Standard Chartered to expand banking business in Africa

Standard Chartered, an international financial institution, is planning to expand its banking operations in two more African countries, including Angola and Mozambique, with a strategy to boost its revenues from the region.

Standard Chartered Africa chief executive Diana Layfield was quoted by the Wall Street Journal as saying that the lender has applied for a banking license in Angola and will submit a license application to concerned regulatory agency in Mozambique.

The central bank of Angola is expected to take a decision by this year end.

The bank, whose income increased by 8% to $19.07bn in 2012, is focused on strengthening its offshore banking operations by tapping business opportunities in the Middle East and African markets, especially oil and gas financing.

The British bank, which already has operations in 15 African nations, is seeking to boost its revenues by double within five years through its African operations.

Apart from applying for a banking license, the bank has entered into a JV agreement with Angola government owned insurer ENSA.

If the JV comes into existence, the UK bank will own 60% stake in the bank, while remaining stake will be vested with ENSA.

In Mozambique, the lender has been offering offshore banking services to various multinational firms.

Besides StanChart, many other financial organizations and private-equity firms, such as JP Morgan Chase & Co and Carlyle Group, are all set to boost their business in the continent.

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