The Australia and New Zealand Banking Group Limited (ANZ
) has announced it had entered into an agreement to sell its retail business in Vietnam to Shinhan
The disposal of ANZ’s retail business in Vietnam follows the announcement in October 2016 of the sale of ANZ’s retail and wealth business in five Asian countries to DBS, the largest bank in Singapore.
The deal is subject to regulatory approval. ANZ expects the transfer of the Vietnam retail business to Shinhan Bank Vietnam will be complete by the end of 2017.
“The sale of our retail business is in line with our strategy to simplify the bank and improve capital efficiency. It allows us to focus resources on our largest business in Asia - Institutional Banking – where we are a top four corporate bank supporting regional trade and capital flows,” said ANZ Group Executive, International Farhan Faruqui.
“We have a long history in Vietnam and we will be maintaining our presence through our Institutional Bank in Vietnam which will continue to support our corporate clients in the Greater Mekong Region,” he added.
The agreement with Shinhan Bank Vietnam includes all eight branches located in Hanoi
and Ho Chi Minh City, and ongoing roles for all retail staff.
The retail business being sold serves 125,000 customers in Vietnam, and includes AUD$320 million in lending assets and AUD$800 million in deposits. The premium to book value for the sale of the retail business in Vietnam is not material to the ANZ Group, says the statement.
The sale of ANZ's retail business in Vietnam came at no surprise as local media had reported five banks, including three foreign ones and two Vietnamese lenders, were interested in acquire this business.
Shinhan Bank Vietnam is part of the Shinhan Financial Group, a South Korean company listed on the Korean and New York stock exchanges.
Shinhan Bank is among the eight wholly foreign-owned lenders in Vietnam, with a registered capital of 4.55 trillion dong ($200.3 million), second only to that of HSBC Vietnam.