Arab Jordan Investment Bank (AJIB) has signed an agreement to purchase Standard Chartered Bank‘s business in the Hashemite Kingdom of Jordan, following the approval of the Central Bank of Jordan.
The agreement outlines that the corporate, commercial and institutional banking (CCIB), as well as the consumer, private and business banking (CPBB) businesses of Standard Chartered in Jordan, will be wholly migrated to AJIB.
The move also sees all of the employees of Standard Chartered Bank in Jordan transfer to AJIB. As a result, the two entities will work together over the coming months to transition all of the clients and staff across.
The acquisition of the business in Jordan comes as AJIB looks to grow its banking business market share in the country. It aims to continue this expansion after AJIB’s acquisition of HSBC’s banking business in Jordan in 2014, alongside the National Bank of Kuwait’s banking business in Jordan in 2022.
AJIB’s newest purchase highlights its strong position financially, as it looks to enhance its presence in the Jordanian banking sector.
AJIB strengthens position in Jordan
Sunil Kaushal, regional chief executive officer of Standard Chartered Bank in the Middle East and Africa (MEA), explained that the agreement with AJID aligns with Standard Chartered’s own global strategy. Standard Chartered is looking to deliver efficiencies, reduce complexity, as well as redirect resources within the AME region to areas with the greatest potential to drive scale, grow and better support clients.
Kaushal commented: “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. We will work closely with AJIB to service the needs of our global clients in Jordan. While we will be selling our local business, we will continue to facilitate and be a bridge for international capital flows into Jordan.”
Hani Al-Qadi, chairman of the board of directors of Arab Jordan Investment Bank, also discussed the acquisition. Al-Qadi said: “Standard Chartered Bank is a leading regional and international bank with more than 160 years of experience, the bank has been present in Jordan for more than 98 years.
“The regulatory authorities have also already approved this agreement. We look forward to working closely with Standard Chartered’s team over the coming few months towards achieving a successful conclusion to this transaction without impact on clients and employees.”
