Fernando MonteiroANZ Bank and Asia’s Growth
September 4th 2009 12:07
Of all the four major Australian banks, ANZ is the one who has for many decades to now been seeking the gold that is in Asia’s growth. As a matter of fact, ANZ aims at becoming a “super regional bank” in Asia, a bank whose operations spread through the whole of Asia, and to sourcing 20 per cent of its net profit from Asia by 2012.
In this line of action, ANZ just last June purchased from retiring Royal Bank of Scotland its Asian operations for US$850 million. Reflecting on the opportunity, Mike Smith, ANZ’s CEO, said it was a “once in a lifetime opportunity”. It’s interesting to notice that, at ANZ, every incoming CEO has to accept and promote the Asian ambition and policy of action.
But, the reader might ask: why Asia? The reason is simple and twofold: (a) Asia is the one area of the globe that will grow economically in exponential terms within the next few decades and, (b) Asia is in Australia’s doorstep and so it makes sense moving into it.
Most Asian countries, except Japan that will not recover from an ageing and shrinking population, will grow enormously in decades to come. Population growth in such countries as China, India, Indonesia, Malaysia, Myanmar (Burma), Thailand, Vietnam, both North and South Koreas, Singapore and Taiwan will push demand infrastructure such as (potable) water supplies, sewerage lines, electricity supply, roads, rail and ports. Moreover, building and construction, education, health and entertainment and tourism will be much in demand.
A true wealth of opportunities is now in Asia. Naturally, banking services will also be in demand and ANZ will be there with its expertise to serve, grow and profit with it.
Some financial statistics for ANZ bank (ANZ) are: return on equity averaging for the last six years: 16.8 per cent. Assets: $471,024 million. Equity: $25,619 million, having doubled from six years ago. Net profit in a bad year: $3,273 million and net interest margin: 2.1 per cent. ANZ’s share price is $21.17 and P/E (price to earnings) is $14.3 times.
ANZ is, I risk to say, the one of the big four Australian banks that will grow the most in decades to come. I am with it.
In this line of action, ANZ just last June purchased from retiring Royal Bank of Scotland its Asian operations for US$850 million. Reflecting on the opportunity, Mike Smith, ANZ’s CEO, said it was a “once in a lifetime opportunity”. It’s interesting to notice that, at ANZ, every incoming CEO has to accept and promote the Asian ambition and policy of action.
But, the reader might ask: why Asia? The reason is simple and twofold: (a) Asia is the one area of the globe that will grow economically in exponential terms within the next few decades and, (b) Asia is in Australia’s doorstep and so it makes sense moving into it.
Most Asian countries, except Japan that will not recover from an ageing and shrinking population, will grow enormously in decades to come. Population growth in such countries as China, India, Indonesia, Malaysia, Myanmar (Burma), Thailand, Vietnam, both North and South Koreas, Singapore and Taiwan will push demand infrastructure such as (potable) water supplies, sewerage lines, electricity supply, roads, rail and ports. Moreover, building and construction, education, health and entertainment and tourism will be much in demand.
A true wealth of opportunities is now in Asia. Naturally, banking services will also be in demand and ANZ will be there with its expertise to serve, grow and profit with it.
Some financial statistics for ANZ bank (ANZ) are: return on equity averaging for the last six years: 16.8 per cent. Assets: $471,024 million. Equity: $25,619 million, having doubled from six years ago. Net profit in a bad year: $3,273 million and net interest margin: 2.1 per cent. ANZ’s share price is $21.17 and P/E (price to earnings) is $14.3 times.
ANZ is, I risk to say, the one of the big four Australian banks that will grow the most in decades to come. I am with it.
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