ANZ forms strategic alliance with Vietnam’s Sacombank

ANZ Banking Group Ltd today said it had formed a strategic alliance with Sacombank, a Vietnamese private commercial bank.

Under the alliance, ANZ will acquire 10 per cent of Sacombank's share capital for US$27 million ($38 million).

The alliance is a further step in ANZ's Asian growth strategy and builds on the success of its Asian business and its existing partnership investments in Indonesia and the Philippines.

ANZ is the largest foreign bank in terms of capital, customers and employees in Vietnam, with branches in Hanoi and Ho Chi Minh City, and a representative office in Can Tho Province.

"The alliance with Sacombank creates a unique growth opportunity based on Sacombank's strong distribution footprint and ANZ's capabilities in risk management, retail banking and technology," ANZ group managing director Asia Pacific Elmer Funke Kupper said.

"With over a decade of experience in Vietnam, we believe this is a good platform to expand our presence in the rapidly growing Vietnamese banking sector.

"If changes take place in Vietnamese Law regarding the shareholding limit of foreign shareholders, ANZ's investment could increase over the longer term."

ANZ will provide Sacombank with technical assistance in the areas of risk management and retail and small business banking.

Sacombank will work with ANZ to leverage its growing consumer/small business franchise, which includes Vietnam's largest network of private commercial bank branches -- 92 branches and 18 ATMs.

ANZ will have representation on the Sacombank board.

"The alliance with ANZ will assist us in accelerating the development of Sacombank into one of Vietnam's leading retail and small business banks," Sacombank chairman Dang van Thanh said.

The alliance is subject to the necessary regulatory approvals from the Vietnamese government.

ANZ shares are up eight cents at A$20.96 ($22.75) by 1018 AEDT (1118 NZT).

- AAP