June 1st, 2010 
Travis Brown According to a new report by Credit Suisse, Australian banking major ANZ’s ambition of turning itself into a super regional lender, will provide the bank with much needed exposure to high growth economies, and may enable it to plug a funding shortfall faced by its domestic rivals.
The report goes on to add that whilst the strategy did come with risks, ANZ would confound sceptics who believe that international expansion undertaken by banks would act as a “graveyard” for capital.
Credit Suisse analyst Jarrod Martin says he believes that the lender is now poised to reap the benefits of the its previous Asian investments.
“We have a favourable view on ANZ in Asia, namely, that ANZ has the most credible international expansion strategy among the major (domestic) banks, with a sensible strategic direction, executed vigorously by managers with relevant local market experience, and leveraging some competitive advantages.” Mr. Martin said.
ANZ chief executive Mike Smith, who assumed the top job at the lender in 2007 outlined an ambitious strategy of Asia Pacific expansion upon joining the lender, a strategy which seeks a contribution of 20 per cent of the lenders $8 billion 2012 earnings from international operations.
The strategy would be achieved mostly by organic growth, but also by acquisition.
In 2009 ANZ acquired selected banking operations in the region previously owned by troubled UK banking giant Royal Bank of Scotland for US$500 million. The lender is now reportedly seeking to boost its 40 per cent stake in PT Bank Panin to majority control and has expressed interest in purchasing a majority stake in Korea Exchange Bank from private equity firm Lone Star funds.
Mr. Martin says that ANZ may well benefit from remitting surplus deposits in Asia to Australia to fund lending growth, but this was limited to foreign currency deposits and not those in the local currency.
Asian banking markets hold an estimated $US5.7 trillion in surplus deposits over loans.
Similar Posts:
- ANZ Makes Key Asia Pacific Hire
- ANZ’s India Option
- NAB May Be Possible Bidder For Northern Rock
- ANZ Receives Key Approval For Establishing Chinese Subsidiary
- NAB May Bid For RBS UK Branch Network
Posted in 
Tags: