What was CIMB's share price movement on the day this news was announced?

CIMB shares decreased by 1 sen, or 0.2%, to close at RM5.65 on the day. A total of 13.4 million shares were traded, indicating a slight dip in the stock price.

Finance

CIMB get permission for banking venture with Philippines

By Rajiv MenonMalaysia

1 min readUpdated May 26, 2025Jan 25, 20195:33 AM

In this article (4)

CIMB Group Holdings Bhd has obtained the green light to establish its investment banking business in the Philippines. In a filing with Bursa Malaysia, the group said its wholly owned subsidiary CIMB Group Sdn Bhd had on Jan 23 received the relevant approvals from the Securities and Exchange Commission of the Philippines, including the Certificate of Incorporation and Certificate of Registration for an investment house licence.

The investment banking business in the Philippines will be operated via a 60% shareholding in CIMB Bancom Capital Corporation with the remaining 40% stake to be held by local partners Bancom II Consultants, Inc and PLP Group Holdings, Inc.

The three parties have entered into a joint venture agreement following the receipt of the approvals.

CIMB shares went down 1 sen or 0.2% to close at RM5.65 today on 13.4 million shares done.

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What this means

CIMB's successful approval for an investment banking venture in the Philippines is a strategic expansion likely to succeed given its established regional presence. This move positions CIMB to directly challenge existing financial institutions and capital market players within the Philippines, similar to how Panpuri and ZUS Coffee are expanding their physical footprints across Asia. The 60/40 joint venture structure with local partners Bancom II Consultants and PLP Group Holdings mitigates market entry risks, aligning with common practices for foreign businesses in Asia. The principal risk lies in navigating local market nuances and competing with entrenched domestic players. We anticipate further details on the capitalisation and specific product roll-out to be crucial next steps for evaluating its impact.

Rajiv Menon · Retail News Asia newsroom

Questions & Answers

Which subsidiary will operate CIMB's investment banking business in the Philippines?

The investment banking business in the Philippines will be operated via a 60% shareholding in CIMB Bancom Capital Corporation. This entity is a wholly owned subsidiary of CIMB Group Sdn Bhd, which received the necessary approvals for the venture.

What is the ownership structure of the new investment banking business?

CIMB Group Holdings Bhd will hold a 60% share in CIMB Bancom Capital Corporation. The remaining 40% stake will be held by local partners Bancom II Consultants, Inc and PLP Group Holdings, Inc, who have entered a joint venture agreement.

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