Absa Group has disclosed that its CEO, Arrie Rautenbach, will be departing from the company following a downturn in profits for the half-year period ending June 30, 2024 (H1 2024). In a mutual agreement with the board, Rautenbach will take early retirement from the group, effective April 15, 2025. His tenure as CEO and as an Executive Director will conclude earlier, on October 15, 2024.
Rautenbach will enter a 6-month garden leave in accordance with his contractual notice period before his retirement. The group expressed its gratitude for Rautenbach’s dedication and significant contributions over his 27-year career at Absa, extending best wishes for his retirement.
Charles Russon is set to assume the role of Interim Chief Executive Officer of both Absa Group and Absa Bank from October 15, 2024, pending regulatory approval. Russon will also join the boards as an executive director.
Having served as the Chief Executive of Absa’s Corporate and Investment Bank (CIB) since 2018 and a member of the Group Executive Committee since 2014, Russon brings extensive experience to the position. His history with Absa dates back to 2006 when he joined Absa Capital as CFO, and he has since held various senior roles within the group.
Russon’s professional background includes time with KPMG, Merrill Lynch, and Deutsche Bank in London and Frankfurt. He is a Chartered Accountant and a BCom graduate from Rhodes University. Simultaneously, Yasmin Masithela is poised to become the Interim Chief Executive Officer of Absa’s CIB from October 15, 2024, subject to regulatory approval.
Masithela, currently the Managing Executive of Corporate Transactional Banking within CIB, has been in this role since May 2019. Her previous positions include serving on the Group Executive Committee as Chief Executive of Strategic Services and Chief Compliance Officer.
She holds a BA and LLB from the University of Cape Town, along with a Higher Diploma in Company Law and an LLM in Tax Law from the University of the Witwatersrand.
Financial Performance
The announcement of Rautenbach’s early retirement coincides with a decline in the group’s financial performance. Basic earnings per share fell by 9%, from 1,302.4 cents in H1 2023 to 1,188 cents in H1 2024. Similarly, headline earnings per share saw a 5% decrease from 1,293.1 cents in H1 2023 to 1,228.4 cents in H1 2024.
Despite the decrease in earnings, the group’s total income rose by 3% to R53 billion. Although headline earnings saw a reduction, Absa maintained its interim dividend at 685 cents per share.
The group’s results can be found below:
| Financials | H1 2023 | H1 2024 | % Change |
| Total Income | R51 919m | R53 708m | +3% |
| Headline Earnings Per Share | 1 293.1 cents | 1 228.4 cents | -5% |
| Basic Earnings Per Share | 1 302.4 cents | 1 188.0 cents | -9% |
| Net asset value per ordinary share | 17 027 cents | 18 014 cents | +6% |
| Return on equity | 15.7% | 14.0% | – |
| Cost-to-income ratio | 50.6% | 52.7% | – |
| Net interest margin | 4.62% | 4.69% | – |
| Dividend per ordinary share | 685 cents | 685 cents | – |
