- by Masivuye Mzimkhulu
- on 23 Jul, 2025
Shock Exit for Absa CEO Arrie Rautenbach Amid Rising Turmoil
When a top executive leaves under a cloud, people notice—especially when it’s the CEO steering one of Africa’s biggest banks. Arrie Rautenbach’s early retirement from Absa has turned heads inside and outside the industry. He’ll step down from the CEO post on October 15, 2024, then officially leave the group by April 2025. His early exit follows brewing discontent within Absa’s top ranks and a run of disappointing financial results.
Reports of a “breakdown” during a senior leadership meeting set tongues wagging. Some senior executives, according to leaks, questioned Rautenbach’s leadership style and even called for a black African CEO—an urgent reminder of South Africa’s ongoing battles over transformation at the top. While Absa shrugged off these claims as sensationalist, the noise around his departure speaks volumes about tension behind closed doors.
Rautenbach, a company stalwart who joined Absa back in 1997, only took the helm in 2022 after Daniel Mminele—who made headlines as Absa’s first black CEO—left the post. Yet in two years, Absa’s fortunes have lagged behind rivals. The group’s credit loss ratio ballooned to 123 basis points (bps) in the first half of 2024, well beyond its target range. Compare that with Standard Bank or Nedbank, who both kept their credit metrics far tighter, and it’s clear Absa is losing ground competitively.
Leadership Shuffles and Big Questions for Absa’s Future
Boardroom drama isn’t new at Absa. The CEO change marks just the latest in a series of executive departures since 2019. Underperformance in profits and market value has nagged the company, while a persistent gap with chief competitors has widened. Rautenbach’s departure comes as analysts and insiders both call for fresh ideas and strong, inclusive leadership at the top.
Charles Russon, Absa’s Corporate and Investment Bank (CIB) boss since 2018, is stepping up as interim CEO, pending regulatory sign-off. Yasmin Masithela, meanwhile, will move into Russon’s old role at CIB—again, on an interim basis. These reshuffles might keep the ship steady for now, but with investor patience thinning, many wonder whether these moves will solve the bigger problems. Issues around diversity, performance, and stability remain stubbornly unresolved.
For employees across the group—and for the country’s financial sector as a whole—the mix of leadership instability and underwhelming results has sparked worry. Absa’s board, while praising Rautenbach’s long run, acknowledges the need to rethink its top team and its growth strategy. With eyes on Russon and his interim team, there’s pressure to prove that Absa can close the gap with Standard Bank, Nedbank, and other leading players. Until they do, the banking giant’s path forward looks anything but straightforward.