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Malaysia's CIMB takes US$67 million provision in 2021 over payments glitch

Malaysia's CIMB takes US$67 million provision in 2021 over payments glitch

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

KUALA LUMPUR: Malaysia's CIMB Group Holdings Bhd has taken RM281 million (US$66.97 million) in provisions in 2021 over a system glitch that saw duplicate payments to customers, it said on Monday (Feb 28).

The bank, Malaysia's second-largest lender by assets, said it could take an additional and final provision in the first quarter of its 2022 financial year, which it expects to be a smaller amount than last year and will not have a material impact on the group's financial target.

Group Chief Executive Abdul Rahman Ahmad said at a results briefing that the bank is pursuing the recovery of the duplicate credits to 11,800 customers, that were withdrawn from the bank's own coffers.

He said the bank's system remains secure and there have been no breaches.

"Immediate actions have been taken by the group to fix and remedy the error and additional controls have been implemented to prevent similar incidents in the future," he said.

The group announced a quarterly net profit of RM854.5 million for the October-December period, nearly four times higher than the RM215 million ringgit posted a year ago.

Revenue was 1.7 per cent lower at RM4.59 billion.

Source: Reuters/az

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