The group came under fire in 2022 for appointing Rautenbach to replace Daniel Mminele, its first black CEO, who lasted only 16 months in the role after clashing with the board over strategy and direction.
News of Rautenbach’s early retirement comes as the group today reported a 5% decline in headline earnings of R10.2bn for the first half of 2024. Absa said it expects better second-half group performance as its South African retail businesses showed earnings growth in the first six months of the year.
Commenting on the results, Rautenbach said the group’s underlying businesses in the South African retail portfolio reported headline earnings growth, which is indicative of a recovery in business performance.
“While economic conditions remain challenging, our delinquency profile has stabilised as a result of the decisive action we have taken. We remain committed to our integrated strategy, a focus on seamless customer experience, and delivering sustainable, balanced growth and value creation,” he said.
The group said its active customer base expanded by 3% to 12.5-million in the first half of the year, while the number of digitally active customers increased by more than 12% to 4.3-million.
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Absa CEO Arrie Rautenbach to go on ‘garden leave’ in October
Senior Reporter
Image: Thapelo Morebudi/The Sunday Times
Absa CEO Arrie Rautenbach is set to leave the bank after two years at the helm.
The bank announced that Rautenbach, who has been with the group for more than 27 years, will go on early retirement in April 2025, but will be on "garden leave" from October this year.
"Arrie will cease to be the CEO and an executive director of the boards with effect from October 15, followed by a six-month contractual notice period that will be served as garden leave. He will continue to serve the group in his current role until October 15,” Absa said.
Charles Russon, CEO of its corporate and investment bank, will take over as interim CEO, subject to regulatory approval.
The group said senior executive Yasmin Masithela will become interim CIB CEO.
In May Absa was caught in another transformation storm after the group’s senior black executives confronted Rautenbach over recent critical senior appointments, including the planned removal of the head of the group’s Africa operations.
Former Absa employees jailed for stealing R1m from dormant accounts
The group came under fire in 2022 for appointing Rautenbach to replace Daniel Mminele, its first black CEO, who lasted only 16 months in the role after clashing with the board over strategy and direction.
News of Rautenbach’s early retirement comes as the group today reported a 5% decline in headline earnings of R10.2bn for the first half of 2024. Absa said it expects better second-half group performance as its South African retail businesses showed earnings growth in the first six months of the year.
Commenting on the results, Rautenbach said the group’s underlying businesses in the South African retail portfolio reported headline earnings growth, which is indicative of a recovery in business performance.
“While economic conditions remain challenging, our delinquency profile has stabilised as a result of the decisive action we have taken. We remain committed to our integrated strategy, a focus on seamless customer experience, and delivering sustainable, balanced growth and value creation,” he said.
The group said its active customer base expanded by 3% to 12.5-million in the first half of the year, while the number of digitally active customers increased by more than 12% to 4.3-million.
TimesLIVE
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