Absa Poaches Standard Bank Deputy CEO to Be Its Next Chief

(Bloomberg) — Absa Group Ltd. hired Kenny Fihla as its chief executive officer after he served as deputy CEO at Standard Bank Group Ltd., the continent’s biggest lender by assets. 

He will start at the Johannesburg-based lender on June 17 after holding various roles at Standard Bank for the past 18 years. Absa said in a statement Monday. He tendered his resignation on Sunday. Absa shares rose as much as 3.5%, the most since Jan. 6. 

Fihla “is a recognized leader with substantial pan-African banking experience, has relationships across the banking and financial ecosystem, and a proven track record to drive results in complex environments,” Absa Chairman Sello Moloko said in a statement. 

Fihla will replace Arrie Rautenbach, who took early retirement in August after two years into the job. South Africa’s Public Investment Corp, the state-run fund manager that’s the country’s most powerful investor, lashed out at Absa for hiring Rautenbach — a White male — after Daniel Mminele, the bank’s first Black CEO, quit unexpectedly. 

Shareholder trust in Absa dipped under his tenure as it announced three profit warnings within a 16-month period and lost market share to rivals.

Absa Interim CEO Charles Russon had embarked on plan to win back confidence and unlock growth. He will remain in the position until June 16, partnering with Fihla after that to ensure a smooth leadership transition, and then taking a “key senior role within the group executive committee,” Absa said.

Fihla’s appointment at Absa is the latest in a string of CEOs in an interim or permanent basis since Maria Ramos retired in 2019.

René van Wyk succeeded her and then the lender appointed Mminele, whose exit saw Jason Quinn step into the position as interim CEO before Rautenbach’s appointment. 

Sign up here for the twice-weekly Next Africa newsletter.

The changes in Standard Bank and Absa come as the negotiate high interest rates and inflation in some of their key regions, as well as currency fluctuations and mixed customer health in their home market of South Africa.

“Absa has secured a good CEO in Kenny,” said Adrienne Damant, an analyst at Avior Capital Markets Pty Ltd, citing his demographics, track record and history.

Nedbank Group Ltd. hired Quinn from Absa to replace Mike Brown — who retired after being at the lender’s helm from 2010. He started May 31. 

FirstRand Ltd. in October 2023 named Mary Vilakazi as the first black female CEO of Africa’s biggest lender by market value, and Chief Financial Officer Harry Kellan took over as the CEO of the group’s largest unit — First National Bank — on April 1 last year.

Standard Bank says it will announce new leadership to replace Fihla in due course.

(Updates with comment from Absa chairman in third paragraph.)

More stories like this are available on bloomberg.com