The last 12 months were among the most challenging for Malaysia since the dark days of the 1997-1998 Asian financial crisis. Between Covid lockdowns, rising global inflation and out-of-touch government officials, the southeast Asian economy seemed to catch very few breaks.
That’s why the 3% growth in assets under management that CIMB Private Banking produced in 2021 is impressive. A better metric is also perhaps the fact that AUM growth over the last three years, from 2019 to 2021, averaged 8%.
Much of 2021 was about how clients – many of whom were struggling – could be served effectively. Despite the numerous Covid lockdowns, the private client solutions group succeeded in raising more than RM1billion ($239 million) from equity placements for high net worth clients.
The success of these mandates demonstrates CIMB’s ability to add value to clients and meet both their corporate and personal needs. Various investment bank offerings and services were provided to private bank clients, which contributed materially to stabilizing AUM.
Jefferi Hashim, CIMB Investment Bank’s CEO, says such collaborations have worked particularly well from the perspective of high net worth business-owner clients that operate in the mid-cap space.
Many in this group face shareholders who are more entrepreneurial and seek constant reminders that their wealth managers can be trusted to maximize returns.