CBA continues push for Asia
(15 January 2010 – Asia) Commonwealth Bank of Australia is looking to potentially expand its presence in Asia.
A source close to CBA told BusinessDaily that the group, looking to develop new relationships in the area, will be finalising an alliance with an unnamed Asian bank.
The deal, which is said to involve an initial layout of at least A$100 million, is expected to be announced as part of the CBA’s growth agenda focused on Indonesia, China and Vietnam.
The source told BusinessDaily that there will be a lot more news about CBA in the region this year, particularly Indonesia, where there is a lot of interest in adding to what the bank has already got there.
The bank is looking at several opportunities in Indonesia at the moment where, unlike most other Asian markets, foreign banks are able to fully own banks operating in the country, the source highlighted.
The source also added that from a risk management perspective the bank is comfortable operating in the market due to a strong track record.
The bank currently operates 60 branches in Indonesia with a life insurance arm and wealth management subsidiary.
Commonwealth Banks biggest competition in the market is ANZ. The group purchased a large portion of Royal Bank of Scotland’s Asian network for bargin prices.
The ANZ acquired branches in Indonesia, Singapore, Taiwan and Hong Kong strengthening the presence Mike Smith, chief executive, is trying to create in the regions.
CBA’s chief executive, Ralph Norris, spoke about the bank’s plans for Asia last February when he told a newspaper that there are going to be opportunities that come about in Asia which may well be attractive to CBA.
The source also told BusinessDaily that the bank was most interested in acquiring another banking arm in Indonesia and some preliminary work had been done to achieve it.
The deal, which is said to involve an initial layout of at least A$100 million, is expected to be announced as part of the CBA’s growth agenda focused on Indonesia, China and Vietnam.
The source told BusinessDaily that there will be a lot more news about CBA in the region this year, particularly Indonesia, where there is a lot of interest in adding to what the bank has already got there.
The bank is looking at several opportunities in Indonesia at the moment where, unlike most other Asian markets, foreign banks are able to fully own banks operating in the country, the source highlighted.
The source also added that from a risk management perspective the bank is comfortable operating in the market due to a strong track record.
The bank currently operates 60 branches in Indonesia with a life insurance arm and wealth management subsidiary.
Commonwealth Banks biggest competition in the market is ANZ. The group purchased a large portion of Royal Bank of Scotland’s Asian network for bargin prices.
The ANZ acquired branches in Indonesia, Singapore, Taiwan and Hong Kong strengthening the presence Mike Smith, chief executive, is trying to create in the regions.
CBA’s chief executive, Ralph Norris, spoke about the bank’s plans for Asia last February when he told a newspaper that there are going to be opportunities that come about in Asia which may well be attractive to CBA.
The source also told BusinessDaily that the bank was most interested in acquiring another banking arm in Indonesia and some preliminary work had been done to achieve it.
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