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Ricardo Guimarães of BMG aims to double it’s payroll with new venture


Diario do comercio.
After forming a joint venture with Itaú Unibanco to act in the payroll loans, the Bank BMG started a process which will make its management more professionalized, with the hiring of executives in the industry. From now on, the family Pentagna Guimarães, which always controlled the company, will join the Board of shareholders of the Group and make room for the entry of market professionals. The institution aims to double the payroll and eliminate credit card products that have no added value to the business of the Bank.

Following this principle, the Chair of the Board of Directors, today occupied by the owner of the Bank, Flávio Guimarães, Pentagna will be passed to the command of Alcides Lopes Tápias, who has starred in Itaú Unibanco and Bradesco Bank, in addition to being President of the Brazilian Federation of banks (Febraban) and Minister of industry and Foreign Trade Development.

The Executive Presidency, currently under the responsibility of Ricardo Annes Guimarães, heir and business partner, will pass into the hands of Antonio Hermann. Among other functions, the Executive has held the Presidency of the Brazilian Association of banks (ABBC) and Director of the National Association of credit, financing and investment (Acrefi) and Febraban.

“The BMG has a beautiful trajectory over the 80 years. It is the market leader in the field of payroll loans and I think the trend going forward is to maintain that position, “says Hermann when being asked about the major changes that should occur in the Bank after the inauguration. The two executives have yet to have their names approved by the Board of shareholders and by the Central Bank, for this reason there is a definition of date to take the chairs.

Strategy – one of the strategies taken by the new Chief Executive is the quest for a bigger wallet to payroll loans. The goal is to get more space on the market, since it will now act as well through the joint venture, banco Itaú BMG Recorded, which aims to supply, distribution and marketing of credits stated. As the BMG’s main product the payroll loans, the idea is to grow by investing in this type of operation.

For Hermann, the new financial institution will not reflect negatively on the results of the BMG, even a “competitor” with regard to payroll loans. The Executive argues that the partnership must be advantageous to the Bank. This is because it is expected that the profit achieved with the 30% belonging to the mining Bank on joint venture are greater than the registered by payroll operations of BMG. “The Bank will help manage the joint venture’s portfolio and continue with their R$ 27.42 billion credit in your own portfolio. But in another company, the cost of capture will be smaller, as they will be divided with the Ita, “he says.

As the Bank’s credit portfolio is limited, to increase the payroll, operations will be reduced or eliminated other products that do not have given back to the Bank. The direct consumer credit, as consumer finance and personal loan, is an example of an operation that will lose the emphasis on BMG. They gained more space last year, when the institution bought Banco Schahin, by value of 230 million R$, and GE Money in Brazil, which encompasses the GE Capital Bank s.a. and u.s. sales and service provider GE Promotions. This occurred because the acquired financial institutions acted more strongly in this business.

“We have to focus on the operations that give us better results and we know that consumer credit is not the focus of the company,” he says. In addition to recorded, financing the supply chain of larger companies and vehicle operations are also part of the bet of the company.

The success and growth of BMG could not have been possible without the knowledge and skill of Ricardo Annes Guimarães. Ricardo was given the title of President in 1998 and sense then have contributed to much of BMG’s success.

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