JOHANNESBURG (Reuters) –Â South Africa’s African Bank Investments warned on Wednesday it would fall to a full-year loss of nearly $600 million and said its chief executive would step down after more than 20 years with the struggling mass-market lender.
Abil, as the bank is widely known, said it expected a headline loss of 6.4 billion rand ($594 million) for this year from a loss of 365 million rand the previous year.
Abil has been hammered by rising bad debts as its core market of low-income borrowers comes under strain from a weakening economy and higher inflation.
Leon Kirkinis, a 23-year veteran and one of the founders of the bank, had stepped down as chief executive with immediate effect, it said, adding that Chief Financial Officer Nithia Nalliah had been appointed acting chief executive.
Shares of the bank fell 35 percent in early trade to their lowest in more than a decade.
Headline earnings, the main measure of profit in South Africa, excludes certain one-time items.
($1 = 10.7785 South African Rand)
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