Gilson Finkelsztain leaves B3 to take over as CEO of Santander Brasil, succeeding Mario Leão

The Brazilian financial market woke up to one of the most talked-about stories of the year. In the corridors of Faria Lima, the talk of the town was the confirmation that Santander Brasil will have a new president. Mario Leão is stepping down after four years, and Gilson Finkelsztain, formerly at the helm of B3, has been chosen to take the reins by July. Those in the know had anticipated a move of this magnitude, but the official announcement still caught many off guard.

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 delicate moment for the bank. Default rates were high and profitability was under pressure. Anyone who recalls the post-pandemic landscape knows it wasn't an easy ride. Leão's mission was to turn the tide and win back market confidence.

And it's fair to say he delivered. Under his leadership, the bank underwent a profound restructuring. Return on equity (ROE), which flirted with 10% in mid-2023, climbed back to 17.6% in the last quarter. The strategy was clear: prioritise more profitable credit lines, such as small and medium-sized enterprises (SMEs) and high-income clients, while scaling back somewhat on low-income retail. The roadmap set by the Spanish parent company targets a 20% ROE by 2028, and Leão leaves the ship on a steady course.

Behind the scenes, it's understood that 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 made it clear: he's seeking new challenges and wants to apply his experience in other industries.

The choice of Gilson Finkelsztain: why him?

That's where Gilson Finkelsztain comes in. He's been on Santander's radar for some time. Last year, he was even announced for the bank's board of directors, but ultimately declined to avoid conflicts with B3. This time, things are different. The Spanish parent company sought out someone who knows the Brazilian market inside out and has a history with the institution – Finkelsztain worked on the interest rates desk at Santander between 2011 and 2013.

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

• “I’m very happy with the chapter I’ve lived here”, highlighting the achievements and the legacy he leaves behind;
• “I wish Gilson every success”, affirming that the transition will be smooth and the strategy will continue;
• “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 “delighted” 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?

For those who follow B3, it's clear Finkelsztain is no ordinary figure. He's been at the helm of the stock exchange since 2017, practically a decade in the role. Before 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 and joins 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 clients, shareholders, and society. It's no small challenge, but those familiar with his tenure at B3 know he doesn't shy away from a good fight.

So, what now?

Mario Leão will stay on 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 grasp of the Brazilian capital markets to continue the recovery strategy and open up new avenues for growth.

Customers, investors, and business partners can rest easy: the strategy of more selective and profitable lending will continue. Now, it's a matter of seeing how this new captain navigates such competitive waters.