CIMB Group is the fifth largest banking group in Asean (by assets), with an extensive regional footprint and a commendable universal-banking franchise.
KUALA LUMPUR:? CIMB Group Holdings Bhd
today completed the realignment of ownership stakes with Principal Financial Group in its CIMB-Principal joint ventures across ASEAN.
This exercise will see the CIMB Group recording a gain of about RM920 million and about 15 basis points increase in its Common Equity Tier 1 (CET1) ratio.
The CIMB-Principal joint ventures, involving CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management, would result in Principal holding a 60 per cent stake with CIMB owning the remaining 40 per cent.
In a filing with Bursa Malaysia, CIMB Group Chief Executive Officer Tengku Datuk Seri Zafrul Aziz said the joint ventures would continue to be co-managed by both companies.
He said asset management continued to be an integral part of CIMB's regional banking business and this shareholding realignment enabled CIMB-Principal to have more scale and improved global investment expertise.
“We expect this change to improve our ability to deliver better products to our clients while creating sustainable long-term value for the CIMB Group," he said, adding that attractive gains have been realised from the strategic investment in CIMB-Principal CIMB and Principal have partnered in the region since 2004 and have successfully grown their operations across Malaysia, Singapore, Indonesia and Thailand.
The CIMB-Principal Asset Management group of companies has more than RM80 billion in assets under management and is one of the largest asset managers in the region.
Meanwhile, CIMB-Principal Islamic Asset Management has been managing Islamic institutional mandates since 2008 and is the sole end-to-end Islamic asset management boutique of the CIMB Group and Principal Financial Group. - Bernama
