African Bank Investments Limited (ABIL), the JSE-listed provider of unsecured loans, on Wednesday said one of its founders and CEO, Leon Kirkinis, had resigned with immediate effect after 23 years in the business.

The share price of ABIL sagged almost 57 percent on the JSE’s morning trade on the news, signalling that the market did not like the news.

The market worry could have been prompted by the fact that Kirkinis, who has served the company for many years, resigned with immediate effect.

This comes at a time when the company is struggling to produce top line earnings growth as it continues to face tough trading conditions in a negative economic environment in South Africa.

“The board owes a huge debt of gratitude to Leon for his vision and leadership during the growth of African Bank and wishes him every success for the future,” the board said.

Nithia Nalliah, the current group CFO, will replace Kirkinis as acting CEO of ABIL and MD of African Bank, a unit of ABIL, with immediate effect.

Nalliah joined ABIL in 2006 as CFO and the board said it was confident he has a good track record and is competent enough to drive ABIL through these “trying times” while awaiting the appointment of a full time CEO and MD.

He will continue to occupy the position of the Group CFO up until other appointments are made.

On Wednesday, ABIL released a trading update which showed that it is not raining but pouring for South Africa’s biggest provider of unsecured loans.

ABIL said the banking unit is likely to post a basic loss and headline loss for the second half of the 2014 financial year.

The banking unit forecasts a basic and headline loss of at least R4.6 billion ($427 million) for the full year compared to the basic loss and headline earnings in the 2013 financial year 2013 of R3 264 million ($297 million) and R654 million ($60.7 million).