Australia’s Macquarie Group’s banking arm plans to return $1.5 billion in capital: Reuters

Macquarie Group Ltd (MQG.AX) said on Friday its banking arm proposed to return up to A$2.04 billion ($1.47 billion) in capital to its parent, Australia’s biggest investment bank.

Macquarie Bank Ltd (MBL) added that it will sell its Corporate and Asset Finance (CAF) Group’s principal and transportation finance businesses to the non-banking side of Macquarie.

As part of the deal, MBL expects the sale to raise its equity, from which the bank expects to pay as a dividend to Macquarie Group. It also see its CET1 ratio increasing to about 0.7 percent from 10.4 percent as reported on Sept. 30.