Charles Russon has expressed confidence in incoming CEO Kenny Fihla to build on the strategic groundwork laid during his temporary stewardship of Absa
In the latest episode of Business Day Spotlight, Russon outlined the deliberate shift in the bank’s priorities from a gung-ho approach on market share, to a focused, ruthless pursuit of returns, disciplined capital allocation and a culture that empowers leaders at every level, which has created a robust platform for Absa’s turnaround.
Appointed into the role in August, Russon set out the goal of reaching a return on equity (ROE), a widely watched profitability indicator, of 16% by 2026 to be on par with peers, anchoring the strategy in profitability instead of market share, customer focus over product push and capital allocation discipline.
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“I like to believe that what we’ve done does set the foundation and puts the pillars in place that he can ultimately build upon,” said Russon, referring to Fihla, who is set to take the helm at Absa in the middle of next month. "
“While there may be nuances in his approach, I expect strong alignment with the principles we’ve established — profitability, customer-centricity and disciplined capital allocation. I believe he will be a great fit for Absa and will bring tremendous value to the organisation.”
Fihla, who leaves crosstown rival Standard Bank where he was deputy CEO, will inherit a company at an inflection point. Absa has cycled through six CEOs in six years and wrestled with internal fractures that have rattled investor confidence.
Russon’s tenure, which was less about grand transformation than pulling Absa away from market share grabs and forcing a hard reset on returns, has helped restore investor confidence. Shares in Absa have gained almost 10% since August last year, outpacing a 2% gain in the banking index.
motsoenengt@businesslive.co.za
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