Friday, 13 April 2012

CIMB inks cooperation agreement with RBS

KUALA LUMPUR (April 13): CIMB Group and RBS (Royal Bank of Scotland) Group have entered into a Cooperation Agreement (CA) to confirm their mutual understanding to explore cooperation in various areas of business.

In a statement April 12, CIMB said the CA covered potential collaboration in capital markets activities, mergers and acquisitions, equities, derivatives, loan markets, trade advisory and trade financing solutions, cash management services and agent / custodian bank arrangements.

Signing on behalf of CIMB was its group chief executive Datuk Seri Nazir Razak while RBS was represented by its head of Asia Pacific International Bankig Madan Menon.

Nazir said the bank was pleased to be able to do the signing so quickly after announcing its acquisition of RBS’ Investment Banking and cash equities businesses in Asia Pacific last week.

“This will provide a framework for our ex-RBS team to continue to work together with their ex-colleagues in areas of mutual interest between RBS and CIMB,” he said.

Nazir said that the CA would allow both CIMB Group and RBS Group to leverage off each other in key Asia Pacific markets.

“There is huge potential for cross referrals. RBS will be able to access CIMB capabilities in markets where we are strong, and vice-versa, we will be able to leverage RBS’s capabilities in markets where they are strong,” he said.

“For instance, in many of our markets outside ASEAN we do not have lending capabilities and will be working with other banks.”

Nazir said that since the acquisition of GK Goh Securities in 2005, CIMB’s investment banking franchise, including its securities operations, had been the market leader in ASEAN.

It has full presence in key ASEAN markets and representation in New York, London, Shanghai, Mumbai, Hong Kong, Colombo and Bahrain. It also operates via partnerships in Taiwan, Korea and Australia, he said.

“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.

“Meanwhile, CIMB will seek to set up new operations in Korea soon. This deal decisively transforms CIMB into an Asia Pacific investment bank,” he said.

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