Kuala Lumpur: CIMB Group outlined its new T18 plans and key organisation changes. T18 is the product of a strategic review exercise that began in January 2014. The project continued on a separate stream from the RHB-MBSB merger, and is now moving into the implementation stage.
This set of initiatives is referred to as T18 (short for Target 2018) initiatives. Anchored on T18 initiatives, CIMB Group expects to achieve the following financial targets at the end of financial year 2018; ROE of more than 15%, CET1 of more than 11%, cost-to-income ratio of less than 50% and for consumer banking to contribute approximately 60% of its income.
Tengku Dato’ Zafrul Tengku Abdul Aziz, Acting Group CEO, CIMB Group, said, “We reviewed our starting position, current position, stakeholder expectations and the operating environment. I am happy to share some important T18 outputs with our stakeholders today and explain some of the consequential changes we are making.”
He said, “We will recalibrate many things in 2015, then have 3 full years to accelerate based on those stronger foundations to reach our targets for 2018,” added Tengku Zafrul. “T18 initiatives are focused on streamlining to get our cost structures right, focusing on priority areas that we have traditionally under-punched on, and strengthening the organisation culture.”
A reorganisation exercise that will see the creation of a new Regional Commercial and SME Banking Division, an integrated Wholesale Banking Division combining IB, Treasury Markets and Corporate Banking to optimise internal synergies and sharpen corporate client interface, and a Regional Consumer Banking Division to drive consistency, further efficiencies and also to build out our ‘digital banking’ capability. In addition to this, Group Strategy (which includes the T18 Programme Management Office) will be moved directly into the Group CEO’s Office to ensure firm Group CEO oversight on implementation of T18 initiatives.
