CIMB (1023) and AMBANK (1015) – Recent Development

AmBank Group to cut jobs via MSS (9 Jan 2018)

AMMB cost / income was 57.40%, which the third highest in Malaysia. The next one – AFFIN or BIMB ? Both having 1st and 2nd highest cost / income.

Compare to other banks, based on my analysis, I think #AMMB is one of poor run banks in Malaysia.

Objectively speaking, this is more towards rationalisation, rather than “bad economy”.

CIMB to sell asset management unit stakes to Principal for RM950m gain (12 Jan 2018)
CIMB:: “This exercise will also see our common equity Tier 1 ratio improve by approximately 18 basis points,”

This exercise actually makes sense because CET 1 Capital Ratio of CIMB is probably the lowest among public listed commercial banks in Malaysia. They really have to improve their regulatory capital.

Also, CIMB’s Tangible Common Equity over RWA is also the lowest (around 7%). For you to gauge the severity, the same ratio for BIMB is around 10.7%, and for other banks, more than 12%.

This is an exercise to improve regulatory capital.