* Analysts say deal good value for ANZ, scope for more buys
* Deal expected to boost ANZ's earnings within 2 years
* Shares end 3.0 pct higher, outperform broader market
* Deal part of trend of European banks exiting from Asia (Adds details on Asia revenue contribution, CEO comments)
By Denny Thomas
SYDNEY, Aug 4 (Reuters) - Australia and New Zealand Banking Group Ltd agreed to pay a smaller-than-expected $550 million to buy some Asian units from British lender Royal Bank of Scotland, helping it take on rivals HSBC and Standard Chartered in Asia's fast-growing markets.
The purchase will give ANZ access to 54 branches across the region, with $3.2 billion in loans and $7.1 billion in deposits, taking Australia's fourth biggest bank closer to its goal of generating a fifth of its revenue from Asia by 2012.
The deal also marks the first stage of the dismantling of RBS's global empire after its purchase of Dutch bank ABM AMRO at the height of the boom and exposure to the credit crisis prompted a bailout from the British government last year.
The deal is part of a growing trend of European banks exiting from Asian operations as the global credit crisis forces them to focus on their home markets. In June, British insurer Aviva plc sold some of its businesses to National Australia Bank Ltd, following the sale of HBOS's Australian unit to Commonwealth Bank of Australia Ltd.
RBS is seeking to exit from or shrink its operations in up to 36 other countries, including India and China, which were not included in the deal.
Asia-focused Standard Chartered said on Tuesday it was in discussions for a possible purchase of RBS's India and China assets. The bank reported a forecast-beating 10 percent rise in first-half profit and unveiled a surprise $1.7 billion fundraising.
ANZ is buying RBS's retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong. ANZ will also buy RBS's institutional businesses in Taiwan, Philippines and Vietnam.
Based on the most recent half year earnings, the deal would have added $460 million to ANZ's operating income. It would have boosted Asia's contribution to ANZ's operating income to about 18 percent from about 14 percent, according to ANZ.
"This is a solid outcome for ANZ that consolidates its growth strategy into Asia and gives added credence to its ambitions of becoming a regional powerhouse," IG Markets analyst Ben Potter said.
ANZ shares closed up 3 percent to A$19.57, outpacing a 1.1 percent rise in the main share index. ANZ said the deal is expected to boost earnings within two years of completion.
The acquisition price equates to 1.1 times net tangible book value, compared with 0.8 times paid by CBA for for HBOS's Australian unit and 2.7 paid by Westpac Banking Corp for buying St George Bank. Both those deals were done last year.
ANZ raised about $2 billion in a share sale in May to strengthen its balance sheet and fund the acquisition, which sources and analysts had expected to cost around $775 million.
The low purchase price means ANZ still has more than A$4 billion of surplus capital and plenty of scope for further M&A, Citigroup said in a note to clients.
"From the point of the view of their Asian strategy they probably would be looking to add extra bolt-on acquisitions to what they have done to improve their capacity in Asia," said Ross Barker, managing director of Australian Foundation Investment Co, which manages about A$4 billion including ANZ shares.
MORE RBS SALES TO COME
Other banking assets up for grabs in the region include, Dutch bank ING Group's private banking business and Belgian-French company Dexia Group's Australian unit.
RBS is still negotiating the sale of its other Asian assets and source told Reuters last month that was in talks on operations in China, India and Malaysia.
"RBS remains in advanced discussions with bidders for the remaining assets it has decided to sell in Asia and will make further announcements, as appropriate, in due course," RBS said in a statement.
In contrast, ANZ has been expanding further afield. It has spent about A$2 billion over the past decade in buying mostly minority stakes in banks from China to Vietnam. ANZ's growth strategy is built around Asia, while Australia's top three lenders, NAB, Westpac and CBA, have focused on domestic market.
But some analysts have said ANZ would have been better of acquiring RBS's China and Indian business as well. ANZ's CEO Mike Smith said the bank was on track to achieve its organic growth targets in China and wanted to have a big presence in India.
Citigroup said India remains a big hole in ANZ's Asian strategy, where ANZ is the process acquiring a banking licence. ANZ sold its Indian operations to Grindlays, a unit of Standard Chartered in 2000. (Editing by Lincoln Feast) ((denny.thomas@reuters.com; +61 2 9373 1812; Reuters Messaging: denny.thomas.reuters.com@reuters.net))