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Indications have emerged that Standard Chartered Bank is set to opt out of its retail banking operations in Zambia where it had operated for many years.
In a notice distributed to ‘clients’ on Friday, November, 29, 2024, the bank said, “As you may have seen, Standard Chartered Bank has announced a set of actions to concentrate resources where we have most distinctive client proposition, in order to better support our clients. We intend to explore sales of our wealth and retail banking businesses in Zambia.”
The development suggests that Standard Chartered Bank no longer finds Zambia a profitable market for the retail side of its operations.
Read more: Standard Chartered Bank Zambia sees surge in local bond investments
The terse statement did not say if Zambia’s toughening business environment was remotely responsible for the decision to sell the company’s “wealth and retail banking businesses.” The bank also kept mute on the identity of its supposed new stakeholders.
However, the bank assured that it would continue to serve its clients during the transition period.
The notice read, “Please be assured we will continue to serve you as usual during the transition. Your deposits and monies are safe and you can continue to perform banking transactions as per normal.”
It added, “We are committed to managing this process with our key stakeholders to minimise any disruption to you. We will continue to update you on any relevant developments during the transition.”
The bank’s Chief Executive Officer (CEO), Sonny Zulu, reportedly said that the move did not signal an exit from the Zambian market.
“We see substantial opportunities in infrastructure, sustainable finance, and trade, reinforcing our commitment to Zambia and Africa,” Zulu stated.
He was quoted to have said that the transition would be carried out gradually, taking approximately 18 to 24 months.
He urged the public and customers to remain calm, assuring them that the bank’s operations will continue as usual.
“We are open for business. Our branches and systems remain operational. It is business as usual. Additionally, we are committed to managing this process in partnership with our key stakeholders to minimise disruptions for clients,” he said.
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