FNB Just Made a Move in Zambia That Could Shake the Banking World

FirstRand is deepening its presence in Africa. The financial services group, through its subsidiary FNB Zambia, has acquired Standard Chartered Zambia PLC’s (SCBZ) Wealth and Retail Banking business, a move that solidifies its expansion strategy across the continent.

The acquisition, which includes ZMW 1.6 billion (R1.25 billion) in loans, ZMW 5.2 billion (R4.05 billion) in deposits, and ZMW 3.8 billion (R2.96 billion) in wealth assets under management, represents one of the largest retail banking portfolio transfers in Zambia in recent years.

For FirstRand, it’s a strategic bolt-on acquisition designed to accelerate growth in a high-potential market where FNB Zambia already ranks among the top five banks.

Founded 16 years ago, FNB Zambia has built a strong presence and brand recognition within the country’s competitive financial sector. Now, with this acquisition, the bank gains not only scale but access to a more diversified client base.

Mary Vilakazi, FirstRand Group CEO, said the deal aligns perfectly with the group’s broader Africa strategy, “In the jurisdictions where we operate, our approach has been to organically and incrementally grow high-quality client franchises while pursuing bolt-on acquisitions that add scale. This transaction ticks all the right boxes, particularly the strong deposit and wealth management franchise.”

She added that the deal also brings in experienced talent and a deeper presence in Zambia’s wealth management segment, an area where FNB Zambia had been underrepresented until now. The acquisition will be funded using FNB Zambia’s internal resources, underscoring the bank’s financial strength and confidence in the market.

What the Deal Includes

Beyond the customer portfolios, the transaction covers all SCBZ’s ATMs, cash deposit machines, and property assets, including branches and offices. Importantly, all Standard Chartered Zambia employees within the affected business units will transition to FNB Zambia, ensuring continuity for both clients and staff.

Both banks have committed to a seamless migration process, with client accounts, services, and operations set to transition smoothly over the coming months.

For Standard Chartered, the sale is part of a broader global restructuring strategy aimed at sharpening focus on its core strengths. In November 2024, the London-based bank announced plans to divest select operations across Africa and the Middle East, including Zambia, to reallocate capital to markets where it holds stronger competitive advantages.

Kariuki Ngari, CEO of Standard Chartered Africa, said the move is consistent with this focus, “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.”

Standard Chartered’s Corporate and Investment Banking (CIB) business in Zambia will continue operating as usual, maintaining its long-standing relationships with corporate and institutional clients.

A Calculated Expansion

For FirstRand, the acquisition is more than just an addition of assets, it’s an investment in long-term regional presence. The group’s Africa portfolio already spans multiple countries and includes brands such as RMB, WesBank, and Ashburton Investments, giving it a broad base across corporate, retail, and wealth sectors.

This deal positions FNB Zambia to compete more aggressively in the mass-affluent and wealth segments, expanding beyond its traditional retail banking core.

Once approved by shareholders and regulators, the acquisition will effectively integrate Standard Chartered’s retail and wealth operations under the FNB brand, marking a significant step in FirstRand’s African growth narrative.

The deal illustrates two major trends shaping African banking: consolidation and focus. For Standard Chartered, it’s about refocusing resources on high-margin areas. For FirstRand, it’s about deepening presence and capturing scale in fast-growing markets.

In Zambia, where competition for retail and wealth clients is intensifying, FNB’s move could redefine market dynamics, positioning the bank not just as a player, but as a dominant force in the country’s evolving financial landscape.