Latest news with #CIMBGroup
The Star
12 hours ago
- Business
- The Star
CIMB partners Remedi to develop financial solutions for healthcare SMEs
From left: Gurdip Singh Sidhu, CEO, CIMB Malaysia and CIMB Bank; Lawrence Loh, co-CEO, group commercial and transaction banking, CIMB Group; Dr Khairul Faizi Khalid, managing director, Remedi; and Muhamad Faris Ashraf Md Nasser, chief technology officer; at the MoU signing between CIMB and Remedi Innovations to co-develop digital health and wellness solutions aimed at empowering health tech SMEs KUALA LUMPUR: CIMB Bank Bhd has inked a memorandum of understanding with Remedi Innovations Sdn Bhd to co-develop digital health and wellness solutions for health tech small and medium enterprises (SME). Remedi is a certified provider of Electronic Medical Records (EMR) and digital health solutions, which offers a cloud-based clinic management system that enables healthcare providers to optimise clinic operations and enhance patient care. In a stament, the bank said the partnership was formed as part of CIMB's Digital Labs Innovation Programme, and was designed to embed financial services within the digital platforms used by SMEs. Through this collaboration, CIMB and Remedi will co-develop embedded financial solutions directly within Remedi's digital infrastructure that is tailored to the needs of Remedi's clients – which includes clinics, healthcare providers and pharmaceutical suppliers. With the roll-out, the bank said it plans to on board more digital providers nationwide to accelerate the growth of the health-tech industry. "Healthcare is a high-potential growth sector in Malaysia, and we see significant opportunity to support its digital transformation. "Through this partnership, we aim to help healthcare SMEs streamline operations, improve financial management and ultimately, focus on delivering better care," said CIMB Group commercial and transaction banking co-ceo Lawrence Loh in a statement. Remedi Innovations managing director Dr Khairul Faizi Khalid said by removing the complexity of managing separate financial and operational systems, they are enabling healthcare providers to focus entirely on what they do best – caring for their patients. "This collaboration transforms how healthcare SMEs operate, offering them the convenience of streamlined procurement, payments, and business management tools within the ecosystem they already trust."
New Straits Times
4 days ago
- Business
- New Straits Times
Tariff uncertainties to pose little impact on CIMB's FY2026: Group CEO
KUALA LUMPUR: CIMB Group Holdings Bhd says the prevailing uncertainty surrounding global tariff policies will not have a direct impact on its financial performance for the financial year ending 2026 (FY2026). This will be due to the group's diversified income strategy and sustainable operational efficiency. CIMB Group chief executive officer Novan Amirudin said while global tariffs could potentially weigh on regional economic growth, the impact on the bank remains limited and largely depends on how the additional costs are distributed along the supply chain. "It depends on whether the costs are borne by producers in Asean, consumers in the United States, or absorbed by governments through incentives and supportive policies," he said during a fireside chat held in conjunction with CIMB's Asean Media Day today. He added that if restrictions on exports from China to the United States prompt manufacturers to relocate to Asean, any resulting oversupply could put pressure on local producers. "This situation could slow regional growth and indirectly affect the financial sector, as loan growth is closely tied to economic activity," he explained. Nevertheless, he said CIMB does not rely solely on interest income but has also strengthened its non-interest income streams. "About 30 per cent of the group's income comes from non-interest sources, including transaction fees, foreign exchange, payment solutions and advisory services. "These initiatives are aligned with our Forward 30 strategy, which emphasises revenue stream diversification," he said. On the recent Overnight Policy Rate (OPR) cut by Bank Negara Malaysia, he said the move impacts the lending rates offered to customers. CIMB also adjusted its deposit rates, such as fixed deposits, which are now at lower levels. "A lower OPR typically reduces funding costs. Therefore, the net impact on the bank depends on how much lending and deposit rates are adjusted. "If we are able to reduce deposit rates further, we can still maintain our net interest margins," he said.
BusinessToday
4 days ago
- Business
- BusinessToday
CIMB Expected To Deliver "Decent" Performance In Q2
CIMB Group is expected to deliver a 'decent' performance for its second quarter of 2025, supported by stable net interest margins (NIMs) and strong non-interest income, according to a pre-results analysis by Maybank Research. The research firm has maintained a 'Hold' call on CIMB with an unchanged target price of MYR7.60, pending the official release of the group's results. CIMB Group is scheduled to announce its 2Q25 results on August 29, following the release of its Indonesian subsidiary, CIMB Niaga, on July 30. Maybank Research highlights several positive factors contributing to the bank's expected performance for the quarter ended June 30: Net interest margins (NIMs) are likely to have remained stable quarter-on-quarter, with positive traction in Malaysia and Singapore offsetting some compression in its Thai and Indonesian operations. The report anticipates a sequential increase in non-interest income, driven by sustained trading and foreign exchange activities. Asset quality is expected to remain stable, with credit costs likely to be benign. The report notes that CIMB's credit cost guidance of 25-35 basis points for the full year 2025 remains intact, suggesting a potential positive surprise as Maybank's own forecast for the year is a slightly higher 36 basis points. However, the report points to one area where results may be weaker than expected: loan growth. According to Maybank Research, the group has been cautious in lending to the corporate and commercial sectors due to competitive yields. This has led the research house to forecast a loan growth of 4.5% for the full year, below CIMB Group's own target of 5-7%. Despite the mixed outlook, Maybank Research is keeping its earnings forecasts unchanged, believing the positive elements of stable margins and strong non-interest income will support its existing assumptions for the group. The report concludes that while the group is positioned for stability in the near term, its 'Hold' rating reflects a cautious but fair valuation at this juncture. Related
Independent Singapore
23-07-2025
- Business
- Independent Singapore
CIMB sees Singapore as key growth driver in ASEAN push
SINGAPORE: Malaysian banking giant CIMB Group is preparing for significant growth in Singapore. The city-state plays a key role as a wealth and treasury hub in Southeast Asia. In 1Q 2025, Singapore contributed 14% of the bank's profit before tax, up from 11% the previous year. Group CEO Novan Amirudin believes this trend will continue over the next five to six years. In a media interaction, Amirudin stated: 'We envisage this percentage to grow over the next five, six years because of the role that Singapore plays today within the Asean market. It's clearly been a very successful wealth centre, and we have also been beneficiaries of that. 'Singapore has also been an established treasury centre. A lot of multinational companies or regional companies are using Singapore as their hub to manage treasuries,' he added. CIMB views Singapore as a crucial wealth and treasury centre to connect to its broader ASEAN business. The bank is shifting away from a universal bank approach, with plans to adopt a strategic niche approach for each market it operates in, moving away from a one-size-fits-all model. By focusing on specific market segments, CIMB plans to increase its impact and efficiency. See also Economist says recession will 'certainly hit' Singapore This focused strategy has already resulted in impressive outcomes, including a sixfold increase in Singapore dollar-Malaysia ringgit transactions and substantial growth in its Malaysian customer base in Singapore. Innovation drives CIMB's strategy, particularly in supporting new business sectors. The bank has started offering simple sustainability-linked loans for SMEs, created digital enrolment processes, and is actively supporting expansions in the Johor-Singapore Special Economic Zone. CIMB initiatives in data centre financing stand out, showing the bank's forward-thinking investment plans. Acknowledging how operating as a universal bank is unsuitable for CIMB amid shifts in digitalisation and regional competition, the bank is diversifying its income sources and focusing on niche segments. Nearly 30% of income now comes from non-interest revenue, such as fees, foreign exchange, and advisory services. The bank's regional strategy indicates a clear understanding of different market dynamics. In Singapore, it capitalises on the market's strengths as a wealth and treasury hub. In Indonesia, it is exploring opportunities in Islamic banking. Meanwhile, in Thailand and Cambodia, the focus is on cross-border wholesale segments. This tailored approach helps CIMB maximise its resources and potential in each unique market. To manage economic uncertainties, CIMB has been carefully reducing its risk profile, reducing credit losses, and keeping exposure low to unstable markets. Amirudin explains their philosophy simply: 'We will operate in different jurisdictions based on how we can contribute to customers and societies in that particular market.' By combining strategic focus, new financial solutions, and a solid understanding of local market differences, CIMB Group sees itself navigating the complicated economic environment of Southeast Asia in the near to medium term.
Straits Times
22-07-2025
- Business
- Straits Times
CIMB Group expects to grow its Singapore business, tapping its hub role in Asean, says CEO
Find out what's new on ST website and app. - Malaysian lender CIMB Group anticipates growth in its Singapore operations in the coming years, said its chief executive, citing the city-state's status as a wealth and treasury hub in Asean. Singapore accounted for 14 per cent of the banking group's profit before tax in the first quarter of 2025, up from 11 per cent in the same period a year earlier. Speaking at a media briefing on July 21 at CIMB's headquarters in Kuala Lumpur , group CEO Novan Amirudin said: 'We envisage this percentage to grow over the next five, six years because of the role that Singapore plays today within the Asean market. It's clearly been a very successful wealth centre and we have also been beneficiaries of that.' 'Singapore has also been an established treasury centre. A lot of multinational companies or regional companies are using Singapore as their hub to manage treasuries,' he said, adding that the bank sees the Republic as an important wealth and treasury hub to connect the wider Asean business. CIMB is Malaysia's second-largest lender and South-east Asia's fifth-largest banking group by assets. Mr Amirudin said the bank has been very active in the Singapore market, catering to a range of clients, from individual consumers in retail banking to large corporations in corporate banking. He noted that CIMB needs to find its niche in each market, such as selling to certain segments and sharpening its focus, rather than trying to be a more universal player. Mr Victor Lee, who is CEO of CIMB Singapore and oversees growth markets Thailand and Cambodia, said CIMB's strategy in the Singapore market is to be a niche, challenger bank. 'We don't bank with every segment of the population, but in the niches we choose to play in,' he said. For instance, the bank said it makes it easier for Malaysians living in Singapore to remit money home by offering attractive exchange rates. Between 2020 and 2024, it saw a sixfold increase in Singapore dollar-Malaysia ringgit transaction volumes and threefold growth in its Malaysian customer base in Singapore. Bancassurance partnerships – where an insurer sells its products to a bank's customers – have also been a key part of its growth strategy, particularly in expanding its consumer and commercial banking segments. The bank offers customers the option to choose from seven leading insurance partners, ensuring they meet their unique needs and goals. 'This is especially important for our affluent clients who are focused on wealth preservation and legacy planning,' Mr Lee said. He added that the Singapore business is seeing strong momentum in personal loans and financing for small- and medium-sized enterprises (SMEs), driven by targeted propositions and competitive offerings. Consumer loans for Singapore grew 3.7 per cent year on year in the first quarter of 2025. CIMB saw that existing frameworks for sustainability-linked financing were often too complex or costly due to carbon accounting and verification. As a result, it responded with an SME sustainability-linked loan and financing programme in 2024 that makes the enrolment process fully digital and simplified. The bank further seeks to support firms, especially data centre players, that are expanding in the Johor-Singapore Special Economic Zone (JS-SEZ) with banking and advisory solutions. 'The largest sector that has been receiving a lot of foreign direct investment and a lot of mentions is the data centres. So we, as a large player, have also been announcing a lot of... data centre deals,' Mr Amirudin said. In April, CIMB announced RM10 billion (S$3.04 billion) financing to drive economic integration and capture cross-border opportunities in the JS-SEZ. The Johor Bahru-Singapore Rapid Transit System Link, set to be completed by the end of 2026, is expected to significantly boost the movement of people on both sides of the border. This increased connectivity will likely spur substantial development in real estate and surrounding businesses in the areas, he added. The bank has been responding to challenges posed by economic uncertainties. Mr Amirudin said the lender has built a moat from non-interest income businesses, even as central banks in Asia cut interest rates and net interest margins (NIMs) have been declining. Banks may see their NIMs squeezed when interest rates are low or falling, as the difference between what they earn on loans and what they pay on deposits narrows. He said: ' Thirty per cent of our income comes from non-interest income. It comes from fees, it comes from FX, it comes from payments, it comes from advisory fees. And this is an area that CIMB has been extremely active in and forms a critical part of our Forward30 plan to increase our proportion of income that comes from non-interest income.' Forward30 is a six-year road map launched in March to accelerate growth and future-proof the organisation. 'So despite a potential decline in interest income, an increase in non-interest income could mitigate some of that.' The bank has further taken steps to strengthen its financial position, such as reducing its risk profile and credit losses, said Mr Amirudin. 'We have reconstituted our portfolio over the last few years. We've exited businesses that were very hard to operate. We've reduced our risk profile, we've reduced our credit losses, we've increased our coverage ratio.' 'We are in a good place and that would be one more area that can help the financial statement,' he said. In the first quarter, CIMB reported a low proportion of loans at risk, with less than 3 per cent of its total loan book tied to trade and limited direct exposure to the US market, with less than 0.4 per cent of its customers deriving more than 20 per cent of their revenue from the US.
