UK-based Standard Chartered has reportedly agreed to divest its wealth and retail banking operations in Uganda to Absa Group, a South African financial institution, for an undisclosed sum.
Under the terms of the deal, Absa Bank Uganda will acquire Standard Chartered’s retail and wealth management portfolios in Uganda.
This sale is part of Standard Chartered’s strategy to exit its wealth and retail banking sectors in Botswana, Uganda, and Zambia, according to a Reuters report.
Standard Chartered Kenya and Africa CEO Kariuki Ngari was quoted by the news agency as saying: “The sale to Absa marks an important milestone as we continue to accelerate income growth and returns.”
Absa Group, said to be the third-largest bank in South Africa by assets, is actively working on enhancing its retail banking division.
This transaction is part of its broader effort to stabilise and grow the retail bank under new CEO Kenny Fihla, following its separation from Barclays in 2020.
Absa Group Africa Regions executive Charles Russon said: “This transaction supports Absa’s strategic Pan-African growth ambitions.
In June this year, Standard Chartered completed the transfer of its wealth and retail banking business in Tanzania to Access Bank.
This handover concludes a strategic divestment announced in April 2022.
The bank previously divested its shareholding in subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone.
In July, the bank reported a stronger-than-expected profit, attributed to scaling back on less profitable sectors, refocusing on high-net-worth clients and corporate customers worldwide, according to the publication.
