Standard Chartered Bank Botswana is anticipating a significant drop in profit before tax for the half-year period ended 30 June 2025.
According to the bank, the profit before tax will be approximately between 40% to 50% (P102 million to P127 million) lower than the P254 million reported for the six months ended 30 June 2024.
The drop is a result of a one-off transaction affecting credit impairment, which the bank will provide the details on when it releases the full results at the end of September.
Standard Chartered Bank Botswana, which is looking to sell its retail and wealth divisions, has shortlisted bidders for the transaction.
The bank announced the sale of the divisions in November last year as part of a restructuring strategy by its UK-based parent company, which also impacted the Zambia and Uganda subsidiaries.
By offloading the operations in Botswana, Uganda and Zambia, as well as more markets to come, Standard Chartered, whose Botswana subsidiary recorded a P254 million profit in its latest financial results, is aiming to save around $1.5 billion over three years.
It will then shift its focus to markets with affluent individual customers and international companies that are likely to yield more in fees for the bank. These markets are mostly in Asia and present the most clear path to growth for the bank.
Standard Chartered said the potential exits in Africa would be the first in a small number of business divestitures per its new target of doubling investment in its wealth unit while paring back retail banking.