Below-the-radar Marin Romano has been with the bank since 1991, and has been head of asset management, insurance and private banking since 2009.
The bank’s shares increased 2.5% following the announcement, although some are questioning the choice given his lack of experience in retail banking and the fact he is a relative unknown in the organisation. A copy of Marin Romano’s resume was sent around with the internal announcement.
Marin Romano was a close adviser to the bank’s chairman Emilio Botin, although his reputation was tarnished after it was revealed the asset management arm had invested €2.3bn in Bernie Madoff funds, which were revealed to be a Ponzi scheme in 2008.
Others argue the appointment is in line with Saenz’s history of taking risky bets, which have generally paid off.
Strong run
Since Saenz’s was put at the helm of the bank in 2002 it has almost quadrupled in size to become the eurozone’s largest bank. Global funds under management have increased from €453.4bn to €1.38trn.
Saenz was given a suspended six month sentence in 2009 for making false accusations against debtors while he was chairman of Banesto bank in the early 90s. The sentence was reduced to three months before he was pardoned by the Spanish government in 2011.
There has been talk, however, that he would be banned from the bank by the Spanish central bank for this conviction after it was given more power over the approval of bank chiefs.
Last week the group reported a significant increase in profits from the previous quarter for the first three months of the year, but a fall in year-on-year figures.
The bank may expand its private bank and wealth management operations despite being under pressure to shed business. More about this on Portfolio Adviser later.
