Maybank Banking On Pakistan Expansion: Forbes

Vivian Wai-yin Kwok

HONG KONG -"While most Western banks are taking a pause from expansion to solve their credit problems at home, Malayan Banking is accelerating its acquisition ambitions, in an attempt to strengthen its regional footprint. Malaysia's biggest lender said Monday it would buy up to 20% of Pakistan's MCB Bank for $933 million, its third takeover in the region in two months.

Malayan Banking (other-otc: MLYBY - news - people ), widely known as Maybank, said in a filing with the stock exchange in Kuala Lumpur on Monday that it had agreed to buy 15% of MCB Bank, Pakistan's fourth-largest bank by asset value, for 2.17 billion ringgit ($685.5 million). Maybank also has secured the right to buy an additional 5% stake in MCB Bank for a maximum of $247 million from three other institutional investors, potentially bringing its ownership up to 20%.

"It is an attractive opportunity for us to enter a high growth and profitable market. It is extending Maybank's reach in South Asia," in line with its plan to become a key regional player, Chief Executive Abdul Wahid Omar of Maybank told reporters. Volatility in the global financial markets notwithstanding, Pakistan's economic outlook remains steady, and there is "limited execution risk," he added."

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