The co-chief executive of Landsbanki recently announced that the Icelandic bank has an organic growth plan for the Asian market. The bank is attempting to diversify its activities outside Iceland and is planning not to use acquisitions to enter the new market.
The second largest bank in Iceland opened its first office in Hong Kong on Friday 9th November. The company’s joint CEO, Sigurjon Arnason, said that the bank’s primary objectives are to focus on trade finance expertise and develop stronger relationships with its current clients in the area, particularly in the seafood industry.
“The underlying concept of what we are trying to do here is of course to try to build on what we have already,” he told Reuters news agency. “You shouldn’t rule out that we might do some acquisitions, but it’s not the first thing on our agenda. The first thing on the agenda is of course to build up this operation here organically.”
All of Iceland’s banks have attempted to move some of their operations out of their home country in order to offset the unreliability of Iceland’s economy and to expand beyond its small market.
Landsbanki, along with domestic rivals, Kaupthing and Glitnir, has been expanding abroad through acquisitions. This year, Landsbanki acquired Bridgewell Group Plc, a British Brokerage. It is reported that they are linked with a bid to purchase the Irish Nationwide Building Society.