The Commonwealth Bank of Australia (CBA) concluded an agreement to give up its remaining participation of 5.45 % in Bank of Hangzhou (HZB) in New China Life Insurance (NCI).
The operation is expected to generate around $ 940 million Australian dollars ($ 593 million) gross product for CBA.
The Bank of Hangzhou, created in September 1996 and located in the province of Zhejiang, in China, is listed on the Shanghai Stock Exchange.
Once finalized, the sale should improve the Common Equity Tier 1 ratio (CE1) of CBA of around 18 base points, in accordance with the standards of Australian Prudential Regulatory Authority.
This calculation is based on the group’s weighted assets on September 30, 2024.
Matt Comyn, CEO of CBA, said: “CBA is a long -standing shareholder of HZB since its initial investment in 2005, and we are happy to have contributed to the development of HZB to make it an important player in the fields of the Retail banking, wealth management and commercial banks in the Yangtsé Delta. region.”
The finalization of the sale is subject to various conditions, in particular the approval of the National Financial Regulatory Administration, a notice of confirmation of the Shanghai Stock Exchange and the registration of the transfer of shares by the Shanghai branch of China Securities Depository and Clearing Corporation Limited.
This transaction should be finalized around mid-2025, provided that these conditions are met.
New China Life Insurance, created in 1996, is based in Beijing. It has Central Huijin Investment, a public entity, and China Baowu Steel Group as the main shareholders.
In October 2024, in CBA assigned an additional 10 % participation In Vietnam International Commercial Bank by joint stock (VIB).
“CBA will get rid of its remaining participation in the Hangzhou bank” was initially created and published by International retail bankerA brand belonging to GlobalData.
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