Aussie bank Westpac sells 5 Pacific Island operations

Australian bank Westapc will offload its banking operations in Samoa, Cook Islands, Solomon Islands, Vanuatu and Tonga as it looks to sharpen its focus on the more lucrative Fiji and Papua New Guinea markets.

In a statement on Thursday, Australia's second-largest bank by assets said it had entered into an agreement to sell the operations to the Bank of South Pacific Limited (BSP) for 125 million Australian dollars (98.7 million U.S. dollars).

BSP is the largest Pacific-originated bank, with operations in PNG, Fiji and Solomon Islands and headquarters in PNG.

Westpac Institutional Bank chief executive Rob Whitfield said the bank wanted to focus in the larger markets of PNG and Fiji.

"These markets support our international aspirations by being closely tied to Asia, Australia and New Zealand and the strong flows of capital, trade, and migration," he said.

"Indeed, we continue to see significant opportunities in both Fiji and PNG markets and will continue to invest in expanding our infrastructure and capability in the region."