CIMB to adopt targeted approach in moratorium

Group CEO of CIMB Group Datuk Abdul Rahman Ahmad said, "As we come to the end of the moratorium period, the focus for CIMB, as with other financial institutions, will be a more targeted assistance approach where we will engage borrowers from the hardest hit sectors to extend support and restructure terms where necessary.”

PETALING JAYA: CIMB Group Holdings Bhd will take a “targeted approach” to assist borrowers affected by the Covid-19 pandemic after the September moratorium deadline, says Group CEO of CIMB Group Datuk Abdul Rahman Ahmad.

“As we come to the end of the moratorium period, the focus for CIMB, as with other financial institutions, will be a more targeted assistance approach where we will engage borrowers from the hardest hit sectors to extend support and restructure terms where necessary, ” he said in a statement yesterday.

The bank said the six-month automatic loan moratorium had provided significant relief to its customers, particularly within the B40 segment and to its small and medium enterprise (SME) clients.

CIMB said as at end-May, the moratorium had benefited over 1.3 million retail customers and over 16,000 SMEs and corporate clients in terms of cash flow alleviation.

CIMB, which AGM was conducted online yesterday, also said that it has approved more than RM1bil of relief funds to SMEs, of which RM700mil comes under Bank Negara’s Special Relief Fund.

At the AGM, it said all 11 tabled resolutions were passed, including the audited financial statements for the financial year ended Dec 31,2019.

“Despite the pandemic and resulting market volatility, CIMB remains resilient and well-capitalised to withstand shocks, ” chairman Datuk Mohd Nasir Ahmad said.

“We recently welcomed Abdul Rahman on board as the new Group CEO and the board looks forward to working with him to navigate the urgent challenges amidst the rapidly changing banking and economic landscape, ” Nasir added.

Nasir said the bank would remain focused on capital optimisation and strategic initiatives under its mid-term strategy called Forward23 to ensure long-term resilience.

However, its financial performance for financial year 2020 will be affected due to this ongoing pandemic, it said.

To mitigate this, the bank will be undertaking a review of its Forward23 strategy.

“The Malaysian economy is expected to recover due to stimulus measures, and the recent easing of the lockdown should bring about a faster rebound. Our banking system is also far more resilient today compared with previous crises, ” Nasir said.

“However, we remain vigilant for the rest of 2020, focusing on enhancing our risk management and ensuring that our liquidity ratios remain at a comfortable level.”