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ANZ Casts Eyes At Other Banks' Asian Assets
Australia & New Zealand Banking Group chief executive officer Michael Smith has said in an interview with Bloomberg Television that the bank is looking at taking on HSBC or Citigroup's Asian units following today's acquisition of the Royal Bank of Scotland's Asian assets.
Mr Smith was quoted as saying that ANZ Bank remains bent on expanding its operations outside of Australia after the bank saw a 28 per cent drop in profit to A$1.42 billion in the half year to 31 March from the previous year.
"ANZ is going to be regional player. I don't want to take on HSBC or Citgroup in Latin America or in the States or in Europe, but if it's in our backyard, in this region, then yes, we'll take them on," he was quoted as saying. Mr Smith is reportedly aiming to eventually double the proportion of the bank's Asian income to 20 per cent.
Australia's fourth largest lender has agreed to take over RBS's assets in Singapore, Taiwan, Indonesia, Hong Kong, the Philippines, Vietnam for $550 million. Both banks are currently in advanced talks over the possible sale of the rest of the UK bank's operations in other Asian locations.
In a separate interview with Dow Jones, meanwhile, Mr Smith said ANZ will consider buying the Asian private banking business of Dutch financial services firm ING, but is doubtful that the assets fit with its strategy.
Mike Smith told the news service that ANZ is targeting mid-range clients of the type catered to by the wealth management arms of retail banks, rather than the ultra high net worth individuals served by private banks.
"I am not sure how much ING works with our core business class. We are better with the HSBC Premier and Citigold sort of business class, rather than private banking. I don't think we should be competing with the UBS's or the Goldman Sachs's of the world," Mr Smith is reported to have said.
Reports emerged last month that ING - which received government funds following the credit crisis - was seeking a buyer for its European and Asian private banking businesses. Market speculation has suggested that the assets could be worth $1.5 billion.
