Absa will purchase Ugandan wealth and retail banking from StanChart

Absa Group (ABGJ.J), a South African lender, has agreed to purchase Standard Chartered’s (STAN.L) wealth and retail banking operations in Uganda for an undisclosed sum, the companies announced on Friday.

As it restructures its business under CEO Bill Winters, Standard Chartered announced last year that it was looking to sell its wealth and retail banking operations in Botswana, Uganda, and Zambia in order to concentrate on more lucrative markets.

The Asia-focused bank will keep its corporate and investment banking division in Uganda, while Absa Bank Uganda will assume Standard Chartered’s retail and wealth management business there.

“The sale… to Absa marks an important milestone as we continue to accelerate income growth and returns,” Standard Chartered Kenya and Africa CEO Kariuki Ngari stated.

After reducing less profitable divisions and concentrating on wealthy and global corporate clients, Standard Chartered posted a higher-than-expected profit in July.
Absa, the third-biggest bank in South Africa

As it continues to deal with issues resulting from its 2020 split from Barclays, ank by assets has also been attempting to regain stability and expand its retail business under new CEO Kenny Fihla.

“This transaction supports Absa’s strategic Pan-African growth ambitions,” stated Charles Russon, Group Executive for Africa Regions at Absa.