Commonwealth Bank of Australia offloads another 10% stake in VIB
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Commonwealth Bank of Australia (CBA) has sold an additional 10% interest in Vietnam International Commercial Joint Stock Bank (VIB).
The sale, due to be settled on 31 October 2024, is expected to yield gross proceeds of around A$320m ($210m) for CBA.
This move is set to enhance the banking group's common Equity Tier 1 (CET1) capital ratio by around seven basis points.
CBA has been a shareholder in the Vietnamese lender since 2010. Upon completion of the latest disposal, its stake will be diluted to 5%.
Founded in September 1996, VIB employs more than 11,500 individuals across 189 branches and transaction offices situated in 29 key provinces and cities throughout Vietnam.
In a press release confirming the transaction, CBA said: “Sales of shares in VIB that CBA executed in the lead up to this Transaction led to the recognition of a gain of approximately A$50 million in 1Q25, from both the disposal of shares and subsequent reclassification of the remaining holding from Investment in Associate to Fair Value through Other Comprehensive Income. This has been materially offset by losses from this Transaction that will be recognised in 2Q25.”
The latest deal aligns with CBA's strategy to focus on its core markets in Australia and New Zealand.
In July 2023, the bank invested in Sydney-based climate specialist Wollemi Capital as part of the latter’s Series A round.
Earlier last year, CBA launched a technology hub in Perth, staffed with professionals having expertise in data science, cybersecurity, and software engineering.
"Commonwealth Bank of Australia offloads another 10% stake in VIB" was originally created and published by Retail Banker International, a GlobalData owned brand.
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