ANZ sees upcoming end of KEB deal

The lender expects Asia to contributing a third of profit in medium-term as KEB due diligence is nearing completion.

Australia and New Zealand Banking Group has nearly completed due diligence to buy Korea Exchange Bank and its chief executive said Asia was expected to contribute a third of its profit in the medium-term.

ANZ, which reported a record second-half underlying profit above forecasts, wants to become a regional Asian lender as the likes of HSBC have done, and is tapping the continent for growth, deposits and trade finance.

Australia's No.4 bank, which began inspecting the books of South Korea's fifth-largest bank in August for a 57.27 percent stake with a current market value of $4.4 billion, sees the process wrapped up in several more weeks, Chief Executive Michael Smith said.

ANZ shares climbed as much as 3.4 percent to their highest level in six months after the earnings report on Thursday. At 0220 GMT, the shares were up 3.1 percent at A$24.79, outperforming a 0.8 percent gain in the benchmark index .AXJO.

"KEB is another plank on their explicit focus on developing their Asian exposure," said Angus Gluskie, Chief Investment Officer at White Funds Management.

View the full story in Reuters.