Wells Fargo & Company (NYSE:WFC) has been studying a divestment of a 20% stake in Shanghai Commercial Bank Ltd. that it's owned for decades, the people said, asking not to be identified because the information is private. The holding, which Wells Fargo considers as non-strategic, could fetch nearly $1 billion, according to the people. The potential sale would follow a string of disposals by the third-largest U.S. bank by assets as Chief Executive Officer Charlie Scharf seeks to boost Wells Fargo's profitability.

Last year, it agreed to sell its asset management business to a private equity consortium for about $2.1 billion. It's also unloaded a commercial real estate firm and a retirement plan services unit in recent years. No final decisions have been made, and Wells Fargo could decide to keep its stake for longer, the people said.

A representative for Wells Fargo declined to comment, while a spokesperson for Shanghai Commercial Bank didn't respond to a request for comment.