Standard Chartered is considering divesting its wealth and retail banking operations in Botswana, Uganda, and Zambia as part of a broader strategic overhaul to optimize its capital allocation.
The bank, which is shifting its focus toward affluent customers and multinational corporations, aims to enhance fee-based income and improve profitability.
This move reflects its continued efforts to streamline its operations by pivoting away from a historically global footprint to concentrate on core businesses, particularly in high-growth Asian markets.
The potential exits in Africa are aligned with Standard Chartered’s goal of doubling investments in its wealth management division while scaling back retail banking. The bank plans to allocate resources in these regions to support the cross-border needs of corporate and financial institution clients.
Analysts have noted that this decision aligns with the bank’s recent strategy updates, where it highlighted its focus on cutting costs while capitalizing on Asia’s economic resilience and rising borrowing costs.
Standard Chartered, during its third-quarter earnings report in October, stated that it was evaluating opportunities to exit certain businesses that lack compelling strategic value.
The bank’s cost-cutting measures are projected to save $1.5 billion over three years, even as operational expenses rise due to inflation and business expansion. The financial impact of the potential divestitures is expected to be minimal for the group.
