CIMB receives approval to close Middle East subsidiary

File photo for illustration purposes

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KUALA LUMPUR: CIMB Group (CIMB) has announced that all requisite approvals had been obtained for the closure of CME, an indirect wholly-owned subsidiary of CIMB, and CME would henceforth cease to be a subsidiary of CIMB on Oct 4, 2017. This was also pursuant to the announcement made by the group on July 28, 2016.

According to a press statement, the Closure of CME would not have any effect on the share capital of CIMB and substantial shareholders’ shareholding in the company, and does not have any material effect on the consolidated earnings and net assets of the group.

Group chief executive Tengku Dato’ Sri Zafrul Aziz said, “The closure of CME is in line with the group’s business consolidation and resource optimisation in line with our T18 recalibration strategies. CIMB remains committed to the Middle East through our partnership with Fajr Capital, which has a strong network in the Middle East. The partnership with Fajr Capital will also leverage on CIMB’s strong ASEAN network, to facilitate deals between the two economic regions with an expanding middle-class population, a high percentage of young people and strong growth prospects, moving forward.”

The CIMB-Fajr partnership encompasses cross-marketing and distribution of each partner’s products, services and deals, with a focus on, among others, Islamic treasury, capital market solutions, asset management services and strategic investments. This enables CIMB Group to not only maintain and strengthen its presence in the Middle East market, but also broaden its reach.

CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, the Group is now present in nine out of 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar and Laos). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Sri Lanka, Korea, the US and UK.

CIMB Group has the most extensive retail branch network in ASEAN of around 900 branches as at 30 June 2017. CIMB Group’s investment banking arm is also one of the largest Asia Pacific-based investment banks, offering amongst the most comprehensive research coverage of more than 700 stocks in the region.

CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 94.1% shareholder of CIMB Thai in Thailand.

CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately RM60.0 billion as at 30 June 2017. The Group has 38,000 employees located in 15 countries. — Bernama