Maybank sells asset management unit in Thailand

MaybankBANGKOK: Malayan Banking (Maybank) has sold its asset management business in Thailand.

The move is to improve regional business operations and optimise resources, according to a report in Nikkei Asian Review.

Maybank Asset Management Group sold 99.99 per cent in Maybank Asset Management Thailand to Thai-based Capital Link, according to a stock exchange announcement.

No figure was revealed, but the group said that the sale would not affect consolidated earnings and net assets for the financial year ending Dec 31, 2016.

The unit sold had a total net book value of USD2.96 million (RM11.8 million) as of June 30, according to the Nikkei report.

By exiting the asset management business, Maybank is left with its brokerage business in Thailand, run through local subsidiary Maybank Kim Eng. It operates 53 branches in the country, providing services including corporate finance and research.

The sale comes amid slower loan growth for banks in Malaysia, said the report.

Loan growth weakened from 6.2 per cent on the year in May, to 5.6 per cent in June, the lowest since 2004, said CIMB Investment Bank in a recent note on the sector. CIMB said it would revise downwards its loan growth projection for 2016, which is between 7 per cent and 8 per cent, according to the Nikkei report.