ING Aims to Boost Asian Business

Bob Reynolds

4 October 2007

ING Private Bank aims to increase its Asia business by 28 per cent a year over the next three years. Renato de Guzman, Asia chief executive, said his unit had built up a $23 billion pool of assets, with average annual growth of 34 per cent over the last four years. Mr de Guzman says China is launching an experimental scheme to allow some citizens to invest in Hong Kong financial markets, while India now allows individuals to invest up to $200,000 a year overseas. Thailand has allowed brokerages and asset management firms to offer up to $5 million of offshore investments to each client. "We're doing better than average. There's strong growth everywhere. We're building certain onshore businesses everywhere, exploring where ING has a strong local presence," he said. But most of ING Private Bank's business comes from India and China, where booming property markets and soaring stock prices have enriched many individuals in the last couple of years. In India, Mr de Guzman hopes to funnel funds from wealthy individuals through a network of over 400 branches run by ING Vysya Bank, a joint venture formed in 2002. ING Private Bank Asia is willing to waive its $2 million minimum investment rule in the hope of drawing wealthy Indians who will steadily increase their investments. In China, the bank is helping investors with funds already in foreign currencies. "You can offer offshore private banking to clients with funds abroad, because of their export businesses or if they've done an IPO," he said. Hong Kong has become a major centre for initial public offerings by mainland Chinese firms. ING Private Bank Asia accounts for 11.5 per cent of the $330 million of equity in an ING Real Estate fund to build housing in China. It will also contribute 8-10 per cent of the equity in a $650 million fund to buy shopping centres across Asia.