CIMB Securities to provide fully integrated wholesale banking services to clients
KUALA LUMPUR: CIMB Securities Sdn Bhd (CIMB Securities), a wholly owned subsidiary of CIMB Investment Bank Berhad targets high single digit growth in market share by year-end, reaffirming its commitment to support the government’s aspirations in creating a vibrant ecosystem, whilst stimulating the growth of the Malaysian capital markets.
This is aligned with CIMB Group’s overarching strategy to enhance its in-house capabilities, complementing its wholesale banking business in Malaysia, offering a complete suite of innovative solutions with integrated stockbroking and equities services, and creating value for its institutional and corporate clients through its ‘one bank approach’.
The launch ceremony was graced by Second Finance Minister Datuk Seri Amir Hamzah Azizan, together with Datuk Mohd Nasir Ahmad, Chairman of CIMB Group and Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group.
Also in attendance were CIMB Group co-chief executive officer of group wholesale banking Novan Amirudin, CIMB Securities chief executive officer Ruzi Rani Ajith and senior leaders of CIMB Group.
Amir Hamzah said, “I am pleased to see CIMB advancing its commitment towards stimulating the economy. I am confident it will contribute to a more robust ecosystem, particularly for Malaysia’s capital markets.
“As our economic trajectory continues an upward momentum, I look forward to seeing more participation from institutional stakeholders and leading financial institutions in making Malaysia an attractive investment destination for both foreign and local investors,” elaborated Amir Hamzah.
As a key player in the market, CIMB Securities is committed to work with partners to sustain, develop and improve Malaysia’s capital markets.
Over the years, it has pioneered many “market mover” ideas to create more sustainable companies to compete globally.
Following the acquisition of KAF Equities on February 8, 2024, CIMB Securities brings together a powerhouse of talent, experience and innovation, and has made significant strides since.
In January 2024, it held the 22nd position in the Bursa Broker Ranking with a modest 0.7 per cent market share preacquisition. Its market share has grown to 4.54 per cent, holding the 9th position as of March 2024.
CIMB Securities is already making good headway where in its first two months, CIMB Securities has intermediated RM6.3 billion of block trades, which includes ANZ’s RM2.1 billion sell-down of AmBank, the largest equity block trade in Malaysia since 2017.
Novan said, “CIMB Securities’ entry to the market strengthens the Group’s ecosystem, enabling us to complete our comprehensive Wholesale Banking value proposition to better serve our clients through our ‘one bank’ approach.
“We are pleased to act as the main gateway and premier agency in facilitating inflow and outflow trades within the Malaysian capital markets.
“Adopting a structured and phased approach, we have a clear roadmap for the future where we will first focus on the wholesale market, and later to focus on the retail and wealth segment.
“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.”
The acquisition of KAF Equities via CIMB Investment Bank was completed on February 8, 2024, following the divestment of CIMB’s residual stake in its stockbroking joint venture (CGSCIMB JV) with CGS International Holdings Limited (formerly known as China Galaxy International Financial Holdings Limited) (CGI) in December 2023.