Weak profits push Standard Chartered out of operations in 7 African and Middle Eastern countries
Standard Chartered Plc said it was halting its business operations in seven countries in Africa and the Middle East due to the very low revenue it generates from the markets.
According to the bank’s statement on its website, the exit of Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe is part of the British banking group’s decision. and financiers improve its earnings by paying attention to faster-growing markets, indicating an opportunity to sell the business in the regions.
In addition, he said he was also closing his retail banking operations in Tanzania and Ivory Coast, but would continue his corporate banking activities in both regions, adding that the group remained focused on service to its customers where it could have the most impact.
What Standard Chartered says
The bank said this action has become necessary for the bank to redirect resources from its Africa and Middle East (“AME”) region to areas where it can have the greatest potential for scale and growth, in order to better support its customers.
- It said, “The Group has invested heavily in the AME region in recent years, including fundamentally transforming its digital capabilities in its African markets. It has also expanded its presence to cover some of the largest and fastest growing economies, having recently opened its first branch in the Kingdom of Saudi Arabia and obtained preliminary approval for a banking license in the Arab Republic of Egypt.
- “The seven markets where there will be a full exit from operations are Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe. , Private and Business Banking will be discontinued and the focus will be on CCIB only.
- Bill Winters, CEO of Standard Chartered Group, said: “As we announced earlier in the year, we are focusing more on the most important growth opportunities while simplifying our activities. We remain excited about a number of opportunities we see in the AME region, as illustrated by our new markets, but remain disciplined in our assessment of areas where we can deliver significantly improved shareholder returns.
- “Collectively, our actions will position the AME franchise for the next phase of growth after a very strong performance in 2021. We are grateful to our colleagues and partners in each of these impacted markets for their hard work and dedication and we are committed to them. support throughout this transition. »
What you should know
- Nairametrics reported earlier that Standard Chartered Plc said it was closing at least half of its Nigerian branches, in a major move, as it navigates digital banking earlier this year.
- In an official statement submitted to Nairametrics and signed by Dayo Aderugbo, Head of General Affairs, Branding and Marketing, in January 2022, the bank said its decision to close some of its branches will have no impact on staff. .
- This development comes at a time when the Nigerian banking sector is facing fierce competition from payment service providers, especially mobile telecommunications companies, which have recently been granted operating licenses by the Central Bank of Nigeria. (CBN).