In a major strategic move to dominate the Zambian financial sector, FirstRand has announced a definitive agreement to acquire the wealth and retail banking business of Standard Chartered Bank Zambia PLC.
This landmark deal is a direct execution of FirstRand’s plan to aggressively scale its broader Africa portfolio. The acquisition will see FNB Zambia, which launched as a greenfield operation 16 years ago, absorb a massive ZMW 5.2bn in customer deposits, ZMW 1.6bn in loans, and a formidable ZMW 3.8bn in wealth assets under management. The transaction also includes a transfer of physical assets—from ATMs to branch properties—and key employees.
Commenting on the transaction, FirstRand CEO Mary Vilakazi said that the transaction added 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.
“Despite its success in organically growing to become a top 5 bank in-country, FNB Zambia was underrepresented in the wealth segment, something that the acquisition of this franchise solves for”.
The acquisition, which is pending shareholder and regulatory approvals, will be funded entirely through FNB Zambia’s own resources. This move instantly transforms FNB Zambia’s market position, giving it a dominant foothold in the lucrative wealth management segment it previously lacked.
