ANZ Banking Group
(ASX:ANZ) has sold its 20% stake in Shanghai Rural Commercial Bank for $1.84 billion. Back in 2007, ANZ paid $318 million for this stake.
ANZ will use these proceeds to boost its tier one capital ratio by around 40 basis points. The bank says the sale will allow it to focus its resources on its institutional banking business in Asia.
Over the last 30 years, ANZ has made significant investments in China – with 100% owned branches in Beijing, Shanghai, Guangzhou and other Chinese cities serving institutional clients.
The bank says the sale will not have a material impact on its profit and loss statement.
ANZ posted a net profit of $5.7 billion at 30 September 2016.
