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Standard Chartered Bank Zambia has signed an agreement to sell its Wealth and Retail Banking (WRB) business portfolio to First National Bank (FNB) Zambia, marking a major restructuring move in Zambia’s banking sector.
The transaction, announced at Standard Chartered’s head office in Lusaka, follows the bank’s November 27, 2024, statement of intent to explore a potential sale as part of its global strategy to focus on areas where it offers the most distinctive client proposition.
The sale, the company said, will not affect Standard Chartered’s Corporate and Investment Banking (CIB) operations in Zambia.
Under the agreement, all WRB clients will transfer to FNB Zambia, and all affected employees will be offered employment with FNB, according to statement issued in Lusaka on Wednesday.
The two banks have pledged to work closely to ensure a seamless transition for clients and staff. Rand Merchant Bank (RMB), a subsidiary of FirstRand Limited, acted as the sole transaction advisor to FNB Zambia.
The signing ceremony was led by Standard Chartered Zambia Acting Board Chairperson, Irene Lombe Chibesakunda, and FNB Zambia Board Chair, Richard Mazombwe.
It was attended by senior executives including Bongiwe Gangeni, Head of Wealth & Retail Banking for Europe, Middle East and Africa at Standard Chartered, and Bydon Longwe, FirstRand Chief Executive Officer for Broader Africa.
Sonny Zulu, Chief Executive Officer and Managing Director of Standard Chartered Zambia, signed the agreement alongside Kapumpe Chola, Chief Executive Officer of FNB Zambia.
Kariuki Ngari, Managing Director and Chief Executive Officer of Standard Chartered Kenya & Africa, said the move aligned with the bank’s continental growth priorities.
“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 to FNB Zambia marks an important milestone as we continue to accelerate income growth and returns.
“We look forward to working closely with FNB’s team over the coming months to ensure a smooth transition while safeguarding the interests of our valued clients and prioritising our employees,” said Ngari.
FNB Zambia Chief Executive Officer, Kapumpe Chola, described the acquisition as a sign of confidence in Zambia’s financial system.
“Today represents a significant milestone as FNB Zambia and Standard Chartered Bank formalise an agreement for the transfer of the Wealth and Retail Banking business.
“This moment underscores the strength, credibility, and evolution of Zambia’s financial landscape. This strategic move also signals a new chapter of growth, unlocking greater opportunities to expand services and deepen customer value in Zambia and across the region,” Chola said.
Standard Chartered Zambia Managing Director, Sonny Zulu, said the transaction reflected the bank’s renewed focus on its most competitive areas.
“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 Zambia, 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 FNB Zambia,” Zulu stated.
FNB Zambia is part of the South African-based FirstRand Group, one of Africa’s largest financial services conglomerates, operating in 10 African markets with a presence in India, China, the UK, the USA, and Guernsey.
The transaction is subject to regulatory approvals.
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