KUALA LUMPUR (Nov 3): CIMB Group Holdings Bhd has refuted allegations circulating on WhatsApp on Friday that it is undertaking a major retrenchment exercise in its wholesale banking business.
“CIMB's wholesale [banking business] is not undergoing a retrenchment exercise. As a leading wholesale banking franchise, CIMB periodically reviews our operating model to align with global best practices. With this in mind, and to provide an enhanced quality of service to our clients, we are making changes to our group wholesale banking organisational structure, in line with our new target operating model.
“A transition and redeployment plan, along with any necessary support, has been put in place to assist those impacted by this exercise. This applies only to our wholesale banking function, and does not impact other parts of the bank,” CIMB said in a late evening statement to The Edge Malaysia, following queries.
CIMB’s wholesale banking business comprises investment banking, corporate banking, treasury and markets, transaction banking, equities and private banking.
The business is co-headed by Chu Kok Wei and Novan Amiruddin. They were appointed as co-chief executive officers on July 18 last year. This year, on June 15, Novan also became the CEO of CIMB Investment Bank Bhd.
It is understood that CIMB held a town hall meeting earlier on Friday evening at the Le Meridien hotel in Kuala Lumpur to inform staff of developments in relation to its new target operating model for wholesale banking.
In April, CIMB Investment Bank inked a conditional share purchase agreement to buy a 100% stake in KAF Equities — one of the country’s oldest stockbroking firms — from KAF-Seagroatt & Campbell Bhd for RM147.94 million cash, subject to potential adjustments at the completion date.
The acquisition is subject to the approvals of Bank Negara Malaysia and the Securities Commission Malaysia.
CIMB already has a stockbroking business through CGS-CIMB Securities, its joint venture (JV) with China Galaxy Securities Co Ltd (CGS), one of China’s largest stockbrokers.
Buying KAF Equities will enable CIMB to continue to have a Malaysian stockbroking business once it exits the JV with CGS. CGS has exercised a call option to acquire CIMB’s remaining 25% stake in the JV, a process that is currently also awaiting regulatory approvals.