(Corrects 9th paragraph to show Lucas-Bull announced she would step down, not that she had stepped down)
JOHANNESBURG (Reuters) -Absa on Tuesday named Arrie Rautenbach as its chief executive officer, the fourth person to take the reins at the South African lender since the departure of longstanding CEO Maria Ramos in 2019.
Rautenbach will replace interim boss Jason Quinn with immediate effect. Quinn had been at the helm since the abrupt departure of predecessor Daniel Mminele in April last year.
An Absa insider who has been with the bank since 1997, Rautenbach has held numerous managerial roles and currently heads the lender’s retail and business bank, a key unit now delivering better results after executing a turnaround strategy.
“I am confident that his (Rautenbach’s) leadership will provide the continuity and stability necessary to consolidate our purpose and strategy,” said outgoing Chairwoman Wendy Lucas-Bull, also due to be replaced this month.
Quinn will return to his previous role of chief financial officer, held since 2016, Absa said.
After a decade under former CEO Maria Ramos, investors welcomed her unexpected retirement announced in January 2019, hoping fresh leadership could breathe new life into a bank lagging its peers.
But Ramos’ departure, after which Rene van Wyk took over as interim CEO for around a year, was followed by instability.
Mminele, her permanent replacement tasked with delivering a turnaround strategy set before his arrival, left following a dispute with the board after just 15 months on the job.
When long-time chairwoman Lucas-Bull announced she would step down in October 2020, the search for her successor also brought drama. The bank sacked lead independent director Sipho Pityana, who applied for the job but missed out to incoming chair Sello Moloko, after he tried to take the country’s banking regulator to court over the process.
Still, Absa has produced better results. Neelash Hanjee, portfolio manager at Old Mutual, said Rautenbach had delivered a very credible turnaround at the all-important retail bank – a feat that seemed impossible a few years ago.
“Absa have shown they can deliver through the turmoil at the top… Imagine what’s possible with stable leadership and a sensible strategy.”
Rautenbach said he was humbled and honoured by the appointment. “I look forward to working with the board and executive in consolidating our strategy and performance,” he said.
Absa’s shares were flat in early trade.
(Reporting by Emma Rumney; Editing by Promit Mukherjee, Sherry Jacob-Phillips, Jan Harvey and David Goodman)
