Australia and New Zealand Banking Group (ANZ) has completed the earlier announced sale of its 20% stake in Shanghai Rural Commercial Bank (SRCB).

The divestment was announced in January this year when China COSCO and Shanghai Sino-Poland agreed to buy 10% each stake of SRCB for a total of AUD1.84bn ($1.33bn).

Besides the completion of the sale, the company also announced to buy-back up to AUD1.5bn ($1.15bn) with these proceeds under the Group’s broader capital management plan.

ANZ said that its CET1 capital ratios as at 30 September 2017 will remain broadly unchanged on a pro forma basis with the nearly 40 basis point benefit from the completion of this sale.

ANZ chief financial officer Michelle Jablko said: “ANZ’s strong capital position combined with the progress made in simplifying our business means we are now in a position to commence returning surplus capital to shareholders while still complying with APRA’s unquestionably strong capital requirements.”

It has already purchased AUD500m of shares to negate the impact of its dividend reinvestment programme for both interim and final 2017 dividends.

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Subject to market conditions, the purchase of shares is scheduled to begin in the next month complying with the regulatory requirements.

Last week, ANZ agreed to sell its Australian life insurance business as a part of its strategy to divest non-core businesses.