippines for secure cross border money transfers.
CIMB Islamic
CIMB Islamic is the global Islamic banking and finance arm of CIMB Group. It offers Shariah-compliant financial solutions in investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...
, consumer banking, asset management, takaful, private banking and wealth management. CIMB Islamic products and operations are managed in strict compliance with Shariah principles under the guidance of the CIMB Islamic Shariah Committee.
CIMB Niaga
Established in 1955 as Bank Niaga, CIMB Niaga is the group's consumer banking arm in Indonesia and as at end 2011, it was the fifth largest bank in terms of assets and the third largest mortgage provider.
It has been listed on the Indonesia Stock Exchange since 1989 and had a market capitalisation of about Rp30,660.6 billion at the end of 2011 with shareholders' funds of Rp18.3 trillion and total assets of Rp166.8 trillion. CIMB Niaga offers a comprehensive range of conventional and Shariah compliant products and services. At the end of 2011, it had 901 branches, 4.2 million customers, 1,749 ATMs, and nearly 14,000 staff.
CIMB Group Holdings Berhad had a 97.93% stake in CIMB Niaga, including 1.02% of PT Commerce Kapital, at the end of 2011.
CIMB Thai
Established 1949 as The Union Bank of Bangkok and later changed name as BankThai (since 1998), CIMB Thai is the group's consumer banking arm in Thailand. It was the 10th largest listed commercial bank in Thailand in terms of assets and the seventh largest in terms of market capitalisation at the end of 2011. It had a market capitalisation of about THB47.0 billion at the end of 2011, with shareholders' funds of THB13.32 billion and total assets of THB168.02 billion.
CIMB Thai offers a range of financial products and services to customers, both corporate and retail. At the end of 2011, CIMB Thai had 157 branches, 2.2 million customers, 533 ATMs and over 4,000 staff. CIMB Group Holdings Berhad has a 93.15% stake in CIMB Thai since 2009.
References
Works cited
*
TOPIX New Index Series (As of 30 October 2009)
', Tokyo Stock Exchange.
External links
announcements.bursamalaysia.com
{{DEFAULTSORT:Cimb
Conglomerate companies of Malaysia
Government-owned companies of Malaysia
Companies based in Kuala Lumpur
Companies listed on Bursa Malaysia
Banks of Malaysia
Investment banks in Malaysia
Banks established in 2006
2006 establishments in Malaysia
Malaysian companies established in 2006
Khazanah Nasional
Multinational companies headquartered in Malaysia
Malaysian brands