Standard Chartered Group has announced plans to divest its Wealth and Retail Banking operations in Uganda, a move that extends to its markets in Botswana and Zambia.

The Wealth and Retail Banking division includes both personal and corporate accounts. Retail operations focus on standard banking services, such as opening savings and current accounts, as well as offering loan products, credit cards, ATM services among others.

Meanwhile, the wealth management arm provides investment solutions, including access to bond markets and offshore funds among others.

The business will be sold to an as-yet-unidentified buyer, but this does not signal the bank’s departure from Uganda. According to Sanjay Rughani, CEO of Standard Chartered Bank Uganda, the institution will remain active in the market, focusing solely on Corporate and Investment Banking.

“We intend to exit from our Wealth and Retail Business in Uganda, subject to regulatory approvals. Standard Chartered will remain in Uganda, with a sole focus on our Corporate and Institutional Banking (CIB) business. We see substantial opportunities in infrastructure, sustainable finance, and trade, reinforcing our commitment to these areas within Uganda and, indeed Africa,” Rughani said.

He said operations, including staff and systems, will continue as usual until a buyer is found and all necessary regulatory approvals are secured, a process expected to take up to two years.

“We are taking a phased approach and the process is expected to take between 18 to 24 months to complete,” he said.

Standard Chartered’s planned model in Uganda mirrors Citi Bank’s operations, which focus exclusively on corporate and investment banking services.

The shift with aligns with a global trend among financial institutions transitioning away from resource-intensive retail banking with lower profit margins.

Instead, they are pivoting to Corporate and Investment Banking, which serves fewer but wealthier clients through customized products and services. This strategy has been adopted by global banks in markets such as Kenya and Nigeria.

Standard Chartered’s decision reflects this shift, driven by the potential for faster growth through targeting high-net-worth clients rather than retail customers.

As of December 2023, Standard Chartered Uganda reported total customer deposits of UGX 2.5 trillion, with Wealth Assets Under Management valued at UGX 780 billion. The bank’s total assets reached UGX 3.6 trillion during the same period.