Big job awaits the next Absa CEO following the departure of Arrie Rautenbach
Absa is now in search of its seventh CEO in as many years.
Absa logo, from Absa South Africa on Facebook
Stephen Grootes speaks to Hlelo Giyose, Chief Investment Officer and Principal at First Avenue Investment Management.
Listen to the interview in the audio player below.
It's fair to say that all is not well at the Absa Group, following yet another of a CEO.
Absa Bank confirmed on Monday morning that its Group CEO, Arrie Rautenbach is leaving the organisation.
The bank is now in search of its seventh CEO in as many years, following Rautenbach's decision to go on early retirement in April next year.
Charles Russon will step into the role in an interim basis.
But Hlelo Giyose, chief investment officer & principal at First Avenue Investment Management says Rautenbach's decision to leave is indicative of the underlying issues within the organisation.
Speaking to Stephen Grootes on The Money Show, Giyose says the incoming CEO will have plenty to fix when they step into the role.
"Absa is actually the worst performing bank for some years now, in terms of financial productivity, in terms of invested capital and return on equity."
- Hlelo Giyose, chief investment officer & principal - First Avenue Investment Management
"It has the greatest amount of scale after Standard Bank, but it produces the highest cost and the lowest returns...to the business and to shareholders."
- Hlelo Giyose, chief investment officer & principal - First Avenue Investment Management
"Absa has to figure out how to get the best capability, not a hero...but to get competent people across the business to decentralise decision making and to allocate capital to the best performing divisions."
- Hlelo Giyose, chief investment officer & principal - First Avenue Investment Management
Scroll to the top of the article to listen to the full interview.