Having already sold-off its wealth and retail businesses in six countries in Asia, Melbourne-based ANZ is selling its stake in another bank.
In line with its strategy to simplify and become a minimalist bank, ANZ is selling its 55 percent stake in a Cambodian joint venture. ANZ Royal Bank will be acquired by a Japanese financial holding company, J Trust, ANZ said in a media statement.
Tokyo-based J Trust is listed on the Tokyo Stock Exchange and currently has operations in five countries including banking operations in South Korea and Indonesia. The move will cost ANZ $30 million in transaction costs, taxes and the release of accumulated foreign currency translation reserves, the statement said.
Focus Changed
«We remain committed to our Institutional presence in Asia. Our regional network is an important differentiator for ANZ,» said ANZ group executive, international Farhan Faruqui.
The Melbourne-based bank previously pursued a strategy aimed at putting the bank at the forefront of Asia's growth. Under former CEO Mike Smith, the bank in 2009 splashed out $550 million for Royal Bank of Scotland’s operations in six Asian countries.
When he reviewed the business units seven years later, current chief executive Shayne Elliott said they accounted for a paltry one percent of ANZ's profits. The bank is now focusing on trade and capital flows between Asean, North Asia and Australia where he thinks his bank has heft.
