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Free online fund transfers have minimal impact on income - CIMB
Last update: 26/04/2018
KUALA LUMPUR, April 26 (Bernama) -- CIMB Bank Bhd said its zero-fee interbank fund transfer has a minimal impact on the bank's non-interest income (NII).
Group Chief Executive Officer Tengku Datuk Seri Zafrul Aziz said the impact would be very small, but would benefit customers and support the country's cashless society agenda.
"This is a very meaningful move, and hopefully, we can set an example for other banks to follow," he told a media briefing after the company's annual general meeting here, today.
Yesterday, CIMB offered its zero-fee online fund transfers, regardless of transaction amount, via CIMB Clicks (www.cimbclicks.com.my) and CIMB EVA mobile banking apps to customers, as part of efforts to drive the usage of digital payments.
The bank recorded 155 million online transactions via CIMB Clicks last year, while the usage of cheques dropped by 17.5 per cent year-on-year.
Meanwhile, Group Chairman Datuk Seri Nazir Razak was confident that the bank could achieve its six per cent loan growth target for this year, outpacing the four to five per cent growth anticipated for the industry.
"We will be able to meet the target as growth has been on track over the first four months," he said, adding, loan growth in its Thailand and Indonesia businesses was expected to improve by about five per cent this year.
He added that growth would be driven by all of its business segments, particularly from consumer banking and wholesale on the corporate side.
According to Nazir, deposit growth is also expected to move in tandem with loan growth and increase by about six per cent this year.
On the cost to income ratio, Nazir anticipated it to fall to less than 50 per cent this year from 51.8 per cent in 2017, in line with the target set under its Target 18 (T18) initiative.
On the impact of the new financial instrument standard, Malaysian Financial Reporting Standard 9 (MFRS 9), which came into effect in January this year, he said it would be around 50 to 70- basis points to the (capital) growth.
"It is a small impact to capital, mainly coming from Indonesia," he added.
-- BERNAMA
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