Standard Chartered has agreed to sell its wealth and retail banking business in Uganda to South African lender Absa Group for an undisclosed amount, the companies said on Friday.

Standard Chartered said last year it was looking to exit its wealth and retail banking operations in Botswana, Uganda and Zambia to focus on more profitable segments, as it overhauls its business under CEO Bill Winters.

Absa Bank Uganda will take over Standard Chartered’s retail and wealth management portfolio in the country, while the Asia-focused bank will retain its corporate and investment banking arm there.

“The sale … to Absa marks an important milestone as we continue to accelerate income growth and returns,” said Kariuki Ngari, CEO of Standard Chartered Kenya and Afri

Standard Chartered reported a better-than-expected profit in July after scaling back less-profitable operations and focusing on affluent customers and international corporate clients.

Absa, South Africa’s third-largest bank by assets, has also been working to restore stability and growing its retail business under new CEO Kenny Fihla, as it continues to address challenges stemming from its separation from Barclays in 2020.

“This transaction supports Absa’s strategic Pan-African growth ambitions,” said Charles Russon, Absa Group Executive for Africa Regions.

Source: Reuters