Kampala, (UG):- Uganda’s oldest commercial bank, Standard Chartered has announced plans to exit the Ugandan market alongside Zambia and Botswana as part of a strategic refocus and strengthen its business model in corporate and institutional banking.
In a statement released on Wednesday, November 27, the bank which has been in operation in Uganda since 1912 (112 years) said it has already started the process of selling off the business arm of wealth and retail banking services, which is expected to be completed in about 18 to 24 months.
“As you may have seen, Standard Chartered has announced a set of actions to concentrate resources where we have the most distinctive client proposition, in order to better support our clients. We intend to explore the sale of our Wealth and Retail Banking (WRB) business in Uganda,” the customer statement, signed off by Paul M. Sefa-Badu Head, Wealth and Retail Banking read on Wednesday.
“Please be assured that we will continue to serve you as usual during the transition. Your deposits remain safe, and you can continue to perform banking transactions as per normal,” it added.
“We will continue to have a strong Corporate and Investment Banking presence in Uganda following the sale of our WRB business, which is expected to take 18-24 months and is subject to regulatory approval.”
The bank expressed its continued commitment to managing this process with key stakeholders to minimise any disruption to you. “We will continue to update you on any relevant developments during the transition,” it said.
Mr Sanjay Rughani, the Chief Executive Officer of Standard Chartered Bank Uganda Wednesday said the exit is still pending “regulatory approval” as mandated by the regulatory framework governing the financial institutions in the East African country.
“This is subject to regulatory approval and to this, we have informed the regulator and we will have engagements with them,” he said.
Mr Rughani however assured customers that the process will be handled well, allaying any fears saying; “Our key issue is now taking care of customers and employees of Standard Chartered Bank Uganda.”
He explained that the group feels they should get a local partner to run the business effectively. “This doesn’t mean tomorrow the business will be closed but it will take a long process. The good news is that the corporate and institutional banking business which is our bigger business will get much more support to grow. The group strategy is to expand this business as much relevant to become a cross-border business model.”
The development comes two years after the bank in April 2022 announced its exit from five other African markets in what it described as a strategic review that would reduce its presence on the continent.
At the time, the bank said it would sell its operations in Angola, Cameroon, Zimbabwe, Gambia and Sierra Leone, besides exiting Jordan and Lebanon.
The move followed another strategic exit by Barclays, which sold most of its stake in Africa in 2016 to reduce the risk and capital burden that came with majority ownership of the businesses.
The decisions by Barclays, earlier and now, Standard Chartered suggest that the extensive presence in some African countries had been a drag on burdening the profitable franchise.
About Standard Chartered Bank
Standard Chartered has been operating in Uganda for more than 112 years, making it the oldest commercial bank in the country. The bank, according to information on it’s website, has a total of 3 branches located at City Square, Lugogo Forest Mall and along Speke Road, all in Kampala, and 32 ATMs located at 24 ATM sites spread countrywide.
Standard Chartered also boasts of 10 Cash Deposit Machines and Agent Banking with over 20,000 locations countrywide, off the Agent Banking Shared Platform. This is all complemented by over 289 staff whose fate now lingers in the hands of a potential buyer.
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