Espirito Santo fast-tracks management changes

BES branch

Related Stories

Portuguese bank Banco Espirito Santo (BES) has accelerated the appointment of new executives, originally due to start at the end of July.

BES said the new executives were now already in place.

The Bank of Portugal ordered the changes to be fast-tracked after worries about the financial strength of the bank's parent company hit global stock markets on Thursday.

BES is one of Portugal's largest banks.

Espirito Santo Financial Group, which holds a 25% stake in BES, previously said economist Vitor Bento would be the new chief executive of the bank from the end of July and Joao Moreira Rato, who heads Portugal's IGCP debt agency, would become the chief financial officer.

Meanwhile, Jose Honorio becomes deputy chief executive officer.

The three replace the Espirito Santo family members, including its patriarch Ricardo Espirito Santo Salgado, who announced his resignation as chief executive of BES last month.

A shareholder meeting set for 31 July will ratify the appointments, BES said.

'New team'

On Thursday, shares in both the lender and Espirito Santo Financial Group - which holds a 25% stake in BES - fell sharply on worries about the financial health of the Espirito Santo group.

The head of BES's investment banking unit, Jose Maria Ricciardi, said on Sunday the change in the bank's management needed to take place as soon as possible.

"I think it's indispensable for the confidence of clients, staff and the general public that the executive commission of BES be substituted as soon as possible by the new team that is supported by the main shareholders and the Bank of Portugal," he added.

The bank has said it has enough capital to meet any potential capital shortfalls resulting from its exposure to Espirito Santo family companies.

More on This Story

Related Stories

More Business stories



  • Baby being handed overFraught world

    The legal confusion over UK surrogate births

  • Bad resultsBlame game

    The best excuses to use when exam results don't make the grade

  • Police respond to a shooting in Santa MonicaTrigger decision

    What really happens before a police officer fires his gun?

  • Child injured by what activists say were two air strikes in the north-eastern Damascus suburb of Douma (3 August 2014)'No-one cares'

    Hope fades for Syrians one year after chemical attack

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.