Australia and New Zealand bank (ANZ) has said it will sell its car and equipment finance business, Esanda Dealer Finance, which local news reports have put a value of A$2bn (1.4bn).
The sale will include approximately A$8.3bn in lending assets comprising point-of-sale finance, bailment facilities and other Esanda branded finance offered to motor vehicle dealers.
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ANZ chief executive officer for Australia Mark Whelan said in a statement that the bank was acting under regulatory capital adequacy requirements.
"The sale of the Esanda Dealer Finance business is part of a broader Group priority to actively manage our portfolio of businesses to ensure we use capital efficiently, as well as a focus on ANZ branded products," wrote Whelan.
ANZ said it remained committed to providing asset finance for its customers under the ANZ brand and the sale does not include the ANZ commercial broker, commercial asset finance or direct to consumer asset finance businesses.
Last month GE announced it would be selling its leasing and commercial finance unit because of the financial costs and constraints placed upon it in the USA under a new regulatory environment, where GE had been deemed ‘systemically important’.
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By GlobalDataRequests for comment were not returned at the time of writing.
