INTERVIEW:ANZ May Look At ING's Asian Private Banking Assets
August 04 2009 - 5:02AM
Dow Jones News
Australia and New Zealand Banking Group Ltd. (ANZ.AU) Chief
Executive Mike Smith said Tuesday that the group will look at ING
Groep NV's (ING) Asian private banking business, but those assets
may not fit in with the Australian bank's strategy.
ING is seeking buyers for its private-banking business in Europe
and Asia, according to people familiar with the situation last
month, the latest step by the financial-services firm to slim down
after it was forced to turn to the Dutch government for aid last
year.
But Smith said that ANZ's target market in wealth management is
less the ultra-high net worth individual catered to by private
bankers than the mid-range wealth management offerings of retail
banks.
"I am not sure how much ING works with our core business class,"
Smith told Dow Jones Newswires. "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 (AG)
or the Goldman Sachs's (Group Inc.) of the world."
ANZ said Tuesday it will pay US$550 million for some of Royal
Bank of Scotland Group PLC's (RBS) Asian banking operations,
including institutional businesses in Taiwan, the Philippines and
Vietnam.
RBS has entered into a two-year non-compete agreement with ANZ
in those markets it sold the Australian bank its institutional
businesses. That means RBS won't participate in domestic deals in
Taiwan, the Philippines and Vietnam, whether it is traditional
"flow businesses" such as foreign exchange swaps or more
traditional investment banking operations like debt issuances,
equity underwriting and advising on mergers & acquisitions.
Smith said, however, that ANZ is not interested in bulge-bracket
investment banking, and has no plans to launch M&A advisory and
equity underwriting in those places.
"The acquisitions give us a branch presence, and a commercial
banking business, especially in trade, forex, and normal debt
finance," he said. "This is good for flow business and money
transactions. All this makes money."
In the short-term, the bank plans to focus on serving local
corporates with businesses in Australia or vice versa. But in the
medium-term, it hopes to tap Asian corporates engaged in
intra-Asian trade, Smith said.
-By Amy Or, Dow Jones Newswires; 852-2832 2335;
amy.or@dowjones.com
Australia And New Zealan... (ASX:ANZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Australia And New Zealan... (ASX:ANZ)
Historical Stock Chart
From Jul 2023 to Jul 2024