London-based Standard Chartered Group is exploring the potential sale of its Wealth & Retail Banking (WRB) businesses in Botswana, Uganda and Zambia.
The Group, in a published statement today said, it will concentrate its resources in these markets on serving the cross-border needs of global corporate and financial institution clients.
The Bank said, this is the first in a small number of potential business exits to fund incremental investment in its leading wealth management business, which aligns with the refreshed strategic priorities shared in the Group’s third quarter 2024 (Q3’24) results, aimed at accelerating income growth and returns.
Group Chief Executive, Bill Winters said: “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.
“We have invested heavily in recent years in Africa, where we have operated for 170 years, and which remains core to our global network. We have more-than doubled Wealth assets under management in sub-Saharan Africa since 2021 – driven by our hubs in Kenya and Nigeria – and we are confident that the greater concentration resulting from the proposed sales will help us to continue to outperform the market,” he added.
The financial effects of the proposed exits are not material to the Group as a whole and should be considered as included in the guidance provided in its Q3’24 results.
Speaking at a media briefing, CEO of Standard Chartered Bank Uganda, Sanjay Rughani said, Standard Chartered will remain in Uganda, with a sole focus on Corporate and Institutional Banking (CIB) business.
“We see substantial opportunities in infrastructure, sustainable finance, and trade, reinforcing our commitment to these areas within Uganda and, indeed Africa,” he noted.
He further stated, “We are taking a phased approach and the process is expected to take between 18 to 24 months to complete. Therefore, we urge the public and our customers to remain calm. We remain open for business; our branches and systems continue to work as normal – it is business as usual. In addition, we are committed to managing this process in partnership with our key stakeholders to minimise disruption for clients. We will keep our stakeholders fully informed as this process goes on.”
Netflix Strikes $82.7 Billion Deal to Take Over Warner Bros., Redefining the Global Entertainment LandscapeMr Sanjay said, the Bank continually reviews its operations to concentrate its resources in areas with the most distinctive client proposition.
“The sale of our Wealth and Retail Business will allow us to focus our resources where we can play to our strengths and best serve the cross-border needs of our CIB clients,” he remarked.
In July 2023, Standard Chartered and Nigeria’s Access Bank Plc entered into agreements for the sale of Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, and its Consumer, Private & Business Banking (CPBB) business in Tanzania.
The Bank’s subsidiary has a rich history spanning over 112 years of existence in the Ugandan market, having opened its doors on 12th August 1912, making it the longest established Commercial Bank in the country.
It boasts a total of 3 branches located at City, Lugogo and Speke Road, 32 ATM machines located at 24 ATM sites, 10 Cash Deposit Machines and offer Agent Banking with over 20,000 locations countrywide, off the Agent Banking Shared Platform. This is all complemented by over 289 staff.
An independent study on the social and economic impact of the bank’s operations in Uganda shows, it has supported $896 million in value-added impact in Uganda (3.5% of GDP), and supported 491,000 Ugandan jobs (nearly 3.5% of all employed Ugandans)
