SINGAPORE: With the acquisition of Kim Eng Holdings Ltd, Malayan Banking Bhd (Maybank) is aiming to become the region’s leading wholesale banking group with operations across all key market segments in Southeast Asia by 2015.
The acquisition of the Singapore-based brokerage gives Maybank a strong presence in the investment banking scene in Southeast Asia, especially in Thailand, the Philippines and Indonesia. It also adds to Maybank’s extensive presence in the retail and commercial banking sector in Malaysia, Singapore, Indonesia and the Philippines, said CEO Datuk Seri Abdul Wahid Omar.
The group will be able to undertake bigger initial public offerings (IPOs) in the region, he said.
“This transaction is more than just the merging of two entities. Our strengthened position and significant footprint across the region, together with the talents and expertise of our new team, will lead the expansion of our business. We will also be able to compete aggressively and play a leading role in the regional capital markets,” said Wahid.
With the addition of Kim Eng, Maybank’s investment banking business now boasts more than RM1.2 billion in combined annual revenue. The group has also set a target to earn 40% of its total group pre-tax profit from its international operations by 2015.
Prior to the acquisition of Kim Eng, Maybank was seen as lagging behind local rival CIMB Group Holdings Bhd in terms of its regional presence, especially in the investment banking sector, despite being bigger than CIMB in terms of market capitalisation and total assets.
Maybank has a significant presence in four of the key markets in the region in terms of retail and commercial banking. Besides its 386 branches domestically, Maybank has 344 branches in Indonesia through its subsidiary Bank Internasional Indonesia, 50 branches in the Philippines, 22 in Singapore and two direct branches in Vietnam and another 122 branches via An Binh Bank, an associate unit of the group.
“The merger with Kim Eng gives us immediate presence in Thailand ... as you know Kim Eng in Thailand is the number one broker and with Kim Eng embracing Maybank’s corporate identity it will give us brand presence in Thailand, and I think that will pave the way ... for our commercial and retail banking operation in Thailand,” said Wahid.
Tengku Zafrul Tengku Aziz, CEO of Maybank Investment Bank Bhd (Maybank IB), said the investment bank will now focus on growing the business, especially in the area of asset management where it has almost S$20 billion (RM49 million) of assets under management in its Singapore operation. In Thailand and the Philippines, the group has S$100 million of assets under management, said Zafrul.
“In terms of asset management, we already have a strong presence in Singapore, as well as in the Philippines and Thailand. What we are planning to do is to look at expansion in Indonesia. For the other countries, we are looking at a two-stage approach. Once we have established ourselves in these countries then we will start looking at expanding in their jurisdictions,” said Zafrul.
The merger of Kim Eng and Maybank IB will enable the group to undertake bigger IPOs in the future, according to former Kim Eng CEO Ronald Ooi.
“There is very little overlap between Kim Eng and Maybank IB, the union of these two companies is to transform the merged entity into a regional company, not just individual company in an individual country but regional so we will be able to work as one. With that, hopefully we will have a much wider and broader proposition to our clients,” he said.
Kim Eng will now be known as Maybank Kim Eng and will adopt the tiger symbol as its new corporate identity. It will also embrace the yellow corporate colour of Maybank group.
Maybank Kim Eng also announced changes to its top management. Zafrul will be CEO of Maybank Kim Eng, overseeing the organisation’s global activities which cover 11 countries. Ooi will assume a new role as executive adviser to Maybank Kim Eng.
Eunice Ho will be chief financial officer of the Maybank Kim Eng investment banking group. She brings with her more than 30 years of general management experience in the securities, gaming and manufacturing industries. Shahrul Nazri Abdul Rahim will be appointed as the chief strategy officer of the merged entity.
This article appeared in The Edge Financial Daily, November 29, 2011.
The acquisition of the Singapore-based brokerage gives Maybank a strong presence in the investment banking scene in Southeast Asia, especially in Thailand, the Philippines and Indonesia. It also adds to Maybank’s extensive presence in the retail and commercial banking sector in Malaysia, Singapore, Indonesia and the Philippines, said CEO Datuk Seri Abdul Wahid Omar.
The group will be able to undertake bigger initial public offerings (IPOs) in the region, he said.
Wahid: The acquisition of Kim Eng gives Maybank a strong presence in the investment banking scene in Southeast Asia.
Zafrul, as CEO of Maybank Kim Eng, will oversee its global activities.
“This transaction is more than just the merging of two entities. Our strengthened position and significant footprint across the region, together with the talents and expertise of our new team, will lead the expansion of our business. We will also be able to compete aggressively and play a leading role in the regional capital markets,” said Wahid.
With the addition of Kim Eng, Maybank’s investment banking business now boasts more than RM1.2 billion in combined annual revenue. The group has also set a target to earn 40% of its total group pre-tax profit from its international operations by 2015.
Prior to the acquisition of Kim Eng, Maybank was seen as lagging behind local rival CIMB Group Holdings Bhd in terms of its regional presence, especially in the investment banking sector, despite being bigger than CIMB in terms of market capitalisation and total assets.
Maybank has a significant presence in four of the key markets in the region in terms of retail and commercial banking. Besides its 386 branches domestically, Maybank has 344 branches in Indonesia through its subsidiary Bank Internasional Indonesia, 50 branches in the Philippines, 22 in Singapore and two direct branches in Vietnam and another 122 branches via An Binh Bank, an associate unit of the group.
“The merger with Kim Eng gives us immediate presence in Thailand ... as you know Kim Eng in Thailand is the number one broker and with Kim Eng embracing Maybank’s corporate identity it will give us brand presence in Thailand, and I think that will pave the way ... for our commercial and retail banking operation in Thailand,” said Wahid.
Tengku Zafrul Tengku Aziz, CEO of Maybank Investment Bank Bhd (Maybank IB), said the investment bank will now focus on growing the business, especially in the area of asset management where it has almost S$20 billion (RM49 million) of assets under management in its Singapore operation. In Thailand and the Philippines, the group has S$100 million of assets under management, said Zafrul.
“In terms of asset management, we already have a strong presence in Singapore, as well as in the Philippines and Thailand. What we are planning to do is to look at expansion in Indonesia. For the other countries, we are looking at a two-stage approach. Once we have established ourselves in these countries then we will start looking at expanding in their jurisdictions,” said Zafrul.
The merger of Kim Eng and Maybank IB will enable the group to undertake bigger IPOs in the future, according to former Kim Eng CEO Ronald Ooi.
“There is very little overlap between Kim Eng and Maybank IB, the union of these two companies is to transform the merged entity into a regional company, not just individual company in an individual country but regional so we will be able to work as one. With that, hopefully we will have a much wider and broader proposition to our clients,” he said.
Kim Eng will now be known as Maybank Kim Eng and will adopt the tiger symbol as its new corporate identity. It will also embrace the yellow corporate colour of Maybank group.
Maybank Kim Eng also announced changes to its top management. Zafrul will be CEO of Maybank Kim Eng, overseeing the organisation’s global activities which cover 11 countries. Ooi will assume a new role as executive adviser to Maybank Kim Eng.
Eunice Ho will be chief financial officer of the Maybank Kim Eng investment banking group. She brings with her more than 30 years of general management experience in the securities, gaming and manufacturing industries. Shahrul Nazri Abdul Rahim will be appointed as the chief strategy officer of the merged entity.
This article appeared in The Edge Financial Daily, November 29, 2011.
