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JOHANNESBURG. – Absa chief executive Daniel Mminele is in talks with the board about leaving after just 15 months at the helm of one of Africa’s biggest lenders, the bank said yesterday, in a move that surprised investors and sent its shares down 5 percent.
Mminele, a former deputy central bank governor, took the reins at Absa from long-time boss Maria Ramos in January 2020.
Business Day newspaper and other local media reported that his possible departure followed a rift with the board about the bank’s strategic direction.
As well as steering the bank through the coronavirus pandemic, Mminele was responsible for driving a turnaround plan that was largely put in place before his arrival, although he made some changes to strategy.
Absa said in a brief statement that the board had been in discussions with Mminele around his working relationship with them and a further announcement would be due to be made later yesterday.
“Mr Mminele and the board are working on a suitable separation agreement,” the bank said, without elaborating.
An Absa spokeswoman declined to comment further. Mminele declined to comment via LinkedIn.
Absa has been trying to improve performance since splitting from its former British parent Barclays in 2017. Its efforts have in the past year begun bearing fruit, with the bank winning back lost market share in key products like mortgages.
Absa investors, caught off guard by the announcement, said Mminele’s departure created uncertainty, with one top 10 investor saying they were engaging with board over this “serious matter”.
Despite voicing concern about uncertainty, another major investor said the bank’s commitment to existing strategy was welcome. “The fact that … execution on that strategy is continuing is probably a good thing,” the person said. – Reuters
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