KUALA LUMPUR (May 10): CIMB Securities Sdn Bhd, a unit of CIMB Group Holdings Bhd (KL:CIMB), said on Friday it is targeting “high” single-digit growth in market share by year end.
“We have grown to about 5% in three months,” chief executive officer Ruzi Rani Ajith told a press conference following the launch of CIMB Securities. “This is also bolstered by aggressive blocked placements and crossings that we have done.”
CIMB Securities’ market share has grown from 0.7% in January to 4.54% currently, following the acquisition of KAF Equities Sdn Bhd in February this year for about RM147.94 million.
The acquisition also saw the divestment of CIMB’s residual stake in its stockbroking joint venture (CGS-CIMB JV) with CGS International Holdings Ltd, formerly known as China Galaxy International Financial Holdings Ltd (CGI).
CIMB Investment CEO Novan Amirudin shared that the bank’s stockbroker future plans will first focus on the wholesale market and later on the retail and wealth segments.
“We will collaborate with international and regional players to bring international content and ideas to our clients, but without the cost of ‘on the ground’ teams in the region. We are also investing in technology to scale up our business at the right time,” said Novan, who is also the co-CEO of Group Wholesale Banking at CIMB Group, in his speech at the launch.
Explaining further on the technology investment, Ruzi said the investment will span over a five-year plan, but the value remains undisclosed in the meantime as it is still in the process of being finalised.
“We have set aside a significant amount to ensure that we provide digital empowerment, not only for operational efficiency, but also to democratise products, and also accessibility to international markets for our clients,” she added.
Meanwhile, Finance Minister II Datuk Seri Amir Hamzah Azizan, who was officiating the launch, said he looked forward to the addition of CIMB Securities to the capital market scene, as it will increase the vigour of Malaysian financial markets.
“Over the last five years, we have seen CIMB Securities expand globally through its partnership with CGS. A homegrown stockbroking firm offering a full suite of equities services. I am certain this experience, coupled with the capability of a proven team, will stand CIMB Securities in good stead now, as a standalone broker," he said.
He hoped that CIMB Securities could facilitate and attract foreign investment and promote economic integration as well as stimulate growth across key sectors of the economy.