On 25 June 2018, we announced an agreement to sell our Retail, Commercial and Small-Medium Sized Enterprise (SME) banking businesses in Papua New Guinea to Kina Bank, to focus solely on Institutional and Large Corporate banking in the market.
Kina Bank is a wholly-owned subsidiary of Kina Securities Limited, a PNG company listed on the Australian and Port Moresby stock exchanges.
The transaction received regulatory approvals from the Bank of Papua New Guinea and the PNG Independent Consumer and Competition Commission on 26 February 2019 and 27 March 2019 respectively.
The sale includes all 15 ANZ branches, and ongoing roles for all relevant staff in PNG.
To ensure an orderly transition of ownership, we will continue to manage the Retail, Commercial and SME businesses until the transaction is complete in September 2019, when Kina will take control.
There is no impact to our Institutional and Large Corporate banking businesses in PNG, where we see opportunities for growth and have a positive economic outlook.
Why has ANZ sold its Retail, SME and Emerging Corporate banking business?
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 sales of our retail and wealth businesses in Singapore, Hong Kong, China, Taiwan, Indonesia, Vietnam and Cambodia.
Will ANZ have a presence in PNG following the sale of Retail, Commercial and SME banking businesses?
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.
We continue to have a positive outlook for the PNG economy and see great opportunities for growth.
Retail, Commercial and SME Customer FAQs
Section 1: About Kina Bank
Kina bank is a new player in this market. Why should I trust them with my money?
Kina Bank was established in 1985 as a diversified financial services company in Papua New Guinea. We are listed on both the Australian and Port Moresby Stock Exchanges and are distinguished for funds administration, funds management and stockbroking, which complement our banking services.
Kina Bank's appetite for growth and investment means we are the fastest growing bank in PNG. Proudly Papua New Guinean our vision is to be the most dynamic, progressive and accessible financial services company in PNG - in short, PNG's leading digital bank.
What sort of banking products and services does Kina Bank offer?
Kina Bank already services thousands of retail and commercial customers across PNG. Our emphasis on digital banking means we already offer market leading channels such as our corporate and personal Internet banking platforms and mobile banking app. Our state of the art core banking system was upgraded in 2017 and is one of the country's leading and most contemporary systems.
In the lead up to the planned acquisition of ANZ's retail, commercial and SME businesses, we will be enhancing our suite of products and services, including offering market leading Visa Credit and Debit card products with chip and contactless technology; and a state of the art EFTPOS network with the latest market-leading EFTPOS terminals. ANZ customers can be sure to experience dynamic, best-in-class products, as well as the exceptional service our existing customers currently receive.
Will the products and services provided by ANZ be the same as at Kina Bank?
Kina Bank will offer all customers the products and services ANZ customers are currently used to. As we build out our expanded offering of products and services, our philosophy is that ANZ customers will receive at least the equivalent in terms of fees, rates, or service.
In fact, our new customers will find many fees and features at Kina Bank are better than those they currently receive. We expect many of our customers will be surprised - and delighted - when they come across to Kina Bank.
What does the organisational structure of Kina Bank look like?
Kina Bank is listed on the Australian Stock Exchange (ASX code: KSL), and the Port Moresby Stock Exchange. The Chief Executive Officer is Greg Pawson, who is one of the most senior and respected leaders in the banking industry in the Asia Pacific region. Greg joined Kina Bank in 2018 after his previous role as the Regional Head of Westpac South Asia and Pacific.
Reporting to Greg are a number of executives who lead the various divisions of Kina Bank such as Personal Banking, Business Partners and Wealth and Shared Services.
Full details on Kina Bank's organisational structure are available on Kina Bank website.
Is Kina Bank a rated bank? If so, what is its S&P rating?
No. Kina Bank is dual listed on the Australian and Port Moresby Stock Exchanges and is governed to the standards you would expect of a dual-listed company and complies with relevant laws, regulations and standards set down by both the Bank of PNG and the Australian Stock Exchange. We publish our annual results through the annual reporting process. Our annual reports are available online for members of the public to read on Kina Bank's website.
Please provide some clarity around Kina Bank's compliance processes. What sorts of compliance processes does Kina Bank apply to ensure my money is safe?
Kina Bank operates to the highest international compliance standards. This is essential for our shareholders, and our own ability to transact foreign currency with international banks. Our "know your customer" (KYC) and anti-money-laundering (AML) processes are robust.
The Board and management have designed a governance framework for the operation and management of Kina Bank, which incorporates resilient internal controls, risk management processes and governance policies and practices. The Board monitors adherence to this framework ensuring Kina Bank complies with relevant laws, regulations and standards set down by the Bank of Papua New Guinea, the Australian Securities Exchange, the Port Moresby Stock Exchange, the PNG Companies Act 1997, PNG Securities Act and the Australian Corporations Act 2011 (Cth).
Who owns Kina Bank and who are its shareholders?
Kina Bank is dual listed on the Australian and Port Moresby Stock Exchanges and its shareholders include a range of institutional and retail investors in Papua New Guinea and Australasia.
In June 2018 Kina Bank's founding and major shareholder Fu Shan sold their entire stake in Kina Bank. The sell down, managed by Morgans Financial Ltd, prompted strong demand from both PNG and overseas shareholders with shares heavily oversubscribed.
How long has Kina Bank operated in PNG?
Kina was established in 1985. Further detail of Kina Bank's history and company profile is available at the www.kina.com.pg.
Does Kina Bank have a culture like ANZ?
Every organisation has its own culture. At Kina Bank, we pride ourselves on a culture that values diversity and fosters a 'One Kina Bank' approach. We creatively and energetically solve customers' problems because we think differently and we act with urgency. We aspire to be the most dynamic, progressive and accessible financial services company in Papua New Guinea We encourage the learning and development of all of our staff and we fairly reward for risk and performance.
Does Kina Bank have some connection with the PNG government and are there any existing political members who are on the Kina Board?
Kina Bank does not have any political affiliation in PNG or Australia. Kina Bank board members are appointed by shareholders and are a mix of highly experienced business leaders from across the Asia Pacific region.
Section 2: Products & Services
Accounts
Will we need to sign any new account opening documents/ provide documents to Kina Bank after the transition?
In most cases customers will not need to fill in new account opening forms, and account numbers will remain as they are.
If I have a dispute in respect to accrued interest and fees charged, what do I do?
For now it is business as usual. This means that if you have any issues with your banking, you can speak to your relationship manager at ANZ if you are an SME business, or speak to any ANZ staff at the branch if you are a retail customer, and they will assist you.
Towards the end of the transition, we will provide all our customers with details of how customer enquiries will be managed after the transition.
I'm not comfortable about having my account moved to Kina Bank. Could I have my account transferred to either BSP or Westpac PNG?
We encourage all customers to transfer your accounts from ANZ to Kina Bank as part of the transaction to ensure you continue to receive a world class banking service. If you're thinking of transferring to another bank we encourage you to speak to Kina Bank first.
What will happen to my account(s) after the transition?
Your accounts will be transferred to Kina Bank when the transition process is complete. We are working to make the transition seamless for all customers and offer the assurance that the impact on customers will be minimal and you will receive exceptional customer service from Kina Bank.
