The buyer of the businesses, Kina Bank, is a subsidiary of Kina Securities, a PNG group listed on both the Australian and Port Moresby securities exchanges.
The acquisition includes ANZ PNG’s retail customer deposits and loans (including credit cards), commercial and SME customer loans and deposits, relevant employees, 72 ATMs and more than 1,800 EFTPOS terminals used in branches and standalone.
Graham Turley, ANZ managing director, Institutional Australia and PNG commented: “ANZ is committed to running a world-class institutional bank across our international network, in line with our strategy of simplifying our business and focusing on customers driven by trade and capital flows.
“We have been in PNG for 109 years and we continue to see significant opportunities for business and economic growth through long-term investment and support of the resources, energy, infrastructure and agriculture sectors.”
Kina Group’s chief executive Greg Pawson said the acquisition was significant for his company.
“Completing the acquisition is a milestone for the company and it represents a key component of our five-year strategic plan,” Mr Pawson said.
“It supports our objectives to deliver greater value to our customers and develop a more resilient and sustainable group. It further strengthens our market position in retail, commercial and SME banking as we become the second-largest retail bank in Papua New Guinea.
“The acquisition also provides scale to invest in new banking capabilities and improve the value of our product offering to new and existing customers through a national network of branches, ATMs and EFTPOS terminals.”
Kina entered into a binding sale and purchase agreement with ANZ PNG in June last year. Its total capital ratio following the acquisition will be 18 per cent.
ANZ has previously sold its retail and wealth businesses in Singapore, Hong Kong, China, Taiwan, Indonesia and Vietnam, as well as its joint venture stakes in ANZ Royal in Cambodia and Metrobank Card Corporation in the Philippines.
The bank has a presence in 33 countries.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].