Cimb Bank Swot Analysis

2.2 CIMB Strategy

1. Strengths.

• Diversified business mix.

Cimb bank, Labuan is a business company that provides the consumers investment, Islamic and private banking product and services worldwide. They also provide asset management, wealth management, insurance product and services, foreign exchanged, engage in a fund management, and other else.

CIMB bank is a worldwide company that operated under a mixes business concept that includes Securities International and CIMB Thai. CIMB Group’s concept is the strength of this Malaysian Banking Company as well as CIMB bank in Labuan.

• Returns in higher rates.

From 2009-2011, CIMB bank showed a positives performances in year 2011 which the profit is increase by 44.49%. Based on CIMB Group annual

Weakness.

• Under performances Group Asset Management (GAM) & insurances & Takaful.

CIMB group’s fund management business was managing by GAM. GAM organize both conventional and Shari’a-compliant institutional and retail fund over a wide range of asset classes and geographies (BERHAD (13491-P), 2012).

CIMB Principle Asset Management, CIMB-Principle Islamic Asset Management, CIMB Wealth Advisor (CWA), CIMB Trust Capital Advisor, CIMB-Maple Tree Management, Cap Asia, and CIMB Private Equity and Venture Capital (PEVC) are the management that arranged the CIMB Group asset management.

Conclusion is, all the insurances and Takaful joint ventures under CIMB Group and the Development of Bank assurance were managed by Insurance and Takaful Group. Because of their insurance and Takaful were managed by another party, this becomes the weakness of this company and this situation will also effected all CIMB bank branch.

• Rise in None Performing loans & loan loss provision.

One of the major weakness of CIMB bank, Labuan is the rise in the non-performing loans and loan loss provision. The decreases of 2.0% from the 2.3% in 2009 in the non-performing loan ratio to all the time, while the loss coverage is to 90.85 from the b=86.7% in the previous quarter 2011 ((50841-W), 2011(. This situation shows that non-performing loan has increase. Thus, this is one of CIMB bank

This circumstance can be seen by the weakness of CIMB group.

3. Opportunities.

• Growing Global Islamic Finance market.

Enter the global Islamic Finance market will produce a lot of opportunities to CIMB Group as the CIMB Islamic is the major branding that they have. This group has a lot of business that consists of shari’a advisory, debt market and so on. CIMB group business has the higher requirement from the banking market and higher customer base in Islamic Banking management (BERHAD (50841-W), Annual Financial Statements, 2011).

The perceptions of CIMB group needs to change to be the global market, especially for the Islamic Finance market. This is the opportunity that must be focused for the long-term blueprint.

• High investment opportunity.

In Sri Lanka, the economy is in a positive condition based on the Gross Domestic Product (GDP) growth of 4.85 over the past 30 years, and this will become the opportunity for the CIMB group to carry out the investment there. In the last 5 years, GDP per capita increased from US $ 1244 to US $ 2863 in 2005 until 2010 which are double than India and four times more than