Standard Chartered Bank is considering selling in wealth and retail operations in several African markets, including Botswana, Zambia and Uganda. The bank said that in the markets it is considering the sale of operations, the "strategic rationale is not sufficiently compelling".
The bank is looking to free up capital and focus on markets with affluent individual customers and international companies that are likely to yield more in fees for the bank. these markets are mostly in Asia and present the most clear path to growth for the bank.
Standard Chartered said the potential exits in Africa would be the first in a small number of business divestitures per its new target of doubling investment in its wealth unit while paring back retail banking.
"The group will concentrate its resources in these markets on serving the cross-border needs of global corporate and financial institution clients," said Standard Chartered.
By offloading the operations in Botswana, Uganda and Zambia as well as more markets to come, Standard Chartered, whose Botswana subsidiary recorded a P254 million profit in its latest financial results, is aiming to save around $1.5 billion over three years.
Image source: Sunday Standard