Skip to main content

Is ANZ Expansion plans to india china and asia going to pay off

ANZ is cashing up to deliver on its super-regional banking strategy, announcing plans yesterday to raise up to $2.85 billion as it duels with global giants HSBC and Standard Chartered for the Asian assets of distressed British lender Royal Bank of Scotland.

With the asian region  leading in the recovery for the current economic crisis  there seems to be  quite a few factors pointing that ANZ is heading in the right direction in expanding its  base. The asian banks are much more conservative with their lending practices  and hold healthy  lending to value ratios and it would help to  get into this lucrative market and it might [pay off pretty well compared to the crisis the current us banks and European banks are facing at the moment.

anz australia

Morgan Stanley analyst Richard Wiles said the $14.40 a share placement price  by ANZ was above his 12-month target price of $13.60 and was unattractive. "The trading update does not make us more positive on the earnings outlook, and the ability to make an unspecified Asian acquisition increases the risk profile," Mr Wiles said.

The main part of the raising, an underwritten $2.5 billion institutional placement, was three times oversubscribed at $14.40 a share -- a discount of only 7.5 per cent to the stock's last trade at $15.57 and a further pointer towards stability in the financial system.

The funds raised, including plans for a $350 million share purchase plan, will take the lender's tier one capital ratio above its Big Four peers to more than 9 per cent.

However, ANZ confirmed industry-wide rumours that it was "one of a number of parties" participating in a competitive sale process for RBS's Asian assets.

"As part of that process, ANZ has recently submitted a non-binding proposal to RBS group for selected businesses," the bank said.

anz bank

"The scope, terms (including regulatory approvals), timetable and risk profile of any transaction -- and whether a transaction will occur -- remain unknown."

In 2007, soon after taking the reins at ANZ, Mr Smith said he wanted to expand the Asian region's contribution to group profit to 20 per cent by 2012.

"You'd think that China, India, the footprint in the Middle East, and Hong Kong would be of most interest to ANZ," said Macquarie Group analyst Ben Zucker. "Indonesia is also a possibility, but ANZ already has a good exposure there." The RBS sale process has some way to go. It is understood the next stage, allowing for due diligence and contract negotiation involving preferred bidders, could be a month away and the final result may not be known until July.

Even if ANZ misses out, it is likely to explore other assets that are freed up as a result of the financial crisis.

Popular posts from this blog

Best Australian stock forums online ( finance forums)

Many traders and investors use forums to share ideas, learn from the more experienced, or simply to stave off boredom during long hours at the computer. Here we list the known universe of forums, complete with costs, member numbers, extra benefits and popular forum topics. Please post a message on Your 2 Cents if your favourite forum isn't listed here, or if you feel that there's more to add about the day-to-day goings on in your online community.Forum
Cost
Stock comps
Forum areas
Comments
AussieStockForums.comFreeASX by share code, General, Beginners, Derivatives, Commodities, International, Strategies/SystemsEasy to use, independent forum. Aussie Stock Forums has a group of very active and knowledgeable traders. Private messaging available. Australian forum.
Chimes in ExileFreeASX stocks, fundamental analysis, technical analysis, commodities, economics, investment tools The forum has a small group of regular contributors that form a genuine community of investor…

List of Australian blue chip stocks

Australian shares gained 0.6 percent on Wednesday led by blue chip miners and financials on strong resource price


The biggest Blur chip stocks traded on the ASX, in terms of their market capitalisation, include:
BHP BillitonCommonwealth Bank of AustraliaTelstra CorporationRio TintoNational Australia BankAustralia and New Zealand Banking GroupRio tintoWestpac
The only stock to do worse than the S&P/ASX 200 is Harvey Norman Holdings Ltd [ASX: HVN]. Even so, it’s a better-than-the-bank 8.3% gain. The others have done much better: Qantas [ASX: QAN] up 36.1%; JB Hi-Fi [ASX: JBH] up 20.5%; Toll Holdings [ASX: TOL] up 25.3%; and Myer Holdings [ASX: MYR] up 37.1%. The benchmark S&P/ASX 200 index rose 27.1 points to trade at 4,977.3 by 2310 GMT. It fell 0.8 percent on Tuesday, its lowest close since February 7.

The diggers and dealers forum meet 2011

The diggers and dealers forum has just begun August 1. Its a three day annual event happening every year  at the WA country town of kalgoorlie.2011 Diggers & Dealers forumBig name brokers  keenly watching the event will be MacquarieDeutsche BankBell PotterGoldman SachsRBS MorgansEvans & PartnersHartleysBlack Swan Euroz.Well most other websites will give you the  finer details of the annual meet and greet that happens at kalgoorlie , so we will just stick with the bare minimum of details  and focus on the more enjoyable bits  of information that the dealers require to strike a good deal while in town.Bare detailsWebsite : Diggers & DealersEvents : Program and scheduleWatering holes and entertainment at Diggers and dealers forumPubs , clubs  and skimpy (barmaids) culture in kalgoorlie . There are about 25 pubs in Kalgoorlie-Boulder area and for a city that stretches just 67sq km the number of pubs makes for  a good choice on drinking holesand entertainmentExchange Hotel ( Pa…