The transaction was executed on September 24 and settlement is expected on September 26.

CBA is expected to receive approximately A$160 million ($109.4 million) from the transaction. The transaction is expected to deliver a pro forma uplift to the group’s CET1 ratio of approximately 3 basis points on the Australian Prudential Regulation Authority basis, based on the group’s risk weighted assets as of June 30.

CBA has been a shareholder in VIB since 2010 and has helped VIB to become one of the leading joint stock commercial banks in Vietnam. CBA believes VIB has further opportunity to grow, and the broadening of its shareholder base will support the bank’s future ambitions.

The partial sale of CBA’s shareholding in VIB is consistent with the group’s strategy to focus on its banking businesses in Australia and New Zealand.

VIB was established in September 1996, and as of December 31, 2023, its charter capital stood at VND25.4 trillion ($1.03 billion), with total assets of approximately VND410 trillion ($16.6 billion). VIB currently has 12,000 employees at 189 branches and transaction offices in 29 provinces and cities across Vietnam.