CEO Kenny Fihla, who was poached from larger rival Standard Bank Group, also seeks to bolster non-interest revenue and return on equity at South Africa's third-biggest lender by assets. Fihla will unveil his strategy to the board in the next couple of months, he said on Monday.
"This used to be an unbelievable institution and still is in many respects," Fihla, 58, said in his first interview since taking over on 17 June. "But unfortunately, some of the challenges of successive leadership changes resulted in the organisation losing its sharpness when it comes to that external focus."
The churning of CEOs - since Maria Ramos retired in 2019 - has weighed on Absa's profitability, making it one of the worst performers out of the continent's nine largest lenders. Fihla says management stability will help the bank's 36 800 employees focus on clients and boost return on equity from 14.8, which compares to 29 at Capitec Bank.
Johannesburg-based Absa earlier this year set a target to boost ROE to 15 in 2025.
In a 16-month period last year, Absa warned that its profit would lag expectations - thrice. That hit the shares, which have trailed most major rivals.