ANZ is looking at floating its New Zealand finance business UDC

William West/AFP/Getty Images

The ANZ Bank is considering an IPO for its New Zealand business UDC Finance, an asset finance company funding plant equipment, vehicles and machinery.

ANZ New Zealand CEO David Hisco says the bank has been looking at strategic options for UDC’s future for some time.

“This will include exploring whether, subject to market conditions, an IPO would be in the interests of UDC’s staff and customers, and ANZ shareholders,” he says.

“The range of strategic options we have for UDC, including approaches we have received regarding the business and the option of retaining it, will take a number of months to examine before any decision is made. In the meantime, it will continue to be business as usual for UDC.”

The UDC announcement is part of ANZ’s strategy to simplify the bank, selling off non-core businesses.

CEO Shayne Elliott, who in January 2016 replaced former CEO Mike Smith who was big on building an Asia business, has pulled the bank away from retail banking in the region to focus on institutional customers.

At home in Australia, the ANZ is giving greater emphasis to retail and commercial businesses, which now account for 53% of capital, up from 44% two years ago.

In December the bank announced the $2.85 billion sale of its life insurance business to the local arm of global financial services company Zurich.

That followed the sale of ANZ’s OnePath pensions and investments and aligned dealer groups business to wealth manager IOOF for $975 million.