(23 May 2018 – Australia) Commonwealth Bank will further cut its exposure to the wealth management sector with the sale of its stake in Chinese insurer BoComm Life.
The $668m deal to Japan’s Mitsui Sumitomo Insurance will help bolster the bank’s capital position, raising its common equity tier 1 capital ratio by 13 basis points.
“This transaction represents a further step in simplifying and focusing our portfolio and follows the announcement of the proposed sale of the group’s life insurance businesses in Australia and New Zealand to AIA Group, and the strategic review of the group’s life insurance business in Indonesia,” said Matt Comyn, CBA’s chief executive.
With investors pushing lenders to focus on their core strengths in retail and business banking, peripheral units such as life insurance and wealth management have been cut across the board.