StanChart in sales agreements with Access Bank in five African countries, affirms commitment to Nigeria

Access Bank Plc and Standard Chartered Bank have entered into agreements for the acquisition of Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia and Sierra Leone, and its consumer, private and business banking business in Tanzania.

Each transaction remains subject to the approval of the respective local regulators and the banking regulator in Nigeria where Stanchart still believes in its growth potential.

This is even as Access Holdings Plc on July 14 announced the completion of the acquisition of a majority equity stake in Finibanco Angola S.A, by its flagship subsidiary, Access Bank Plc.

The announcement was made on Friday at Standard Chartered’s headquarters in London in the presence of senior representatives from both banks, signed by Sunil Kaushal, Regional CEO, Africa and Middle East, Standard Chartered and Roosevelt Ogbonna, Group Managing Director, Access Bank Plc.

The agreement with Access for the sale of the bank’s business in Sub-Saharan Africa is in line with Standard Chartered’s global strategy, aimed at achieving operational efficiencies, reducing complexity and driving scale.

Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients in the Standard Chartered businesses across the five aforementioned countries.

Access and Standard Chartered Bank will work closely together in the coming months to ensure a seamless transition, with the transaction expected to be completed over the next 12 months.

Commenting on the agreement, Sunil Kaushal, Regional CEO, Africa and Middle East, Standard Chartered, said, “Following on the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the five markets and the furtherance of a partnership with Access Bank.

“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients. We look forward to working closely with Access Bank’s team over the coming months to achieve a successful conclusion to this transaction while safeguarding the interests of our valued clients and prioritising our employees.”

Commenting on the agreement, Roosevelt Ogbonna, Group Managing Director, Access Bank Plc, stated, “We are pleased to sign this agreement today and express our appreciation for being selected as the preferred partner to Standard Chartered Bank through this transaction, in which it is exiting four African markets and refocusing on one.

“As a distinguished regional and international bank with a rich heritage spanning over 150 years, Standard Chartered Bank has built a solid presence in these markets for over 100 years.”

For Access, this strategic transaction represents a key step in its journey to build a strong global franchise focused on serving as a gateway for payments, investment and trade within Africa and between Africa and the rest of the world, anchored by a robust capital base, a relentless focus on execution and best-in-class customer service and governance structures.

“At Access Bank, we are committed to reshaping the global perception of Africa and African businesses, even as we continue to build toward our vision to be the world’s most respected African bank.

“Our five-year growth plan will see us build a world-class class payments gateway, leveraging the power of technology and supported by a dynamic ecosystem of local and international partnerships, enabling us to serve global payments and remittances efficiently.

“With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments. More importantly, we are committed to impacting our host communities positively,” Ogbonna added.

In April 2022, Standard Chartered strategically decided to divest from a number of markets, like Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and to exit the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire and Tanzania.

The bank announced its sale of its business in Zimbabwe earlier in June and in Jordan in March this year. With this announcement, Standard Chartered has substantially completed the divestment process from the markets announced in April 2022, except Côte d’Ivoire where it remains actively engaged in discussions with potential buyers for the sale of its CPBB business in the country.

Access Bank, a wholly-owned subsidiary of Access Holdings Plc, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning three continents, 18 countries and over 60 million customers.

The bank employs over 28,000 people in its operations in Africa, the United Kingdom and Europe, with representative offices in China, Lebanon, India and the UAE.

As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant, helping customers to access more and achieve their dreams.

Also, speaking on the acquisition of Finibanco Angola transaction, Dr Herbert Wigwe, the Group Chief Executive of Access Holdings, said, “In anticipation of the completion of the transaction, the bank has made excellent progress in integration planning.

“We plan to leverage our expansive distribution network, best-in-class technology, risk and governance practices to serve high-growth businesses and the rising consumer sector in Angola.

We will act as a positive catalyst to foster greater innovation and promote the deepening of the financial sector in Angola in line with our strategic growth objectives in the broader South Africa Development Community while delivering value to our stakeholders.”

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