CIMB Group maintains IT spend at RM350mil

Eddy said: Good move. That's what a market at current condition need. Indeed, competitve advantages don't come easily.


PETALING JAYA: CIMB Group will maintain its information technology (IT) spending at RM350mil in Malaysia this year, says group information and operations head Iswaraan Suppiah.

He said continued IT spending was important in ensuring that the group provided good service to its customers as customer experience was something that should not be compromised even in hard times.

“The majority of the spending would be for IT system maintenance-related services and licensing cost for the systems,” he told a press conference yesterday after the inking of an agreement with Hewlett-Packard (M) Sdn Bhd (HP Malaysia).

Iswaraan added that the banking group spent a similar amount for IT annually.


The partnership agreement with HP Malaysia was for the roll-out of HP’s Thin Client technology across CIMB Bank and CIMB Islamic Bank branches nationwide.

The environment-friendly Thin Client is a computing solution that functions as an access point to a centralised processing and storage unit (server).

The technology would help lower energy consumption by an average of 80% compared with traditional desktop solutions, thus reducing greenhouse gas emission.

Iswaraan said the company would spend RM30mil for this solution over five years and this would help save up to RM40mil in maintenance-related expenses and energy consumption over the same period.

“We are phasing out the deployment of this solution and we aim to deploy it to all our branches by year-end from the current two branches,” he said, adding that the bank currently had about 360 branches nationwide.

He said the new solution would help CIMB serve its customers better as the computers would be faster, more secure and reliable and cut down the waiting time significantly.

Maybank and CIMB reduce lending rate

Eddy said: I got a few loan originated by Public Bank Berhad (KLSE:PBBANK) and disappointed by the bank lack of responses to BNM reduction in OPR. Drop or not drop? Cakaplah. Kononly one of the efficient bank in the region, aiks.


It is in line with Bank Negara’s move to lower the OPR

KUALA LUMPUR: Malayan Banking Bhd and CIMB Group have reduced their base lending rates (BLR), effective from Dec 1, following the move by Bank Negara to lower the overnight policy rate (OPR).

Maybank said yesterday it had reduced its BLR by 25 basis points from 6.75% to 6.5% effective Dec 1.

Maybank Islamic Bhd’s base financing rate (BFR) would also be revised downward by 25 basis points from 6.75% to 6.5% effective Dec 1.

CIMB Group said CIMB Bank Bhd and CIMB Islamic Bank Bhd would reduce both their BLR and BFR by 25 basis points to 6.5% with effect also from Dec 1.

The two banking groups said their decision was made following Bank Negara’s move to lower the OPR by 25 basis points to 3.25%.

“It is a decisive step to the advantage of our borrowers as well as a means to spur economic and business growth for the various sectors,” Maybank’s president and CEO Datuk Seri Abdul Wahid Omar said.

He added that Maybank and Maybank Islamic would continue to review the market environment and provide customers more financial support in these difficult times.

CIMB Group’s group chief executive Datuk Seri Nazir Razak said the banking group decided to pass on the full benefit of the OPR reduction to its customers.

“This full pass-through of Bank Negara’s OPR reduction will help existing borrowers and also potential borrowers to contend with an environment of sharply moderating economic growth,” Nazir said in a statement.

“We continue to also welcome borrowers to engage us if they need to restructure their payment schedules.”

Nazir said CIMB Islamic also plans to provide more attractive Islamic financing rates to pass on the benefits of ample liquidity in the Islamic banking market.

Customers can expect to pay lower rates for Islamic financing compared to conventional loans at CIMB Group, he added.

Despite the lower lending rates, CIMB Bank and CIMB Islamic deposit rates remain attractive at up to 3.5% per annum, Nazir said in the statement.

The Association of Banks in Malaysia said Bank Negara’s decision to cut the OPR would lead to a lower cost of funds for banks.

The lower cost of funds would in turn reduce the cost of borrowings for consumers, the association said in a statement.

The association’s chairman, Datuk Seri Abdul Hamidy Abdul Hafiz, said: “Bank Negara Malaysia’s move to cut the statutory reserve requirement for banking institutions from 4% to 3.5% effective Dec 1 will also inject greater liquidity into the banking system, lower cost of funds and promote lending activities as the move will effectively increase the lending capacity of the banks.”

Earlier, Wahid said the banking group intended to open nine more branches in the next three years in Cambodia to strengthen its presence in regional markets.

Maybank has two branches in Cambodia and plans are in the pipeline to open one more early next year, he said at the launch of an electronic deposit system.

CIMB to lower auto loans repayments

KUALA LUMPUR: CIMB Bank Bhd is offering to restructure its customers’ auto loans via a customised programme that lowers monthly repayments.

The Customised Auto Repayment Schedule (CARS) programme is aimed at helping customers to refinance and restructure their existing car loans, in a move to help them cope with the recent fuel price hike.

“This programme applies to auto loans of one year or more and its objective is to reduce a vehicle owner’s monthly instalment by between 20% and 30% and free up additional disposable income and assist car owners in trying to manage the financial effects of the recent rise in fuel cost,” CIMB’s head of retail banking Peter England said in a statement last Friday.