Business
FirstRand overhauls banking structure, names new FNB CEO
FirstRand overhauls banking structure, names new FNB CEO
About this update from Firstrand Limited
By Nqobile DludlaSouth African financial services group FirstRand JSE:FSR said on Monday it will restructure its banking arm First National Bank, which will also involve several senior executive changes including the early retirement of FNB's CEO Harry Kellan.The group said the changes at FNB, South Africa's second biggest bank, are meant to simplify its segment model. The changes come as FNB's rivals pursue similar simplification drives. Banks across the sector are responding to growing product commoditisation, which has made personalised, segment‑specific client experiences the main source of competitive differentiation. Kellan will step down as CEO of FNB at the end of this year. He has spent 22 years at the group, including a decade as chief financial officer of FirstRand before becoming CEO of FNB in April 2024.Under the new structure, FNB's retail and commercial segment will be replaced by a single retail and business banking (RBB) segment, serving entry‑level to middle‑income individuals and small and medium-sized enterprises, FirstRand said.Lytania Johnson, currently head of FNB's personal banking subsegment, will become CEO of both RBB and FNB. Johnson has spent 25 years at the bank and has led the personal banking segment for the past three years. A new standalone private banking and wealth management segment will sit alongside RBB, led by Sizwe Nxedlana. The enterprise and public sector businesses within the commercial segment will move into the recently established commercial and corporate bank unit headed by Muneer Ismail, the group said. "By bringing together retail and business banking, we can better serve entrepreneurs, small businesses and households who require solutions that can cover their personal and business needs," Johnson said. In addition to the changes at FNB, FirstRand has appointed its group chief risk officer, Gert Kruger, as group chief operating officer, the lender added.