Mizuho Mulls Buying Asia Investment Bank to Boost Fee Income
17.05.12
(Updates closing share price in sixth paragraph.)
Dec. 28 (Bloomberg) -- Mizuho Financial Group Inc., Japan’s second-largest lender by assets, is considering buying an investment bank in Asia to help improve slow growth in winning equity and debt offerings in the region.
The lender’s expansion plans may also include allying with an investment bank, and purchasing asset managers and hedge funds in Singapore, India and Indonesia, Chief Executive Officer Yasuhiro Sato said in an interview. He also plans to increase the branches in Asia outside of Japan to 50 from 33 within five years for its corporate banking unit. Mizuho isn’t currently in talks with any banks for an acquisition or investment, he said.
Mizuho, ranked No. 22 in Asian equity underwriting this year, aims to tap corporate banking clients to boost fee income from advisory and underwriting as the domestic economy slows and loan demand slumps. The bank is yet to break into the top 10 for equity deals in the region since listing in the U.S. in 2006 in a bid to win more investment banking businesses.
Source: BusinessWeek