Asia Pacific CFOs remain bullish on 2013 earning potential

The majority of Asia Pacific- based chief financial officers expect growth in revenues and profits at their corporations in 2013, according to the Bank of America Merrill Lynch (BofA Merrill) 2013 CFO Outlook Asia report issued on Monday. The survey found 71 percent are forecasting year-on-year revenue growth in 2013, while 62 percent are anticipating that their 2013 net profits will exceed that of 2012. In the press conference, the Head of Asia Pacific Corporate Banking & Global Head of Corporate Banking Subsidiaries at BofA Merrill, Steven R.Victorin, said Southeast Asia presents significant earnings opportunities, while the survey shows 81 percent and 72 percent of CFOs in these areas forecast growth in revenues and profits compared with 2012 respectively. According to him, CFOs favor organic growth over Mergers and Acquisitions (M&A). The majority of CFOs (63 percent) aren't planning to participate in any M&A activity in 2013, and half of those who intend to will do so to achieve growth targets and will mostly look at opportunities in their home markers or in developing Southeast Asia. He also said despite economic uncertainty and global market headwinds, there remains a sense of unbridled optimism towards business prospects in Asia Pacific, according to the region's leading CFOs. He added this year's report again shed relevant light on the perceptions and strategies of the evolving CFO function across the region. "The results clearly reinforce this view". The conclusion above are based on over 600 interviews conducted with financial executives in Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, the Philippines, Thailand, Hong Kong and Taiwan. Over 50 percent of respondents came from corporations with annualized revenues of 500 million dollars or above, representing a broad range of multinational, regional and local companies.