Australian lender Westpac is selling its banking operations in five Pacific Island nations to the Bank of South Pacific (BSP) for $A125m.
The five Island nations include Samoa, Cook Islands, Solomon Islands, Vanuatu and Tonga.
The bank said that the sale of these businesses is targeted at boosting its return on equity in the Pacific region. It added that the sale would not have a material impact on its financial position.
The lender also said that it would retain operations in the Pacific markets of Fiji and Papua New Guinea.
Westpac Institutional Bank chief executive Rob Whitfield commented: "Our decision to sell our operations in these nations reflects our desire to increase focus on our growth plans in the larger markets of PNG and Fiji, where we have a strong history."
The sale is scheduled to be completed by mid-2015, subject to regulatory approval.