CIMB shares fall as chairman Nazir steps down

KUALA LUMPUR: Shares of CIMB Group Holdings Bhd fell marginally in early trade Tuesday after the company announced chairman Datuk Seri Nazir Tun Razak is leaving his post.

The bank fell four sen, or 0.66% to RM5.99 with over 2.1 million shares done.

CIMB announced on Monday that its chairman, Datuk Seri Nazir Tun Razak, will step down from his post and all other positions within the group by Dec 31, 2018.

“The CIMB board of directors will now activate its succession plan to decide on the next chairman and the exact date of handover,” the bank said in a statement today.

Nazir, 51, has served CIMB for 29 years since 1989. The brother of former prime minister Datuk Seri Najib Tun Razak was CIMB’ CEO for 15 years and as group chairman since 2014. His current term was supposed to end in August 2019.

Affin Hwang Capital Research said believes that Nazir’s departure will not affect the group’s operations.

The research house said the current management team had been hands-on, since Nazir relinquished his position as the Group’s MD/CEO and became the chairman in September 2014.

Affin has maintained its “buy” on CIMB with a an unchanged target price of RM7.50 based on a 1.38x P/BV target on CY19E book value per share.

“We hold our view unchanged of a better operating outlook in 2H18 for the banking sector and hence for the CIMB Group, arising from the potential roll-out of more business-friendly policies under the new regime,” it said.

Stock on the Move , CIMB