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CIMB takes credit hit of $67 million over payments glitch

CIMB takes credit hit of $67 million over payments glitch

Malaysia's CIMB is reporting a credit loss of $67 million due to a processing error that led to some customers receing duplicate credits to their accounts.

CIMB uncovered the glitch, related to a third-party financial remittance service, in January.

The bank says it is taking measures to recoup the overpaid funds from customer accounts.

"In view of the on-going assessment and recovery measures, the group has prudently provided for the majority of the exposure with an ECL of RM280.9 million in FY21," CIMB states. "Depending on the group’s recovery engagement and outcome with customers, an additional and lower final provision amount may be taken in the first quarter of 2022."

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