(Adds details on recent divestments, background)
Dec 18 (Reuters) - Australia and New Zealand Banking Group ANZ.AX said on Monday it would buy back up to A$1.5 billion ($1.15 billion) of its shares on-market as it aims to return surplus capital to shareholders after recent streamlining of its business through divestments.
"ANZ's strong capital position combined with the progress made in simplifying our business means we are now in a position to commence returning surplus capital to shareholders," ANZ's Chief Financial Officer Michelle Jablko said in a statement.
ANZ added that the purchase of shares may begin next month.
In the same statement, ANZ also said it had completed the sale of its 20 percent stake in Shanghai Rural Commercial Bank SHRCB.UL , that was announced in January this year.
Last week ANZ struck a deal with Zurich Insurance ZURN.S to sell its insurance arm for A$2.85 billion. sale came amid a rush of divestments by Australia's biggest banks, under pressure from more stringent capital requirements to slim down.
The bank added that the divestment of its non-core businesses, including its life insurance business, "should provide ANZ with flexibility to consider further capital management initiatives in the future". ($1 = 1.3074 Australian dollars)