Latest news with #CIMBThai
Borneo Post
23-07-2025
- Business
- Borneo Post
CIMB targets niche approach across Asean markets
Novan says CIMB is taking a disciplined, market-by-market approach by aiming to be a strong niche player instead of pursuing a 'universal player'. KUALA LUMPUR (July 23): CIMB Group Holdings Bhd (CIMB), which operates across ten markets in Asean, is sharpening its regional strategy by strengthening client support, expanding cross-border banking services and accelerating digital transformation to help businesses manage geopolitical risks and global supply chain shifts. To drive this effort, its group CEO Novan Amirudin said the bank is committed to building scale in high-growth markets such as the Philippines, Vietnam, Indonesia and Thailand by tailoring strategies that meet local needs and opportunities. He said CIMB is taking a disciplined, market-by-market approach by aiming to be a strong niche player instead of pursuing a 'universal player'. 'We are driven by our core purpose and value, and our core purpose is all about advancing customers and society. 'We will operate in all these different jurisdictions based on how we can contribute to customers and societies in that particular market. 'If we cannot play a meaningful role, then we need to find a different angle for us to play a meaningful role. 'We are always meticulously understanding where we can play our role and be dynamic,' he said during the bank's Asean Media Day earlier this week at its headquarters. He cited Malaysia as an example of a market where CIMB serves all customer segments including unbanked communities through its Touch 'n Go platform. In contrast, he said Thailand presents a different dynamic. Although GDP growth has been slower in that region, CIMB Thai continues to support Thai corporates expanding into other Asean markets like Malaysia and Singapore. For CIMB Thai, he said the bank's focus is on enabling outbound investment and facilitating cross-border capital flows. The goal, he said, is to improve returns by remaining a niche player rather than competing with larger banks. Meanwhile, for Philippines, CIMB grew its customer base to eight million, with six million of them acquired through strategic partnerships with e-commerce platforms. He said these partnerships helped the bank reach underserved segments faster than traditional methods would allow and the group is now adopting the same model in Malaysia and Indonesia to grow its reach. Novan added that the bank had started its digital journey in Vietnam and the Philippines about six years ago with one to two per cent of capital allocated to develop digital banks in those markets. 'In Vietnam and Philippines, we learn exactly how to operate and to expand digitally, whether is it digital internal processes, digital ways of reaching out to customers. And we are then implementing it as we digitise the entire CIMB group,' he said. Novan stressed that CIMB is not afraid to pivot its strategy when the market or competition shifts, and is always on the lookout for where it can add value by tailoring strategies for each market rather than using a one-size-fits-all approach. This focus on returns is part of the group's Forward30 strategy where capital is reallocated to areas with stronger growth potential. For example, Novan pointed to Islamic banking in Indonesia and digital opportunities in Malaysia. He said the combination of CIMB's eight million digital users through its CIMB Octo app and 30 million Touch 'n Go users in Malaysia presents untapped potential. 'That is one area that we can look to harness between the bank and the wallet, for example, that we haven't even started. There's a lot more upside in various pockets but we have to focus on the areas where we can win, where we can serve our customers and society better – that is what we are doing,' he said. asean CIMB Financing niche
The Star
22-07-2025
- Business
- The Star
CIMB deepens push in Thailand, Indonesia
KUALA LUMPUR: CIMB Group Holdings Bhd continues to sharpen its focus in Thailand and Indonesia despite economic headwinds, concentrating on cross-border banking in Thailand and scaling up Islamic finance in Indonesia to tap into long-term growth. Group chief executive officer (CEO) Novan Amirudin said while Thailand's domestic growth remains challenging, cross-border activity is on the rise as Thai corporates expand abroad. CIMB, he added, continues to play an active role in facilitating these transactions. 'Thailand is facing a number of economic headwinds, with the last major investment cycle centred around petrochemicals and automotive. It has been a while since the country saw large-scale investments. 'There is also a heavy reliance on tourism and while the numbers in tourism have returned, spending has yet to recover to pre-Covid-19 pandemic levels. 'As an operator in Thailand, CIMB is also feeling the impact of these issues. Nonetheless, Thailand remains a key part of our overall franchise because it completes our Asean proposition,' he said during the Asean Media Day at the bank's headquarters yesterday. Meanwhile, Novan highlighted Islamic banking as a promising area for CIMB's Indonesian arm, noting that although Indonesia has the world's largest Muslim population, Islamic banking penetration remains low at only 8% of the market. In comparison, Malaysia's Islamic banking penetration stands at 50%. 'Where I see CIMB Niaga Syariah playing a key role in the Indonesian market is through the product innovation and the solutions we can bring to Indonesia. 'There are a lot of lessons that we have learned from the Malaysian market, and if we can marry that with the domestic nuances of operating in Indonesia – the different perspectives, cultures, and requirements – we can offer Indonesians a good alternative to the banking products available today. 'I do see that there are a lot of areas for us to play in, given that the penetration is only at 8% and the demand for such services is high,' he said. For the six months ended June 30, 2025, CIMB's Thai banking arm saw a 21.8% year-on-year (y-o-y) decline in net profit to 1.01 billion baht (RM132.45mil). CIMB Thai Bank PCL, a 94.83%-owned subsidiary of CIMB, attributed the softer performance to one-off items, including adjustments in revenue recognition under the effective interest rate methodology and an additional expected credit loss overlay. CIMB Thai president and chief executive officer Wut Thanittiraporn said in a statement that these were 'proactive measures taken to strengthen the bank's financial resilience in the long term, and were not a result of any deterioration in asset quality'. CIMB Thai's consolidated operating income contracted 257.8 million baht or 3.7% on a y-o-y basis. The decline was mainly due to a 13.6% drop in net interest income to 646 million baht, driven primarily by lower interest income on loans. This was partially offset by higher net fee and service income of 30.5 million baht. On a broader outlook, Novan said the bank is 'in a good place' and its portfolio remains 'extremely strong' despite uncertainties from tariffs. When asked if CIMB expects a decline in earnings for financial year 2026, he said the group will 'do what it takes to be nimble, to pivot its strategies by looking at its efficiencies, portfolio, credit losses, non-interest income and cost of funds to mitigate the impact from tariffs. 'Assuming tariffs continue to rise, this will inevitably impact the broader economy through increased costs and shifting supply chains. 'If economic growth slows, loan growth will also slow – and loan growth is one source of income for banks. 'However, it is more complex than that as a bank's interest income comes from loan growth, as well as what it makes from the net interest margins, which in turn are influenced by the financial institution's cost of funds versus its credit spread that is tied to the customer risk profiles it onboards,' Novan said. He added that in a declining interest rate environment, as seen in recent months, interest margins have narrowed, leading to lower interest income. 'However, interest income is not the only income that we make as a bank. About 30% of our income comes from non-interest income, such as fees, foreign exchange, payments, and advisory services. 'This is an area where CIMB has been extremely active and forms a critical part of our Forward 30 plan, where we plan to increase this portion of our income.' Novan also noted that tools like artificial intelligence are being deployed to enhance the bank's efficiency. He pointed out that another key component of the profit and loss statement is credit losses. 'If a bank grows loans very aggressively, takes on a lot of high-risk customers, then its risk of credit losses will be a lot higher. 'At CIMB, we have reconstituted our portfolio over the last few years. 'We have exited businesses that were very hard to operate. > TURN TO PAGE 2 We have reduced our risk profile and credit losses as well as increased our coverage ratio. 'We are in a good place. Tariffs are just one factor that would impact a bank's financials. What is important is how we choose to play with different levers to offset the impact it brings,' he said. Meanwhile, CIMB chief investment officer fixed income Ng Boon Hoa said the bank remains 'neutral' on the Malaysian market because 'the catalysts have been quite lacking'. 'Policy support and foreign direct investment flows have been relatively muted after a strong run last year. 'There is also some lingering uncertainty surrounding tariffs, seeing as Malaysia has not struck a trade deal with the United State. It remains to be seen whether the country can close the deal.' Ng also noted that first-quarter earnings were relatively muted, growing only 1% to 2% compared to last year where the country had an earnings growth of 10%. 'That has not translated well into the equity market, and we do not think it paints a very positive picture moving forward,' he said. Ng added that the wider scope of the sales and service tax has caused 'a bit of concern about higher prices and inflation and also softer consumer demand'. 'The inflection point, however, will probably come from the foreign flows. Foreign holdings are actually quite low in equities in Malaysia. Any pickup will be positive. 'Foreign direct investment – particularly in data centre developments across the Johor-Singapore Special Economic Zone – could provide a lift to Malaysian markets. 'We have a FBM KLCI target of around 1,600, based on a reasonable 14 times price-to-earnings ratio,' he said. CIMB continues to favour high-yielding sectors such as banking, utilities and construction. 'We think they are quite good in terms of valuations,' Ng said. He noted that the ringgit's strength could also play to the benefit of the Malaysian equity markets. 'The Singapore dollar and the ringgit are expected to appreciate against the greenback in the second half of the year. 'Hence, we still like Malaysian and Singaporean bonds, which deserve an allocation of investors' assets as they are considered safe havens, particularly from a currency perspective,' he said.
The Star
21-07-2025
- Business
- The Star
CIMB Thai records 1H net profit of THB1.01bil
KUALA LUMPUR: The Thai banking arm of CIMB Group Holdings Bhd recorded a net profit of THB1.01bil (RM132.45mil) in the six months ended June 30, 2025, which marked a 21.8% decline from its net profit in the same period in 2024. CIMB Thai Bank PCL, which is a 94.83%-owned subsidiary of CIMB Group, said the weaker performance was owing mainly to one-off items, namely the adjustment in revenue recognition based on the effective interest rate (EIR) methodology and the additional expected credit loss (ECL) overlay. "These were proactive measures taken to strengthen the bank's financial resilience in the long term, and were not a result of any deterioration in asset quality. "This reflects the bank's prudent risk management approach amid a still-uncertain economic environment," said CIMB Thai presdent and CEO Wut Thanittiraporn in his review of the results in a statement. CIMB Thai's consolidated operating income contracted THB257.8mil or 3.7% on a year-on-year (y-o-y) basis. It said this resulted from a 13.6% decline in net interest income to THB646mil, caused mainly by lower interest income on loans, partially offset by higher net fee and service income of THB30.5mil. Other operating income increased THB357.8 mil or 21.5%, contributed by higher gains on investments, partially offset by lower gains on financial instruments measured at fair value through profit or loss and sale of non-performing loans. Meanwhile, operating expenses contracted THB832.7mil or 19.1%, from lower impairment loss on properties for sale and lower specific business tax as a result of lower interest income, partially offset by higher employee expenses. The bank's cost-to-income ratio improved to 52.1% in 6M25 as compared to 62% in 6M24 Net Interest Margin (NIM) over earning assets stood at 1.9% in 6M25, compared to 2.2% in 6M24, arising from lower interest income on loans. As at June 30, 2025, the bank's total gross loans stood at THB244.2bil, a decline of 2.8% from Dec 31, 2024. Deposits stood at THB316.5bil, a decrease of 2.3% from THB324bil as at end-December 2024.
New Straits Times
06-06-2025
- Business
- New Straits Times
CIMB unmoved by Thai unit's suspension, has no plans to raise public shareholding
KUALA LUMPUR: CIMB Group Holdings Bhd has made clear it has no intention of increasing the public shareholding of its Thai banking arm, despite a trading suspension and looming threat of delisting by the Stock Exchange of Thailand (SET). The group, which owns 94.83 per cent of CIMB Thai Bank, said it will not take steps to meet the 15 per cent minimum free float required by the Thai bourse, a threshold CIMB Thai has not complied with since 2011. "This could lead to an eventual delisting of CIMB Thai, if the minimum free float requirement is not met within one year and subject to the discretion of SET. CIMB Group has no intention to increase the free float of CIMB Thai's shares," the group said in a filing to Bursa Malaysia. Trading in CIMB Thai shares was suspended on June 5 under new SET rules that took effect on March 24, 2024. The updated regulations replace the previous penalty-based approach with enforcement measures that include suspension and potential delisting for non-compliant companies. CIMB Thai had previously remained listed by paying annual fines, which it had done since its free float fell below the threshold more than a decade ago. The group said the latest regulatory action followed a one-year public consultation on CIMB Thai's status and the risk of delisting. No objections were raised during the review. Despite the suspension and regulatory pressure, CIMB maintains the development has no material effect on its operations. "The suspension and potential delisting have no impact on CIMB Thai's customers, operations, or financial soundness. CIMB Thai remains a core subsidiary of the group and will continue its banking operations as usual," it said.
The Star
06-06-2025
- Business
- The Star
Trading in CIMB Thai suspended for not meeting minimum public spread
KUALA LUMPUR: The securities of CIMB Bank Bhd's 94.83%-owned Thai banking arm have been suspended from trading on the Stock Exchange of Thailand (SET) from June 5, 2025, to comply with new regulations on the minimum public shareholding spread. The suspension of share trading on CIMB Thai Bank Public Co Ltd was imposed in line with new regulations that came into effect on March 24, 2024, for companies that did not meet the 15% minimum float requirement. Under the new regulations, there could be an eventual delisting of CIMB Thai if the minimum free float requirement is not met within one year and subject to the discretion of SET. Prior to the new regulations, CIMB Thai had been paying penalty fees since 2011 for not meeting the minimum float requirement. However, CIMB Group Holdings Bhd, the parent of CIMB Bank, said it has no intention of increasing the free float of CIMB Thai's shares. "The suspension and potential delisting have no impact on CIMB Thai's customers, operations, or financial soundness. CIMB Thai remains a core subsidiary of the group and will continue its banking operations as usual," it said in a filing with Bursa Malaysia. CIMB Thai's shares were last traded at THB0.37 (4.8 sen) a share on June 4. Shares in CIMB Group were down three sen or 0.44% to RM6.84 a share at Friday's close.
