2023-11-23 13:30:25
Bradesco has just announced that it is changing its CEO, with Marcelo Noronha replacing Octavio de Lazari Júnior.
The movement comes amid the bank’s weak results, which has been delivering an ROE well below its historical average since the second quarter of last year, with the rise in default rates affecting the result.
Given the bank’s dramatic situation, the change in command was well received by the market. Bradesco shares opened up almost 4% on a day when the stock market opened practically sideways.
Noronha has been at Bradesco for over 20 years, where he joined in 2003 as cards director following spending 5 years at BBVA.
Bradesco said that Noronha held all the bank’s management positions. Eight years ago, he took over as executive vice president, first leading the wholesale area and, more recently, leading the retail segment.
Lazari, who had been CEO for five years following succeeding Luiz Carlos Trabuco, will take up a seat on the bank’s board.
The change in command caught the market’s attention because CEO changes at Bradesco normally happen on a scheduled basis and by age. Bradesco’s bylaws establish a limit of 65 years to hold the position of CEO. Lazari is 59 and Noronha 58.
Since the second quarter of last year, Bradesco’s ROE has been well below its historical average and that of its main peers. In the third quarter of this year, ROE was just 11.3%, compared to an ROE of 21.1% for Itaú, 21.3% for Banco do Brasil, and 13.1% for Santander Brasil.
Pedro Arbex
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