Commonwealth Bank of Australia (CBA) has announced the sale of approximately 5% of its shares in Vietnam International Commercial Joint Stock Bank (VIB).
The transaction, executed on 24 September 2024, is expected to generate gross proceeds of approximately A$160 million (US$ 109.5 million) for CBA.
CBA has been a shareholder in VIB since 2010, contributing to its development as a joint-stock commercial bank in Vietnam.
While CBA believes in VIB’s further growth potential, the partial divestment aligns with the group’s strategy to focus on its core banking operations in Australia and New Zealand.
The sale is expected to marginally improve CBA’s capital position, with a small increase in its Common Equity Tier 1 (CET1) capital ratio.
VIB, established in 1996, has a strong presence in Vietnam with 189 branches and transaction offices across 29 provinces and cities.
As of 31 December 2023, the bank had total assets of approximately VND 410,000 billion.
