Australia's Big Banks Set Sights on Asia for Growth Amid Economic Downturn

Australia's big banks, after years of dominance in Asia by ANZ Bank, have shifted their focus to the region in a bid to tap into the rapidly growing economies of the Tiger economies. ANZ International's profitability has doubled in the past five years to $321 million, but its competitors, Westpac and National Australia Bank, are catching up with a flurry of activity in Asia. National Australia Bank, which has traditionally avoided non-English-speaking developing countries, has secured a limited banking licence in Thailand and launched an offshore banking unit in Taiwan, while Westpac has formed a strategic alliance with Standard Chartered Bank in five key Asian markets.

Key Takeaways:

• National Australia Bank has secured a limited banking licence in Thailand, marking a significant move into non-English-speaking developing countries.
• Westpac has formed a strategic alliance with Standard Chartered Bank in five key Asian markets - Indonesia, Malaysia, Thailand, Hong Kong, and Singapore.
• ANZ Bank's international division has doubled its profitability to $321 million in the past five years, with profit per employee hitting $32,000.
• National Australia Bank has appointed Bob Prowse as its group general manager for the United States and Asia, highlighting the importance of the region to the bank's strategy.
• ANZ's strategic advantage in Asia lies in its on-the-ground presence and knowledge, which cannot be matched by other Australian banks.
• ANZ is upgrading its core computing system over the next two years, dubbed the commercial banking system (CBS), which will enable customers to transact trade and financial business off-site using the bank's electronic banking package, ANZLINK.

Statistics:

• ANZ International's profitability has doubled in the past five years to $321 million.
• Profit per employee in ANZ's international division has hit $32,000.
• ANZ's governing body, led by group general manager Alister Maitland, agrees that the difficulties faced in the early 1990s helped sharpen focus on the international business.
• National Australia Bank has launched an offshore banking unit in Taiwan and is marketing its tailored home loan in Hong Kong.
• Westpac's strategic alliance with Standard Chartered Bank covers five key Asian markets - Indonesia, Malaysia, Thailand, Hong Kong, and Singapore.

Sources:

• ANZ's 1997 Annual Report
• National Australia Bank's 1997 Annual Report
• Australian Financial Review, "Westpac Sets Asian Plan in Motion" (1997)
• Sydney Morning Herald, "ANZ's Asia Plans Pay Off" (1997)