Gilson Finkelsztain departs B3 to take the helm as CEO of Santander Brasil, replacing Mario Leão

The Brazilian financial world woke up to one of the most talked-about stories of the year. Along the corridors of Faria Lima, there was only one topic of conversation: the confirmation that Santander Brasil will have a new president. Mario Leão is stepping down after four years at the helm, and Gilson Finkelsztain, who was leading B3, has been chosen to take the reins by July. Those with an ear to the ground sensed a move of this magnitude was coming, but the official announcement still caught many off guard.

The end of an era: Mario Leão and the mission to restore profitability

Mario Leão has been with Santander for over a decade. He took over as CEO in January 2022, succeeding Sergio Rial, at a tricky time for the bank. Default rates were high, and profitability was under pressure. Anyone who remembers the post-pandemic landscape knows it wasn't easy. Leão's mission was to turn things around and win back the market's confidence.

And it's fair to say he delivered. Under his leadership, the bank underwent a deep restructuring. Return on equity (ROE), which had hovered around 10% in mid-2023, climbed back to 17.6% in the last quarter. The strategy was clear: prioritise more profitable lending lines, such as small and medium-sized enterprises (SMEs) and high-income clients, while scaling back slightly on lower-income retail. The plan laid out by the Spanish parent company aims for a 20% ROE by 2028, and Leão leaves the ship in good shape.

Behind the scenes, it's understood his departure wasn't a sudden decision. Early in the year, he reportedly informed group leadership of his intention to step down for personal reasons. At 50, the executive has hinted he is seeking new challenges and wants to apply his experience in other industries.

Why Gilson Finkelsztain was the choice

That's where Gilson Finkelsztain comes in. He had been on Santander's radar for some time. Last year, he was announced for the bank's board of directors but eventually pulled out to avoid potential conflicts with B3. This time, the story is different. The Spanish parent company has turned to someone who knows the Brazilian market inside out and has a history with the organisation – Finkelsztain previously worked in Santander's interest rates desk between 2011 and 2013.

Mario Leão himself moved to reassure the team. In an internal memo, he made it clear that the bank had reached a level of maturity that allowed for a structured succession. His words were direct:

• “I am very happy with the chapter I've had here”, highlighting the achievements and legacy left behind;
• “I wish Gilson every success”, affirming the transition will be smooth and the strategy will continue to move forward;
• “Brazil is a market of great opportunities”, echoing the confidence of someone who knows the strength of the local operation.

Santander Chair, Ana Botín, also weighed in. She thanked Leão for his “very important role” in the bank's transformation and said she was “pleased” to welcome Finkelsztain back. “His experience and standing in the Brazilian financial sector make him well qualified to lead the next phase of growth,” she stated.

Who is Gilson Finkelsztain?

Anyone following B3 knows that Finkelsztain is no ordinary figure. He has led the stock exchange since 2017, practically a decade in the role. Prior to that, he held positions at Bank of America Merrill Lynch, JPMorgan, Citigroup and Cetip. A civil engineering graduate from PUC-Rio, he brings a solid track record to Santander at a time when the bank needs to balance growth with profitability amidst fierce competition from fintechs.

The executive has already made his focus clear: to transform the “solid foundation” he inherits into meaningful results for customers, shareholders, and society. It's no small challenge, but those familiar with his time at B3 know he isn't one to shy away from a tough fight.

What happens now?

Mario Leão will stay in his role until July to ensure a smooth transition. After that, Finkelsztain will take the reins of the country's third-largest private bank. Santander's bet is clear: a heavyweight executive, with an unparalleled understanding of the Brazilian capital markets, to continue the recovery strategy and open up new avenues for growth.

Customers, investors, and those doing business with the bank can rest assured: the strategy of more selective and profitable lending remains on track. Now, it's a matter of waiting to see how the new captain navigates such competitive waters.