FNB buys international business from British banking giant
FirstRand has acquired Standard Chartered Zambia PLC’s (SCBZ) Wealth and Retail Banking business portfolio in Zambia via its subsidiary, FNB Zambia.
FirstRand said that the acquisition aligns with its strategy to scale up its operations in the group’s broader Africa portfolio.
FNB Zambia started 16 years ago and has built a strong brand and physical presence in the country.
FNB Zambia is part of FirstRand Group, one of Africa’s largest financial service companies. On top of FNB, it also owns Wesbank, RMB, Ashburton Investments and more.
The acquisition includes SCBZ’s wealth and retail banking business, which includes ZMW 1.6 billion (R1.25 billion) of loans and advances, ZMW 5.2 billion (R4.05 billion) of customer deposits and ZMW 3.8 billion (R2.96 billion) of wealth assets under management.
The deal will also include SCBZ’s ATMs, cash deposit machines, and property assets, including branches, offices, and employees.
All clients will be transferred to FNB Zambia, and all SCBZ employees will be offered employment with FNB Zambia.
The two banks said they will work closely in the coming months to ensure a seamless transition.
In November 2024, Standard Chartered announced its intention to explore a potential sale of the Zambian business.
This aligned with the UK-based bank’s global strategy to concentrate resources where it offers the most distinctive client proposition.
Standard Chartered’s Corporate and Investment Banking (CIB) business within Zambia is unaffected by the sale.
Mary Vilakazi, FirstRand CEO, said that the transaction added a significant client franchise value to FNB Zambia.
“In the broader Africa jurisdictions where the group operates, the strategy has been to organically and incrementally grow high-quality client franchises and find bolt-on acquisitions to add scale.”
“This transaction ticks all the right boxes, particularly the strong deposit and wealth management franchise, and we are also adding great talent to the in-country team.”
Vilakazi added that, despite FNB Zambia’s success in organically growing into a top 5 bank in the nation, it remains underrepresented in the wealth segment, which the acquisition addresses.
The acquisition is still subject to SCBZ’s shareholders and regulatory approvals and will be funded by FNB Zambia’s resources.
“In November last year, we set out how the Bank is doubling down on our affluent and cross-border strategy,” said Kariuki Ngari, CEO of Standard Chartered Africa.
“The sale of our Wealth and Retail banking business to FNB Zambia marks an important milestone as we continue to accelerate income growth and returns.”
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