CIMB hopes other banks will offer free online fund transfers

CIMB group chairman Nazir Razak says allowing free online transfers will have minimal impact on the bank’s bottomline.

KUALA LUMPUR: CIMB Bank Bhd said its zero-fee interbank fund transfer has a minimal impact on the bank’s non-interest income (NII).

Group chairman Nazir Razak 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 the 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% year-on-year.

Meanwhile, Nazir was confident that the bank could achieve its 6% loan growth target for this year, outpacing the 4-5% 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 5% this year.

He added that growth would be driven by all of its business segments, particularly consumer banking.

According to Nazir, deposit growth is also expected to move in tandem with loan growth and increase by about 6% this year.

On the cost to income ratio, Nazir anticipated it to fall to less than 50% this year from 51.8% in 2017, in line with the target set under its Target 18 (T18) initiative.