The letter came after a controversy. In the wake of the André Brandão, who was a market executive and came from HSBC in the USA to take over the public bank, Ribeiro’s choice did not please BB board members. Last week, the chairman of the board, Hélio Magalhães, and the independent director José Guimarães Monforte, returned the positions they held. One of the reasons for Brandão’s departure was the announcement of a strong agency reduction program, which disgraced the President of the Republic.
“The circumstances (replacement), represented by an unacceptable restriction on management acts, have emerged and prevent effective measures aimed at making progress in the direction of efficiency gains, “said Monforte in an excerpt from his letter of resignation.” I also believe that the process of succession in the leadership of companies , especially publicly traded ones, should not be done just because you have the power to do them. ”
Alignment with Bolsonaro
Even without mentioning explicitly, the reading was that Ribeiro defends the same speech of President Jair Bolsonaro, who is against the privatization of BB, says an official, on condition of anonymity. In different ways, he stated in the letter to employees that the 212-year-old conglomerate is a “heritage for all Brazilians”.
“Banco do Brasil is from the market and is from Brazil,” said the new president of the institution. And he explained: “It is from the market, it is listed on the stock exchange, it has to be profitable, competitive and efficient when serving more than 65 million customers in Brazil and abroad; and it is from Brazil, because each Brazilian is a partner of this Bank, which makes us historically committed to the country’s economic and social development. ”
Citing his BB colleagues, the new president of the bank said that he is committed to leading it with “adequate returns” to shareholders and “acting in an integrated and synergistic manner with the guidelines of its controller, the federal government”. “It is non-negotiable to seek efficiency, growing profits, profitability compatible with the main financial institutions”, he promised.
In the letter, Ribeiro listed ten items that he called structuring initiatives and on which his management will focus efforts. Among the points mentioned, he promised to accelerate digital transformation and innovation; commitment to austerity and efficiency in managing expenses; prioritize the agribusiness chain; make strategic alliances and partnerships to expand competencies that allow the expansion of the conglomerate’s results; and carry out divestments and corporate reorganization in certain businesses.
Ribeiro also stated that he is aware that the bank “is facing enormous challenges” and that the environment is challenging, mentioning fintechs and new technologies such as Pix, the Central Bank’s instant payment system, and open banking, which will allow sharing customer data. For him, the new technologies “demand new business models in an increasingly complex financial environment”.
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