What is Brief History of CIMB Group Holdings Company?

CIMB Group Holdings Bundle

Get Full Bundle:

	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

What is the history of CIMB Group Holdings?

CIMB Group Holdings Berhad, a leading ASEAN universal bank, has a rich history dating back to 1924. Its evolution from its early beginnings has shaped its current standing as a major financial services provider across Southeast Asia.

The group's journey began with the establishment of Pertanian Baring Sanwa Multinational Bank in 1974, setting the stage for its expansion into a comprehensive financial services provider.

What is the brief history of CIMB Group Holdings Company?

CIMB Group Holdings Berhad's origins trace back to 1924, with its more direct lineage starting in 1974 as Pertanian Baring Sanwa Multinational Bank. Over the decades, it has transformed into a leading ASEAN universal bank, offering a wide spectrum of financial products and services. This includes consumer banking, commercial banking, wholesale banking, and asset management. The group's commitment to sustainability is notable, evidenced by its #1 global ranking among financial institutions in the World Benchmarking Alliance 2025 Financial System Benchmark. In 2024, the company reported a record net profit of RM7.73 billion and a total dividend payout of RM5.04 billion. For a deeper dive into its market positioning, consider a CIMB Group Holdings PESTEL Analysis.

The foundational lineage of CIMB Group Holdings Berhad traces back to 1924 with the establishment of Bian Chiang Bank. Another significant precursor was Ban Hin Lee Bank, established in 1935. However, the direct corporate entity that evolved into CIMB Group Holdings was Pertanian Baring Sanwa Multinational Bank (PBSM), established in 1974 in Kuala Lumpur, Malaysia.

The Genesis of CIMB Group Holdings

The journey of CIMB Group Holdings began with humble roots in Malaysian banking history. Its direct corporate ancestor, Pertanian Baring Sanwa Multinational Bank (PBSM), was established in 1974 to cater to the burgeoning financial markets in Malaysia, focusing on merchant banking services.

• The establishment of Bian Chiang Bank in 1924 by Wee Kheng Chiang in Kuching, Sarawak, forms part of the early lineage.
• Ban Hin Lee Bank, founded in 1935 by Yeap Chor Ee, is another key precursor.
• Pertanian Baring Sanwa Multinational Bank (PBSM) was established in 1974 in Kuala Lumpur.
• PBSM's creation was driven by the need for merchant banking services in Malaysia's developing economy.

A significant transformation occurred in 1986 when PBSM was renamed Commerce International Merchant Bankers Berhad (CIMB) after its acquisition by Bank of Commerce. This rebranding solidified the 'CIMB' identity and underscored its core business in corporate finance, advisory, and underwriting, with stockbroking services added later. The initial funding for CIMB was primarily from its institutional shareholders, with Bank of Commerce becoming the controlling entity in 1986. The strategic vision was to cultivate a robust merchant banking operation that could support Malaysia's expanding corporate sector, paving the way for a broader universal banking model.

Evolution and Strategic Focus

The renaming to CIMB in 1986 marked a pivotal moment, signaling a strategic shift and expansion of services. The early business model was centered on corporate finance, laying the groundwork for future growth and diversification.

• The acquisition by Bank of Commerce in 1986 led to the renaming of PBSM to CIMB.
• The initial business model focused on corporate finance, advisory, and underwriting.
• Stockbroking services were later integrated into CIMB's offerings.
• The vision was to build a strong merchant banking franchise to support Malaysia's corporate growth.

The early years of CIMB Group Holdings were characterized by a focus on building a strong foundation in merchant banking. This involved providing essential corporate finance services, including advisory and underwriting, to support the growth of businesses in Malaysia. The addition of stockbroking services further broadened its appeal and capabilities within the financial sector. Understanding the Target Market of CIMB Group Holdings during this period was crucial for its strategic development and expansion. The early funding structure, primarily through institutional shareholders and the controlling stake held by Bank of Commerce from 1986, provided the necessary capital to establish and grow its operations. This strategic positioning allowed CIMB to effectively serve the evolving needs of the Malaysian corporate landscape.

CIMB Group Holdings SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

The early growth of CIMB Group Holdings was marked by strategic mergers and acquisitions, transitioning it from a merchant bank to a comprehensive universal banking group. This period saw significant consolidation and expansion, laying the groundwork for its future regional presence.

Strategic Mergers and Acquisitions

In 1991, Bank of Commerce acquired United Asian Bank, quadrupling its branch network and leading to the renaming of the holding company to Commerce-Asset Holdings Berhad (CAHB). This was followed by the 1999 merger of Bank Bumiputra Malaysia Berhad with CAHB, creating Bumiputra-Commerce Bank.

Accelerated Consolidation and Regional Expansion

The new millennium saw further consolidation, with Southern Bank acquiring Ban Hin Lee Bank in 2000. CAHB expanded its regional footprint in 2002 by becoming the majority shareholder in Bank Niaga in Indonesia.

Public Listing and Islamic Banking Launch

CIMB was listed on the Kuala Lumpur Stock Exchange in January 2003, delivering a substantial 340% return to shareholders. In the same year, CIMB Islamic was officially launched, offering Shariah-compliant financial solutions.

Universal Banking Formation and Global Reach

The formation of CIMB-Principal Asset Management in 2004 marked entry into asset management. The acquisition of G.K. Goh Securities in 2005 bolstered international investment banking. In January 2006, CAHB was renamed Bumiputra-Commerce Holdings, officially forming the unified CIMB Group as a universal bank, a significant step in its Mission, Vision & Core Values of CIMB Group Holdings.

CIMB Group Holdings PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

CIMB Group Holdings has navigated a dynamic financial landscape, marked by strategic expansion, pioneering innovations, and the management of inherent challenges. The group's journey reflects a commitment to regional growth and digital advancement.

Innovation has been a cornerstone of CIMB's strategy, particularly in Islamic finance and digital solutions. The group pioneered the Islamic Collateralised Commodity Murabahah (CCM) in 2020, enhancing liquidity within the Islamic financial ecosystem. Further digital advancements include the CIMB Auto Dealer App, launched in 2022, which enables rapid automotive loan approvals, and the conceptualization of the Touch 'n Go eWallet joint venture, contributing to Malaysia's cashless agenda.

Islamic Finance Innovation

CIMB Islamic pioneered the Islamic Collateralised Commodity Murabahah (CCM) in 2020, a novel solution for the Islamic financial ecosystem.

Digital Lending Solution

The CIMB Auto Dealer App, launched in 2022, allows for automotive loan and financing approvals in as little as one minute.

Cashless Ecosystem Development

CIMB played a pivotal role in the Touch 'n Go eWallet joint venture, supporting Malaysia's transition to a cashless society.

Sustainability Leadership

By 2024, CIMB had mobilized RM117 billion in Green, Social, Sustainable Impact Products and Services, earning global recognition.

Decarbonisation Strategy

The group completed 2030 decarbonisation target setting for high-emitting sectors, covering 60% of its total financed emissions in 2024.

Global Benchmarking

CIMB secured the #1 global ranking among financial institutions in the World Benchmarking Alliance 2025 Financial System Benchmark.

The group has faced challenges such as net interest margin (NIM) pressures in 2024 due to policy rate cuts and increased funding costs. Leadership transitions, like the appointment of Novan Amirudin as Group CEO effective July 1, 2024, are managed through succession plans. Despite these, CIMB demonstrated resilience with a robust FY2024 net profit of RM7.73 billion, showcasing its strategic adaptability. Understanding the Brief History of CIMB Group Holdings provides context for its ongoing performance.

Macroeconomic Pressures

In 2024, the group experienced net interest margin (NIM) pressures stemming from policy rate adjustments in key markets and rising funding costs due to deposit competition.

Deposit Competition

Increased competition for deposits led to higher funding costs, impacting the group's profitability margins in the recent financial year.

Leadership Transition

The group managed a leadership transition with the appointment of Novan Amirudin as Group CEO, effective July 1, 2024, ensuring continuity through structured succession planning.

Asset Quality Management

Focus remains on improving asset quality and implementing disciplined cost controls to mitigate the impact of economic headwinds.

Financial Resilience

The group demonstrated resilience, achieving a robust FY2024 net profit of RM7.73 billion, underscoring its ability to adapt to market dynamics.

Strategic Adaptability

CIMB's consistent performance highlights its strategic adaptability in navigating the complexities of the global financial sector.

CIMB Group Holdings Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

The journey of CIMB Group Holdings is a rich tapestry woven with strategic mergers, expansions, and a consistent drive for innovation, tracing its roots back to 1924 with the founding of Bian Chiang Bank. This evolution culminated in the establishment of Pertanian Baring Sanwa Multinational Bank in 1974, which later became Commerce International Merchant Bankers Berhad (CIMB) in 1986. A pivotal moment arrived in 1999 with the merger of Bank Bumiputra Malaysia Berhad and Bank of Commerce, forming Bumiputra-Commerce Bank. The group's formal establishment as a universal bank occurred in 2006 following the renaming of Commerce-Asset Holdings Berhad to Bumiputra-Commerce Holdings and the subsequent official launch of CIMB Group. The bank's expansion into Indonesia through the merger of Bank Niaga and Bank Lippo to form CIMB Niaga in 2008, and its digital retail banking launch in the Philippines in 2018, underscore its regional ambitions. Most recently, CIMB Group reported a record net profit of RM7.73 billion for FY2024 and launched its 'Forward30' strategic roadmap on March 5, 2025, with Novan Amirudin assuming the role of Group Chief Executive Officer on July 1, 2024.

Forward30 Strategic Roadmap

Launched in March 2025, the 'Forward30' plan aims to accelerate growth and future-proof the organization. It builds on the success of 'Forward23+', which saw ROE improve significantly.

Key Growth Levers

The strategy focuses on optimizing capital, building a leading cash deposit franchise, enhancing cross-sell opportunities, and strengthening capabilities through a 'Simpler, Better, Faster' approach.

2030 Targets

By 2030, CIMB aims for a Top 3 Net Promoter Score, top quartile ROE, a CASA ratio of 45%, non-interest income between 33%-34%, and a cost-to-income ratio in the low 40s%. This aligns with their Marketing Strategy of CIMB Group Holdings.

2025 Loan Growth and Outlook

The group targets a 5-7% loan growth in 2025, driven by Indonesia and Malaysia. CIMB anticipates continued positive financial performance, leveraging its ASEAN network and embracing technologies like Generative AI.

CIMB Group Holdings Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔