Commonwealth Bank of Australia (C.B.A.) announced that it will sell approximately 5% of its shares in Vietnam International Bank (VIB).
The transaction is expected to close on September 24, 2024 and generate total proceeds to CBA of approximately A$160 million (US$109.5 million).
CBA has been a shareholder of VIB since 2010 and has contributed to its development as a joint-stock commercial bank in Vietnam.
While CBA believes there is further growth potential for VIB, the partial sale is in line with the group’s strategy to focus on its core banking activities in Australia and New Zealand.
The sale is expected to slightly improve CBA’s capital position and slightly increase its Common Equity Tier 1 (CET1) ratio.
Established in 1996, VIB has a strong presence in Vietnam with 189 branches and trading offices across 29 provinces and cities in the country.
As of December 31, 2023, the bank’s total assets were approximately VND410 trillion.
