Standard Chartered Targets Africa’s Ultra-Rich After Doubling AUM

AFRICAN STOCKS AND FINANCENovember 18, 2024 at 2:20 PM UTC

TLDR

Standard Chartered Plc focuses on Africa's ultra-wealthy to grow business, doubling assets under management (AUM) in wealth division.
AUM in sub-Saharan Africa increased to $4 billion from $1.7 billion, driven by demand for wealth products like leveraged lending and dollar-denominated bonds in markets such as Kenya and Nigeria.
Africa's population of dollar millionaires expected to grow by 65% over next decade, presenting significant opportunity for London-based bank operating in 10 African markets.```

Standard Chartered Plc is focusing on Africa's ultra-wealthy to grow its business after more than doubling assets under management (AUM) in its wealth division in the past three years.

AUM in sub-Saharan Africa increased to $4 billion from $1.7 billion, driven by growing demand for wealth products like leveraged lending and dollar-denominated bonds in markets such as Kenya and Nigeria, according to Chairman José Viñals.

Africa’s population of dollar millionaires, currently over 135,000, is projected to grow by 65% over the next decade, offering a significant opportunity for the London-based bank, which continues to operate in 10 African markets after divesting from seven.

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Key Takeaways

Standard Chartered’s pivot to wealth management highlights the rising affluence of Africa's ultra-rich, despite challenges like currency depreciation, inflation, and insecurity. While global banks like Societe Generale and HSBC scale back in Africa, others like JPMorgan Chase are expanding, signaling mixed strategies toward Africa's evolving economic opportunities. For Standard Chartered, its wealth-focused approach positions it to capitalize on long-term growth in high-net-worth individuals across the continent.

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