Top Banks Eye Acquisition of Standard Chartered’s Retail and Wealth Business

Standard Chartered Bank Uganda Chief Executive, Sanjay Rughani has indicated that a number of major banks have expressed interest in acquiring the bank’s Retail and Wealth Business. 

The London-based group announced in November last year its intention to sell its Wealth and Retail Banking (WRB) businesses in Botswana, Uganda, and Zambia, as it seeks to concentrate resources on serving the cross-border needs of global corporate and financial institution clients. 

“We’re currently looking at the right partners who can buy that business. We’ve got a lot of interest but it’s still all work in progress…because it is a discussion with a lot of banks in essence,” Mr Rughani told the CEO East Africa yesterday at the sidelines of the Standard Chartered Investment Dialogue at Serena Hotel in Kampala. 

“I believe that in the third quarter of this year, we will be in a better position to communicate who are possibly the front runners, or the top one in essence. We’re currently carrying out a lot of due diligence since it’s a professional process, and it goes through effort,” he added. 

The financial effects of the proposed exits are yet to materialise since the transaction process is expected to take between 18 to 24 months to complete. 

Speaking at a media briefing last year, Mr. Rughani said Standard Chartered’s sole focus would remain 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. 

Access Bank’s potential 

Nigeria’s Access Bank is viewed as a likely stronger contender given its previous acquisitions from Standard Chartered and its recent expansion strategy across Africa. However, specific details regarding its interest in the current divestiture have not been publicly disclosed.

In July 2023, Access Bank entered into agreements to acquire Standard Chartered’s shareholdings in subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, as well as its Consumer, Private & Business Banking business in Tanzania. 

Furthermore, in January 2024, Access Bank made binding commitments to acquire an 80 percent shareholding in Uganda’s Finance Trust Bank.