CIMB transforms into an investment bank with RBS’s Asia assets

CIMB Bank became the largest investment banking franchise in Asia outside Japan after acquiring the Asian assets of RBS.

The assets were most of RBS' Asia Pacific cash equities and investment banking businesses.

The addition of the RBS units will mean that, upon regulatory approvals, CIMB will have new on-shore presence in Taiwan and Australia, as well substantially enlarged operations in Hong Kong, India and China.

RBS decided not to sell its Korean entities and CIMB said that it will seek to set up new operations in Korea soon instead.

“This deal decisively transforms CIMB into an Asia Pacific investment bank,” said CIMB in a statement announcing the deal.

The deal will see CIMB paying RBS a gross amount of approximately RM431.8 million US$140.37 million and injecting a further RM417.6 million of new capital into various operating entities.

“This is an excellent opportunity to complete the build-up of our capabilities in Asia Pacific markets, and to do it quicker and less expensively than if we grew organically,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.

Nazir said that he is expecting between 350 and 400 RBS staff to join CIMB.

Among them is Matthew Kirkby, head of global banking Asia Pacific for RBS.

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