Analysts have reportedly cast doubt over ANZ Banking Group’s (ASX:ANZ) Asian expansion. According to The Wall Street Journal, Nomura analyst Victor German believes the bank will not be able to generate up to 30 per cent of its profits from the region by 2017 unless it makes more acquisitions.
Mr German concedes European bank deleveraging creates an opportunity for Asian market share gains but warns the competitive dynamics remain intense and this is likely to put pressure on profitability.
ANZ has a number of partnerships in the region and stakes in Asian banks and just last month announced it will invest a further $300 million to expand its branch network in China.
ANZ reported a net profit of $2.9 billion in the first half of the 2012 financial year.
