Principal Mastering Shares of Asset Management Built with CIMB Group

INDUSTRY.co.id - Jakarta - CIMB Group Holdings Berhad stated that the Principal Financial Group increased Principal ownership in CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management to 60% and CIMB hold 40% ownership in both entities. The joint venture will be jointly managed by both companies.

The transaction is expected to be completed in the second quarter of 2018, and needs to be approved by the authorities. "As a leading universal bank in the ASEAN region, asset management remains an integral part of our regional banking business, through adjusting the share ownership structure it is certain that our joint venture in the field of asset management with the Principal will reach its full potential, and its added value to CIMB will continue and continue to increase," said Tengku Dato 'Sri Zafrul Aziz, Group Chief Executive Officer, CIMB Group in Jakarta, Thursday (11/1/2018).

"The scale of business and breadth of investment capability are important for this business, and we believe this strategic adjustment move will increase the profits that our joint venture offers so we can better serve our customers."

This will enable CIMB Group to book a profit gain of RM950 million and will also increase its tier-1 capital ratio by 18 bps. "This adjustment also enables us to realize the benefits of strategic investment in CIMB-Principal, and continue to work together in a joint venture with 40% ownership," Zafrul added.