KUALA LUMPUR: Analysts this morning are in agreement that it will be business as usual at least in the near term at CIMB Group, the country’s second largest banking group despite long-time Group CEO Datuk Seri Nazir Razak relinquishing his post effective September 1 and moving up to assume the role of Group chairman.
Maybank Research said there will be a new person at the helm (as Group CEO), but as a whole: “We expect it to be business as usual, especially in terms of direction of the group. This is particularly since an executive committee of the Board is to be established and Nazir will chair this committee, whose role is to focus on strategic matters.”
While it will be a non-executive role, Nazir assures that the Board has expressed desire for a more involved chairman to provide oversight of management, said the reseacrh house in a note.
The selection of the new Group CEO will go through a process involving stakeholders and regulators and management hopes to be able to announce its candidate before September 1 2014.
RHB Research said: “While we think it would still be business as usual in the near term, given that CIMB already has in place a full management line-up, we believe there will still likely be lingering concerns and question marks over the latest development (eg identity of the incoming successor, strategic directions ahead).”
Kenanga Research did not foresee any major leadership transition risk as Nazir will continue to spearhead the company but in a different role.
“Besides, we understand that the new CEO must complement his work ethics and share the same vision. Hence, we are not overly concern with a change in senior management team,” it added.
Public Invest Research said the development shouldn‟t see significant changes to the make-up of the Group. ” Unsurprisingly tight-lipped with nothing even hinted during the conference call yesterday, the Group does have within its line-up of current key management very capable individuals who will be able to step up seamlessly, which we opine to be the better option to ensure continuity,” it added.
CIMB shares dwindled 10 sen to RM7.20 at 11.30am this morning.