ANZ has agreed to divest its retail business in Vietnam to Shinhan Bank Vietnam, a part of South Korea-based Shinhan Financial Group.

The unit, which is being sold, serves 125,000 customers in Vietnam, and includes AUD320m ($241m) in lending assets and AUD800m ($602m) in deposits.

ANZ group executive international Farhan Faruqui said: “The sale of our retail business is in line with our strategy to simplify the bank and improve capital efficiency. It allows us to focus resources on our largest business in Asia – Institutional Banking – where we are a top four corporate bank supporting regional trade and capital flows.

“We have a long history in Vietnam and we will be maintaining our presence through our Institutional Bank in Vietnam which will continue to support our corporate clients in the Greater Mekong Region.”

“The agreement with Shinhan Bank Vietnam includes all eight branches located in Hanoi and Ho Chi Minh City, and ongoing roles for all retail staff. This will help ensure a smooth transition for our customers, while presenting a great opportunity for our people to join a retail bank with significant growth plans,” Faruqui added.

The sale is expected to be completed by the end of 2017, subject to regulatory approval.