Absa New CEO
By Mpho Moloi
Absa has appointed Kenny Fihla as its new Chief Executive Officer, effective 17 June 2025, following his sudden resignation from Standard Bank on Sunday night. The two rival banks made early morning statements on Monday to announce the executive changes, with Absa confirming that Fihla’s appointment is subject to regulatory approval. Current interim CEO Charles Russon will remain in his role until Fihla takes over and will work closely with the new leader to ensure a smooth transition before moving to a key senior position within the group executive committee.
A Shock Move in South African Banking
South Africa’s banking sector was rocked this week by the unexpected news that Kenny Fihla, the Deputy CEO of Standard Bank, has been named Absa’s new Chief Executive Officer. Fihla tendered his resignation from Standard Bank on Sunday night, and by Monday morning, both banks had issued statements confirming the dramatic shift. Absa announced that Fihla will officially take the helm on 17 June 2025, pending regulatory approval, marking a significant leadership change for one of the country’s biggest financial institutions.
This move comes at a crucial time for Absa, which has been searching for a permanent CEO since Arrie Rautenbach took early retirement in October 2024. Rautenbach’s departure followed internal disagreements over the slow pace of transformation at the bank, a hot-button issue in South Africa’s economic landscape. Absa has been under pressure to diversify its leadership and improve services to reflect the country’s diverse population, and Fihla’s appointment is seen as a bold step towards achieving those goals.
Standard Bank, meanwhile, expressed regret over losing Fihla after his 18-year tenure with the bank. CEO Sim Tshabalala called it a “heavy blow,” noting Fihla’s key role in the organisation and his status as a potential successor. However, the bank reassured investors and customers that it has a strong pool of talent and will soon announce plans to fill the gaps left by Fihla’s departure.
The market responded quickly to the news. Absa’s share price climbed 2.9% to R189.69 in early trading on Monday, showing investor confidence in Fihla’s leadership. Standard Bank’s shares, on the other hand, dipped slightly by less than 1% to R236.50. Daniel Masvosvere, a portfolio manager at Ashburton Investments, summed up the sentiment: “Kenny Fihla is well regarded – the share price reaction tells you what the market thinks.”
Who is Kenny Fihla?
Kenny Fihla is no stranger to the banking world, bringing nearly two decades of experience from Standard Bank to his new role at Absa. He joined Standard Bank in 2006 as an executive in the Financial Asset Services business, part of the Corporate & Investment Banking (CIB) unit. Over the years, he took on bigger roles, including head of transactional products and services, head of client coverage, and deputy CEO of CIB, before being named CEO of that unit in June 2017.
Fihla’s time as CIB CEO was a standout period for Standard Bank. Under his leadership, the unit doubled its headline earnings to R20.5 billion between 2017 and 2024, a clear sign of his ability to grow a business and deliver results. His focus on innovation and customer-focused solutions helped cement his reputation as a skilled leader in the banking sector.
In August 2024, Fihla was promoted to Deputy CEO of Standard Bank, taking over as CEO of the bank’s South African operations from Lungisa Fuzile, who moved to a new role as group head of public policy and regulation. Fihla also became regional CEO for Standard Bank’s southern and central African operations, overseeing countries like Zambia, Malawi, Mauritius, and Zimbabwe. This wide-ranging experience across Africa’s banking markets makes him a strong fit for Absa, which operates in multiple countries on the continent.
Fihla’s education backs up his practical know-how. He holds a Master’s in Financial Economics from the University of London and an MBA from the University of the Witwatersrand, one of South Africa’s top business schools. These qualifications, combined with his long career, have prepared him to tackle the challenges ahead at Absa.
Beyond his day-to-day roles at Standard Bank, Fihla served as an executive director of Standard Bank South Africa and sat on various board committees. He was also a non-executive director and chair of ICBC Standard Bank Plc and Stanbic Africa Holdings—positions he will now leave as he transitions to Absa.
Why Absa Chose Fihla
Absa has been on the hunt for a permanent CEO since Arrie Rautenbach stepped down in October 2024 amid tensions over the bank’s transformation efforts. Transformation is a big deal in South Africa, where businesses are expected to reflect the country’s diversity in their leadership and services. Absa has faced criticism for moving too slowly on these changes, and Rautenbach’s exit highlighted the need for a fresh approach.
The bank’s board took its time to find the right person, and after a careful search, they landed on Kenny Fihla. Absa’s statement praised his skills, saying, “Kenny is a recognised leader with substantial Pan-African banking experience and a proven track record.” Chairman Sello Moloko echoed this, noting Fihla’s ability to lead in tough situations and his strong ties across the financial world.
Fihla’s appointment isn’t official yet—he needs regulatory approval first, which is standard for top banking jobs in South Africa. Once that’s cleared, he’ll start on 17 June 2025. Until then, interim CEO Charles Russon will keep things running smoothly. Russon has been in charge since Rautenbach left and will stay on to help Fihla settle in before taking up a new senior role at Absa.
This transition plan shows Absa’s commitment to keeping things stable while bringing in new leadership. Fihla’s background in managing big operations across Africa makes him a natural choice to push Absa’s transformation forward and help the bank grow.
How the Market Reacted
Investors didn’t waste time showing how they felt about Fihla’s move. By Monday morning, Absa’s share price had jumped 2.9% to R189.69, a clear vote of confidence in the new CEO. Analysts say this rise reflects Fihla’s solid reputation and the belief that he can turn things around at Absa.
Daniel Masvosvere from Ashburton Investments put it simply: “Kenny Fihla is well regarded – the share price reaction tells you what the market thinks.” His words highlight how much trust the financial world has in Fihla’s abilities.
Meanwhile, Standard Bank’s share price took a small hit, dropping less than 1% to R236.50. It’s not a big fall, but it suggests some worry about losing a key player like Fihla. Still, the bank’s size and strength mean it’s unlikely to feel a lasting impact.
The different reactions show how much leadership matters in banking. Absa’s gain is seen as Standard Bank’s loss, at least for now. But both banks are big players in South Africa, and they’re used to handling changes like this.
Transformation: Absa’s Big Challenge
Transformation is at the heart of Absa’s plans, and it’s why Fihla’s appointment is such a big deal. In South Africa, banks are expected to do more than just make money—they need to help build a fairer economy. That means having leaders who reflect the country’s diversity and offering services that reach everyone, especially people who’ve been left out in the past.
Absa has been working on this, but progress has been slow. Arrie Rautenbach’s retirement came after arguments inside the bank about how fast things were moving—or weren’t. His exit put a spotlight on the need for a leader who can speed things up, and Fihla fits the bill.
With his experience running Standard Bank’s operations across Africa, Fihla knows how to handle different markets and challenges. He’s led teams in countries with unique rules and needs, which will help him make Absa more inclusive and responsive. His track record of growing businesses while keeping customers happy also suggests he can balance transformation with profits.
This isn’t just about Absa—it’s part of a bigger push in South African banking. Other banks, like Nedbank and FirstRand, are also focusing on transformation, and leaders like Fihla are in high demand to make it happen.
Standard Bank’s Loss
Standard Bank wasn’t ready to lose Kenny Fihla. CEO Sim Tshabalala didn’t hold back, calling it a “heavy blow” and praising Fihla’s 18 years of work. Fihla was a big part of the bank’s success, especially as Deputy CEO and head of its South African operations.
He was also seen as a future CEO, someone who could step into Tshabalala’s shoes one day. His sudden exit leaves a gap, and Standard Bank is now figuring out how to fill it. The bank said, “Whilst this is a heavy blow for us, the group is blessed with a surfeit of talent and deep succession pools,” promising more news on its plans soon.
Fihla’s departure affects more than just his main roles. He’s stepping down as an executive director of Standard Bank South Africa and from board committees, as well as his positions at ICBC Standard Bank Plc and Stanbic Africa Holdings. That’s a lot of change for one bank to handle.
But Standard Bank is Africa’s biggest bank by assets, and it’s got the resources to bounce back. It’s known for training strong leaders, and it’s likely someone from inside will step up to take Fihla’s place.
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