Standard Chartered Group, the global bank with a significant African footprint, will divest its Wealth & Retail Banking (WRB) operations in Botswana, Uganda, and Zambia to focus on affluent clients in wealth management.
The decision comes as part of a wider initiative to enhance profitability and operational efficiency. In recent years, Standard Chartered has been streamlining its operations in certain African and Middle Eastern markets where the return on investment has been less favourable.
Last month, the bank reported strong financial results for the year, with pre-tax profits reaching $1.8 billion, a substantial increase from the previous year and above analysts’ estimates of $1.6 billion. At least 32% of that revenue was boosted by its wealth business which has become the bank’s new focus.
Already, the UK bank has begun to work on attracting wealthier and international clients while tweaking its retail banking business. Part of these efforts led to the creation of the International Priority Centre in Mumbai, India. Centres like this allow them to target high-net-worth Global Indian clients offering access to signature investment opportunities, seamless international banking capabilities and cross-border wealth and lending solutions.
“We continually assess the efficacy of our global business model and regularly take action to concentrate resources where we have the most distinctive client proposition,” Group Chief Executive, Bill Winters said in a statement available on the bank’s website.
Access Bank, Nigeria’s Biggest Bank by assets could be next in line to acquire the Botswana, Ugandan and Zambian businesses. In June 2023, the Nigerian lender acquired the sub-Saharan subsidiaries of Standard Chartered Bank for an undisclosed sum.
The deal included the sale of Standard Chartered’s stake in subsidiaries in Angola, Cameroon, Gambia, Sierra Leone and Tanzania to Access Bank. Yesterday, Access Bank gained full control of Standard Chartered Bank’s operations in Angola and Sierra Leone.
This latest deal, if finalised by the European bank, would further strengthen Access Bank’s position as a leading pan-African financial institution. Additionally, it will boost Access Bank’s expansion programs.
