ANZ Bank sells se­lected Asian as­sets to DBS

The Sun (Malaysia) - - SUNBIZ -

SYD­NEY: ANZ Bank yes­ter­day an­nounced the sale of its re­tail and wealth man­age­ment arms in five Asian coun­tries to Sin­ga­pore’s DBS as it re­po­si­tions for the fu­ture.

The busi­nesses af­fected are in Sin­ga­pore, Hong Kong, China, Tai­wan and In­done­sia with the trans­ac­tion, sub­ject to reg­u­la­tory ap­provals, ex­pected to be fi­nalised by early 2018.

ANZ did not list the value of the as­sets but said the bank would take a A$265 mil­lion (RM839 mil­lion) net loss due to write­downs and var­i­ous other costs.

Chief ex­ec­u­tive Shayne El­liott said the com­pany was work­ing to be­come sim­pler and bet­ter cap­i­talised, al­low­ing it to fo­cus on cor­po­rate and in­sti­tu­tional clients in Asia.

“Asia re­mains core to ANZ’s strat­egy. By fo­cus­ing our re­sources in Asia – whether that is cap­i­tal, tech­nol­ogy or peo­ple – on in­sti­tu­tional bank­ing, we can con­tinue to build a world-class, cap­i­tal ef­fi­cient busi­ness by strength­en­ing our net­work and the sup­port we pro­vide to our key in­sti­tu­tional clients.

“In re­tail and wealth, although we have grown a prof­itable busi­ness in Asia, with­out greater scale ANZ’s com­pet­i­tive po­si­tion is not as com­pelling.”

The an­nounce­ment came ahead of ANZ’s an­nual profit re­sult on Thurs­day, with all Aus­tralia’s big banks bat­tling higher fund­ing costs, lower in­ter­est mar­gins and ris­ing bad-debt charges. – AFP

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