Westpac sells Pacific banks for $91m Westpac has sold its banking operations in Samoa, Tonga and the Cook Islands, but was unable to offload its Vanuatu arm due to Cyclone Pam, while it is still gaining approval for the sale of its Solomon Islands business. The lender today said the completed sales of its business to the Bank of South Pacific netted the group $91 million. But Westpac said the sale of its Solomon Islands and Vanuatu operations would not proceed at this time. Vanuatu's central bank said now was not the time for a change of operations in the country's banking sector, given the impact of Cyclone Pam on the island nation in March this year. "Westpac will continue to support Vanuatu through its recovery process, and it will be business as usual for our customers and employees," Westpac said in a statement today. Meanwhile, Westpac is continuing to engage with the Bank of South Pacific to get necessary approval for the Solomon Islands sale. The sale was previously flagged in January and will not have a material impact on Westpac's financial position. Westpac will retain its businesses in Fiji and Papua New Guinea, which are its largest Pacific markets. Originally published as Westpac sells Pacific banks for $91m
Westpac has sold its banking operations in Samoa, Tonga and the Cook Islands to the Bank of South Pacific for AUD 91mn ($68mn). The bank said it would continue to operate as a separate entity from its existing business in New Zealand but that all staff will be transferred over to the new organisation. The sale will not have a material impact on Westpac's financial position and it will retain its businesses in Fiji and Papua New Guinea, which are its largest Pacific markets. One of the reasons for the bank's decision to sell is due to its concerns over compliance with anti-money laundering and terrorism financing regulation.