FirstRand's strategic expansion in Zambia aimed at wealth and retail banking dominance

Source: Reuters.

The transaction will scale FNB Zambia’s operations, strengthen its market position, and enhance service offerings across personal and wealth segments, aligning with FirstRand’s strategic focus on growth and diversification in key African markets.

FNB Zambia was started as a greenfield operation 16 years ago and in that time has built a strong brand and physical presence in the country.

The acquisition of the SCBZ’s wealth and retail banking business includes ZMW 1.6bn of loans and advances, ZMW 5.2bn of customer deposits, ZMW 3.8bn of wealth assets under management, automated teller machines, cash deposit machines, and property assets including branches and offices and employees.

Commenting on the transaction Mary Vilakazi FirstRand chief executive officer 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 for which the acquisition of this franchise solves.”

The acquisition is subject to SCBZ’s shareholders and regulatory approvals and will be funded by the resources of FNB Zambia.