JPMorgan Chase & Co.
) is planning to shut down its retail banking operations in
Malaysia. The company is aiming to limit its retail banking
operations worldwide with a major focus in the domestic markets,
but willing to continue with its wholesale banking operations
Malaysian retail banking is JPMorgan's only retail presence in
Asia. However, the closure of this unit is unlikely to affect the
company's overall business in the Asian region, given its small
size. In addition to retail banking, JPMorgan offers a wide range
of other banking services including investment banking, equities
trading, treasury and security services as well as corporate
banking in Malaysia.
JPMorgan is not the only bank shuttering its Asian operations.
ING Groep NV
) is also aiming to divest its Asian assets, especially the
insurance and investment-management businesses by the end of 2013
for repaying the $13 billion (€10 billion) state financial aid,
which it received from the Dutch government during the financial
crisis in 2008.
As a part of this strategy, ING Groep has already sold its
insurance operations in Malaysia to AIA Group Ltd. (AIA) and
divested Thailand Asset management business to Singapore's United
Overseas Bank Ltd. Apart from this, ING announced the
divestiture of its insurance business, pension and financial
planning divisions in Hong Kong and Macau as well as its life
insurance operations in Thailand to Pacific Century Group.
Currently, JPMorgan retains a Zacks #3 Rank, which translates
into a short-term Hold rating. Considering the fundamentals, we
also maintain a long-term Neutral recommendation on the
ING GROEP-ADR (ING): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
To read this article on Zacks.com click here.