Standard Chartered sells Uganda retail banking division to Absa

UK-based Standard Chartered has reportedly agreed to sell its Uganda wealth and retail banking operations to South African financial institution Absa Group for an undisclosed sum.

Under the terms of the agreement, Absa Bank Uganda will acquire Standard Chartered’s retail and asset 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.

The news agency quoted Standard Chartered Kenya and Africa CEO Kariuki Ngari as saying: « The sale to Absa is an important milestone as we continue to accelerate revenue growth and profitability. »

Absa Group, said to be South Africa’s third largest bank by assets, is actively working to boost its retail banking business.

The deal is part of its wider drive to stabilize and grow the retail bank under new chief executive Kenny Fihla following its exit from Barclays in 2020.

Charles Russon, Head of Absa Group Africa Regions, said: “This transaction supports Absa’s strategic pan-African growth objectives.

In June of this year, Standard Chartered completed the transfer wealth and retail banking in Tanzania for Access Bank.

This handover completes the strategic divestment announced in April 2022.

The bank previously sold its stake in subsidiaries in Angola, Cameroon, Gambia and Sierra Leone.

In July, the bank reported better-than-expected earnings, which the release said was due to a reduction in less profitable sectors, refocusing on high-net-worth and corporate clients worldwide.

« Standard Chartered to sell Uganda retail banking arm to Absa » was originally created and published by Retail Banker InternationalBrand owned by GlobalData.

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