Chinese banks first to go in ANZ sell-off
(1 December 2016 – Asia) Australian-based ANZ Bank indicated that it will sell its stake in two Chinese lenders as part of its bid to trim its exposure in the region.
Reports highlight that exiting joint ventures with Shanghai Rural Commercial Bank and Bank of Tianjin, of which it own 20 percent and twelve percent respectively, ANZ will boost its capital ratio by 50-60 basis points.
The bank also has stakes in several other Asian lenders including Malaysia’s AmBank (24 percent), and PT Bank Pan Indonesia (39 percent). In total, the partnerships are valued at around A$4.1 billion.
Although ANZ has had trouble finding buyers as a result of tighter capital regulations, chief executive Shayne Elliott recently expected to sell the equity stakes at book value.
He said they were “attractive propositions for the right buyers.”
Adding, “As a portfolio, the market value of those four banks is significantly above book value,” he said. “So there might be a loss on one and not the other etc, but as a group ... there’s absolutely a potential profit on sale there.”
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