TOKYO -- Australia and New Zealand Banking Group will launch a securities arm in Japan within the next few months, Group Executive International Farhan Faruqui tells Nikkei.
ANZ already has branches in Japan, but could not sell asset management products from Asia and Australia here with a banking license alone. It is now seeking membership in the Japan Securities Dealers Association with approval from the Financial Services Agency.
The new unit seeks to tap demand among Japanese institutional investors for overseas products, given the extremely low interest rates in Japan. It will cater to investors who want to expand their non-yen-denominated assets, Faruqui said.
Revenue at ANZ's banking branches in Japan totaled 17.8 billion yen ($162 million) for the fiscal year ended March 2017. Faruqui said the group aims to boost its revenue in the country by double digits every year with the new securities arm.
ANZ Group was founded in 1835 and is one of Australia's four biggest banks. It has exited from the retail sphere in Asia, but sees greater opportunities with institutional investors in Japan, where monetary easing continues.
Canada's Toronto-Dominion Bank also set up a new securities arm in Japan last July targeting institutional investors.