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 stories of the year. Down the corridors of Faria Lima, there was only one topic on everyone's lips: the confirmation that Santander Brasil will have a new president. Mario Leão is stepping down after four years at the helm, and Gilson Finkelsztain, previously head of B3, has been chosen to take over by July. Those in the know had expected a move of this magnitude, 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 became CEO in January 2022, succeeding Sergio Rial, taking charge of the bank during a challenging period. Default rates were high, and profitability was under pressure. Anyone who recalls 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 got the job done. Under his leadership, the bank underwent a deep restructuring. Return on equity (ROE), which had flirted with 10% in mid-2023, bounced back to 17.6% last quarter. The strategy was clear: prioritise more profitable credit lines, like small and medium-sized enterprises (SMEs) and high-income clients, while scaling back on lower-income retail. The plan laid out by the Spanish parent company targets a 20% ROE by 2028, and Leão leaves the bank well on track.

Behind the scenes, it’s said his departure wasn’t a snap 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's ready for new challenges and wants to apply his experience across other industries.

Why Gilson Finkelsztain was chosen

Enter Gilson Finkelsztain. His name had been on Santander's radar for some time. Last year, he was announced for the bank’s board but eventually declined to avoid conflicts with B3. This time, it’s a different story. The Spanish parent company sought out someone who knows the Brazilian market inside out and has a history with the organisation – Finkelsztain previously 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 the bank had reached a level of maturity that allowed for a structured succession. His words were straightforward:

• “I’m very happy with the journey I’ve had here,” highlighting the achievements and the legacy he leaves behind;
• “I wish Gilson all the best,” stating the transition would be smooth and the strategy would continue;
• “Brazil is a market full of great opportunities,” echoing the confidence of someone who understands 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 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 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 has a solid track record and joins Santander at a time when the bank needs to balance growth with profitability amid fierce competition from fintechs.

The executive has already made it clear where his focus lies: transforming the “solid foundation” he’s inheriting into meaningful outcomes for clients, shareholders, and society. It’s no small challenge, but those familiar with his time at B3 know he’s not one to shy away from a tough fight.

So, what’s next?

Mario Leão will remain 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 a rare depth of knowledge in Brazil’s capital markets to continue the recovery strategy and open up new avenues for growth.

For anyone with accounts, investments, or business ties to the bank, there’s no cause for concern – the strategy of focusing on more selective, profitable lending remains on track. Now, all eyes will be on how the new captain navigates these competitive waters.