FirstRand, one of Africa’s largest financial services groups, has announced the acquisition of Standard Chartered Zambia PLC’s (SCBZ) Wealth and Retail Banking business portfolio through its Zambian subsidiary, FNB Zambia. The transaction marks a strategic expansion of FirstRand’s footprint in the region and aligns with its broader ambition to scale operations across key African markets.
Strategic Fit and Market Expansion
FNB Zambia, which has operated in the country for 16 years, has built a strong brand presence and physical infrastructure. The acquisition strengthens its position in Zambia’s financial sector and enhances its capabilities in the wealth management and retail banking segments, where it has been relatively underrepresented.
The deal includes:
- ZMW 1.6 billion (R1.25 billion) in loans and advances
- ZMW 5.2 billion (R4.05 billion) in customer deposits
- ZMW 3.8 billion (R2.96 billion) in wealth assets under management
- SCBZ’s physical infrastructure, including ATMs, cash deposit machines, branches, offices
- All SCBZ employees, who will be offered employment with FNB Zambia
- Transfer of all SCBZ clients to FNB Zambia
Mary Vilakazi, CEO of FirstRand, described the acquisition as a high-value addition to FNB Zambia’s client franchise:
In the broader Africa jurisdictions where the group operates, our strategy has been to organically and incrementally grow high-quality client franchises and pursue 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 while FNB Zambia has successfully grown into a top five bank in the country, the acquisition helps address its limited presence in the wealth segment, positioning it for stronger growth and diversification.
Standard Chartered’s Strategic Realignment
The sale follows Standard Chartered’s announcement in November 2024 that it was exploring a potential exit from its Zambian retail and wealth banking operations. The move is part of the UK-based bank’s global strategy to focus resources on markets where it offers a distinctive client proposition.
Kariuki Ngari, CEO of Standard Chartered Africa, commented:
In November last year, we set out how the Bank is doubling down on our affluent and cross-border strategy. 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.
Importantly, Standard Chartered’s Corporate and Investment Banking (CIB) operations in Zambia remain unaffected by the transaction.
Next Steps
The acquisition is subject to regulatory approvals and SCBZ shareholder consent, and will be funded by FNB Zambia’s internal resources. Both banks have committed to working closely to ensure a smooth transition for clients and employees. This deal reinforces FirstRand’s commitment to expanding its African footprint and deepening its presence in high-potential markets through strategic acquisitions that complement its existing operations.
