According to statements by ANZ and Kina Bank, ANZ will sell 15 of its retail branches, 72 ATMs as well as “ongoing roles for all relevant staff” to Kina Bank in Papua New Guinea for $10 million.
ANZ represents the second-largest bank in the country, and the acquisition will see Kina Bank “emerge as a leading participant” in the retail, commercial and SME banking sector.
ANZ managing director for institutional Australia Graham Turley said the major bank saw “great opportunities for growth” in Papua New Guinea and “remain committed” to running an institutional business in the country.
“ANZ has been in this market uninterrupted for more than a century and we continue to have a positive outlook for the PNG economy.
“Our retail, commercial and SME operations in PNG are strong, successful businesses that will benefit from Kina Bank’s focus on retail banking,” Mr Turley said.
The major bank’s statement said the sale was “not material to ANZ”.
This marks another step back in ANZ’s retreat from the Asian ‘super-regional strategy’ put in place by former chief executive Mike Smith and the latest sale or closure of an Asia-based retail arm.
Less than a month ago, the major bank sold its majority stake in joint venture bank Cambodian JV ANZ Royal Bank, racking up a $30 million loss in the process.
On 20 April, ANZ sold its Vietnamese retail bank to Shinhan Bank Vietnam, and on 5 February closed its Philippines-based retail business.
ANZ Bank’s New Zealand arm sold its asset financing business UDC Finance to HNA Group on 12 January.
Two months prior, ANZ sold its retail and wealth management businesses in Singapore, Hong Kong, China, Taiwan and Indonesia to Singaporean DBS Bank.