Banco BMG just formed a joint venture with Itau Unibanco that sees the operation of a payroll loan segment. This move has resulted in a board restructuring where the controlling Pentagna Guimaraes family joins the shareholders committee. In their position, market professionals and experts will assume the day to day management affairs.
This move was taken to double the loan portfolio and eliminate unprofitable business segments. In the new structure, Flavio Pentagna secedes his board of directors’ chairmanship to Alcides Lopes Tapias. Tapias possesses a wealth of experience after successful stints at Bradesco, Itau Unibanco and the Brazilian Federation of Banks as its president.
In the government circles, Tapias previously served as the Minister of Development Industry and International Trade. Ricardo Guimaraes, the current Chief Executive Officer, also hands over his responsibilities to Antonio Hermann. Hermann has also had a decorated career as the president of the Brazilian Association of Banks, the director of Febraban and the National Association of Credit Institutions.
The final step now is to approve the names of the new executives at a shareholders meeting. The central banks in Brazil also have to vet the nominees before they can resume their duties. The new Chief Executive Officer Antonio Hermann has already expressed his enthusiasm in taking over Banco BMG. He reckons that BMG is a force to deal with in the consigned credit markets in Brazil. BMG also boasts of a rich heritage and organizational culture.
It’s almost impossible to talk about BMG’s success without mentioning Ricardo Guimaraes. This is the man credited with the growth and success of the organization in the new millennium. Since taking over in 2004, Ricardo has steered BMG to great heights. The bank controls a third of the entirely consigned credit market in Brazil. It has championed the provision of credit to a large Brazilian population.
Over the last decade, Ricardo Guimaraes has endeared himself to the Brazilian population. He became a voice of reason to the youth as well as an advisor to the government. Through his leadership, BMG has invested heavily in education and sports. These two fronts provide a platform to empower the youth.
The new executive aims to increase the payroll loans portfolio by expanding market dominance. The new establishment will go by the name of Itau BMG Payroll Bank and will perform the supply and distribution of payroll loans. It’s expected that the consigned BMG’s credit portfolio will benefit from this joint venture. Numbers don’t lie, BMG will save expenses and realize better results from the investment.
Translated article: http://www.diariodocomercio.com.br/noticia.php?id=15176