Absa Group CEO Arrie Rautenbach announced his early retirement after just two-and-a-half years in the position, citing poor governance and weaker-than-expected financial performance. Despite reporting a 5% decline in first half headline earnings to R10.2 billion, the bank’s share price rose nearly 5% in response to the leadership change. Rautenbach will remain in his role until October 15, 2024, followed by a six-month garden leave. Analysts from Old Mutual Wealth and Mergence Investment Management expressed concerns about the bank’s ability to close its valuation gap with competitors due to ongoing governance issues and inconsistent performance. Absa’s interim results highlighted growth in South African operations, but regional operations saw a decline in headline earnings due to exchange rate impacts. Looking ahead, Absa anticipates stronger performance in the second half of 2024.
Banking, Private Equity,South Africa, Africa
https://www.iol.co.za/business-report/companies/absa-ceo-arrie-rautenbach-steps-down-as-the-groups-valuation-continues-to-lag-that-of-its-peers-be9d8792-0f6d-4eaa-b4e9-4ef69b53fca6