Standard Chartered is exploring options to sell its retail and wealth franchise in Bahrain as the UK-headquartered lender focuses on bigger markets to scale its business.
The announcement does not affect corporate and investment banking operations in Bahrain, the bank said on Tuesday. They will continue to operate in the kingdom “as a super-connector through our international network, cross-border capabilities and sector expertise”.
Standard Chartered
This move is in line with the lender's global push to build its cross-border and affluent clients’ business.
“As we sharpen focus on where we have scale and the most distinctive client proposition, we will invest further in response to strong client demand and long-term opportunity across the Middle East,” said Bongiwe Gangeni, Standard Chartered’s head of wealth and retail banking for Europe, Middle East and Africa.
Standard Chartered is the latest global lender to sell or downsize its operations in Bahrain. The smallest Gulf economy has struggled to match the pace of growth of bigger regional peers such as Saudi Arabia and the UAE.
Last year, HSBC, the biggest lender in Europe, sold its retail banking operation in Bahrain to Bank of Bahrain and Kuwait, but said it would maintain its corporate and private banking operations in the kingdom.
Citigroup also exited its retail business in Bahrain. The US lender completed the sale of its consumer banking franchise to Ahli United Bank in December 2022.
Standard Chartered said any potential transaction would be subject to regulatory approvals. The bank did not say whether it was already entertaining offers.
The transition is expected to be phased over 18 to 24 months, Ms Gangeni said. “During this period, our business will continue to operate on a business-as-usual basis, and we will work closely with colleagues, clients, regulators and other stakeholders to ensure an orderly transition and minimal disruption,” she added.
Standard Chartered expects its business in the Middle East, which accounts for about 10 per cent to 15 per cent of the money it makes globally, to continue growing rapidly, driven its private banking offerings to affluent clientele, group chief executive Bill Winters told The National in October.
The Middle East wealth management business is one of the fastest growing in the world for the bank. Standard Chartered’s private banking assets under management had doubled in the Middle East and could easily grow manifold in foreseeable future, he said at the time.
