Standard Chartered has agreed to sell its wealth and retail banking business in Uganda to Absa Group for an undisclosed sum.
The sale, announced on Friday, forms part of Standard Chartered’s plan to exit similar operations in Botswana, Uganda and Zambia as it refocuses on more profitable segments under chief executive Bill Winters.
Absa Bank Uganda will assume Standard Chartered’s local retail and wealth management portfolio, while the London-listed bank will retain its corporate and investment banking operations in the country.
CEO of Standard Chartered Kenya and Africa, Kariuki Ngari, described the deal as “an important milestone” in the bank’s efforts to boost income and returns, according to Reuters.
Standard Chartered reported stronger-than-expected profits in July after streamlining its business to concentrate on wealthier clients and international corporations.
Absa, South Africa’s third-largest bank by assets, said the acquisition aligns with its Pan-African expansion strategy. The group, led by CEO Kenny Fihla, has been strengthening its retail operations and stabilising performance following its split from Barclays in 2020.
[Image: https://www.linkedin.com/in/kariuki-ngari-41410bab/overlay/photo/]