Kina has appetite for growth: ANZ

ANZ Bank announced on Monday an agreement to sell its retail, commercial and small-to-medium-sized enterprise (SME) banking businesses in the country to Kina Bank. The deal is subject to approval by Bank of Papua New Guinea. The sale includes all 15 ANZ branches, and ongoing roles for all relevant staff in PNG. ANZ explains the reasons behind the sale.

Q: Why is ANZ selling its retail, SME and emerging corporate business?
ANZ: The transaction follows a strategic review of our retail and wealth operations in Asia, as we looked at options to simplify the bank, distribute capital more efficiently across the group and focus on trade and capital flows throughout the Asia-Pacific region.
The decision to sell our retail, commercial and SME banking business in PNG to Kina is in line with our group strategy, and in no way impacts our institutional or large corporate banking business in PNG, or alters our commitment to the market.
This follows recent announcements of the sale of our retail and wealth businesses in Singapore, Hong Kong, China, Taiwan, Indonesia, Vietnam and Cambodia.

Q: Will ANZ have a presence in PNG after the sale?
ANZ: Yes. This transaction with Kina in no way impacts our institutional or large corporate banking business in PNG, or alters our commitment to the market.

Q: I’m an ANZ Bank customer, why would I want to be a customer of Kina when the sale of ANZ stake is finalised?
ANZ: Kina, established in October 1985, is currently the fourth largest bank in PNG, with more than 11,000 clients, six branches and an expanding electronic network.
ANZ’s retail, commercial and SME operations in PNG are strong and successful businesses which will benefit further from Kina’s appetite to grow and invest in them.
This transaction includes the 15 ANZ branches in PNG, along with all staff in PNG who support the retail, commercial and SME banking business, which means continuity for customers who currently bank with ANZ but are moving to Kina.
Q: How will this impact customers? Do they need to move their bank account?
ANZ: This has no immediate impact to your banking, it is business as usual.
To ensure an orderly transition of ownership, ANZ will continue to manage the business until the transaction is complete which is expected to take be completed late next year, when Kina will take control. We will keep you updated along the way. We are committed to supporting our retail, commercial and SME banking customers in PNG during this time to ensure a smooth transition.

Q: When can customers expect the transition to take place?
ANZ: We anticipate this process will take up to 18 months to complete.
Q: Do customers need to move any of their bank accounts?
ANZ: No, there is no need to take any immediate action as nothing changes during the transition period.

Q: What will happen to customers’ existing ANZ loan, credit cards, etc?
ANZ: There are no changes to your banking relationship with us. Your existing terms and conditions, repayments, interest rates, fees and charges as well as benefits will continue to apply during the transition period.

Q: What happens if a customer is waiting for an application to be approved, or he or she is in the process of renewing a product, like term deposit?
ANZ: There are no changes to our product and service offering, and any new applications will be progressed according to the existing terms and conditions. You can continue banking normally with ANZ.

Q: Can ANZ customers now access Kina products and services?
ANZ: For the time being nothing will change, you will still continue to be able to use ANZ branches, ATMs, products and services.
It’s important to note that until ANZ has finalised the sale of its retail, emerging corporate and SME banking business to Kina, you will not have access to any Kina products or services beyond any pre-existing arrangements.

Q: What if a customer does not want to bank with Kina when the sale is finalised?
ANZ: To ensure you continue to receive a world-class banking service, we will be encouraging our customers to transfer from ANZ to Kina as part of the transaction.
However, if you do not wish to be transferred, you will have your accounts closed in line with the underlying product terms and conditions and relevant laws, and your deposit will be transferred to the account or bank of your choice.

Q: For institutional or large corporate banking customers, what does this mean for them?
ANZ: This sale in no way impacts our institutional or large corporate business in PNG. We see no likely disruption to our services and continue to see opportunities for growth in this part of our business.

Q: For ANZ Eftpos merchants, will Kina provide those facilities? Do they need to open an account with Kina?
ANZ: There are no immediate changes to your banking relationship with us. In due course, Kina will be taking over and re-branding the ANZ Eftpos fleet, but we will keep you updated ahead of any changes and inform you of any actions you need to take.

Q: What happens to a company using an ANZ branch network for its banking. ?
ANZ: This has no immediate impact to your banking. When the sale is complete, to support institutional and large corporate customers
we will operate non-retail branches in Port Moresby, Lae and
Goroka.
For those institutional and large corporate customers located outside of these key business centres, arrangements have been made with Kina Bank to support your business banking needs on our behalf.