Sabadell Is Set to Name Cesar Gonzalez-Bueno as Next CEO

(Bloomberg) -- Banco de Sabadell SA is set to name Cesar Gonzalez-Bueno as chief executive officer, replacing Jaime Guardiola as the Spanish lender struggles to chart a path forward after short-lived talks on a combination with larger rival Banco Bilbao Vizcaya Argentaria SA.

Guardiola’s departure will be announced as soon as this week, with his successor set to be named shortly after, according to people with knowledge of the matter, who asked not to be identified because the information is confidential.

Gonzalez-Bueno is on the board of Sabadell’s U.K. arm, TSB Bank Plc. He was CEO of the Spanish and Portuguese unit of ING Groep NV and now serves as chairman of ING Bank Spain and Portugal’s advisory board. He helped to launch the Dutch bank in Spain more than two decades ago. Sabadell is bringing him on board in part for his digital expertise, two of the people said.

Discussions about a purchase of Sabadell by BBVA to create the second-largest domestic lender in Spain collapsed late in November after the two sides couldn’t agree on the price. Spain has been at the forefront of a wave of mergers that’s reshaping Europe’s financial sector as the pandemic fuels loan losses and forces lenders to cut costs.

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Sabadell declined to comment. The shares pared gains, trading 0.1% higher as of 12:22 p.m. in Madrid.

Sabadell had planned to replace the CEO earlier in the year, but the plan was stalled by the pandemic and the subsequent failed talks with BBVA, according to one of the people.

The CEO change also falls into a wider European trend of the replacement of top executives. UniCredit SpA and UBS Group AG have appointed new chief executives in recent weeks, and Credit Suisse AG named a new chairman.

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Guardiola is likely to remain on Sabadell’s board, two of the people said. His exit from the No. 2 position will bring an end to one of the longest-standing duos in Spanish banking: He has served as CEO alongside Chairman Josep Oliu since September 2007.

The two men worked together in the aftermath of the last financial crisis, snapping up several troubled regional lenders. That slew of acquisitions transformed Sabadell into a major financial player in Spain, focused on lending to small- and medium-sized firms, which make up the bulk of companies in the country.

Sabadell said after the breakdown of talks with BBVA that it would shift its focus to developing its retail business in Spain and will analyze with its advisers “alternative strategies” for its international assets, including TSB. TSB has proved a drag on Sabadell earnings ever since it was purchased in 2015 on the cusp of Brexit. A poorly-managed merger of technology platforms proved costly for the bank.

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