StanChart continues to explore sale of retail operations

Pauline Dikuelo | Wednesday April 30, 2025 06:00

In a statement released to shareholders and the market on the Botswana Stock Exchange website, the bank reiterated its earlier cautionary announcements, first issued on November 27, 2024, that the potential sale could have a material impact on the company's share price.

'Shareholders and the investing public are urged to continue exercising caution and to consult their financial advisors when dealing in the company's securities until a full announcement is made,' read the statement.

The move is part of a broader restructuring strategy by Standard Chartered PLC, which aims to reshape its mass retail business and divest all or parts of its operations in markets where the strategic rationale for maintaining them isn't strong enough. In addition to Botswana, similar divestitures are expected in Standard Chartered's subsidiaries in Zambia and Uganda.

Last year, the bank confirmed its intention to offload the WRB division and shift its focus entirely to its Corporate and Investment Banking division. This strategic pivot is aimed at strengthening the bank’s market positioning and focusing on higher-return business segments.

Despite the impending sale, the WRB division delivered strong financial performance in 2024. According to Standard Chartered’s full-year financial results for the period ended December 2024, the WRB division recorded profits of P791 million. The bank's total income during the reporting period stood at P1.065 billion, whilst operating income was P478 million.

The solid financial results were largely driven by the WRB division, benefiting from improved margins on wealth management products and banking services targeted at middle-income clients. Wealth assets under management tripled compared to 2023, and the broader WRB division recorded an 11% year-on-year growth.

Bank officials highlighted that the division’s strong performance ahead of the planned sale reflects the growing demand for wealth management services and the strengthening of Botswana’s middle-income segment.

The market now awaits further updates from Standard Chartered Bank Botswana regarding the conclusion of the sale process and the future direction of its operations in the country.