BoU approves StanChart retail business sale to Absa in major banking sector shift

June 2, 2026 in Business, Companies, Markets by Editor

The Bank of Uganda on June 1 approved the sale of Standard Chartered Bank Uganda’s Wealth and Retail Banking business to Absa Bank Uganda, clearing a major regulatory hurdle in a deal that is expected to reshape Uganda’s retail banking landscape and sharpen the strategic focus of both lenders.

The Bank of Uganda has approved the sale of Standard Chartered Bank Uganda’s Wealth and Retail Banking (WRB) business to Absa Bank Uganda, clearing a key regulatory hurdle in a transaction expected to reshape competition in Uganda’s retail banking sector.

The approval allows Absa Bank Uganda to acquire Standard Chartered’s retail and wealth banking portfolio while enabling Standard Chartered to sharpen its focus on corporate and investment banking, in line with its global strategy.

The transaction represents one of the most significant developments in Uganda’s banking industry in recent years and reflects growing confidence in the country’s financial sector and regulatory framework.

Standard Chartered Bank Uganda Chief Executive Officer Sanjay Rughani said the approval validates the role both institutions have played in Uganda’s banking industry while supporting the bank’s long-term strategic direction.

“This approval is a testament to the strength and contribution of both institutions to Uganda’s banking industry. We are proud of the retail franchise we have built and are confident that Absa is well positioned to take it forward,” said Rughani.

He stressed that the transaction does not signal Standard Chartered’s exit from Uganda, noting that the bank remains committed to supporting economic growth through trade facilitation, capital mobilisation and advisory services.

“Our commitment to Uganda remains unchanged. We will continue to support growth by facilitating trade, mobilising capital and advising clients across key sectors of the economy,” he added.

For Absa, the acquisition strengthens its position in the retail and wealth banking segments while expanding its customer base and market reach.

Absa Bank Uganda Managing Director David Wandera described the regulatory approval as a major milestone for both the transaction and the wider banking sector.

“This approval is a significant milestone and underscores confidence in Uganda’s banking system as well as Absa’s long-term commitment to the market,” Wandera said.

“Drawing from our experience during the Barclays transition, we have the capability to manage complex integrations while ensuring customer continuity and operational stability.”

The acquisition comes at a time when Absa is posting strong financial performance. The bank recently reported profit after tax of UGX 222 billion for 2025, up from UGX 178 billion the previous year, while customer deposits rose to UGX 4.66 trillion and total assets surpassed UGX 7 trillion.

Industry analysts say the acquisition could strengthen Absa’s presence among affluent customers and deepen its wealth management proposition while enhancing its ability to leverage its growing deposit base.

The deal also marks the next phase of Standard Chartered’s strategic repositioning in Uganda. Rather than competing aggressively in retail banking, the lender is expected to concentrate resources on corporate banking, trade finance, treasury services, project financing and investment banking.

The bank has increasingly focused on connecting Ugandan businesses and institutions to international capital and trade flows, while supporting major investments in infrastructure, energy and other strategic sectors.

Both banks said there will be no immediate changes for customers, with services continuing through existing channels during the transition period.

Any future changes, they said, will be communicated in accordance with regulatory requirements and customer protection guidelines.

The transaction will take effect once the remaining conditions under the sale agreement have been fulfilled, with both institutions continuing to engage regulators and stakeholders throughout the process.

Beyond the transfer of a retail portfolio, the deal highlights a broader trend within Uganda’s banking sector, where institutions are increasingly specialising around their core strengths while pursuing scale in strategically important market segments.

For Absa, that means expanding its retail and wealth banking footprint. For Standard Chartered, it means deepening its role as a corporate and investment banking partner in Uganda’s evolving economy.