Standard Chartered Bank Uganda and Absa Bank Uganda Limited have received regulatory approval from the Bank of Uganda for Standard Chartered Bank Uganda Limited to sell its Wealth and Retail Banking (WRB) business to Absa Bank Uganda Limited.

According to an announcement issued by Standard Chartered, the approval marks an important milestone for Uganda's banking sector and reflects continued confidence in the strength, stability, and regulatory oversight of the country's financial system.

The bank said the development also reinforces Absa's position as a well-capitalised financial institution with a strong governance framework and a long-term commitment to the Ugandan market.

Absa Bank Uganda also welcomed the regulatory approval, describing it as a significant step in the transaction process. In a statement shared, the bank said: "We are pleased to announce that the Bank of Uganda has approved our acquisition of Standard Chartered Uganda Wealth and Retail Banking business portfolio, marking a significant milestone in the transaction process. This approval brings us closer to welcoming new customers and colleagues to the Absa family, while strengthening our position to deliver innovative, customer-centric financial solutions."

Standard Chartered assured customers that there will be no immediate changes to their banking services following the approval.

"There is no immediate change for customers, and day-to-day banking operations will continue as usual. Clients will continue to access banking services through the same channels, and any future changes will be communicated clearly and in advance, in line with regulatory requirements," the announcement stated.

The transaction is expected to become effective once the remaining conditions set out in the transaction agreement have been fulfilled.

Standard Chartered Uganda and Absa Bank Uganda said they will continue to engage with regulators, customers, and other stakeholders as the process progresses.

Management noted that customers will continue receiving banking services through existing channels while further updates regarding the transaction will be communicated in accordance with regulatory requirements.