ANZ takes its pick of RBS
(5 August 2009 – Asia) ANZ has finally secured the purchase of selected Asian businesses of RBS, that the bank has desired for some time, in a deal worth A$687 million.
ANZ and troubled British banking giant, Royal Bank of Scotland (RBS) have come to an agreement for ANZ to buy the RBS retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong.
The purchase, which will be funded by proceeds from the recent capital raising, also includes the institutional businesses in Taiwan, the Philippines and Vietnam.
The purchase is part of ANZ’s super regional strategy, outlined in late 2007, with a goal for the Asia-Pacific to contribute 20 percent of $8 billion in forecast group profit by 2012. The current figure is 10 percent.
ANZ chief executive, Mike Smith said that while the priority was to integrate the RBS assets, ANZ was also reviewing several opportunities. The RBS asset size is quite typical and ANZ could do two or three of these, Smith said, indicating that more purchases in Asia are on the cards.
The purchase price is a A$62 million premium to the fully provided recapitalised net tangible book value, or around ten percent.
The RBS portfolio of businesses represents 54 branches, US$3.2 billion (A$4.0 billion) in loans and US$7.1 billion (A$8.9 billion) in deposits serving a client base of approximately 2 million affluent and emerging affluent clients.
Incidentally, ANZ did not pick up the businesses on RBS in India or China, despite these being two big parts of the bank’s super regional strategy. They are two of the four countries, along with Hong Kong and Taiwan, it regards as strategic imperatives.
Smith commented that ANZ was growing organically in China at the right pace, however India was a more difficult proposition. Smith indicated that India, where the bank is currently trying to get a banking licence, was currently a missing piece in the puzzle.
The purchase, which will be funded by proceeds from the recent capital raising, also includes the institutional businesses in Taiwan, the Philippines and Vietnam.
The purchase is part of ANZ’s super regional strategy, outlined in late 2007, with a goal for the Asia-Pacific to contribute 20 percent of $8 billion in forecast group profit by 2012. The current figure is 10 percent.
ANZ chief executive, Mike Smith said that while the priority was to integrate the RBS assets, ANZ was also reviewing several opportunities. The RBS asset size is quite typical and ANZ could do two or three of these, Smith said, indicating that more purchases in Asia are on the cards.
The purchase price is a A$62 million premium to the fully provided recapitalised net tangible book value, or around ten percent.
The RBS portfolio of businesses represents 54 branches, US$3.2 billion (A$4.0 billion) in loans and US$7.1 billion (A$8.9 billion) in deposits serving a client base of approximately 2 million affluent and emerging affluent clients.
Incidentally, ANZ did not pick up the businesses on RBS in India or China, despite these being two big parts of the bank’s super regional strategy. They are two of the four countries, along with Hong Kong and Taiwan, it regards as strategic imperatives.
Smith commented that ANZ was growing organically in China at the right pace, however India was a more difficult proposition. Smith indicated that India, where the bank is currently trying to get a banking licence, was currently a missing piece in the puzzle.
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