Pricing and Profitability Manager (VAF)

In the dynamic landscape of South Africa's financial sector, Absa is seeking a skilled Pricing and Profitability Manager to spearhead strategies that enhance portfolio returns while meticulously balancing risk, funding, and operational efficiency. This pivotal role is central to maximising the profitability of Absa's vehicle and asset finance (VAF) book, ensuring sustainable growth and robust financial performance.

Navigating Profitability and Pricing

The core of this position involves the development, implementation, and ongoing refinement of pricing strategies and profitability frameworks. The successful candidate will be tasked with maintaining and elevating sophisticated profitability models. This requires ensuring that all crucial financial, funding, and risk inputs are current and that these models adhere to stringent model risk governance requirements. Collaboration is key, with close liaison expected with Finance, Treasury, and Credit Risk departments to guarantee the accuracy and integrity of profitability assessments.

A significant responsibility lies in the diligent monitoring and reporting of profitability across both new business ventures and the existing VAF portfolio. This encompasses a thorough analysis of expected returns, evaluating the impact of fair value adjustments, and factoring in risk, operational costs, and funding expenses. The output of these analyses will be critical management information, presented during portfolio quality reviews, and will illuminate the key drivers influencing profitability. These insights will directly inform strategic decision-making and identify avenues for performance enhancement.

Strategic Pricing and Governance

The Pricing and Profitability Manager will play a leading role in crafting and honing pricing strategies. This involves a deep dive into market trends, competitor activities, customer behaviour, and the intricate relationship between risk and reward, including price elasticity. Based on this comprehensive understanding, the incumbent will provide well-reasoned recommendations for pricing adjustments and actively support their implementation. This extends to determining acceptable marginal pricing levels, supporting pricing decisions for novel products, and designing, executing, and monitoring "champion/challenger" tests to optimise customer engagement and portfolio outcomes for both fixed and variable rate offerings.

Robust governance and control are paramount. The role demands vigilant oversight to ensure that pricing practices remain effective, compliant, and ethically sound. This includes monitoring pricing exceptions, assessing the adequacy of existing controls, identifying potential vulnerabilities, and driving the implementation of corrective actions to fortify the overall pricing framework and enhance the risk management environment.

Furthermore, this position offers strategic input into new product development, product enhancements, potential acquisitions, and credit strategy initiatives. The manager will evaluate the profitability implications of product refinements, explore inorganic growth opportunities, and analyse proposed changes to credit underwriting strategies. Analytical contributions to business cases will be vital in supporting sustainable growth and profitability objectives.

A crucial aspect of the role involves the preparation and presentation of detailed reports to various governance forums, including Portfolio Quality Review Forums, Revenue Forums, Executive Committees, and Risk Committees. The incumbent will be responsible for clearly communicating portfolio performance, profitability trends, the outcomes of pricing strategies, and strategic recommendations to senior stakeholders.

Leading and Collaborating

Beyond the analytical and strategic demands, the Pricing and Profitability Manager will also be responsible for leading and developing a high-performing team. This involves performance management, coaching, succession planning, capability development, recruitment, talent retention, and fostering a positive employee engagement environment. Ensuring alignment between team objectives and broader business goals, while nurturing a culture of continuous improvement, accountability, and knowledge sharing, will be critical.

The role necessitates extensive engagement and influence across multiple senior stakeholder groups, including Risk, Finance, Treasury, Sales, Product, Technology, and executive leadership. Building consensus, securing buy-in for pricing initiatives, and ensuring the effective execution of strategic changes will be key to driving portfolio profitability and achieving overarching business objectives.

To excel in this role, candidates typically require a B.Com Honours degree in fields such as Actuarial Science, Accounting, or Mathematical Statistics, complemented by a minimum of two years' technical credit risk experience and two years of related managerial experience.

In South Africa, a Pricing and Profitability Manager role within a large financial institution like Absa often commands a competitive salary, reflecting the strategic importance and specialized skillset required. Such positions typically offer good career progression, with potential pathways into broader finance leadership, strategic planning, or senior risk management roles. Employers often include major banking groups, large insurers, and significant asset finance companies.

Requirements & Qualifications

Education

Bachelor Honours Degree: BMI - Business Management and Informatics

Absa Bank Limited is an equal opportunity, affirmative action employer. In compliance with the Employment Equity Act 55 of 1998, preference will be given to suitable candidates from designated groups whose appointments will contribute towards achievement of equitable demographic representation of our workforce profile and add to the diversity of the Bank.

Absa Bank Limited reserves the right not to make an appointment to the post as advertised