Targeting Asia, GE buys first bank in RP

Targeting Asia, GE buys first bank in RP

John Christoffersen, Associated Press, New Haven

General Electric Co. agreed on Monday to acquire its first
bank in the Philippines as part of a broader strategy of stepping
up its deals in Asia's fast-growing emerging markets.

GE Consumer Finance, based in Stamford, Connecticut, will
acquire a majority interest in Keppel Bank Philippines for
US$25.8 million subject to regulatory approvals. Established in
1897, Keppel Bank is the oldest savings bank in the Philippines
with $90 million in assets and 30 branches.

"We are pleased with the opportunity to expand our strategic
focus in Southeast Asia by gaining a platform for growth in the
Philippines," said Ridha Wirakusumah, president and chief
executive of GE Money Southeast Asia and Head of Banking, Asia.

The Fairfield, Connecticut-based industrial, media and
financial services giant has said the company expects 60 percent
of its growth in the next decade will come from developing
countries.

The move into the Philippines is modeled after GE's stepped-up
business in Eastern Europe after the fall of communism, said
Robert Rendine, vice president for GE Consumer Finance. The
strategy involves making small acquisitions and expanding the
businesses.

The Philippines is attracting one of the world's largest
companies because of its strong growth, emerging middle class and
relatively stable political situation, Rendine said.

GE is getting a banking license in Thailand and is considering
entering markets such as Vietnam and Malaysia, he added.

"That whole region for us is going to be a strong strategic
focus," Rendine said. "The acquisition portends GE Consumer
Finance's strategy in Asia, which is to expand quickly in
emerging markets."

Last week, Chinese media reported that GE plans to buy a 7
percent stake in China's Shenzhen Development Bank. The deal,
valued at $100 million, would give GE Consumer Finance a foothold
in the growing personal loan market in China.

In August, GE Consumer Finance acquired a 43 percent stake in
Hyundai Card, the third largest credit card company in South
Korea, in its second investment in South Korea in the past year.

With more than $150 billion in assets, GE Consumer Finance is
in 47 countries. With Asian countries making up only 13 percent
of assets and 20 percent of profits, the unit sees plenty of room
for growth in the region.

Shares of GE traded on Monday morning on the New York Stock
Exchange at $33.38, down 29 U.S.cents. The stock has traded
between $32.65 and $37.75 over the past year.