KUALA LUMPUR (May 25): CIMB Group Holdings Bhd has completed the realignment of ownership stakes with Principal Financial Group in its CIMB-Principal joint ventures (JVs) across Asean.

The exercise sees CIMB recording a gain of RM920 million and about 15-basis-point increase in its common equity Tier 1 ratio.

Principal has now increased its stake to 60% in both CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management, with CIMB holding the rest. CIMB previously had 60% ownership in CIMB-Principal Asset Management and 50% in CIMB-Principal Islamic Asset Management.

The JVs will continue to be co-managed by both companies.

"Asset management continues to be an integral part of our regional banking business and this shareholding realignment enables CIMB-Principal to have more scale and improved global investment expertise," said CIMB group chief executive officer Tengku Datuk Seri Zafrul Aziz in a statement today.

"We've been able to realise attractive gains from our strategic investment in CIMB-Principal and look forward to continue participating in the JV as a 40% shareholder," he added.

CIMB and Principal have partnered in the region since 2004 and have successfully grown their operations across Malaysia, Singapore, Indonesia and Thailand. The CIMB-Principal Asset Management group of companies has more than RM80 billion in assets under management and is one of the largest asset managers in the region.

At 3.25pm, CIMB shares were up 9 sen or 1.49% at RM6.14, with 11.81 million shares done, bringing a market capitalisation of RM57.51 billion.