CIMB embarks on reorganisation plan, makes management changes

PETALING JAYA: CIMB Group Holdings Bhd, on the heel of a failed merger plan with RHB Capital Bhd and Malaysia Building Society Bhd, has announced its Target 2018 (T18) plan, which will see the re-organisation of its business divisions together with changes in the senior management team, to drive its growth over the next three years.
CIMB Group acting group CEO Tengku Zafrul Tengku Abdul Aziz said in a statement last Friday. that the group has no plans for mergers and acquisition opportunities except for "minor" ones that help to complete its Asean presence.
Anchored on the T18 initiatives, at the end of financial year 2018, CIMB Group expects a return of equity (ROE) of more than 15%, Common Equity Tier 1 (CET1) of more than 11%, cost-to-income ratio of less than 50% and for consumer banking to contribute about 60% of its income.
"T18 is also about consolidation and being very measured about future growth. We have a very strong core engine and we will focus on realising the potential of our almost complete Asean platform," Zafrul said.
Under the T18 plan, the group will see the creation of a new regional commercial and SME banking division, an integrated wholesale banking division combining investment banking, treasury markets and corporate banking, and a regional consumer banking division.
Zafrul will be heading the new integrated wholesale banking division as CEO, while Datuk Lee Kok Kwan will be appointed as adviser to the Group CEO.
Lee is currently CEO of the corporate banking, treasury and markets division, which will be merged with the investment banking division, to create the integrated wholesale banking division.
Renzo Viegas will be appointed as CEO of the regional consumer banking division, while Datuk Sulaiman Mohd Tahir will be appointed CEO of CIMB Bank Bhd, upon regulatory approval.
Yong Jiunn Run, currently the head of commercial banking, CIMB Bank Singapore, will be appointed acting CEO of the newly-formed group commercial and SME banking division.
Kenny Kim, currently Group CFO and CEO of Group Strategy and Strategic Investments will be appointed adviser to the Group CEO for Finance, Asset Management and Investments, while Shahnaz Jamal, currently deputy Group CFO will be appointed Group CFO, CIMB Group.
Meanwhile, Arwin Rasyid will step down as president direktor of CIMB Niaga at the Indonesian bank's next annual general meeting, tentatively set to be held in April 2015.
Datuk Robert Cheim, adviser to the Investment Bank will retire from the CIMB Group board and his advisory positions but will remain chairman of CIMB Thai and also sit on the boards of other CIMB Group companies. Datuk Dr. Gan Wee Beng, adviser to Risk Management will retire effective July 1, 2015.