Standard Chartered has revealed plans to potentially divest its wealth and retail banking (WRB) businesses in Botswana, Uganda, and Zambia as part of its strategy to refocus its operations and accelerate income growth.
The latest move aligns with the bank’s updated strategic priorities outlined in its third-quarter 2024 (Q3 2024) results.
The divestments are intended to free up capital to fund incremental investment in the bank’s wealth management division while reducing its retail banking footprint in select markets.
As part of its realignment, Standard Chartered will prioritise serving the cross-border needs of global corporate and financial institution clients in the select countries.
The financial impact of these exits is expected to be minimal and has already been accounted for in the group’s Q3 2024 guidance, said the London and Hong Kong stock exchanges listed banking group.
Standard Chartered 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.”
Standard Chartered’s potential African exits represent the first in a series of planned divestments aimed at channelling resources into higher-yielding areas.
The bank’s strategy mirrors that of rival HSBC, as both banks pivot from their global retail banking operations to focus on affluent clients and international businesses.
Standard Chartered plans to save approximately $1.5bn over the next three years through cost-cutting measures, even as it increases spending to expand its wealth management operations.
In a separate development, Access Holdings, through its flagship subsidiary Access Bank, has completed the acquisition of Standard Chartered Bank Angola and Standard Chartered Bank Sierra Leone.
Discussions are ongoing to finalise transactions that will see Access Bank acquire Standard Chartered’s subsidiaries in Cameroon and Gambia, along with its consumer, private, and business banking operations in Tanzania.
