The Tactical Way

The Tactical Way
Nothing is deemed forever unless we work for it.
It wasn't long before the second representative sold all his footwear
samples. But he knew that he needed to strategise his moves to ensure
that he created a lasting market in this land of far and wide; a market
that would be his new source of revenue. He needed to understand the
dynamics in this new land of opportunity.
CIMB has been tactically recreating itself to stay ahead in a fast changing financial market landscape.
We continue to bring new, innovative and custom-made solutions to our clients. We invest in our
intellectual capital to cultivate a culture of excellence. We have been lacing our blades with similar
enthusiasm to that of the second representative to keep up with this fast paced yet exciting industry.
Vision and Mission Statement
vision
our
To be the Premier Investment Bank in Malaysia post
liberalisation and deregulation.
ourmission
We invest in our people to derive a culture driven by innovation to
deliver quality service whilst providing superior returns and value
to our stakeholders. The core values of CIMB employees are;
Integrity, Innovation, Client Orientation, Teamwork and Efficiency.
Our Corporate Philosophy
9
Our Corporate Philosophy
Our business principles are derived from our core values.
These principles capture the very philosophy of our
business and our day-to-day dealings with everyone,
everywhere. Our key business principles are as follows:-
•
The basic ethics of integrity and
•
Leading change and innovation to
accountability are at the heart of
stay ahead in a dynamic environment.
every CIMB professional.
We constantly benchmark our
processes, services and positioning
•
against international best practice.
We spearhead a discipline of
delivering superior service to
our customers by anticipating and
•
Our work place - an environment
where anyone, anywhere, regardless
responding to their needs.
of occasion, with the best idea or
•
Our assets - our People and
a new insight, feels empowered
Reputation - Our system is geared
to contribute.
towards creating winners.
We provide our people with big
•
Our commitment to social service
challenges, which are communicated
revolves around our desire to battle
with simplicity and by creating self-
social issues and problems to improve
confidence.
the quality of life in the community
we serve in.
•
Providing superior returns to our
shareholders by rewarding the
discipline that constantly gears our
business towards enhancing our
value proposition and increasing
our profitability.
Corporate Profile
corporate
profile
Malaysia's premier investment bank
CIMB Berhad, a listed company on the Main
Board of Kuala Lumpur Stock Exchange
since 8 January 2003 is held in majority by
Commerce Asset-Holding Berhad, Malaysia's
second largest financial services provider.
CIMB Berhad Group comprises 5 major
subsidiaries; Commerce International
Merchant Bankers Berhad, CIMB Discount
House Berhad, CIMB Securities Sdn Bhd,
CIMB Futures Sdn Bhd and CIMB (L) Limited.
Corporate Profile
Only pure play on the Malaysian
11
Strength of our People
capital markets
CIMB Group is equipped with a highly
CIMB is a fully integrated investment
experienced senior management team,
bank. It offers the full range of services
each experts in their respective field.
in the debt markets, the equity markets
As at 31 December 2002, the Group’s
and corporate advisory. CIMB also
total staff strength stands at 777. Staff
provide services in lending, private
skills and expertise combined with
banking, private equity as well as
experienced and cutting edge innovative
research capability in economics,
solutions contributed to CIMB’s impressive
equity and debt markets.
track record.
CIMB is a market leader in investment
An award winning investment bank
banking activities. Since 1991, CIMB
has arranged RM44.1 billion in domestic
CIMB has garnered various awards
ringgit bonds, equivalent to a 39.1%
throughout the years. For detailed
market share. Over the same period,
description of our recent awards,
it has raised over RM10 billion in initial
kindly refer to the Corporate
public offerings (IPOs) on behalf of 121
Achievements section of this
client companies, equivalent to a 28%
Annual Report.
market share. It has also arranged 61
rights issues on behalf of its clients
raising over RM10 billion. CIMB also
has strong market presence in the
secondary bond and equity markets
as well as derivative markets.
CIMB is the only listed investment bank
on the Kuala Lumpur Stock Exchange.
Sound financial footing
With a paid up capital of RM850 million,
CIMB Berhad Group’s shareholders’ funds
stands at RM1.43 billion. CIMB’s risk
weighted capital ratio was 23.02% as at
31 December 2002. On a proforma basis,
CIMB Berhad Group achieved a profit
after tax of RM130.4 million for the
financial year ended 31 December 2002.
CIMB Berhad Corporate Information
Board of Directors
1.
Dr. Rozali Mohamed Ali
Chairman & Non-Independent Director
2.
Dato’ Hamzah Bakar
Independent Director
3.
Dato’ Halim @ Ahmad Muhamat
Non-Independent Director
4.
Nazir Razak
Non-Independent Director
5.
Robert Cheim Dau Meng
Non-Independent Director
6.
Charon Wardini Mokhzani
Independent Director
All the Directors are Non-Executive.
CIMB Berhad Corporate Information
Company Secretaries
Registrar
CIMB Group Senior Management
Tan Ae Luh (MIA 4123)
Signet Share Registration Services Sdn Bhd
Nazir Razak
Jamil Hajar Abdul Muttalib (LS 000656)
11th Floor, Tower Block
Group Chief Executive
13
Kompleks Antarabangsa
Members of the Audit Committee
Jalan Sultan Ismail
Robert Cheim Dau Meng
of the Board
50250 Kuala Lumpur
Executive Director
Tel: 603 2145 4337
Chairman
Fax: 603 2142 1353
Dato’ Hamzah Bakar
Dr. Gan Wee Beng
Executive Director
Auditors
Members
Yusli Mohamed Yusoff
Charon Wardini Mokhzani
PricewaterhouseCoopers
Robert Cheim Dau Meng
11th Floor, Wisma Sime Darby
Members of The Remuneration &
Chief Executive Director, CIMB Securities
Jalan Raja Laut
Lee Kok Kwan
50350 Kuala Lumpur
Director, CEO’s Office
Principal Banker
Loh Shai Weng
Nomination Committee of the Board
Chairman
Dr. Rozali Mohamed Ali
Co-Head, Corporate Finance
Bumiputra-Commerce Bank Berhad
Cawangan Tun Perak
Tan Choon Thye
Members
6, Jalan Tun Perak
Co-Head, Corporate Finance
Dato’ Hamzah Bakar
P.O. Box 10753
Charon Wardini Mokhzani
50050 Kuala Lumpur
Noripah Kamso
Director, Corporate Finance
Registered Office
Stock Exchange Listing
Ng Ing Peng
7th Floor, Bangunan CIMB
Kuala Lumpur Stock Exchange
Jalan Semantan
Listed on Main Board on 8 January 2003
Head, Finance & Operations
Damansara Heights
Iswaraan Suppiah
50490 Kuala Lumpur
Head, Strategic Risk & Compliance
Tel: 603 2084 8888
Fax: 603 2093 9688
Thomas Meow Yoke Nean
www.cimb.com.my
Co-Head, Debt Markets & Derivatives
Kok Kong Chin
Head, Equity Markets & Derivatives
Neville Ian Azzopardi
Head, Private Banking
Chairman's Message
“As the world began a hesitant recovery from the trauma
of the September 11 attacks and the ensuing war in
Afghanistan, terrorism rose to dominate the agenda
worldwide, casting a sombre and dismal mood over the
investment industry. Stock markets were characterised by
chronic uncertainty”.
On behalf of the Board of Directors of
and various European markets, making
CIMB Berhad Group, I am pleased to
investors skittish and wary of Asia stocks.
present the Annual Report of CIMB
The appetite for stocks was lukewarm at
Berhad Group for the financial period
best, throughout the second half of
ended 31 December 2002.
2002. Following the corporate scandals
there was a rising demand for greater
New realities - global terrorism and
vigilance and accountability, heightening
corporate scandals
the pressure for better governance and
more effective regulation. The threat of
As the world began a hesitant recovery
potential war overshadowed the second
from the trauma of the September 11
half of 2002, intensifying following the
attacks and the ensuing war in
attack in Bali last October, and brought
Afghanistan, terrorism rose to dominate
the KLCI to its low of 606 points for the
the agenda worldwide, casting a sombre
year in December.
and dismal mood over the investment
industry. Stock markets were
Malaysia’s economy and business
characterised by chronic uncertainty.
fundamentals however, improved
This gloomy outlook was further
compounded by the emergence of major
Despite these new realities, the Malaysia
corporate scandals, which plagued US
economy began the year on a positive
Chairman's Message
“Heightened
governance through
internal audit
mechanisms, a more
vigilant Board and
protection of minority
shareholder interests
were some of the issues
that were high on the
agenda for the year”.
A stark contrast between the two
Solid business diversification,
major parts of the Malaysian capital
strengthening our franchise
15
markets
We launched further diversification of our
It was however, a tough year for bond
revenue base and strengthening of our
markets, with extreme movements in
franchise by launching two new businesses:
sovereign and quasi-sovereign bond
Private Banking and Private Equity.
interest rates in January 2002. The equity
markets rallied in the first half of the year.
Our Private Banking business, the first of
This was augmented by the two major
its kind started by a Malaysian merchant
Initial Public Offerings of the year - Maxis
bank, was launched in April 2002. This
and PLUS. The second half of 2002 saw a
was followed by the launch of our
more bearish equity market, because of
Private Equity business and the first
the weakening US economy and the
regional Islamic Fund in Asia, CIMB
note. The KLCI started at 683 points in
threat of war. Bond markets improved
Muamalat Fund 1, in October 2002.
January 2002 and rose to a peak of 808
with interest rates stabilising at low levels.
points on 23 April. The domestic
We reaffirmed our commitment to
economy grew an estimated 4% in
Malaysian capital markets saw some key
Labuan through the entry of CIMB (L)
2002; largely due to domestic demand
regulatory changes. In July 2002, the
Limited as a listing and trading agent on
stimulated by strong exports and an
Securities Commission liberalised all
the Labuan International Financial
increase in private consumption.
broking rates. Heightened governance
Exchange (LFX) in August 2002. In
Malaysia faced additional new realities.
through internal audit mechanisms, a
November 2002, CIMB (L) Limited listed
On 21 June 2002, Prime Minister Dato’
more vigilant Board and protection of
the first Global Exchangeable Bonds for
Seri Dr Mahathir Mohamed unexpectedly
minority shareholder interests were
Tenaga Nasional Berhad (TNB), marking a
tendered his resignation, and Malaysia
some of the issues that were high on
milestone for both CIMB and TNB.
now prepares for his successor, come
the agenda for the year. Universal
October 2003.
brokers were also given more flexibility
During the same month, Commerce
to have branches.
Asset-Holding Berhad created another
Corporate earnings of listed companies
first for the Group through the
increased by 26% in 2002 buoyed by
Stronger structures further enhanced
high CPO prices, lower loan provisions
our client management
by Banks, and a more robust
construction sector. The increase was
CIMB started the year with a new
also due to the inclusion of Maxis and
organisation structure. Through
PLUS, two heavyweight index
rationalisation, we reconfigured from a
components, into the KLCI. Both
primarily merchant banking model to
companies had significant earnings
that of an investment bank, preparing
growth in 2002.
the Group for the inevitable future
deregulation of Malaysian markets.
It also proved to be a healthy year for
This move, whilst painful at the start,
mergers and acquisitions as well as
proved to be a rewarding step for the
restructuring exercises, with mergers
Group. Our evolution into an investment
such as the Telekom-Celcom and RHB-
bank has further enhanced our work
Utama mergers and the eventual
processes, underscored our commitment
restructurings of TRI, Malaysian Airline
to strong governance, and ensured
System, PLUS and Johor Corporation.
superior service to all our clients.
acquisition of a majority stake in Bank
“We undertook several
initiatives to strengthen
both our groupwide
risk management and
internal audit
infrastructure. Our new
organisation structure
has clearly defined
authority limits and
reporting
mechanisms”.
Chairman's Message
17
(which report directly to the Board Risk
Committee) comprise representatives
from the respective operating sections
whose collaborative responsibilities
involve the constant monitoring of the
various risks within the Group.
Renewed communications strategy
Mega mergers and global deregulations
are fast transforming the way financial
institutions are communicating with their
valued clients. The CIMB Group brand is
our competitive asset - it is the
“In a business that
depends on individual
knowledge,
institutionalisation of
this knowledge is
essential”.
million; an increase of 124% compared
embodiment of the Group’s vision and
to 2001.
direction.
Group overheads fell by 3% despite an
In 2002, we realigned our brand
increase in staff count from 672 to 777.
communications through new public
As at 31 December 2002, the Group’s
relations programmes and advertisement
total assets stood at RM12.4 billion, an
campaigns. A new and improved
increase of 17% over 2001, with asset
campaign was launched in November
Niaga in Indonesia. Bank Niaga has a
quality remaining strong. Net return
2002. Through this campaign, we have
securities arm, Niaga Securities, through
on equity stood at 9.4%. As at 31
realigned communications for every aspect
which CIMB will be exploring opportunities
December 2002, shareholders’ funds
of our business, from the way we deal
in Indonesia.
stood at RM1.46 billion for the CIMB
with clients right through to our day-to-
Group, a year-on-year increase of 6%.
day business transactions and operations.
Our brand bond today is appropriately
Our financial performance was on
the mark, despite difficult market
Heightened awareness of strong
summarised through the slogan
conditions
governance and control
“Actionable Breakthrough Ideas” and
CIMB’s new tagline reads “Breakthrough
ideas. Breakthrough Results”.
CIMB Group closed the year with a profit
We undertook several initiatives to
after tax of RM130 million; 27% below
strengthen both our groupwide risk
2001 but 16% above the prospectus
management and internal audit
Investing in our staff through
forecast. Commerce International
infrastructure. Our new organisation
institutionalisation of knowledge
Merchant Bankers Berhad (CIMB)
structure has clearly defined authority
achieved a profit after tax of RM69
limits and reporting mechanisms.
CIMB continues to invest generously in
building a culture of excellence across our
million for the financial year ended 31
December 2002, a decrease of 56%
Recognising the pivotal role of a strong
organisation, with all our people focused
from the previous year. CIMB Securities
internal control system, we developed a
on qualities and activities that will enable
Sdn Bhd fared better this year due to a
new division, Strategic Risk and
us to excel. We have started a profiling
strong equity market environment, with
Compliance, which reports directly to the
system that will be used to determine the
a profit after tax of RM12.0 million.
Board through an Audit Committee.
aptitude and attitude of potential CIMB
CIMB Discount House Berhad, the main
Specific responsibilities have been
recruits. In a business that depends on
vehicle for our corporate bond business,
delegated to the relevant Board
individual knowledge, institutionalisation
closed at a profit after tax of RM65.6
committees. Four Risk Committees
of this knowledge is essential.
“The CIMB brand is
our competitive asset it is the embodiment
of the Group’s vision
and direction”.
struggles and successes of individuals and
Crystallising value to our
groups of people in their chosen fields
shareholders by the listing of CIMB
and professions. Amongst the memorable
Berhad
episodes during our sponsorship were the
noble initiatives of MERCY Malaysia in
We are now the only listed investment
providing humanitarian and medical aid
bank on the Main Board of Kuala
to the underprivileged within and outside
Lumpur Stock Exchange (KLSE). On 15
throughout 2002. The Asset and Finance
Malaysia. There were also endearing
October 2002, we officially announced
Asia named us the Best Domestic
episodes that showcased the
our intention to list CIMB Berhad on the
Investment House. We achieved
achievements of numerous AIDS workers,
main board of KLSE. The price for the
recognition as the Best Domestic Equity
women in many challenging yet inspiring
IPO was fixed on 20 November 2002
House by Asiamoney and Euromoney and
occupations, and various momentous
following the overwhelming response by
were also named the Best Domestic Debt
medical breakthroughs. MAA also
17 institutions to underwrite the ROS.
House by Asiamoney. The reputable IFR
showcased the achievements of our local
The prospectus was launched on 2
Asia also voted CIMB the best bookrunner
music and theatre talents as well as local
December 2002, and this was followed
of Malaysian Ringgit Bonds in 2002.
craftsmen who have made a name for
by a 10-day road show in Kuala Lumpur,
themselves in the international arena.
Singapore, Hong Kong, London,
We have invested in knowledge
management infrastructure to further
enhance and tap on our organisational
intelligence. We significantly improved
two important online communications
channels, CIMBnet (our internal website)
and CIMBweb (CIMB’s corporate website).
Accolades and recognition
CIMB Group maintained its position as
the premier Malaysian investment bank
Edinburgh and Glasgow. The ROS was
Reinforcing our commitment to
We also paid tribute to our Prime
oversubscribed with strong institutional
Minister with a special programme on his
demand. CIMB Berhad was officially
The Group continued to play its part in
contributions towards the development
listed on 8 January 2003.
the development of our community.
and enhancement of the nation.
community development
Our outlook for 2003
Amongst the highlights of the year was
the re-strategising of the Group’s
Throughout the year, the Group
community programmes in 2002. CIMB
participated in various assistance
The slowdown of the US economy and
sponsored the third season of the
programmes for the physically
war in Iraq creates some uncertainty for
Malaysia’s Aspirations and Achievements
challenged. We also played an active
Malaysia’s growth prospects in 2003.
(MAA) programme, which was aired on
part in raising the standard of living of
However Malaysia’s economic recovery is
NTV7 for 13 weeks from September
people in numerous rural settlements.
now clearly in place despite a cautious
2002. The programme chronicled the
external outlook. Overall, we expect GDP
Chairman's Message
to be maintained at 4.3% in 2003 from
an estimated growth of 4.0% in 2002.
Domestic demand will need to be
sustained to complement recovering
exports to underpin growth in 2003. The
outlook will depend crucially on the
strength of final demand and a pick-up
“We are now the only
listed investment bank
on the Main Board of
Kuala Lumpur Stock
Exchange (KLSE)”.
19
We would also like to thank our staff at
all levels for their belief and commitment
in the CIMB Group. I am confident that
our management strength and experience
will bring CIMB Group to greater heights
for the year 2003 and onwards. Finally we
thank our long term clients for still being
with us and our new ones for their trust
strong share of the advisory and
in us, as well as our business partners for
underwriting business based on its
their continued invaluable support of the
strong track record particularly in bond
Group in all its endeavours.
origination, mergers and acquisitions and
Initial Public Offerings.
In addition, strategic investments in
systems will also be pursued and
implemented in 2003, continually
Dr. Rozali Mohamed Ali
increasing the long-term efficiency of the
Chairman
Bank and its subsidiaries.
CIMB Berhad
31 March 2003
in corporate spending and profitability.
The key strategic initiative is to move up
Malaysia’s strong fundamentals provide
the value chain in our existing areas of
sufficient flexibility for the authorities to
business to ensure that we can maintain
undertake pro-growth policies to sustain
our competitive edge. The Group will
recovery. Bank Negara is expected to
continue to enhance and grow our
maintain its accommodative monetary
Private Banking and Private Equity
policy to support stronger revival in
businesses. We will also continue to
domestic demand. Rising foreign reserves
work towards strengthening our
to a 2-1/2 year high of USD34.2 billion
franchise by exploring other new and
as at 13 December 2002 and the
related areas of business.
expected weaker US dollar provide
strong support for the Ringgit, which
Acknowledgements and Appreciation
is now perceived to be slightly
undervalued. We would therefore
On behalf of the Board, I wish to thank
expect the Ringgit peg to remain.
YBhg. Dato’ Mohd Rosli bin Abdul Aziz
and Mr. Masayuki Kunishige for their
The Group expects a marked
invaluable contributions to the Board of
improvement in debt capital markets
the bank during their tenure. YBhg. Dato’
after the difficult year in 2002. Primary
Mohd Rosli bin Abdul Aziz resigned with
equity markets are expected to soften
effect from 28 November 2002 and Mr.
slightly compared to 2002 with the
Masayuki Kunishige resigned with effect
absence of large Initial Public Offerings.
from 4 September 2002.
The Group is confident of maintaining a
Performance Review by Group Chief Executive
“2002 was a better year for equities; a difficult first half
but much better second half for debt; a good year for
corporate advisory; a year when we launched a new
business model as well as two new businesses; another
year where we maintained our standing as Malaysia’s
premier investment bank”.
On behalf of management, I am pleased
bank, post liberalisation and
to report on the performance of the CIMB
deregulation”. In line with this vision
Berhad Group, for the financial period
we took the bold step of totally
ended 31 December 2002.
reconfiguring the organisation structure
in January 2002. We did this despite
Overview
having enjoyed our third consecutive
year of record profits and widely
It was certainly an eventful year for CIMB
regarded as being “top of our game”
Group. We started the year with a totally
in Malaysia.
new organisation structure and business
model, were challenged by tough debt
Following the reorganisation, CIMB
markets in the first quarter, achieved
became truly one single investment
leading market shares in all segments of
banking franchise with functional
the Malaysian capital markets and
reporting structures throughout the group
undertook a successful IPO and listing on
and across legal entities. Some of the key
the Kuala Lumpur Stock Exchange (KLSE).
features of the reorganisation were:-
Although profit after tax of the Group
•
the setting-up of an Investment
(on a proforma basis) fell by 27% from
Banking division to market all CIMB
RM178 million to RM130 million, we
Group’s products and services and
exceeded our prospectus forecast by
manage relationships with issuers;
16%. Net proforma earnings per share
was 15.3 sen and net return on equity
•
was 9.4%.
consolidation of our various
institutional equities businesses under
“Equity Markets and Derivatives”;
I believe that we performed well taking
into consideration the difficult debt market
•
conditions and our high capital base.
the merger of three divisions,
Corporate Finance, Capital Markets
and Corporate Banking into one large
The new business model
Our vision has consistently been to be
the “Premier Malaysian investment
Corporate Finance division; and
•
the formation of the Strategic Risk
and Compliance division.
“Our vision has
consistently been to be
the Premier Malaysian
investment bank, post
liberalisation and
deregulation”.
declined by 28% year on year from
the Bank’s non-performing loans (NPL)
RM463 million to RM333 million.
and its gross provisions (GP) coverage of
net NPLs increased to 99%. Risk
In terms of composition of revenues,
weighted capital ratio (RWCR) remained
advisory accounted for 32% of total
high at 23% for the Bank. We have a
income, at RM107 million compared to
lowly leveraged, very liquid and high
RM 108 million in 2001. The debt side
credit quality balance sheet.
of the business saw a sharp 46% drop
from RM351 million to RM189 million
Overhead expenses declined by 3%
in revenues accounting for 57% of total
from RM136.3 to RM132.9 million
The benefits of the reorganisation
income. Equities turned around from a
despite a sizeable increase in staff
quickly outweighed operational
RM2 million loss in 2001 to bring in
strength and significant investments in
disruptions. We won several mandates
RM21 million or 6% of the Group’s total
operations infrastructure. However, cost
due to our much stronger client
income. This would have been higher
to income ratio increased from 29.4%
coverage and value proposition. The
if not for provisions of RM12.5 million
to 39.9% year on year due to the sharp
Board and management drew comfort
on our equities portfolio. Other income
drop in revenues. 62% of total
from the many new control features in
accounted for RM16 million or 5% of
overheads relate to personnel costs.
our work processes.
total revenues.
Our net ROE of 9.4% was low due to
We are fortunate that over the last
The sharp drop in revenues in our debt
lower earnings and our high capital
few years we had continuously and
business contrasted the buoyant market
base. Our CIMB Group shareholders’
consistently emphasised on the
conditions in 2001. We saw extreme
funds stood at RM1.46 billion as at 31
need for our people to be agile and
volatility in sovereign and quasi-sovereign
December 2002.
adaptable to changes. While some
interest rates at the beginning of 2002.
adjusted better than others, overall
The primary bond pipeline dried-up for
our staff rose to the challenge.
a while as intermediaries found it
Analysis of Group performance
Analysis of subsidiaries’ performance
difficult to price transactions. The
Commerce International Merchant
second half of the year was much better
Bankers Berhad (“CIMB”)
and our revenues from debt increased
With the reorganisation of the Group
from RM69 million in the first half to
Our merchant bank achieved profit after
along functional lines, management
RM189 million for the full year.
tax of RM69 million for the financial
emphasised on overall Group
ended 31 December 2002, a decrease of
performance, and less so on the
There was a marked improvement in the
56% from the previous period in 2001.
individual companies within the group.
quality of our balance sheet as a whole.
The bank earned RM60 million in dividend
Total assets of CIMB Group grew by 17%
income from subsidiaries. The weaker
CIMB Berhad was set-up as the listing
from RM10.6 billion to RM12.4 billion,
performance of the Bank was due to the
vehicle for CIMB Group. On 27 November
76% of which comprised fixed income
shift in our corporate debt trading
2002 it acquired 100% of CIMB. CIMB
securities in our investment and dealing
business from the bank to CIMBDH.
Berhad Group achieved a profit after tax
books. Some 81.4% of our total bond
of RM17.6 million, for the one-month
holding are rated AA and above. Our
The quality of the bank’s balance sheet
period ended 31 December 2002.
equities portfolio was valued at RM118
improved significantly. The bank’s risk
million as at year end, the bulk of which
weighted capital adequacy ratio (RWCR)
On a proforma basis, CIMB Group
was our shareholders’ funds managed by
remained strong at 23% despite total
achieved a profit after tax of RM130
external fund managers. Net loans grew
assets increasing by 14% to RM9.1 billion
million for the financial year ended 31
marginally by 3% from RM936 million to
from RM8.0 billion in 2001. Our total net
December 2002, a decline of 27% from
RM966 million and constituted only 8%
NPL dropped from RM105.1 million to
the previous year. Total revenues
of total assets. There was a sharp drop in
RM44.9 million during the year, with net
Performance Review by Group Chief Executive
NPL ratio falling from 10.8% to 4.4%.
the primary vehicle for our equities
Consequently, our GP (4.4% of total net
broking activities.
loans) is now 99% of total net NPL.
KLSE’s turnover improved by 37% from
In November 2002, RAM reaffirmed
RM96 billion in 2001 to RM131 billion
CIMB’s credit ratings of AA3 and P1,
in 2002. CIMBS’s market share increased
and we remain the highest rated credit
to 8.1% in 2002 from 7.1% in 2001.
among merchant banks in Malaysia.
CIMB (L) Limited (“CIMBL”)
CIMB Discount House Berhad
(“CIMBDH”)
23
“The benefits of the
reorganisation quickly
outweighed operational
disruptions. We won
several mandates due
to our much stronger
client coverage and
value proposition”.
CIMBL’s maiden contribution to the
Group amounted to USD5.8 million or
CIMBDH made a profit after tax of
RM22.0 million in 2002. It has total
RM65.6 million, 124% higher than the
assets of USD200.8 million (i.e RM763
RM29.3 million earned in 2001. As the
million) as at 31 December 2002. In its
primary vehicle for corporate bond
first year, the company announced its
trading in the group, CIMBDH enjoyed
presence dramatically by becoming joint
a much better year than the bank.
book-runner for the USD400 million
Global Exchangeable Bonds for Tenaga
Total assets increased from RM2.9 billion
Nasional Berhad.
to RM3.3 billion during the year and a
dividend of RM14.4 million (net of tax)
CIMB Futures Sdn Bhd (“CIMBF”)
was paid during the year. RWCR
dropped from 13.2% to 12.8% as at
CIMBF achieved a profit after tax of
31 December 2002.
RM0.3 million compared to a profit after
tax of RM0.4 million in the previous year.
CIMB Securities Sdn Bhd (“CIMBS”)
We were ranked amongst the top three
on the league table for Index Futures.
CIMBS recorded a profit after tax of
CIMBF also commenced trading of CPO
RM12.0 million for 2002, an increase of
futures towards the end of 2002.
216% compared to the RM3.8 million
profit after tax in 2001. CIMBS is a
member company of the KLSE and is
“With the
reorganisation of the
Group along functional
lines, management
emphasised on overall
Group performance,
and less so on the
individual companies
within the group”.
“CIMB had a dominant
share of the primary
equities markets,
raising approximately
RM5.55 billion for our
clients. In total, we
lead managed 16 IPOs,
12 rights issues and
11 private placements
accounting for 46%
of total equity funds
raised”.
IBK’s performance in the first year
alone vindicates our decision to
(EMD)
adopt our new business model.
The equity market made a comeback
Some of the major transactions that
of sorts in 2002. In the primary
IBK secured were:-
markets, total funds raised increased
from RM6.0 billion in 2001 to
• Adviser for the acquisition of
RM12.8 billion. Maxis and PLUS
Celcom Berhad by Telekom
accounted for 55% of total
Malaysia Berhad;
issuance. In the secondary markets,
• Lead Manager for the RM1.11
the KLCI began the year at 683
billion bond issue by Sovereign
points before hitting a high of 808
Capital Berhad for the Sarawak
points on 23 April 2002. The rally
State Government;
subdued in the second half due to
• Bookrunner for the RM1.0 billion
growing concerns over the state
bond issue by Syarikat Prasarana
of the global economy and the
Sdn Bhd (tranche 5);
potential war in Iraq. The KLCI
• Joint Lead Manager and Joint
Highlights of business divisions
1. Investment Banking (IBK)
ended the year at 646 points, down
Leader Underwriter for the
5.4% from January 2002. Despite
RM3.1 billion Maxis;
the lower KLCI, volume on the KLSE
Communications Berhad IPO
as measured by average monthly
• Joint bookrunner for the USD400
Our IBK division was set-up at the
beginning of the year to market the
group’s entire product range to
turnover improved by 37% from
million Global Exchangeable
RM96 billion in 2001 to RM131
Bonds (GEBs) for Tenaga Nasional
billion in 2002.
Berhad;
issuers. Each IBK unit was given
• Placement Agent for the RM800
specific issuer relationships to
manage and they worked with
various product groups to structure
CIMB had a dominant share of the
million RHB Bank subordinated
primary equities markets, raising
debt issue;
approximately RM5.55 billion for our
• Restructuring of Malaysia Airlines
financial solutions. The division
clients. In total, we lead managed
Berhad; and
performed well in securing a large
16 IPOs, 12 rights issues and 11
• Restructuring of debts for
number of mandates during the year.
private placements accounting for
Perbadanan Kemajuan Negeri
The year also saw us diversifying our
46% of total equity funds raised.
Pahang.
customer base significantly.
Value Traded on KLSE
(RM Bn)
2. Equity Markets and Derivatives
CIMB’s Market Share of KLSE Trading Volume
600
(%)
9
8
7
6
5
4
3
2
1
0
500
400
300
200
100
02
01
00
99
98
97
96
95
94
93
92
02
01
00
99
98
97
96
95
94
93
92
91
90
0
Performance Review by Group Chief Executive
Our flagship equity deal was the
It was a relatively quiet year for new
Maxis IPO. The deal was voted by
private placements issues. For the full
(DMD)
Finance Asia as Best Equity Deal and
year, a total of 23 placements valued
It was a tough year in the bond
Best IPO Deal of the year.
at approximately RM259 million were
markets. We saw large and
completed. We were the placement
unanticipated movements in the
agents for almost half of them.
sovereign and quasi-sovereign
We took 16 companies public in
2002 compared to only 4 in 2001,
25
3. Debt Markets and Derivatives
interest rates in January 2002. The
which carved us a market share of
The Group is at an early stage of
extreme movements in interest rates
30.4%. In value terms though, we
developing its non-RM equities
also affected the pricing efficiency of
came second with 26.6% market
capabilities. We started a small
primary bonds. Despite being tested
share primarily because we did not
regional equities arbitrage portfolio
by market conditions, we were able
lead the PLUS IPO.
and EMD played an important
to maintain our strong market share
role in distributing the Tenaga
and showed reasonable earnings for
GEB transaction.
the year.
We held a market share of 58.7%
on the amount raised via rights
issues. We also led with the most
number of issues with a 29.3%
Market share - Amount raised through
rights issues (Jan 2002 - Dec 2002)
Total primary market bond issues fell
from RM31.5 billion to RM27.7 billion
market share and were the
in 2002. There were some lumpy
managing underwriters for 4 of the
deals such as the PLUS refinancing
top 5 rights issues in 2002, namely
which made up 18% of the total
Berjaya Sports Toto Berhad
value of primary markets i.e. RM5.1
(RM751.3 million), Hume Industries
billion. Trading volumes continued
Berhad (RM498.8 million), Malaysian
to grow in the RM bond markets.
Plantation Berhad (RM418.5 million)
It was an active year for institutional
On average, monthly trading volumes
and FACB Berhad (RM380.6 million).
equities with the strong markets
increased from RM32.65 billion in
in the first half and high volume
2001 to RM32.97 billion in 2002.
Market share - No. of IPOs executed
(Jan - Dec 2002)
of primary deals to distribute.
We maintained No. 1 position in the
We strengthened our international
primary bond markets, in the number
distribution capabilities,
of issues, with 9 deals worth RM3.80
complementing our strengths in
billion. We ranked No. 2 in terms in
domestic institutional distribution
and inter-broker dealing.
Market Share - Amount Raised for IPOs
Jan 2002 - Dec 2002
Market Share - No. of Private Placements
(Jan 2002 - Dec 2002)
“The extreme
movements in interest
rates also affected the
pricing efficiency of
primary bonds. Despite
being tested by market
conditions, we were
able to maintain our
strong market share
and showed reasonable
earnings for the year”.
5-Year Benchmark MGS Yield movement
(%)
11 rights issues, 6 restructuring
4.50
cases, 29 mergers and acquisitions
4.25
and 22 debt originations. During the
4.00
year, CF worked on a number of
3.75
landmark transactions with EMD and
3.50
3.25
3.00
the total value of primary deals,
as we did not have a lead role in
the PLUS deal (where we were only
primary subscribers). Our key deals
were the RM1.15 billion Sovereign
Capital Berhad deal for the Sarawak
State Government and the RM5.46
billion Prasarana bonds. (tranches 1
to 4 incl)
In the secondary fixed income trading
we held a leading market share as
we continued to make markets on a
wide range of debt papers. Our total
dealing portfolio increased from
RM6.62 billion to RM7.76 billion
during the year.
We made significant advances in
the non-RM markets. We began to
actively trade regional USD credits
although our total non-USD portfolio
never exceeded USD200 million. We
continued to minimise currency
exposures, fully hedging all currency
risk in this portfolio. Leveraging on
Jan 03
Nov 02
Sept 02
Jul 02
May 02
Mar 02
Jan 02
Nov 01
Sept 01
Jul 01
May 01
Mar 01
Jan 01
2.75
“The Corporate
Finance division
assumed a new
business model in 2002
with the merger of the
Corporate Finance,
Capital Markets and
Banking Departments”.
Market Share - No. of M&As executed
Jan 2002 - Dec 2002
this, we were able play a meaningful
distribution role for Tenaga’s
USD400 million GEBs.
DMD, including the Maxis IPO,
Sovereign Capital bonds, Prasarana
4. Corporate Finance (CF)
bonds and rights issues for Berjaya,
Malaysian Plantations and Hume.
The Corporate Finance division (CF)
assumed a new business model in
We dominated the M&A scene in
2002 with the merger of the
2002 with a 45.2% market share
Corporate Finance, Capital Markets
in value, and 42.6% in number of
and Banking Departments. The
deals executed for the year. Thomson
primary objectives of this merger
Corporation Hong Kong Ltd in its
were to:-
report for January 2003 ranked CIMB
first in Asia (ex-Japan) league tables
• realise synergies between
execution teams; and
Market Share - PDS by Issue Amount
(Jan 2002 - Dec 2002)
Market Share M&As executed by amount
Jan 2002 - Dec 2002
for the number of transactions
executed. CIMB took the lead,
• ensure synergy in debt and equity
outperforming global players, with
products and also between our
57 M&A deals followed by DBS, 53
advisory, syndication and corporate
deals and JP Morgan, 35 deals.
lending teams.
The largest and highest profile M&A
With the expanded scope of
deal executed by the Group in 2002
mandates, the Division undertook
was Telekom Malaysia Berhad’s
assignments that included 16 IPOs,
acquisition of 13.2% of TRI shares
Performance Review by Group Chief Executive
27
for RM717 million cash. This deal will
deals were Maxis Mobile Sdn Bhd,
PB division has proven to be
carry into 2003, with a merger of
HL Manufacturing (M) Sdn Bhd and
synergistic to our core capital
their respective cellular businesses.
Haron Estate Development Sdn Bhd.
markets business. It was an effective
We also jointly advised our parent
We were also the Co-Lead Arranger
new distribution channel for CIMB
company in their Rupiah 1057.35
for the purchase of receivables for
in the primary capital markets,
billion (equivalent to approximately
Haron Estate Development Sdn Bhd,
successfully participating in such
RM435 million) acquisition of PT
a subsidiary of Kumpulan Guthrie
offers as Maxis and PLUS IPOs,
Bank Niaga of Indonesia.
Bhd. We introduced a new structure
the Hong Leong Credit Medium
in the loan market; off-balance sheet
Term Note program and the RHB
Major restructuring deals
financing without having to go to
Subordinated Debt Issue.
undertaken include the MAS
ABS market.
and restructuring PKNP.
ii) Private Equity (PE)
5. Other Businesses
We also spent the year developing
CIMB Private Equity Unit (PE) was
set up in January 2002 to add to our
our ABS capabilities. In 2001 CIMB
This year we launched two new
public and private debt and public
launched CBO1, a RM380 million
businesses, Private Equity and Private
equity products. The division’s
collateralised bond transaction via
Banking division to join Retail Equities
strategy is to develop a track record
a Special Purpose Vehicle. On the
in complementing our core capital
in fund of funds by setting-up private
back of this, a dedicated ABS unit
markets businesses.
equity funds in joint venture with
was formed.
established players and undertaking
i) Private Banking (PB)
direct investments.
Our lending business refocused the
A major milestone of the year was
business model into a deal based
the successful launch of a new
In its first year, PE launched Asia’s
financing model. In tandem, we
division and brand, under the banner
first Islamic private equity fund CIMB-
of CIMB Private Banking (PB). In its
Muamalat Fund or CMF 1 in a
first year of operations the Private
strategic alliance with Navis Capital
Banking Division focused on building
Partners. Both CIMB and Navis
a team of financial advisers
Capital Partners will jointly manage
sufficiently qualified to advise
CMF 1, which aims to raise up to
Malaysian high net worth individuals
USD100 million. CMF 1 was officially
on their financial affairs. The team
launched in October 2002 with CIMB
includes experienced bankers from
and Bank Muamalat, as its anchor
various backgrounds including foreign
investors. So far PE has committed to
private banks, equity brokers, bond
investing USD8 million.
“A major milestone
of the year was the
successful launch of
a new division and
brand, under the
banner of CIMB
Private Banking”.
dealers and investment analysts.
stayed focused on increasing
In reviewing its investment strategy,
revenue instead of loan growth.
The product range offered by PB
PE also took the strategic decision
The development of our SWiFT
continued to expand through the
to exit from technology venture
plus 2 share margin financing
course of the year. In addition to
capital financing. We have therefore
facility underlined our intention
equities and fixed income securities,
taken steps to terminate our
to focus on retail financing as well.
PB entered into distribution
agreements with T-Venture and
We syndicated a total of RM2.4
agreements with ten different unit
dispose of our 37% interest in
billion in loans and were also the
trust companies and was active in
Banyan Ventures.
agent for loans, bonds and PDS
the distribution of CIMB’s Islamic
amounting to RM8.67 billion in 2002.
Private Equity Fund.
Some of our large syndicated loan
iii) Retail Equities (RE)
to complete the execution channels
Enhancing risk
CIMB’s RE had a good year on the
available to our retail clients and
management infrastructure
back of better equity markets with
to service our current Branch
We continued to enhance our
total brokerage revenues of RM19.7
Broking business.
enterprise wide risk management
million, accounting for 45.1% of
CIMB’s total equity brokerage income.
framework. We upgraded our
6. Support Services
Capital-at-Risk framework by adopting
a 3 standard deviation confidence level,
We maintained the size of our Private
Developing a service culture in
which is consistent with the default
Client Units at 4 teams. Our remisier
our Finance and Operations
probability of CIMB’s AA3 rating. We
base however decreased to 94 with
(F & O) Division
reorganised our risk management
10 remisiers leaving the stockbroking
F&O is responsible for finance,
team, expanding internally through
industry in view of the poor market
accounting, management and
significantly enhancing the middle
sentiments. Our branch broking
statutory reporting, information
office in our various dealing floors.
business though is fledgling with
technology and operations. We are
These enhancements coupled with an
our presence at only 12 Bumiputra
taking steps to inculcate a stronger
upgrade of our systems and processes
Commerce Bank branches and
service culture within F&O so that
has enabled us to be more precise and
negligible revenues.
we can better measure, reward and
timely in our risk reportings.
motivate support personnel.
In November 2002, we finally
Research
launched our internet broking
During the year we integrated the
It was a year of transition in both our
platform, itrade@cimb. Given that we
management of our various finance
equities and economic research
decided to be very late in this game
& operations units whilst minimising
divisions, with significant changes in
and we also chose an “Application
interruptions to existing processes.
personnel including both division
Service Provider (ASP)” model, which
CIMB Group has now developed
heads. Nevertheless we were
means that instead of purchasing the
parallel statutory, management and
acknowledged in rankings as an
license to acquire the rights to use
regulatory reporting systems which
improving research house.
the internet broking software, we
enables efficient compliance and
opted to “rent” the software license
management decision-making.
On the debt research side though,
to minimise costs. The total set-up
In addition we continue to enhance
we are clearly the market leader
cost to operate the internet broking
various operating systems, including
sweeping 3 out of 4 awards in the
functionality was only RM860,000.
upgrading our treasury and
survey done by The Edge.
This is a necessary infrastructure for
loans systems.
us to have to support BCB’s
Strategic Risk and Compliance (SRC)
retail financial services platform,
We set-up a new division, Strategic
Risk and Compliance, early 2002 to
Performance Review by Group Chief Executive
Growth of our staff strength
in the last 5 years
improve overall governance in the
Information Technology (IT)
organisation. This division reports
Information Technology (IT) can be
directly to the Board Audit
800
Committee. During the year, the
700
decision to set-up our own internal
500
CAHB group internal audit) was
audit team that specialises in
investment banking activities.
No. of Staff
vindicated with the Board and
importance of having an internal
777
a strategic tool to ‘differentiate’
672
service quality and products from
635
our competitors. This year we have
600
audit (as opposed to relying on
management acknowledging the
541
further demonstrated many ways
499
with which we can enhance our
400
internal processes, strengthen
300
organisational knowledge and
improve client solutions through IT.
200
100
IT was busy focusing on internal
system improvements. One of
2002
2001
2000
1999
Human Resources (HR)
1998
0
The Group’s staff strength increased
CIMB Group Staff
Year
the major projects this year was the
consolidation of the application
from 672 to 777 during the year with
systems from all our subsidiaries
the setting-up of PB, PE and SRC as
onto a common platform. We
well as the new organisation structure.
A lot of focus has been placed on
HR management. We revamped
many processes including
recruitment, retention and training.
The e-HR (electronic HR) is at the
heart of our daily lives.
As part of the recruitment strategy,
we initiated e-links with esteemed
global universities to CIMB’s e-
29
“Following the listing,
all CIMB employees
are now shareholders
and equity was added
to the array of
instruments that make
up our performance
based remuneration
framework”.
career page, participating in
enhanced our e-HR system to have
on-line expenses and overtime
claims as well as on-line
performance measurement system.
With the listing exercise, the e-HR
was also deployed to enable
employees to manage their
shareholdings in CIMB. We
enhanced our resource centre or
K-Centre by initiating CIMBdocs, a
web based document management
system, which allows staff to access
KLSE corporate announcements,
campus promotions, organising
form schemes, the unique feature of
circulars, prospectuses, annual
career fairs and profiling activities
the EES is that employees only need
reports and rating reports amongst
for top-notch students.
to pay after they sell the shares.
others, directly from their own PCs.
The ESOS incorporates a “selling
The Online Resource Catalogue,
Following the listing, all CIMB
flexibility” feature which removes the
a web based resource-cataloguing
employees are now shareholders and
market risk for employees exercising
system, provides a quick reference
equity was added to the array of
their options.
to all K-Centre books, magazines,
instruments that make up our
training materials and files.
performance based remuneration
During the year, we invested in an
framework. There were many features
in-house Learning Centre, which
Several new systems were launched.
of the Employee Equity Scheme (EES)
was launched in January 2002. We
The Private Wealth Management
and the Executive Employee Stock
were therefore able to conduct
System was implemented to support
Option Scheme (ESOS) that were
more customised training courses
the Private Banking division. Our e-
innovative. Unlike the traditional pink
at lower expense.
broking solution was also launched
this year.
Institutionalisation of knowledge
arranged the international roadshows
remains a challenge for all
for the management to meet with
organisation. With the launch of our
international shareholders.
intranet system, staff are encouraged
8. Awards & Accolades
It was another award winning year
for CIMB. The Group’s recognition
to share their experience by updating
The IPO was well subscribed with
and accolades are listed in the
the ‘knowledge database’, which
applications received for 165 million
Corporate Achievement’s section of
resides on the Intranet. We have
ROS shares compared with 128.8
this Annual Report.
developed a repository system to
million shares offered. The ROS
encourage information sharing.
attracted a total of 9,652
9. Prospects for 2003
applications and approximately
Communications
RM289 million in application monies.
We are optimistic about growth
We refreshed CIMB’s communications
We raised RM227 million for our
prospects for the Malaysian capital
strategy and branding this year.
shareholders. The final allocation of
markets in 2003. It is still a developing
We have embraced communications
shares was made in the following
market and will continue to grow
as an effective tool not only to
proportions - 16% to retail investors,
rapidly in size, depth and breadth over
position the firm externally but also
28% to foreign institutions and 56%
the next few years. Indeed, the range
to improve internally. We embraced
to domestic institutions. A key
of products available still significantly
the brand bond of Actionable
feature of our IPO was employee
lags mature markets.
Breakthrough Ideas (ABTI).
equity ownership. Under the CEO’s
option, EES and ESOS, staff could
The low interest rate environment and
eventually own 18% of CIMB’s
the pace of banking disintermediation
shares. This is one of the largest staff
continue to drive the growth of
The highlight corporate event
equity ownership schemes in
ringgit bond markets. We estimate
of the year was our IPO via a
Malaysian corporate history.
that in 2003, about RM40 billion
7. Listing of CIMB on the KLSE
Restricted Offer for Sale (ROS) to
will be raised in the ringgit corporate
CAHB minority shareholders of 1
CIMB Berhad became the year’s first
bond markets, 44% higher than last
CIMB share for every 8 CAHB shares
listing debuting on 8 January 2003
year. The range of issues will also be
held. CIMB shares was offered at
with a reasonable premium opening
more sophisticated with indications
RM1.75 per share. The offering
at RM1.88 per share and closing at
that it will be an active year for asset
prospectus was launched on
RM1.78 per share despite very weak
backed securitisation.
2 December 2002 and closed on
markets.
18 December 2002. 17 institutions,
We expect primary equity issuance
led by joint lead managers
In line with our listing we have set-up
to slow down from RM12.8 billion in
AmMerchant Bank and OSK
an Investor Relations division and are
2002 to about RM4 billion. However,
Securities, underwrote the IPO. JP
committed to being informative and
if share prices improve significantly
Morgan and Morgan Stanley co-
transparent to our shareholders.
then this could rise to about RM7
Performance Review by Group Chief Executive
billion with companies looking to
division known as Private Client
de-gear and several IPOs waiting
Services, launch a full-fledged
for a better “window” to come to
Islamic capital markets business,
the market.
“CIMB Islamic”, and further enhance
our risk management infrastructure.
Conditions are ripe for mergers and
We will also be strengthening our
acquisitions with low equity prices
overall framework of staff ownership
and stronger emphasis on efficiency
and accountability as well as their
and value creation among Malaysian
performance measurement.
companies. The largest M&A deal
will likely be the on-going merger of
As a listed company, and one where
Telekom Malaysia and Celcom. In
there is very strong alignment in the
January 2003, we announced the
interest of staff and shareholders,
proposed take-over of Crest
we will be extremely focused on
Petroleum by Sapura Group and
shareholder value enhancement. In
acquisition of UDA Holdings Berhad
previous years, CIMB had been one of
by MRCB.
the highest ROE performers within the
Commerce Asset Group. We tended,
We also anticipate regulatory
as a result, to be more concerned
changes in the capital markets that
about profits than return on capital.
should spur greater activity. Some of
One of our first tasks in this New Year
the initiatives anticipated include
is to address the issue of our capital
measures to reduce time to market
requirements and potential returns in
for new issues and acceleration of
the context of our regulatory and
the proposed disclosure based
other operating parameters.
regulatory framework.
10. Conclusion
For CIMB, we will strive to maintain
our leadership position in the
Malaysian capital markets. In order to
further enhance our client value
proposition, we have taken steps to
imbue the concept of ABTI into the
organisation so that our people are
focused on innovation and generating
solutions for our issuers and investors.
In the final analysis, relationship
management can only go so far - our
On behalf of management, I would
like to take this opportunity to thank
our new and old shareholders for
investing in us. Management feels
the burden of new responsibilities of
managing a listed company. We are
however excited by the challenge and
the prospects of CIMB becoming one
of the KLSE’s leading companies, in
terms of shareholder value creation.
structuring and pricing of the right
solutions must be better than our
competition every time.
Thank you.
We will continue to improve on our
competitiveness going forwards.
Nazir Razak
Some of our priorities will be to
Group Chief Executive
consolidate and strengthen our
31 March 2003
entire retail franchise under a new
31
“In order to further
enhance our client
value proposition,
we have taken steps
to imbue the concept
of ABTI into the
organisation so that
our people are focused
on innovation and
generating solutions
for our issuers and
investors”.
Dr. Rozali Mohamed Ali
(chairman)
Charon Wardini Mokhzani
Dato’ Hamzah Bakar
Nazir Razak
CIMB Berhad
Board Members
Robert Cheim
Dato’ Halim @ Ahmad Muhamat
Board of Directors’ Profile
Dr. Rozali Mohamed Ali, aged 54,
Robert Cheim Dau Meng, aged
Dato’ Hamzah Bakar, aged 59, a
a Malaysian, was appointed Director and
51, a Malaysian, was appointed a
Malaysian, was appointed a Director of
Chairman of CIMB Berhad on 28
Director of CIMB Berhad on 11 June
CIMB Berhad on 28 November 2002,
November 2002. Dr. Rozali is also
2002, and a member of the Audit
and has been a Director of Commerce
Chairman of the Remuneration and
Committee on 28 November 2002. He is
International Merchant Bankers Berhad
Nomination Committee. He was
presently Executive Director of CIMB and
(CIMB) since 26 September 2000. Dato’
appointed Chairman of Commerce
Chairman of CIMB Securities Sdn Bhd
Hamzah is also Chairman of the Audit
International Merchant Bankers Berhad
and CIMB Futures Sdn Bhd. He joined
Committee and a member of the
(CIMB) on 1 December 1999, having been
CIMB in 1984 as Head of Corporate
Remuneration & Nomination Committee.
a Director since 8 July 1993. He is
Finance, has held the position of General
Presently, Dato’ Hamzah is Chairman of
currently Managing Director at
Manager, and was Chief Executive from
Sapura Energy Sdn. Bhd. and sits on the
Bumiputra-Commerce Bank Berhad. Prior
1993 to 1999. Prior to joining CIMB, he
Boards of Malaysian International
to this, he was Assistant Director General
served in various capacities with the
Shipping Corporation Berhad and
of the Institute of Strategic and
former United Asian Bank Berhad (now
Renong Berhad. He served for 20 years
International Studies Malaysia from 1990
known as Bumiputra-Commerce Bank
in various senior management and board
to 1996 and held various positions as an
Berhad) between 1977 to 1984, holding
positions in Petroliam Nasional Berhad
Engineer in the National Electricity Board,
the positions of Operations Manager,
(Petronas), including Senior Vice
Malaysia between 1970 and 1990. He is
Audit Manager, Branch Manager and
President for Refining and Marketing,
currently Chairman of the Association of
Senior Manager of the Planning and
Senior Vice President for Corporate
Banks Malaysia and a member of the
Accounts division. He has also worked
Planning & Development and Main
Malaysian Energy Commission. Dr. Rozali
in several accounting firms in London.
Board Director. Prior to Petronas, Dato’
also sits on the Boards of Commerce
Robert is a Fellow of the Institute of
Hamzah was a Director of the Economic
Asset-Holding Berhad and several of its
Chartered Accountants of England and
Planning Unit (EPU) in the Prime
subsidiaries, Cagamas Berhad and Credit
Wales and a member of the Malaysian
Minister’s Department. Dato’ Hamzah
Guarantee Corporation Berhad. Dr. Rozali
Institute of Accountants. He also sits on
holds a BSc (Hons) in Economics from
holds a BSc (Hons) in Mechanical
the Board of Southern Acids (M) Berhad.
the Queen’s University of Belfast and an
Engineering from the Brighton
MA in Public Policy and Administration,
Polytechnic, Sussex, England, and an MSc
Robert does not have any family
with Development Economics, from the
and PhD, both in Mechanical Engineering,
relationship with other directors and / or
University of Wisconsin.
from the Imperial College of Science and
major shareholder of the Company nor
Technology, University of London.
does he have any conflict of interest
Dato’ Hamzah does not have any family
with the Company. He has not been
relationship with other directors and / or
He does not have any family relationship
convicted of any offence other than
major shareholder of the Company nor
with other directors and / or major
traffic offences within the past ten years.
does he have any conflict of interest with
shareholder of the Company nor does he
the Company. He has not been convicted
have any conflict of interest with the
He has attended all the two Board
Company. Dr. Rozali has not been
Meetings held in the period from the
convicted of any offence other than
date of the Company’s incorporation
Dato’ Hamzah has attended one Board
traffic offences within the past ten years.
to 31 December 2002.
Meeting held in the period from the date
of any offence within the past ten years.
of the Company’s incorporation to
Dr. Rozali has attended one Board
Meeting held in the period from the
date of the Company’s incorporation
to 31 December 2002.
31 December 2002.
Board of Directors’ Profile
35
Nazir Razak, aged 36, a Malaysian,
major shareholder of the Company nor
Charon Wardini Mokhzani,
was appointed a Director of CIMB
does he have any conflict of interest with
aged 39, a Malaysian, was appointed a
Berhad on 11 June 2002. He is presently
the Company. He has not been convicted
Director of CIMB Berhad on 28
the Chief Executive/Managing Director of
of any offence other than traffic offences
November 2002, and is a member of the
CIMB. Nazir graduated from University of
within the past ten years.
Audit Committee as well as the
Remuneration & Nomination Committee.
Bristol with a Bachelor of Social Science
(Hons) and obtained a Master of
He has attended all the two Board
Charon is presently a partner of Zaid
Philosophy from the University of
Meetings held in the period from the
Ibrahim & Co., where he is a member of
Cambridge.He joined CIMB’s corporate
date of the Company’s incorporation to
the Leadership Team and advises on
advisory department in 1989 and
31 December 2002.
corporate, securities and finance law
matters. Prior to joining Zaid Ibrahim &
managed various corporations,
Dato’ Halim @ Ahmad
Muhamat, aged 55, a Malaysian,
Co, he was a Corporate Finance
was appointed a Director of CIMB
Sdn Bhd. Charon read Philosophy, Politics
He then transferred to CIMB’s wholly-
Berhad on 28 November 2002.
and Economics at Balliol College,
owned subsidiary, CIMB Securities Sdn
Dato’ Halim is presently the Executive
University of Oxford and Law at the
Bhd, where he rose to Executive Director
Director/Chief Operating Officer of
School of Oriental and African Studies,
with responsibility for its institutional
Bumiputra-Commerce Bank Berhad
University of London. Charon is an
business comprising equities research,
(BCB), a position held since 4 November
advocate and solicitor and is a barrister
sales and dealing. He moved back to
1999. He served 33 years with the
of the Middle Temple (non-practising).
CIMB as Deputy Chief Executive on 1
former Bank Bumiputra Malaysia Berhad
June 1996 and became Chief Executive
(BBMB). Dato’ Halim has served in
He does not have any family relationship
on 1 June 1999. Nazir is a Director of
various capacities in BCB’s domestic and
with other directors and / or major
various CIMB Group companies such as
international operations, including seven
shareholder of the Company nor does he
CIMB Securities Sdn Bhd, CIMB Discount
years in BBMB’s United States operations.
have any conflict of interest with the
House Berhad and CIMB (L) Limited.
He is also a Director of several
Company. He has not been convicted of
subsidiaries of the Commerce Asset-
any offence within the past ten years.
privatisations, listings and corporate
restructuring exercises.
He has been a member of the Advisory
Manager at Rashid Hussain Securities
Holding Berhad Group.
Charon has attended one Board
Panel for the Banking Master Plan, the
National Brains Trust on National
Dato’ Halim does not have any family
Meeting held in the period from the
Education and the Brains Trust for the
relationship with other directors and / or
date of the Company’s incorporation to
K-Economy. He was Chairman of the
major shareholder of the Company nor
31 December 2002.
Industry Action Committee to set up
does he have any conflict of interest with
MESDAQ, the stock exchange for high
the Company. He has not been convicted
growth companies. He is also President of
of any offence other than traffic offences
University of Bristol Alumni Association
within the past ten years.
and a trustee of the Rahah Foundation.
Dato’ Halim attended one Board
Nazir does not have any family
Meeting held in the period from the
relationship with other directors and / or
date of the Company’s incorporation
to 31 December 2002.
CIMB
Group Management
Committee
Yusli Mohamed Yusoff
Iswaraan Suppiah
Dr. Gan Wee Beng
Ng Ing Peng
Tan Choon Thye
Loh Shai Weng
Lee Kok Kwan
Robert Cheim
Chairman’s Statement
37
Neville Azzopardi
Noripah Kamso
Nazir Razak
Kok Kong Chin
Thomas Meow Yoke Nean
CIMB Group Management Committee Profile
Dr. Gan Wee Beng joined CIMB in
A qualified accountant, he is a member
October 2001 and was appointed as a
of the Institute of Chartered Accountants
Director of CIMB on 29 July 2002. He
of England and Wales and has a BA
has been a consultant to various local
(Hons) in Economics from the University
and international agencies, which
of Essex, United Kingdom.
include BNM, Economic Planning Unit of
the Prime Minister Department, Ministry
Lee Kok Kwan joined CIMB in
of Finance, World Bank, International
December 1996 as an Assistant General
Labour Organisation, Asian Development
Manager where he set up the bank’s Risk
Bank, and UNCTAD. Prior to joining
Management department. In mid 1997,
CIMB, Dr. Gan was the Senior Adviser
Kwan became the Treasurer of CIMB and
(Economics) for the Monetary Authority
established the Debt Markets, Derivatives
of Singapore besides having held
and Treasury Division where his core
positions as General Manager of CIMB,
responsiblities included the CIMB Group’s
Executive Director of CIMBS, Senior
proprietary trading and market making
Vice President and Head of Corporate
businesses in debt, derivatives and
Banking for BCB and an Associate
foreign exchange products, debt capital
Professor at University of Malaya.
markets and the treasury functions of
the group. In mid 2002, Kwan moved
Yusli Mohamed Yusoff joined
on to the CEO’s Office and is a Director
CIMB Securities Sdn Bhd (CIMBS) in
of CIMBDH and CIMBL. Prior to joining
January 2000 and is responsible for the
CIMB, Kwan had more than 7 years of
CIMB Group’s Retail and Institutional
experience in the Canadian financial
Equities business. Yusli is presently the
services industry. Kwan holds a BBA Joint
Chief Executive Director of CIMBS and
Honours (1st Class) degree in Business
Chairman of the Association of
Administration and Economics and a
Stockbroking Companies of Malaysia.
Master of Business Administration degree
from Simon Fraser University, Canada.
He has 20 years extensive working
experience in senior financial and
Loh Shai Weng joined CIMB in
managerial positions which includes,
1982 and is currently the Co-Head of
inter-alia, the Renong group of
CIMB’s CF Division with specialisation
companies and the Shapadu group of
in debt products. He is a Fellow of
companies. He also held position of
the Chartered Association of Certified
Chief General Manager of Sime
Accountants and a member of the
Merchant Bankers Berhad from 1996 to
Malaysian Institute of Accountants.
1998 and his last assignment prior to
He was the head of CIMB’s Capital
joining CIMBS was concurrently as
Markets division for more than 10 years.
Managing Director of Metacorp Berhad
Shai Weng is an Investment Panel
and Executive Vice-Chairman/Managing
Member of Commerce Trust Berhad
Director of Intria Berhad.
and a Director of Institut Peniaga Bon
Malaysia. He is also a Director of
certain subsidiaries of the Group.
Group Management Committee Profile
39
Tan Choon Thye joined CIMB in
Ng Ing Peng joined CIMB in July
Prior to joining CIMB, Kong Chin was the
July 1988 and is currently the Co-Head
2000, as Head of F&O Division. She has
Malaysia country head of an international
of CIMB’s CF Division with specialisation
21 years of audit, finance and operations
brokerage house. He holds a BBA
in equity products. He has a Bachelor
experience. Prior to joining CIMB, she
(Honours) degree from Universiti
of Engineering (Hons) from University
was Head of Operations in PB Securities
Kebangsaan Malaysia and an MBA
of Malaya and a Master of Business
Sdn Bhd. A qualified accountant, she
from Schulich School of Business,
Administration degree from the
has a Bachelor of Accounting from
York University, Canada.
University of Hawaii. Choon Thye has
University of Malaya and she is a
over 15 years of corporate advisory
member of the Institute of Chartered
Thomas Meow Yoke Nean
expertise. Prior to his joining with CIMB,
Accountants of England and Wales.
joined CIMB in 1997. He is the Co-Head
he was with Malaysian International
She is also a Director of certain
of Debt Markets and Derivatives Division
Merchant Bankers Berhad and Jerneh
subsidiaries of the Group.
of CIMB. Thomas has 12 years of
experience in financial markets including
Insurance Corporation Berhad. He is
also a Director of certain subsidiaries
Iswaraan Suppiah qualified with
debt, derivatives and forex markets. He is
of the Group.
the Malaysian Association of Certified
also the CEO of CIMBDH. Prior to joining
Public Accountants qualification and is a
CIMB, Thomas was the Head of Structured
Noripah Kamso joined CIMB in
member of the Malaysian Institute of
Derivatives at RHB Bank Berhad. He
January 1993. She has 19 years of
Accountants. He started his career with
holds a Bachelor of Accounting (Hons)
corporate credit and lending experience
Messrs Arthur Andersen & Co., a firm of
from University of Malaya.
and is responsible for the CIMB Group’s
public accountants in 1984. He joined
lending businesses. She is a Director in
Bank of Commerce (M) Berhad (presently
Neville Ian Azzopardi joined
CIMB’s CF Division. She has a Bachelor of
BCB) in 1990 and left as the Section
CIMB in 2001. His core responsibilities
Science in Management from Marshall
Head in the Internal Audit Department.
include the development CIMB Private
University, West Virginia and a Master of
He then joined CIMBS in 1994 and last
Banking through management and
Business Administration degree from
held the position of General Manager of
expansion of its distribution channel,
Northern Illinois University. She is also an
the Equity Risk Management department
comprising four teams of financial
Executive Committee Member (EXCO)
in CIMBS.
advisers, and the development of new
financial services products suited to high
of the Malaysian Futures Brokers
Association and a Director of Malaysian
Kok Kong Chin joined CIMB in
net worth individuals in Malaysia. He has
Derivatives Clearing House Berhad. She
February 2002. He is the Head of Equity
nine years of experience in financial
is also a Director of certain subsidiaries
Markets and Derivatives that is
services including funds management,
of the Group. Prior to joining CIMB,
responsible for areas which include
private equity and private banking. Prior
Noripah was Vice-President of BCB and
Equity Capital Markets, Equity Trading,
to joining CIMB, Neville was the Chief
was with Urban Development Authority
Institutional Equity Sales, Futures and
Executive Officer of Commerce Trust
(UDA).
Derivatives.
Berhad, before which he held various
positions with Bankers Trust Australia
Kong Chin has 14 years of experience in
the equity sales and trading business and
has been involved in many primary,
secondary offerings and private placement
assignments in Asia ex-Japan markets.
Limited.