Australia's ANZ eyes Asia for future growth after record H1 profit |
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Thu, 26 Apr 2007 07:26
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SYDNEY (XFN-ASIA) - Australia & New Zealand Banking Group Ltd (ANZ) said it is seeking growth in Asia where it already has established a foothold as opportunities in the highly competitive Australian and New Zealand markets are limited.Chief executive John McFarlane said ANZ earnings from Asia will become more material to the group though it may take several years to get truly substantial returns from Asia.He was speaking after Australia's third largest bank reported a 16 pct rise year-on-year in first half net profit to March to a record 2.102 bln aud, boosted by strong lending in its traditional Australian and New Zealand markets.'We want to make Asia very real for the group, and substantive, which means that we are going to increase our investments in Asia, but we are going to do sensible transactions in order to do that,' McFarlane said.ANZ already is Australia's leading bank in Asia with investments in China, Vietnam, Thailand, Cambodia, Indonesia, Malaysia and the Philippines.In China ANZ has 20 pct stakes in the Shanghai Rural Commercial Bank and Bank of Tianjin.McFarlane said it will take several years to get truly substantial returns from Asia.'The expansion into Asia, which we have done quite substantively in the half, and earlier, will really not start to show the returns, the substance of that, really until 2010,' he said.McFarlane said ANZ is effectively being the only Australian commercial bank currently in the region.'Others are starting, but I would emphasise this is a very long journey, and it takes an awful lot to make a difference here,' he said.(1 usd = 1.20 aud)bruce.hextall@xfn.com
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Australia's ANZ Banking Group H1 net profit rises 16 pct on strong lending 