At first virtual AGM, CIMB affirms resilience against Covid-19 shocks

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KUALA LUMPUR (June 30): CIMB Group Holdings Bhd chairman Datuk Mohd Nasir Ahmad said today the banking group remains resilient and well-capitalised to withstand negative shocks from the Covid-19 pandemic.

In a statement today issued in conjunction with CIMB's first virtual annual general meeting (AGM) here, Mohd Nasir was quoted as saying the group remains focused on capital optimisation and strategic initiatives under the its mid-term strategy Forward23, to ensure its long-term resilience.

He said the group will also continue to be prudent in its credit underwriting approach to achieve the right balance between profitability and growth.

“Despite the pandemic and resulting market volatility, CIMB remains resilient and well-capitalised to withstand shocks. Our high standards of governance were also reaffirmed by the business continuity during our leadership transition period at the height of the pandemic. We recently welcomed Datuk Abdul Rahman Ahmad on board as the new group CEO of CIMB Group, and the board looks forward to working with him to navigate the urgent challenges amidst the rapidly changing banking and economic landscape.

“The Malaysian economy is expected to recover due to stimulus measures, and the recent easing of the lockdown should bring about a faster rebound. Added to that, our banking system is also far more resilient today compared to previous crises.

"However, we remain vigilant for the rest of 2020, focusing on enhancing our risk management and ensuring that our liquidity ratios remain at a comfortable level. Against the challenging backdrop, I remain confident that CIMB is in a strong position to withstand the negative shocks from Covid-19 given our discipline, agility and unwavering focus,” Mohd Nasir said.

According to CIMB's statement, given the Covid-19 pandemic, and stress it has placed on the global economy, the financial performance of the group for financial year ending Dec 31, 2020 will inevitably be affected.

To mitigate this, CIMB said the group will review its Forward23 strategy as well as increase the rigour of cost management initiatives to mitigate the negative effects of the pandemic on its financial performance.

Meanwhile, Abdul Rahman was quoted as saying in the statement that CIMB’s utmost priority during this period is helping affected customers navigate the challenges.

He said that across the region, CIMB is working closely with governments and regulators to contribute towards effective policies to ease the immediate financial constraints of local communities and businesses during this challenging period.

“As we come to the end of the (loan repayment) moratorium period, the focus for CIMB, as with other financial institutions, will move towards a more targeted assistance approach where we will engage borrowers from the hardest hit sectors to extend support and restructure terms where necessary,” he said.

At Bursa Malaysia today, CIMB's share price closed up three sen or 0.85% at RM3.56, giving the group a market value of RM35.33 billion. The stock saw 12.52 million shares traded.