South Africa’s African Bank is undergoing a significant leadership reset following a difficult first half of the year and a string of executive departures. Former Group CEO Kennedy Bungane left the bank in March after poor financial results and reporting issues, and the bank’s CFO resigned more recently in September, leaving the lender needing to rebuild its top leadership team quickly.
Veteran banker Zweli Manyathi has now stepped in as permanent CEO and has moved to appoint new heads across personal banking, business banking, insurance, and human resources. The bank reported a loss of R624 million after tax for the six months ending March 31, driven by impairments of R1.79 billion and a cost-to-income ratio nearing 70%, prompting the new leadership to consult on cutting up to 1,200 jobs and closing roughly 90 branches as part of a broader cost-reduction push.
Despite the turbulence, the bank’s capital adequacy ratio remained relatively strong at 25.8%, and deposits actually grew 18% over the period, suggesting customer confidence has held up even as the institution works through its restructuring.