Australia and New Zealand Banking group agreed to pay a smaller-than-expected €384 million to buy some Asian units from British lender Royal Bank of Scotland, helping it take on rivals HSBC and Standard Chartered in Asia's fast-growing markets.
The purchase will give ANZ access to 54 branches across the region, with €2.2 billion in loans and €4.9 billion in deposits, taking Australia's fourth biggest bank closer to its goal of generating a fifth of its revenue from Asia by 2012.
The deal also marks the first stage of the dismantling of RBS's global empire after its purchase of Dutch bank ABM AMRO at the height of the boom and exposure to the credit crisis prompted a bailout from the British government last year.
The deal is part of a growing trend of European banks exiting from Asian operations as the global credit crisis forces them to focus on their home markets. In June, British insurer Aviva plc sold some of its businesses to National Australia Bank Ltd, following the sale of HBOS's Australian unit to Commonwealth Bank of Australia Ltd.
RBS is seeking to exit from or shrink its operations in up to 36 other countries, including India and China, which were not included in the deal.
Asia-focused Standard Chartered said today it was in discussions for a possible purchase of RBS's India and China assets. The bank reported a forecast-beating 10 per cent rise in first-half profit and unveiled a surprise €1.2 billion fundraising.
ANZ is buying RBS's retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong. ANZ will also buy RBS's institutional businesses in Taiwan, Philippines and Vietnam.
Based on the most recent half year earnings, the deal would have added €322 million to ANZ's operating income. It would have boosted Asia's contribution to ANZ's operating income to about 18 per cent from about 14 per cent, according to ANZ.