Cut & Paste: NSTPi
Biggest merger in our banking history
Friday, October 1, 1999

By Zuraimi Abdullah

KUALA LUMPUR, Thurs. - When Bumiputra-Commerce Bank Bhd opens its doors tomorrow, it will signal the completion of the biggest merger in the history of Malaysian banking.

Bumiputra-Commerce - the result of a merger of Bank Bumiputra Malaysia Bhd and Bank of Commerce (M) Bhd - has assets in excess of RM70 billion, second only to Malayan Banking Bhd.

Additionally, Bumiputra-Commerce will have RM37 billion worth of loans and advances, RM48 billion of customer deposits and over RM3 billion of shareholders' fund.

The bank has the country's largest ATM (automated teller machine) network of 727 and nearly 260 branches with 10,000 employees, serving a customer base of about two million nationwide.

The country's new financial giant immediately reaffirmed its commitment that customers were number one on its priority list and pledged to introduce "a new model in banking" to the financial services industry.

Bumiputra-Commerce is one of the six anchor banks to be created as a result of the current consolidation exercise in the banking sector.

Bumiputra-Commerce chairman Tan Sri Radin Soenarno Al-Haj introduced the bank's new management team and corporate logo at a Press conference here today.

Chief executive officer Datuk Md Nor Yusof is assisted by Datuk Halim Muhamat as chief operating officer and four executive vice-presidents - Kamal B. Dawood, Azmi Abdullah, Hashimi Albakri and Rosnah Kamarulzaman.

Kamal is in charge of the bank's retail banking, Azmi oversees business banking, Hashimi takes care of corporate banking while Rosnah is responsible for policy and controls.

The BBMB-BoC merger was initiated in 1998, in response to the Government's call to strengthen the banking sector.

The merger also created the country's second Islamic bank known as Bank Muamalat Malaysia Bhd, which will also open its doors tomorrow.

Bank Muamalat was created from the enlarged Skim Perbankan Islam department within BBMB. It has 40 branches nationwide, about RM4 billion worth of assets and RM300 million in paid-up capital.

Explaining its pledge of "a new model in banking", Radin Soenarno said Bumiputra-Commerce "has been designed to be more efficient and more competitive against the best the world can offer".

"The structure of the new bank is unique in Malaysia. BBMB and BoC have complementary strengths - one with strong retail presence and delivery infrastructure, and the other with acknowledged strengths in corporate lending," he said.

Bumiputra-Commerce's Md Nor pointed out that the merger exercise had resulted in a very minimal voluntary separation of former BBMB and BoC employees.

Of the combined staff strength of 10,000, 99.9 per cent had opted to join the merged entity, while only a few employees chose to accept the voluntary separation scheme.
© Copyright 1999, The New Straits Times Press (Malaysia) Berhad. All Rights Reserved.