Lungisa Fuzile, former Director-General of the National Treasury is the new CEO of SBSA. Picture: Moneyweb
Standard Bank has appointed Lungisa Fuzile, the former Director-General at the National Treasury, as the CEO of Standard Bank South Africa (SBSA).
Fuzile will report to Sim Tshabalala, CEO of the Standard Bank Group.
This appointment follows the recent changes to the group’s executive structure, which resulted in the disbanding of the joint group chief executive construct. The leadership of SBSA was a component of Tshabalala’s responsibilities when he served as the joint-group chief executive.
This appointment removes the dual role for Tshabalala, which had become both unsustainable and inappropriate, the group said in a statement.
This is an outstanding appointment and explains why he resigned from the Treasury in April, says Adrian Cloete a portfolio manager with PSG Asset Management. “As head of Treasury operations he will have strong leadership skills – he had a tough job lets recognise that, to say nothing of his financial skills.
“This move takes Standard Bank forward in its efforts to ensure its management team is diverse and representative of the country in which it operates.”
At the time of his resignation in April it was assumed this was in sympathy with the axing of former finance minister Pravin Gordhan and his deputy Mcebisi Jonas in March. However Fuzile, who has spent over 20 years in the public service, six of which were as DG of National Treasury, said he merely wanted the chance to pursue other opportunities.
Standard Bank SA is the largest part of the group, delivering almost 60% of group earnings. The lion’s share is earned from personal and business banking (PBB). South Africa is also the largest contributor to returns earned in corporate and investment banking (CIB). The chart below captures group headline earnings in the six months to June 2017.
Source: Standard Bank results presentation – 1H2017
“Standard Bank is a complex business to run, but right now of the banks it has the best best short-term earnings prospects. Africa thriving on all cylinders,” says Cloete.
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