The Woolworths finance giant that it doesn’t actually control
Woolworths Financial Services (WFS) is a staple of the retailers’ subsidiary portfolio, but it does not control the entity, with Absa holding a 50% + 1 share in the financial business.
WFS offers a range of financial products, including store cards, credit cards, personal loans, and short-term insurance and life-insurance linked to other products.
Although it carries the Woolworths brand, it is actually a joint venture with Absa. Woolworths Holdings sold a 50% + 1 share stake in the business for R875 million in 2008, giving Absa a simple majority.
The WFS board is composed of directors from both WHL and Absa Group Limited, with direction on credit policy, risk, and funding from Absa, and on customer integration from Woolworths.
The business was established in the early 1990s, and the partnership with Absa was aimed at growing Woolworths’ business and enhancing Absa’s participation in the consumer finance market.
At the time of the deal, Woolworths said it needed a world-class partner that could provide access to specialist skills necessary to assist in the management and growth of the consumer finance business.
WFS benefited from Absa’s funding, credit risk management capabilities, customer value management, and industry expertise, which were backed by Barclays Bank at the time.
For Absa, the deal gave it access to the retailer finance market, where financial services were originated at the point of purchase—not accessible through traditional banking channels at the time.
Absa would also benefit from the Woolworths brand, which is seen as one of the best in the country, its massive distribution network, and its existing financial services business.
When the deal was announced, Sam Ngumeni was appointed as the CEO of Woolworths Financial Services.
The business remains profitable for Woolworths, having recorded a profit before tax of R216 million in the group’s latest interim results for the 26 weeks ended 28 December 2025.
The WFS Book increased by 1.8% year-on-year to the end of December 2025, and would have increased by 2.6% excluding the sale of part of its legal book.
The group said that growth in the book was driven by a focus on quality, with both new accounts and credit limits on existing accounts.
The annualised impairment rate for WFS for the six months ended 31 December 2025 was 6.4%, which it said remains sector leading.
From WFS CEO to Group CEO
While Ngumeni was the first CEO of the WFS joint venture with Absa, he will soon take over as the full CEO of the Woolworths Group.
Ngumeni has close to thirty years of experience and has served as the Executive Director of WHL since 2014.
He will take over as Group CEO of the company with effect from 1 June 2026, being promoted from his current role as Woolworths Food CEO.
He has held several other senior roles within the group, including Group COO and Group Director of People and Transformation.
He is also on WHL’s Risk, Information and Technology Committee, the Sustainability Committee, and the Social and Ethics Committee.
He also serves on the board of the group’s large subsidiaries, namely Woolworths (Pty) Ltd and Country Road Group (Pty) Ltd.
The appointment of Ngumeni follows a review of both internal and external candidates, and he was favoured for his strong understanding of both South Africa and Australia.
Since taking over as CEO of the Food division, the group said he has successfully led the business’s continued above-market performance and further strengthened its leadership in premium food retailing.
As Group COO, he was responsible for the group’s Supply Chain and Logistics, Stores, Information Technology, Online and Digital, AI, Data and Analytics, Real Estate, and Rest of Africa operations.
“I am deeply honoured to be appointed as Group CEO of this iconic Company, and one which is held in such high regard in our country,” said Ngumeni.
“I feel a profound sense of responsibility in leading this business in the next phase of its growth trajectory and am truly excited about the opportunities and challenges that lie ahead for us.”
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