ANZ Bank has finally signed off on its deal that gives it a portfolio of Royal Bank of Scotland’s mostly retail-based Asian banking assets.

The deal delivers ANZ some 2 million additional customers, a lending book of almost $4 billion, and branches ranging from Taiwan to Indonesia.

However, the $685 million transaction, priced at a lower than expected 1.1 times book value, is far from a transformational for ANZ.

anz bank asia

Combined the new assets deliver additional $628 million in revenue, taking ANZ’s Asian-based operating income to $2.39 billion.

With a lending book of nearly $4 billion, ANZ’s total lending exposure in Asia now rises to $26.5 billion across 3 million customers.

Australia and New Zealand Banking Group – Wikipedia, the free …

ANZ is also the largest bank in New Zealand, where the legal entity became … 1835: ANZbegan in London when The Bank of Australasia was established under .

The bulk of the assets – 21 branches and 1.3 million customers – are based in Taiwan, which is a new country for ANZ.

The tech heavy Taiwanese economy is levered to the Chinese economy, although it is still expected to deliver subdued growth this year.

But with six branches and some 30,000 customers the deal delivers ANZ its much desired, but small, base in Hong Kong.

The RBS Indonesian assets, which includes 20 branches and 450,000 customers, offer a good fit for ANZ’s existing PT ANZ Panin bank there.

“ANZ is going to be a regional player,” Chief Executive Officer Michael Smith, who previously ran HSBC’s Asian division, said in a Bloomberg Television interview. “I don’t want to take on HSBC or a Citigroup in Latin America or in the States or in Europe, but if it’s in our backyard, in this region, then yes, we’ll take them on.”

Meanwhile, the institutional business in Vietnman may combine with ANZ’s part-owned Saigon Securities, that countiry’s biggest stock broker.

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http://www.marketwatch.com/investing/stock/ANZ?countryCode=au

After its $4.4 billion capital raising, ANZ remains cashed up and with assets such as Dutch-based ING’s private bank and some unlisted Asian banks likely to come onto the market, there remains a strong likelihood that ANZ will make a material acquisition in Asia over the medium term.

Links : http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ric=ANZ.AX