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Malaysia's CIMB fintech business has raised US$75 million this year

Malaysia's CIMB fintech business has raised US$75 million this year

FILE PHOTO: A man walks out of a CIMB Bank in Kuala Lumpur July 10, 2014. REUTERS/Samsul Said/File Photo

KUALA LUMPUR : The fintech business of Malaysia's CIMB Group Holdings Bhd has raised a total of US$75 million in investments this year, including bringing in AIA Group as a fourth shareholder, the banking group's chief executive said on Monday.

Insurer AIA said last month it was forming a long-term partnership with TNG Digital to provide digital insurance solutions to the latter's e-wallet users, and would also make a minority equity investment in the company.

TNG Digital was jointly founded by CIMB's wholly-owned subsidiary Touch 'n Go and China's Ant Group. It has over 16 million e-wallet users, its website says.

CIMB Group CEO Abdul Rahman Ahmad said in a briefing that CIMB's stake in the company had been diluted to 47per cent from its original 51per cent as a result of the investments. He declined to comment on the company's valuation after the investments.

The bank said earlier this year it had secured about 200 million ringgit (US$48 million) from a U.S.-based private equity firm later confirmed as Bow Wave Capital Management.

CIMB, the second largest lender in the country by assets, also reported an almost four-fold jump in second quarter profit on improved net interest margins and lower provisions.

Net profit for the April-June period was 1.08 billion ringgit compared with 277.1 million ringgit a year ago. Revenue was 20.8per cent higher at 4.7 billion ringgit.

(US$1 = 4.1550 ringgit)

(Reporting by Liz Lee; Editing by Mark Potter)

Source: Reuters

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