ANZ has entered into an agreement to sell its Vietnamese retail business to Shinhan Bank Vietnam in a shift to focus on institutional banking in the country, the Australian lender said Friday.
The transfer is expected to be finalized by the end of this year, ANZ, fully known as the Australia and New Zealand Banking Group Limited, said in a statement.
Shinhan Bank Vietnam is part of the Shinhan Financial Group, a South Korean company listed on the Korean and New York stock exchanges.
The sale of ANZ retail business is in line with the strategy to simplify the bank and improve capital efficiency, according to ANZ Group Executive, International Farhan Faruqui.
The sale now allows ANZ to focus resources on its largest business in Asia - institutional banking.
“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,” Faruqui said.
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 executive elaborated.
“This will help ensure a smooth transition for our customers, while presenting a great opportunity for our people to join a retail bank with significant growth plans,” he added.
The retail business being sold serves 125,000 customers in Vietnam, and includes AUD$320 million (US$240.6 million) in lending assets and AUD$800 million (US$601.5 million) in deposits.
ANZ expects the transfer of the Vietnam retail business to Shinhan Bank Vietnam will be completed by the end of 2017.
ANZ’s Institutional Bank has a presence in 15 different markets in Asia and was ranked as a top four corporate bank in the region by Greenwich Associates in 2016.
The sale 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.