Securities Financing (SF)


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Securities Financing (SF)

  1. 1. 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 CIMB-GK 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 parties 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 broking. cimb berhad (582504-P) annual report 2005 98 | 99
  2. 2. businesses 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.
  3. 3. Retail Banking Consumer Sales & Distribution (CSD) 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. Business Banking 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 follows: 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 SME Bank. 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
  4. 4. businesses 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) Group Finance 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 purview. 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.
  5. 5. 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 Administration. 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