Securities Financing (SF) Equity Markets & Derivatives (EMD)
Securities Financing is responsible for securities lending CIMB is a leading participant in the Malaysian
activities within the CIMB Group retail franchise. It offers equity capital markets. EMD serves as an
ﬁnancing secured against investment deposits, structured intermediary between issuers and investors in
products and securities (i.e. share margin). the equity markets. It assists issuers to raise
funds for their capital requirements and assists
Products are targeted towards high net worth individuals shareholders to realise the value of their equity
as well as the mass afﬂuent. SF is also a referral conduit holdings. EMD also serves as an intermediary
for other wealth management offerings such as Trustee, in the secondary market to facilitate trading
Insurance, and PCS products. between investors of equity and equity-linked
securities. Services and activities of EMD’s
main business divisions include institutional
International Banking & Transactions Services broking, equity capital markets such as
underwriting, equity derivatives and structured
International Banking & Transactions Services comprises
products and equity investment and trading.
5 separate business units:
• Cash Management is responsible for origination and
management of cash management products
• Security Services (SS) comprises credit agency, credit CIMB-GK represents the regional securities
operations, fund accounting, trustee and custodian and corporate ﬁnance platform of CIMB.
services. Services offered include will writing, private trust, Headquartered in Singapore, it has ofﬁces in
corporate trust for bonds, unit trusts and asset managers, London, Bangkok, Hong Kong and Indonesia.
secretarial, company formation and managers of Labuan Its main business divisions are Institutional
trust companies and Labuan offshore companies and Retail Broking, Wealth Management,
Investment Banking and Corporate Finance
• Structured Banking Products provides services on and are supported by a strong research team
loan syndication, project advisory, project ﬁnance, debt of more than 40 personnel, covering equity
advisory and restructuring and shipping ﬁnancing markets in Singapore, Indonesia, Hong Kong
• Global FI comprises Correspondent Banking, and Thailand.
Risk Participation and Structured Trade Products.
Correspondent Banking is responsible for the NOSTRO
and VOSTRO accounts opened by the bank for trade
Private Client Services (PCS)
and remittances with all its relationship banks whilst Risk
Private Client Services comprises Private
Participation manages the credit limits given to these
Banking and Retail Broking. Private Banking
banks. Structured Trade Products is responsible for
offers the whole array of wealth management
originating trade related products which are structured
services catering to high net worth individuals,
around the strength of the relationship banks as counter
leveraging on the services and products of
the Group’s investment and commercial bank
• International Banking is responsible for the businesses as well as working with external parties via an
of the ﬁrm’s international branches in Hong Kong, open architecture model. Retail clients are
Singapore, Tokyo, London and the subsidiary Bumiputra- offered retail broking services via a broad range
Commerce Bank (L) Ltd. of platforms/intermediaries including remisiers,
company dealers, online broking and mobile
cimb berhad (582504-P) annual report 2005 98 | 99
Asset Management Research
CIMB’s research professionals provide
CIMB-Principal provides fund management expertise in in-depth and independent research reports for our
equities, ﬁxed income, cash and Shariah compliant products clients, covering economic trends, equities, ﬁxed
and offers customised/tailored portfolio mandates and unit income and derivatives. CIMB’s equity research
trust funds to both institutional and retail clients. It currently team covers listed companies and sectors in
has in its product offering 16 unit trusts designed for retail ﬁve countries - Malaysia, Singapore, Indonesia,
investors, of which the Global Titans Fund offers exposure to Thailand and Hong Kong, while the economic
multinationals while the Hidden Values Fund offers exposure coverage spans the same ﬁve countries, including
to companies in India, Singapore, Malaysia, Indonesia and China. Being the ﬁrst investment bank in Malaysia
Thailand. to develop a dedicated ﬁxed income research
team, it now offers ﬁxed income research on
Malaysia and Indonesia and will be initiating
Wholesale Funds coverage on Singapore and Hong Kong in 2006.
CIMB-Mapletree Management Sdn Bhd (CMM)
CMM is a 60:40 joint venture between CIMB Real Estate Group Treasury
Sdn Bhd and Mapletree Investments Pte. Ltd. of Singapore.
Launched in April 2005, it is involved in real estate fund The integration of CIMB and BCB Treasury
management and real estate related advisory activities in September 2005 brings about a complete
leveraging on both CIMB and Mapletree’s distinct expertise intermediation between interest rate, credit
and knowledge of the Malaysian market, structured spread and FX term structures, employed on a
corporate ﬁnance and real estate. To date, CMM has balance sheet that is now 7 times larger than
achieved successful closure of its ﬁrst privately held closed- that of CIMB’s. Core units within Group Treasury
end real estate fund, CMREF 1, which is an acronym for include Debt Capital Market & Syndicate,
CIMB-Mapletree Real Estate Fund 1, which has an approved Capital Management, Group Funding, Global
fund size of RM2 billion. It has since acquired 2 major Sales, Cross Markets Trading, Structured
properties - CP Tower and Menara CSM/Jaya. Products and Balance Sheet Management.
Private Equity (PE) While it continues to maintain the ﬁrm’s
Private Equity’s services include providing equity and dominant market shares in the Ringgit capital
mezzanine ﬁnancing for mid and late stage investment market, other key responsibilities for 2006
opportunities, particularly management buyouts, restructuring include the management of the ﬁrm’s net
and re-capitalisation exercises and aims to create value interest income and fund transfer pricing to
by investing in companies using CIMB’s expertise and ensure greater accuracy in product pricing
established network. With funds under management and spread to send correct pricing signals to
exceeding half a billion ringgit, PE is aggressively seeking local product origination and distribution. It will also
and regional investment opportunities. continue to enhance product development by
offering new consumer products and expanding
Strategic Assets Division the structured product offering. To date, it has
begun distributing capital guaranteed products
Strategic Assets is a private equity division focusing on
such as Range Accruals and the more recent All
providing equity and equity-related risk capital to businesses
Stars through BCB’s distribution network.
in the energy, infrastructure and natural resource sectors.
Strategic Assets’ investment portfolio in these sectors includes
privately managed and controlled operating companies, brown-
ﬁeld expansions, privatisation, restructuring, project ﬁnanced
entities and publicly listed companies.
Retail Banking Consumer Sales & Distribution
On 1 January 2006, a new organisation structure for the
consumer banking operations of CIMB Group was effected Consumer Sales & Distribution has the primary
and now consists of 3 divisions: Retail Banking, Business responsibility of developing, implementing
Banking and Consumer Sales & Distribution. and managing sales and distribution for Retail
Banking and Business Banking products and
The Retail Banking division retains responsibility for the services. It will provide leadership in anticipating
products and services that are sold to individual customers new business opportunities and developing
of the bank but outsources the sales, service and operations strategies to achieve desired performance for
functions of the business to Consumer Sales and Distribution the Group’s consumer banking divisions.
and GIOD collectively and recovery functions to Recoveries.
CSD has been organised into seven Regional
With the integration of BCB Finance into the bank, it is now
Centres which are overseen by Regional
a “one-stop” centre with auto loans being offered at all the
Directors who are responsible for formulating
banks’ branches. Key functions that are managed directly in
sales and distribution strategies for their
Retail Banking include Credit Cards, Wealth Management
respective areas. These regional teams will
products, Banking & Payment products, Alternative Channels
oversee all bank branches, business banking
Development, Customer Knowledge & MIS, Retail Programme
centres, retail business centres and related
Ofﬁce and Retail Portfolio Management.
delivery channels. They will also be assisting
other parts of the ﬁrm such as IBK, Treasury
and Recoveries where necessary.
CSD will also oversee the New Branch Project,
Business Banking is responsible for the origination and replacing the Branch Transformation Project.
management of products and services for SMEs and mid- The New Branch Project has been set-up to
corporates, as well as overseeing the management of look into a new branch model largely based
business loan portfolios. It will work closely with Consumer on the “total customer experience” paradigm.
Sales & Distribution for sales and distribution. It expects to launch the new branch models
together with the launch of the “re-branded”
It has since June 2005, undergone a major transformation CIMB Bank later this year.
based on segmented business models, servicing clients
across SMES, Micros and mid-sized corporates. Together
The 3 key areas under CSD are Regional
with CIMB Private Equity, Business Banking launched
Centres, CSD Strategy and CSD Support. The
Bumiputra Advisory Teams (BAT) which offers equity and/
seven regional directors under CSD are as
or debt ﬁnancing solutions to Bumiputra business banking
clients. In further promoting better access of business loans
for professionals, CIMB had in July 2005 signed a MOU with
Central 1 : Engku Fauzan Engku Muhsein
Central 2 : Nik Johaan Nik Hashim
Business Banking will continue to refresh its product portfolio Central 3 : Ismail Kassim
by introducing more capital markets products such as ﬁxed
Central 4 : Nor Azzam Abdul Jalil
income and FOREX to its customers. At the end of 2005, a
portfolio reorganisation structure was completed, whereby all Northern : Steven Chai
large corporate relationships were transferred to IBK. Business Southern : Raja Sulong Ahmad Raja Razak
Banking has been reorganised into 4 main departments i.e.
East Malaysia : Ali Adai
Products Advisory Group, Product & Market Development,
Business Portfolio Management and Business Support.
cimb berhad (582504-P) annual report 2005 100 | 101
Islamic Banking Group Strategy
CIMB Islamic Banking operates as a parallel bank, leveraging Group Strategy is responsible for identifying,
on CIMB’s brand and market positioning and BCB’s network. developing, executing and managing the
It focuses on providing comprehensive and innovative implementation of key strategic initiatives and
Shariah-compliant ﬁnancial products and services to satisfy processes for the Group. By having a separate
the needs of individuals, SMEs and large corporates in division to oversee strategy from inception to
accordance with the Shariah rules. completion, new markets, new products or
new processes can be identiﬁed and evaluated
In retail, the ﬁrst phase of Islamic product rolled out at all BCB accurately and synergy beneﬁts can be realised
branches was in October 2005, with focus on property and with focused execution. This will enable the
vehicle ﬁnancing products and current accounts. The ﬁrst ﬁrm to deliver value to all its stakeholders as
batch of Islamic business banking product rolled out followed quickly as possible and meet the expectations
suit in December 2005. On the international front, CIMB embedded in the ﬁrm’s mission statement.
Islamic launched Brunei’s ﬁrst investment bank, CIMB Brunei,
and will continue to expand its Islamic portfolio overseas as Group Strategy consists of 4 departments,
well as to explore presence in the Middle East. It aims to be namely, Group Corporate Finance, Strategy &
the leading player in global Islamic capital markets Innovation, Strategy Management & Integration,
and Market Intelligence & Research.
Group Information & Operations (GIOD)
The Group Information and Operations Division is
responsible for risk-monitoring, operations, information Group Finance has responsibility for the ﬁnancial
technology, and legal needs of the CIMB Group. GIOD support needs of the CIMB Group. The division
provides an integrated delivery platform for the technological oversees responsibility for all monthly accounts
and business processes of the Group. It is also responsible of companies within the CIMB Group, as well as
for the execution of a risk-management framework, ensuring the preparation of ﬁnancial results for business
good standards of corporate governance. In the carrying out divisions on a monthly basis. All ﬁnancial and
of its responsibilities, GIOD also ensures that operational tax input/advice for matters pertaining to any
processes are run efﬁciently and at a low cost-to-serve. corporate proposals to be undertaken by the
Group are also the responsibility of this division.
GIOD consists of three closely-linked departments which are In addition, the sourcing of funds to ﬁnance the
Operations, Information Technology and Risk Monitoring. Group’s working capital and any other capital
requirements for the Group is also under its
In ensuring the regulatory needs of relevant
authorities are met, the division submits the
various monthly/fortnightly reports required by
the relevant authorities, including Bank Negara
Malaysia and the Labuan Offshore Financial
Services Authority and also ensures that any
new accounting rulings/guidelines issued by the
relevant bodies are disseminated to all relevant
divisions within the Group.
Group Risk Management Group Administration incorporates the
Group’s administration responsibilities into
one department. The department also has
The key responsibilities of Group Risk Management are to
responsibility for Semerak Services as well as
identify, analyse, monitor, review and report the principal
the New Ofﬁce Building Projects department.
risks to which the Group is exposed. It also helps to create
shareholder value through proper allocation of risk capital,
development of risk-based pricing framework and facilitate
development of new business and products. It also performs
reviews of loan asset quality and loan recovery plan,
independent valuation of the trading portfolios and develops
the risk-based product pricing framework for loan portfolios.
Group Risk Management also carries out a role in the
assessment and evaluation of all credit risk related proposals
originating from the various business units such as loans and
advances, ﬁxed income, derivatives, sales and trading, prior
to submission to the Credit Risk Committee (CRC), EXCO, or
Board for approval.
Group Corporate Resources
Group Corporate Resources has been streamlined and
re-organised in order to best serve the needs of the CIMB
Group as it now stands. The organisation structure takes
into account the needs and future plans of the newly-
enlarged CIMB Group and is made up of Group Human
Resources, Group Corporate Communications and Group
Group Human Resources oversees responsibility for
talent management, continual development of the staff of
CIMB Group and the development of organisation-wide
HR strategies and practices to ensure effectiveness and
standardisation. Group Human Resources consists of 6 key
areas: learning and development, organisational development,
employee relations, compensation and beneﬁts, recruitment
and relationship managers.
Group Corporate Communications undertakes corporate
communications activities, brand development, media
relations, products and services advertising and promotions,
public relations and events management, strategic internal
communications and corporate social responsibility
programmes for the CIMB Banking Group.
cimb berhad (582504-P) annual report 2005 102 | 103