“Hong Kong (Reuters) – Bank of America Corp will seek more lending and cash management business with companies in Asia and elsewhere outside its U.S. home turf, Chief Executive Brian Moynihansaid, an area ripe for expansion where it lags its big rivals.
That could mean vying for market share with more entrenched global banks such as Citigroup Incand HSBC Holdings Plc in fast-growing regions like Asia, where Fortune 500 companies and big local corporations demand a full spectrum of banking services from hedging to foreign exchange to cash management.
“Inside the U.S. we’re number one in cash management revenues, but outside it, against some of our competitors, we’re less than we want to be,” Moynihan said in an interview with Reuters on Friday.
“We might get 70 percent of our revenues from a company inside the U.S., when only 50 percent of their revenues are made there, so we’re missing opportunities,” he said.
The U.S.-based lender won’t be jostling with competitors, however, for securities business in China, where most big names in global banking have been eagerly setting up joint ventures.
“It’s not sensible to have a minority stake with no path to control,” said Matthew Koder, Bank of America’s Asia Pacific president. Foreign banks in China are only allowed to offer investment bankingservices through an onshore partner.
“Right now, everyone’s losing money in China,” Koder said….”
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