CIMB folds Australian investment banking arm

Ian Rogers
CIMB Group will close its investment banking arm in Australia, the Malaysian bank said yesterday.

It said that "following a strategic review… it will be closing its offices in Sydney and Melbourne. This follows an announcement last Friday where CIMB stated it was looking to reduce its Asia Pacific investment banking and equities operating cost by 30 per cent in 2015."

CIMB cited "the realities of today's capital markets and the absence of sufficient flows."

It said the majority of CIMB's 103 Australian staff would be affected.

The firm said it planned to "continue to support its clients who want access to the Australian market through its current strategic alliance with Morgans Financials Limited."

CIMB is one of three banks, along with RHB Capital Bhd and Malaysia Building Society, that first announced an intention to merge last July.

Late last month the trio said they ceased discussions on the proposed merger, pointing to unfavourable economic conditions hindering their primary stakeholder objectives.