Jordan’s AJIB to acquire Standard Chartered unit in kingdom

Arab Jordan Investment Bank (AJIB) has agreed to buy Standard Chartered’s business in the kingdom after securing the approval of the Central Bank of Jordan.

AJIB will absorb the corporate, commercial and institutional banking, and consumer, private and business banking businesses of Standard Chartered in Jordan, the lenders said yesterday.

All employees of Standard Chartered in Jordan will be transferred to AJIB. The banks did not give a value for the deal.

The agreement with AJIB is in line with the restructuring of Standard Chartered announced last year and part of the redirection of resources to areas with the greatest potential to drive growth, said Sunil Kaushal, the regional chief executive of Standard Chartered in Africa and the Middle East.

Standard Chartered’s plans include exiting Angola, Cameroon, Gambia, Lebanon, Sierra Leone and Zimbabwe, as well as consumer, private and business banking in Tanzania and the Ivory Coast.

“Our agreement with AJIB will allow us to accelerate our strategy and leverage on their track record of previous acquisitions to meet the financial needs of our clients,” Mr Kaushal said.

“While we will be selling our local business, we will continue to facilitate and be a bridge for international capital flows into Jordan.”

The agreement aligns with AJIB’s strategy to grow its banking business market share in Jordan, which continues to expand following a series of landmark acquisitions, said Hani Al Qadi, chairman of AJIB.

“Signing this agreement today is a testimony to the bank’s strong financial position and further enhances AJIB’s presence in the Jordanian banking sector,” Mr Al Qadi said.

Last year, AJIB bought National Bank of Kuwait’s banking business in Jordan and in 2014, it acquired HSBC’s business in the kingdom, which had gross assets of about $1.2 billion.

In October, Jordan’s Capital Bank finalised its acquisition of France’s Societe Generale’s unit in the kingdom and in 2020 it also acquired Lebanon’s Bank Audi operations in the country and Iraq.

Last month, Standard Chartered reported a 28 per cent increase in its 2022 pre-tax profit as operating income rose amid higher global interest rates.

The London-listed bank’s profit before tax for the 12-month period to the end of December rose to $4.3 billion, while operating income for the period was up 11 per cent to $16.3 billion.