Absa Bank Uganda acquires Standard Chartered’s retail and wealth business in major strategic shift
Under the agreement, all Standard Chartered WRB clients and employees will transfer to Absa. The two banks will work closely in the coming months to ensure a seamless transition for all stakeholders.
Standard Chartered Uganda and Absa Bank Uganda, a wholly-owned subsidiary of the Absa Group, have announced a landmark agreement for the sale of Standard Chartered’s Wealth and Retail Banking (WRB) business portfolio in Uganda.
This strategic move, contingent on regulatory approvals, will see Absa Bank integrate Standard Chartered’s WRB clients and employees into its operations.
The agreement signifies a pivotal moment for both financial institutions, following Standard Chartered’s November 2024 announcement of its intention to explore a potential sale in line with its global strategy.
The bank aims to concentrate resources where it offers the most distinctive client proposition, meaning its Corporate and Investment Banking (CIB) business within Uganda remains unaffected and will continue its operations.
Under the terms of the agreement, all Standard Chartered WRB clients and employees will seamlessly transfer to Absa Bank Uganda. Both banks have committed to working closely in the coming months to ensure a smooth and orderly transition for all stakeholders.
The signing ceremony took place today at Standard Chartered’s offices in Uganda, led by Mrs. Maria Kiwanuka, Board Chairperson of Standard Chartered Uganda, and George Opio, Non-Executive Director of Absa Bank Uganda.
The agreement was formally signed by Sanjay Rughani, CEO and Managing Director of Standard Chartered Uganda, and David Wandera, Managing Director of Absa Bank Uganda. Also present at the event was Kariuki Ngari, Managing Director and CEO of Standard Chartered Kenya and Africa.
Kariuki Ngari, Managing Director & CEO, Standard Chartered Kenya & Africa, commented on the development: “In November last year, we set out how the Bank is doubling down on our affluent and cross-border strategy. The sale of our Wealth and Retail banking business in Uganda to Absa marks an important milestone as we continue to accelerate income growth and returns. We look forward to working closely with Absa’s team over the coming months to ensure a smooth transition while safeguarding the interests of our valued clients and prioritising our employees.”
For Absa, the acquisition underscores its ambition for Pan-African growth. Charles Russon, Absa Group Executive for Africa Regions, stated, “This transaction supports Absa’s strategic Pan-African growth ambitions and further strengthens Absa’s position in Uganda’s financial services landscape. It will enable Absa Uganda to broaden its retail and wealth management offerings and deliver increased convenience and value to our customers.”
David Wandera, Managing Director of Absa Bank Uganda, echoed this sentiment, highlighting the acquisition’s significance for the bank’s local operations.
“This acquisition is a significant milestone in our journey to become a market leader in providing innovative, customer-centric financial solutions. It represents an opportunity to welcome new customers and colleagues into the Absa family, while reaffirming our long-term commitment to Uganda’s economic development.”
Sanjay Rughani, CEO & Managing Director, Standard Chartered Uganda, reassured clients of the bank’s continued presence and commitment in the CIB sector. “This agreement marks a pivotal moment in executing our global strategy – focusing on areas where we are most differentiated and can create the greatest impact.
We remain fully committed to Uganda, and our Corporate and Investment Banking clients will continue to receive the high-quality service, trusted partnership and innovative solutions they expect from Standard Chartered. We are confident that our WRB clients and colleagues will be in excellent hands with Absa.”
The completion of this transaction is subject to obtaining the necessary regulatory approvals.
