ASB Bank is expanding its services by buying sharebroker Warburg Dillon Read and has signalled it will launch an online broking service.
Under the deal announced today ASB will buy, for an undisclosed sum, Warburg's retail sharebroking business, including its cash management trust, and retail fixed interest and nominee operations.
"We see the move as compatible with our strategy to move into the provision of a wider range of financial services," ASB managing director Ralph Norris says.
He says Internet-based broking is planned for the future.
ASB's parent, Commonwealth Bank of Australia, is already active in this market across the Tasman through Commonwealth Securities. (For more on online broking visit Good Returns' special report).
Norris says the acquisition is in line with ASB's desire to offer a broad range of services.
"While our competitors are largely focusing on the size of their operations, ASB Bank's strategy is to bring together a broad range of mainstream financial options and, in doing so, reduce the overall complexity of offerings to our customers and minimise the need for them to shop around," Norris says.
