25 May 2018

CIMB to gain RM920 million on shareholding realignment


(Kuala Lumpur, Malaysia) – CIMB Group Holdings Berhad (“CIMB” or the “CIMB Group”) today announced that it has completed the realignment of ownership stakes with Principal Financial Group (“Principal”) in its CIMB-Principal joint ventures across ASEAN. Principal has now increased its stake to 60 percent with CIMB retaining 40 percent ownership in CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management. The joint ventures will continue to be co-managed by both companies.


This exercise will see CIMB Group recording a gain of approximately RM920 million and about 15 bps increase in its CET1 ratio.


Tengku Dato’ Sri Zafrul Aziz, Group Chief Executive Officer, CIMB Group, said, “Asset management continues to be an integral part of our regional banking business and this shareholding realignment enables 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 CIMB Group.”


“We’ve been able to realise attractive gains from our strategic investment in CIMB-Principal, and look forward to continue participating in the joint venture as a 40% shareholder,” added Zafrul.


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 AUM and is one of the largest asset managers in the region. 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.