By Timothy Oyomare
Standard Chartered Bank has concluded plans to shut down its operations in nine countries in Africa and the Middle East as it seeks to improve profits by narrowing its focus to faster-growing markets in the region, it said on Thursday.
The bank will fully exit Zimbabwe, Angola, Cameroon, Gambia, Jordan, Lebanon and Sierra Leone.
It will also close its retail banking operations in Tanzania and Ivory Coast to focus solely on corporate banking.
However, its Nigeria operations will not be affected but half of its branches in Nigeria will be closed in a bid to expand its digital banking option due to pressure from mobile money or agency banking providers.
The move marks a major shift for Standard Chartered, which has been among the biggest European lenders to invest in the continent in recent years at a time when peers have been withdrawing.
The bank intends to keep investing in Africa and the Middle East but “remain disciplined in our assessment of where we can deliver significantly improved shareholder returns,” said Chief Executive Bill Winters.
The cuts would allow it to focus on bigger and faster growing economies in the region, such as Saudi Arabia where it has opened its first branch, and Egypt.
The markets being exited generated around one percent of total income in 2021 and a similar proportion of profit before tax, the bank said. StanChart is currently present in 59 markets and serves clients in a further 83.
It did not immediately comment on the number of job losses as a result of the cuts. StanChart joins the ranks of other global players to reduce their presence in Africa in recent years as they struggle to reach scale compared with incumbent locals while the region’s economy has faltered.
-Zimlive