(Bloomberg) -- Standard Chartered Plc is banking on the ultra-rich in Africa to expand its business after more than doubling assets under management in its wealth business on the continent the past three years.
AUM in sub-Saharan Africa has catapulted to $4 billion from $1.7 billion, Chairman José Viñals said in an interview in the Kenyan capital, Nairobi. The continent has more than 135,000 dollar millionaires and that number is likely to jump 65% over the next decade, according to Henley & Partners and New World Wealth.
The London-based bank has shrunk its business in Africa by divesting from seven markets, but retained a presence in 10 countries that are navigating challenges including currency depreciations, high inflation, insecurity and debt, he said.
“The direction of travel is phenomenal and we expect to achieve very significant increases because wealth is one of the most potent engines of Standard Chartered,” Viñals said.
Wealth products such as leveraged lending to individuals have taken off in places like Kenya and Nigeria and the lender is also offering dollar-denominated government, green and corporate bonds in markets including Ghana, he said.
While StanChart is scaling back from the continent alongside Societe Generale SA, BNP Paribas SA and HSBC Holdings Plc, JPMorgan Chase & Co. is expanding its footprint by establishing representative offices in Kenya and Ivory Coast.
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