FirstRand's newly appointed CEO Mary Vilakazi is hoping her appointment will inspire township residents and women to climb the corporate ladder.
“If my appointment inspires a person in Alex to believe that anything is possible, that would be a great outcome,” said Vilakazi, who was born and grew up in Alexandra, Johannesburg, in an interview with Business Times.
Vilakazi, at present FirstRand COO, was this week named as CEO, succeeding Alan Pullinger.
FirstRand, Africa's largest financial services company by market capitalisation, announced a management shake-up that will see FNB CEO Jacques Celliers become the group's fintech executive and FirstRand CFO Harry Kellan take over as FNB's CEO.
Kellan will be succeeded by Markos Davias, the current FNB CFO. CFO for the group’s broader Africa business, Gideon Joubert, will take the reins from Davias as FNB CFO. The appointments are effective from April next year.
Johan Burger will succeed Roger Jardine as chair from December 2023.
Vilakazi, who joined FirstRand in 2018 from MMI Holdings, where she was deputy CEO, is credited with contributing to First Rand ’s strategy and growing the group ’s insurance segment.
“What I bring to the table is my ability to work with leaders. I suppose that is why the FirstRand culture resonates with me so much. It is about making sure you are able to lead leaders in executing on an agreed strategy. It takes a lot of ability to influence because we do not have a culture of 'thou shall'.”
Vilakazi said her focus has helped her gain momentum.
“Focus is an underrated trait. I am very focused on making sure there is execution, that there is a strategy and in making sure that the right people are in the right roles. Because somebody has done well previously, it does not mean they are well suited for a different role, so it is about making sure we have the right people doing the right thing, and then holding people accountable.
If my appointment inspires a person in Alex to believe that anything is possible, that would be a great outcome
— Mary Vilakazi, FirstRand's next CEO
“One of the things I am not shy of is having frank conversations. I think that makes a consistent leader. People know where they stand, and there is a safety net. I suppose when people know what they are doing, my job is then to encourage and enable.”
She said despite economic headwinds, there are opportunities to grow in the domestic market.
“We have a long list of challenges. It means growing in South Africa is tough. If you look at where interest rates are at and the pressure consumers are under, we are not necessarily heading into a cycle that comes with tailwinds. It will require us to be focused and targeted to chase opportunities. I guess there are parts of our business that still get to grow in a cycle that we are in.”
She said the group is focused on diversification of revenues away from just banking. She said UK subsidiary Aldemore Group has a runway for growth. “The focus is to make sure we are executing, and that is growing.”
Aldemore is a UK-based mid-sized consumer and business lender comprising Aldemore Bank and MotoNovo Finance.
The group's broader Africa business contributes about 10% to profit and the group is comfortable with its portfolio, which includes subsidiaries in Botswana, Namibia and Eswatini, she said.
“If you had to ask me, I would not prioritise being in too many countries, I would prioritise having valuable businesses like we have in our mature subsidiaries in Botswana and Namibia. That is going to be my focus, taking some of the countries where we are not number one, making sure they become similar to those where we are number one. We have opportunities for growth in Mozambique, Zambia and Ghana.”
She said FirstRand had a small footprint in Nigeria, and it is unlikely the group will become number one there, given the country’s market dynamics.
Commenting on her appointment as the first black woman CEO of a major bank in South Africa, Vilakazi said: “I don't feel any different. I don't think men do too. I recognise what it means for women to see another woman in this position. I recognise the importance of people who come from similar backgrounds seeing my achievements. There needs to be more. We [women] are 50% of the population. When that is normalised then we do not have to answer questions about being the first woman CEO.”
Analysts said Vilakazi had the right skills to take the group forward.
Radebe Sipamla, an investment analyst at Mergence Investment Managers, said Vilakazi's appointment was expected.
“The likelihood was high as she has been a senior executive within the FirstRand group for several years and was instrumental in executing on the group’s strategy and success. She has led the insurance segment within FirstRand to be a significant player in the market.”
He said Celliers and Kellan were also serious contenders for the role, given their tenures and senior experience in the group.
“Jacques Celliers seemed the most likely of the three to be appointed CEO as he is the CEO of the [most profitable] segment in FirstRand, FNB, which is also the group’s main source of attractively priced retail deposits that fund loan growth and net interest income for the group.
“The board, in deciding on the current succession strategy, made a balanced decision in appointing Vilakazi as her appointment will position FirstRand as a leader in promoting female representation of high calibre talent and transformation across the group, which is to be commended.”
He said the leadership's priority should be ensuring stability and growth in the UK operations and doubling down on entrenching the leading market share position of FNB.
He said Vilakazi “should also focus on positioning WesBank to adapt to the vehicle market dynamics in South Africa where the shift is towards more affordable Chinese/Asian vehicles and the affordability of used vehicles for consumers relative to new cars”.
There was also scope for Vilakazi “to identify opportunities to grow the footprint of RMB to geographies across the continent where it can compete with Standard Bank’s corporate and investment banking business, given the withdrawal of large global banks from the continent,” he said.
The Black Business Council welcomed Vilakazi's appointment.
“Her appointment is very significant and will send a positive message to all the girl children in South Africa that it is possible. The BBC would like to encourage other banks and financial services institutions to take a leaf out of FirstRand’s book and give women and black executives serious positions of responsibility and consequence.”
Vilakazi is the group’s second black leader after Sizwe Nxasana.
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