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Last Updated: Sep 25th, 2006 - 11:36:04 |
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The group would also be looking at opportunities to open branches in India and China, given that they are emerging markets in the region. |
KUALA LUMPUR, Sept 7 (Bernama) - The CIMB group will allocate between RM70 million and RM80 million over the next three years to rebrand 383 branches of Bumiputra-Commerce Bank (BCB) and Southern Bank Bhd (SBB) as CIMB Bank.
Currently, SBB and BCB have 390 branches, of which 17 will be closed down and 10 new ones will be opened and the allocation which would be used in two tranches includes the fund to be spend for opening new branches.
Five of the new branches would be opened this year, followed by another five next year, CIMB group chief executive officer Datuk Nazir Razak said today at the launching of the CIMB Group and new logo as well as its first bank branch at Starhill by the Prime Minister Datuk Seri Abdullah Ahmad Badawi.
Other locations of new branches to be opened this year are The Curve, Genting Highlands, Serdang Perdana and Bukit Tinggi, he said.
He said the group would also be looking at opportunities to open branches in India and China, given that they are emerging markets in the region.
CIMB Group's transformation into a universal banking group started in late 2004, with the decision to create a strong and a competitive universal bank.
It undertook mergers and acquisition worth RM12.8 billion to transform CIMB into a regional universal banking group, including merger with Singapore stockbroker GK Goh, Bumiputra-Commerce Bank Bhd and Southern Bank Bhd.
With the acquisition of Southern Bank, CIMB has also a full-fledged banking license in Singapore which would enable the bank to take deposits in Singapore currencies.
"We will now have retail presence," he said.
However, the bank would not go full-fledged into the extremely competitive retail Singapore market.
"What you will see is us using our commercial banking capabilities to synergies with our investment banking (CIMB GK) capabilities," he said.
Asked on possible acquisitions in the pipeline, he said: "No."
Nazir said over the last 18 months, CIMB's staff strength has grown from 1,000 in Malaysia to 20,000 in 12 countries due to various acquisitions. During the period, market capitalisation increased from RM6.3 billion to RM19.5 billion.
The group's total assets grew from RM14.7 billion to RM155 billion with a further RM18 billion being third-party funds.
Nazir said 70 percent of the group income now was coming from Malaysia, while overseas operations contributed 30 percent.
The CIMB group will have three brands, with CIMB Bank as its consumer banking, business banking and direct banking arm, together with CIMB Investment Bank, formerly known as Commerce International Merchant Bankers, and CIMB Islamic, formerly known as Commerce Tijari.
Its overseas branches would also be re-branded accordingly, except for PT Bank Niaga in Indonesia which needs the regulators' approval, he added.
Asked on profit contribution specifically from the Islamic Bank, he said: "It is currently a small number. (But) I expect CIMB Islamic very quickly to be a significant player in global Islamic finance."
Asked on the tax benefit for banks' income from foreign branches announced in the 2007 Budget, he said: "Any tax break is positive. I think you get tax breaks to set up new branches. We hope to respond to it. We will definitely try to capitalise on it."
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