Case Study

The transformation of the CIMB Group (A)

10 pages
November 2015
Reference: IMD-7-1679

By January 2008, CIMB Group had undergone a major transformation over a period of three years. The acquisition of Southern Bank had transformed it from a corporate and investment bank to a universal bank, with retail loans accounting for about half of its loan portfolio. The significant investment that the bank had made in its branch network positioned it well to grow its retail banking franchise. At the same time, it had retained its position as Malaysia’s leading investment bank and one of its leading corporate banks. The group’s financial performance had improved, with its ROE having increased from 8.89% in 2005 to 20.05% in 2007. To build on these successes, the Group now had to consider what its strategy in Malaysia should be over the following few years. Should the bank invest in its retail banking operations, where there was significant growth potential? Or should it focus on maintaining its dominant position in investment banking and treasury operations?

Learning Objective

To understand and use the Porter Five Forces model for industry and competitor analysis, especially in the context of the banking industry. To understand and use the resource based view of competitive advantage, especially in the context of the banking industry.

Keywords
Banking, Industry Analysis, Competitor Analysis, Retail Banking, Strategic Resources, Global Banking Strategy, Financial Institution, Transformation
Settings
Asia Pacific, Malaysia
CIMB, Finance and Insurance, Financial Services
2005-2008
Type
Published Sources
Copyright
© 2015
Available Languages
English
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