CIMB likely to incur integration costs of about RM1.4bil

PETALING JAYA: The proposed mega-bank merger between CIMB Group Holdings Bhd, RHB Capital Bhd (RHB Cap) and Malaysia Building Society Bhd (MBSB) could potentially cost CIMB RM1.4bil in integration costs.

“Management estimates integration costs of about RM1.4bil. The split between capital expenditure and operating expenditure costs is about 80:20, which does imply that a large portion of it can be capitalised,” Maybank Investment Bank Research said in a report yesterday.