Award-winning daw, bleeding red naman: CIMB wipes out 43% of equity in 2020
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Award-winning daw, bleeding red naman: CIMB wipes out 43% of equity in 2020

The local subsidiary of Malaysia’s Commerce International Merchant Bankers (CIMB) apparently can’t translate its accolades into cash.

CIMB, which claims to be the most award-winning all-digital bank in the country, has the second-worst return on equity (ROE) among the top 46 Philippine universal and commercial banks.

CIMB posted a minus 42.71 percent ROE in 2020 which was better only than the perennial laggard Al-Amanah Islamic Investment Bank of the Philippines (which is a special case).

Aside from CIM and Al-Amanah (minus 163.33 percent), only five other banks have posted negative ROEs – International and Commercial Bank of China (3.43 percent), ING Bank (10.52 percent), Maybank Philippines (11.35 percent), Mega International Commercial Bank (18.43 percent), and Philippine Veterans Bank (34.9 percent).

CIMB’s capital accounts deficit ballooned to P1.013 billion as of end-2020 from P654.453 million as of end-2019.

This deficit shrunk CIMB’s original assigned capital of P4 billion in 2018 to P3 billion in 2020.

Despite the bleeding, its stockholders’ equity rose to P3.069 billion in 2020 from 2.53 billion in 2019.

CIMB Bank claims to have over 3.5 million customers since it opened in December 2018.

It claims to have secured 35 prestigious international awards including the Best Digital Bank 2021 by the Global Banking and Finance Review. CIMB offers four percent interest on its deposits.

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