Gilson Finkelsztain Exits B3 to Take Over as CEO of Santander Brasil, Replacing Mario Leão

The Brazilian financial market woke up to one of the most talked-about news stories of the year. Down the corridors of Faria Lima, the buzz was all about one thing: 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 over the position by July. Those with their ears to the ground were expecting a move of this scale, but the official announcement still caught many by surprise.

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 challenging time for the bank. Default rates were high and profitability was under pressure. Anyone who remembers the post-pandemic landscape knows it wasn't an easy period. Leão's mission was to turn things around and regain market confidence.

And it's fair to say he delivered. Under his leadership, the bank underwent a deep restructuring. The 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 credit lines, like small and medium-sized enterprises (SMEs) and high-income segments, while scaling back slightly on lower-income retail. The plan set by the Spanish parent company aims for a 20% ROE by 2028, and Leão leaves the bank on a solid footing.

Behind the scenes, it's understood his departure wasn't a sudden decision. Earlier 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 looking to apply his experience in other industries.

The Choice of Gilson Finkelsztain: Why Him?

That's where Gilson Finkelsztain comes in. His name has been on Santander's radar for some time. Last year, he was announced to join the bank's board of directors but ultimately backed out to avoid conflicts with B3. This time, it's a different story. The Spanish headquarters sought out someone who knows the Brazilian market inside out and has prior experience with the group – Finkelsztain worked on the interest rate desk at Santander between 2011 and 2013.

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

• "I am very happy with the chapter I lived here", highlighting the achievements and the legacy left behind;
• "I wish Gilson every success", affirming that the transition will be smooth and the strategy will continue moving 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 transforming the bank and said she was "pleased" to welcome Finkelsztain back. "His experience and recognition 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 Finkelsztain is no ordinary figure. He has 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 has 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 tough fight.

What Now?

Until July, Mario Leão will remain in his role 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 new avenues for growth.

For those with accounts, investments, or business dealings with the bank, there's no cause for concern: the strategy focused on more selective and profitable credit remains on track. Now, it's a matter of seeing how the new captain navigates these highly competitive waters.