Absa loses three more managers

The bank confirmed the resignations of Sydney Soundy, retail markets business head, Pradeep Maharaj human resources head at Absa Capital and human resources head Fergus Marupen.

Sifiso Shongwe, managing executive of Absa home loans was also set to leave but was apparently convinced at the last minute to stay on, according to sources. He joined the bank recently and is playing a key role in regaining Absa's dominance in the mortgage sector.

Absa spokesmen brushed off the impact of the resignations, saying they were typical of any large organisation.

Marupen's resignation was described by the bank as a "secondment" to Business Unity SA, but it is not clear if he will rejoin Absa after completing his stint there. He is reportedly not receiving a salary from Absa.

Soundy was also in charge of the vehicle asset and finance division, previously known as Bankfin, which is expected to regain traction in the car-finance market, where WesBank and Nedbank's Motor Finance Corp have won market share and are highly profitable.

Soundy recently joined the bank from SA National Parks but had previously worked for Absa. His resignation means the bank has lost another key retail executive at a time when it is trying to regain market share lost over the past two years.

Rumours that Arrie Rautenbach, head of retail markets, was also set to leave have not been confirmed.

Overall, Absa's earnings fell 24% at the retail markets division in the six months to June, as bad debt soared.

The latest exodus apparently relates to continued fallout from the decision by the bank in June to increase its provisioning level for mortgages again after lowering it at the end of 2011. Head of credit Gustav Raubenheimer has been described as the fall guy for this decision, but he has also resigned and is joining African Bank next month.

The most prominent resignation has been Marupen's. As human resources head and a member of the executive committee, he played a crucial role in the revamped human resources strategy driven by chief executive Maria Ramos.

Since the end of 2010, eleven of Absa's top executives have left the banking group.

Source: Financial Mail via I-Net Bridge