HONG KONG - Bank of New York Mellon Corp is looking to expand its staff across Asia by the end of the year, as the U.S. custody bank sees opportunities for growth in its asset management and servicing businesses.

The bank could also consider capital tie-ups and acquisitions in the region, although organic growth remains a bigger priority, Christopher Sturdy, the bank's Asia Pacific chairman, told Reuters in an interview on Thursday.

Even as other financial firms cut staff and close offices in Asia, BNY Mellon sees a chance to expand, as more financial firms rely on its support services to help lessen counterparty risk.

BNY Mellon is one of the world's largest custody banks, with custodial assets of $20 trillion, providing back-office services to other financial institutions.

It also manages roughly $1 trillion in assets.

'We're definitely in growth mode,' Sturdy said at the bank's Hong Kong office.

'Across the entire region we are going to be net additive not net subtractive.'

Sturdy said BNY Mellon currently had about 4,200 employees in Asia, although he declined to give a growth target.

In Hong Kong, the bank will look to add about 50 staff by the end of the year, from around 150 at the end of last year.

Due to their relatively unglamorous business models, custody banks been seen as relatively stable amidst the worsening financial crisis.

Still BNY Mellon, like rival State Street Corp , has not escaped unscathed. Both money managers reported sharply lower fourth-quarter profits in January, hit by substantial losses on investments.

Sturdy said, however, the bank was seeing increased opportunities for offering services to hedge funds and other alternative investment managers in Asia.

BNY Mellon is particularly focused on five markets in Asia: South Korea, China and India because of the potential for rapid growth, and Australia and Japan for the size of their domestic markets.

While the bank is on organic growth in Asia, Sturdy said it could consider an acquisition or capital alliance, especially as valuations continue to decrease.

'Right now we're not in the buy mode, but buying is on our agenda,' he said.

'We honestly believe that's why now is a very nice time, later might be better.'