AAN eyes opportunities in Asia

AAN eyes opportunities in Asia

SINGAPORE (Dow Jones): Dutch banking group ABN Amro Holding NV (AAN), which has steadily built up its presence in Asia through a string of recent deals, is on the look-out for further expansion opportunities in the region, said Sergio Rial, chief executive officer for Asia Pacific operations, on Monday.

Earlier this month, ABN Amro agreed to buy Bank of America's consumer banking businesses in India, Singapore and Taiwan, and it is close to signing a deal to acquire a stake in Great Pacific Bank in the Philippines. In September last year, it acquired a 75 percent stake in Thailand's Bank of Asia PCL.

"There are still opportunities in Asia," said Rial, who is based in Singapore. "Will we be doing other things ? I don't know."

However, Rial said ABN Amro is closely watching the situation in Indonesia and considering whether to try building up its operations there, either through acquisitions or by expanding its own branch network.

ABN Amro already has 15 branches in Indonesia, and Rial said he was looking into local media reports that said foreign banks might be allowed to expand their branch networks in the country. Expanding its branch network might prove a better means of expanding in Indonesia than a straight acquisition, given the high level of non-performing loans and poor financial position of many Indonesian banks, he noted.

"Technically, most of the Indonesian banks have negative value" and need government money for recapitalization, Rial said. So far, ABN Amro has shied away from doing deals that involve government injections of funds, he added.

At the moment, "we have a lot of work to do in terms of consolidating" recent acquisitions in the region, Rial said. "One has to be very attentive to ensure a smooth integration process," he added.

ABN Amro expects to add up to 50 senior staff to help manage its new acquisitions in the region, of which some 12 to 15 senior managers have already been hired, Rial said.