Malaysia’s CIMB Could Incur Losses From Payments Glitch, Sources Say
- Bank expects ‘additional and lower’ provision in Q1 of 2022
- Error relates to third-party remittance service: Group CEO
A CIMB bank branch in Kuala Lumpur, Malaysia.
Photographer: Samsul Said/BloombergThis article is for subscribers only.
CIMB Group Holdings Bhd.’s shares slumped as much as 6%, set for the biggest intraday loss since March 2020, after the Malaysian bank posted a credit loss of 280.9 million ringgit ($67 million) last year due to a processing error that saw excess funds deposited in some customer accounts.
The stock dropped as low as 5.37 ringgit per share at the midday break amid volume that was almost eight times the 20-day average, data compiled by Bloomberg show. The shares were the worst performers on the main KLCI Index on Tuesday.