The new CEO Bank of Brazil (BBAS3), sworn in after the President Jair Bolsonaro dismiss his predecessor due to plans to close branches, said on Monday that he will prioritize improving the institution’s efficiency and divesting non-essential assets.
“It is non-negotiable to seek efficiency, growing profits, profitability compatible with the main financial institutions”, he wrote Fausto Ribeiro in a letter to Banco do Brasil employees, citing a more challenging competitive environment.
Bolsonaro confirmed Ribeiro as the new chief executive of BB on Friday, in a move that prompted two board members to resign because of what they described as the executive’s lack of experience.
Among his priorities, Ribeiro also cited the sale of non-essential assets. BB put, for example, its asset management unit for sale, as previously reported by Reuters.
Ribeiro also said that he will work according to government guidelines and did not give further details on this in the long text sent to employees.
“Banco do Brasil is from the market and is from Brazil,” said the executive in the text.
Banco do Brasil’s shares accumulated a 21% drop this year, a lower performance than that of the bank’s main competitors.
On Monday, the shares ended a fall of 0.13% while the Ibovespa advanced almost 2%.
Ribeiro also said that BB employees will continue to work at home during the coronavirus pandemic, despite Bolsonaro’s opposition to remote work arrangements.
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