Gilson Finkelsztain leaves 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 talk of the town was that Santander Brasil would have a new president. After four years at the helm, Mario Leão is stepping down, and Gilson Finkelsztain, formerly of B3, has been chosen to take the reins by July. Those in the know had been expecting a move of this magnitude, 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 delicate time for the bank. Delinquency was 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 market confidence.

And it's fair to say he delivered. Under his leadership, the bank underwent a deep restructuring. Return on equity (ROE), which 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 stepping back a bit from lower-income retail. The plan set by the Spanish parent company targets a 20% ROE by 2028, and Leão leaves the bank on a path of smooth sailing.

Behind the scenes, it's said 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 looking for new challenges and wants to apply his experience in other industries.

The choice of Gilson Finkelsztain: why him?

Enter Gilson Finkelsztain. His name had been on Santander's radar for some time. Last year, he was announced for the bank's board of directors but ultimately declined to avoid 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 firm – Finkelsztain worked on 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 has reached a level of maturity that allows for a structured succession. His words were direct:

• “I'm very happy with the chapter I've had 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;
• “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 is “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 who follows B3 knows that Finkelsztain is no ordinary figure. He has been at the helm of the exchange since 2017 – nearly a decade in the role. Before that, he worked at Bank of America Merrill Lynch, JPMorgan, Citigroup, and Cetip. A civil engineering graduate from PUC-Rio, he has a solid track record and arrives at 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 anyone familiar with his tenure at B3 knows he isn't one to back down from a challenge.

So, what now?

Until July, Mario Leão will stay on 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 customers, investors, or those doing business with the bank, there's no cause for concern: the strategy of more selective, profitable lending remains on track. Now, it's a matter of seeing how the new captain navigates these highly competitive waters.