South Africa’s first black-owned bank, African Bank, has increased its CEO’s remuneration package by more than R23 million for the financial year 2025.
African Bank is not as big as the top five banks in the country; however, it is gaining popularity, as it reported that its client base grew from 5.4 million to 6.3 million for the year ended 30 September 2025.
Despite the bank not being as prominent as others, it still pays its CEO, Kennedy Bungane, handsomely, despite African Bank reporting a decline in profits for the period.
African Bank CEO laughs all the way to the bank
According to the financial results for the period ended 30 September 2025, Bungane received more than R59.2 million, a massive increase from the R36.1 million he received for the same period in 2024.
Like any other CEO, his remuneration package has been bloated by bonuses. A CEO’s remuneration package includes guaranteed and variable pay.
Variable pay, short-term incentives (annual bonuses based on performance), and long-term incentives (stock options, stock awards, or performance shares based on multi-year goals). However, these are typically paid over a certain period of time.
The results show Bungane was paid short-term incentives worth R9.5 million. In addition, he received a deferred short-term incentive of R8.5 million and long-term incentives of R20 million.
African Bank CEO performance
It is understood that the deferred short-term incentive and long-term incentives are for Bungane’s financial year 2024 performance.
“The Long-term Incentive and Short-term Incentive disclosed in 2025 relate to the awards made in November 2024 for the financial performance of the FY24 year,” reads the report.
Apart from the incentives, he received R11.6 million in retention and other awards. Retention awards can be paid in money or equity to ensure the CEO’s continued employment. African Bank did not specify whether it paid Bungane’s awards in cash or equity.
His guaranteed pay exceeds R9.5 million. This package is the salary that Bungane is set to receive, whether the bank performs well or not. The guaranteed pay includes an annual salary of more than R8.3 million and retirement, medical contributions of more than R1.1 million.
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Staff salaries
According to the bank’s financial results, its staff costs (salaries, benefits, and other expenses) amount to R2.6 billion, up from R2.1 billion in 2024.
The R2.6 billion in staff costs is divided among different priorities. The first is basic remuneration, which can be the salaries of staff members. This amounted to over R1.8 billion, an increase from over R1.6 billion in 2024.
Apart from that, there is a contribution to the provident fund, which amounted to R224 million, an increase from R183 million in 2024. Commission paid to sales agents amounted to R6 million in 2025, an increase from R1 million in 2024. It is unclear whether they hired more sales agents or whether the bank increased the commission for existing agents.
The bank also stated that it paid employee benefits expenses of R392 million and share-based payments of R17 million. Staff costs also include remuneration of executive directors and prescribed officers, which amounted to R122 million.
Profits decline
African Bank reported a net profit after tax of R274 million for the 2025 financial year, a decline from R517 million in 2024.
African Bank is not currently a JSE-listed company, but it plans to list in the future. It has postponed its IPO to after the release of financial results for the year ended 30 September 2027.
Different companies have shares in African Bank’s holding company, African Bank Holdings Limited (ABHL). The shareholders of ABHL are the South African Reserve Bank, the Government Employees Pension Fund, and a consortium of South African banks, which includes FirstRand, Standard Bank, Absa, Capitec, Investec, and Nedbank.
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