Shinhan Bank Vietnam inks deal to buy ANZ Vietnam's retail assets
SEOUL, April 21 (Yonhap) -- South Korea's Shinhan Bank said Friday its Vietnamese unit has signed a deal to acquire the retail division of ANZ Vietnam in the latest move to secure new growth engines in the emerging Asian market.
The acquisition by Shinhan Bank Vietnam came six weeks after new Shinhan Bank CEO Wi Sung-ho vowed to explore mergers and acquisitions in Asia.
The deal came as ANZ, Australia's third-largest bank, has decided to sell its retail operations in Vietnam to focus on institutional banking in the growing market.
Shinhan Bank Vietnam -- which is a wholly owned unit of Shinhan Bank -- said the acquisition could help boost its retail banking business in Vietnam.
The deal is subject to approval from Vietnamese central bank, according to Shinhan Bank Vietnam.
Shinhan Bank Vietnam has been growing rapidly for more than 20 years in Vietnam with 18 nationwide branches and transaction offices.
Shinhan Bank has stepped up its efforts to expand its operations overseas in recent years to generate a new cash cow as it has suffered low margins and low growth in the nearly saturated South Korean market.
The bank aims to generate 20 percent of total profits from overseas operations in the coming years, up from the current 12 percent.