Standard Chartered and First National Bank (FNB) Zambia have formalized an agreement for the sale of Standard Chartered Zambia’s Wealth and Retail Banking business portfolio, marking the British bank’s exit from consumer banking in yet another African market as it refocuses resources on affluent clients and corporate banking.
The deal, signed at Standard Chartered’s head office in Lusaka, follows months of speculation that began with the bank’s November 27, 2024 announcement exploring potential sales in Botswana, Uganda, and Zambia. It’s part of Standard Chartered’s broader continental retreat that has already seen it sell subsidiaries in Angola, Sierra Leone, and Zimbabwe.
Under the agreement, all Standard Chartered Zambia Wealth and Retail Banking clients will transfer to FNB Zambia, and all affected employees will be offered employment with FNB. The Corporate and Investment Banking operations remain untouched, meaning Standard Chartered will continue serving multinational corporations and financial institutions in Zambia.
The acquisition brings FNB Zambia ZMW 5.2 billion in customer deposits, ZMW 1.6 billion in loans and advances, and ZMW 3.8 billion in wealth assets under management. It also includes physical infrastructure like ATMs, cash deposit machines, branch properties, and offices scattered across the country.
Irene Lombe Chibesakunda, Acting Board Chairperson of Standard Chartered Zambia, and Richard Mazombwe, FNB Zambia Board Chair, led the signing ceremony. Senior executives from both organizations attended, including Bongiwe Gangeni from Standard Chartered’s regional wealth division and Bydon Longwe, FirstRand’s CEO for Broader Africa.
Sonny Zulu, Managing Director of Standard Chartered Zambia, signed alongside Kapumpe Chola, FNB Zambia’s CEO. They later met with Standard Chartered staff to address concerns about the transition, though questions remain about how smoothly customers will adapt to new banking relationships they didn’t choose.
Kariuki Ngari, Managing Director and CEO of Standard Chartered Kenya & Africa, framed the move as strategic concentration rather than retreat. The bank is doubling down on what it calls its “affluent and cross-border strategy,” essentially abandoning mass market retail banking across multiple African countries.
Chola positioned the acquisition as validation of Zambia’s financial sector strength, saying it signals opportunities for growth and expanded services. Whether that translates into better banking experiences for former Standard Chartered customers remains to be seen, particularly for those who valued the international bank’s brand and perceived stability.
FNB Zambia started as a greenfield operation 16 years ago and has built a strong brand and physical presence in the country. As part of FirstRand Group, it operates across 10 African markets with international presence in India, China, the UK, USA, and Guernsey.
FirstRand CEO Mary Vilakazi said the transaction added significant client franchise value to FNB Zambia, noting that despite organic growth to become a top five bank in Zambia, FNB was underrepresented in the wealth segment. This acquisition solves that problem instantly.
Rand Merchant Bank, a FirstRand subsidiary, served as the sole transaction advisor to FNB Zambia, raising potential conflict of interest questions that nobody seems particularly bothered about in corporate banking circles.
The sale fits into Standard Chartered’s global restructuring aimed at saving approximately $1.5 billion over three years while simultaneously increasing investment in wealth management for affluent clients. The bank, which generates most profits from Asian operations, has been systematically withdrawing from markets where it can’t justify the returns.
The bank has gradually realigned its African priorities, having completed sales of subsidiaries in Angola and Sierra Leone to Access Bank, with ongoing discussions for Cameroon, Gambia, and Tanzania operations. Standard Chartered has operated in Africa for 170 years, but historical presence apparently no longer trumps quarterly earnings targets.
Standard Chartered has invested approximately $300 million in upgrading technology platforms and supporting Africa-based ventures over five years, and financed sustainability and infrastructure projects worth over $4 billion in Zambia alone. Now it’s handing those client relationships to a competitor and focusing on what it considers more lucrative corporate banking.
Standard Chartered stated that financial effects of the proposed African exits are not material to the group as a whole, essentially admitting these markets contributed little to its bottom line despite decades of operation. It’s a sobering reminder that for international banks, even significant local market presence can be a rounding error in global financial statements.
Duncan Amoah, Executive Director of the Chamber of Petroleum Consumers, attended the signing ceremony, though his interest in a banking transaction wasn’t immediately clear. Perhaps it signals broader business community attention to financial sector consolidation in Zambia.
The transaction requires regulatory approvals from Zambian authorities, though such approvals are typically formalities when major financial institutions arrange these deals. The real question is whether regulators will scrutinize the impact on competition and consumer choice in Zambia’s banking sector.
For Standard Chartered employees being offered FNB positions, the transition means adapting to new corporate culture, potentially different compensation structures, and uncertainty about long term career prospects. For customers, it means learning new banking systems, possibly different fee structures, and hoping their service quality doesn’t deteriorate during the handover.
Standard Chartered’s African retreat mirrors rival HSBC’s strategy, as both banks pivot from global retail operations to focus on affluent clients and international businesses likely to yield higher fees. It’s a trend that could leave ordinary African consumers with fewer international banking options and more dependence on regional banks.
Whether FNB Zambia can successfully absorb thousands of new clients, integrate different banking systems, and maintain service quality during this transition will determine if this deal ultimately benefits Zambian consumers or simply serves shareholder interests on both sides. The coming months should provide answers, though by then it will be too late for customers who preferred their original banking relationship.
