The Guidance Provided By Luiz Carlos Trabuco Will Be Pivotal In Helping The New Bradesco President Navigate he Complicate Brazilian Economy

The relationship between banks and the economy can best be described as symbiotic. Under normal conditions, where one is doing well, the other automatically also does well. Equally, when the economy is experiencing some troubles, banks will also experience some troubles. This has been the case in Brazil for the last few years. The largest economy in Latin America experienced a crippling recession in 2015 and has since been struggling to recover.

One bank that has done well to remain strong during this period id Bradesco. Under the guidance of board chairman, Lazaro Brandao, and president, Luiz Carlos Trabuco, the bank has largely remained stable by relying on innovation and prudent management. However, a recent shakeup in the bank’s leadership hierarchy could see the bank perform even better.

After more than seven decades at Bradesco, former board chairman, Lazaro Brandao on 11th October announced his resignation from the position. His leaving the company was not entirely unexpected given the fact that he currently at the ripe age of 91. The current president was befittingly selected to take over as the next chairman.

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In fact, it had long been speculated that Luiz Carlos Trabuco was being groomed to occupy this position, especially given the fact that he was assigned the position of vice chairman of the board three years ago. When announcing his departure from the bank, Brandao spoke highly of Trabuco and expressed the utmost confidence in Trabuco seamlessly being able to assume his role.

As a consequence of Trabuco becoming the next president, the bank now has to select a new president. However, the decision is not expected to be made until March 2018 when the bank holds a shareholder’s meeting. Until then, Luiz Carlos Trabuco will be both president and chairman at the second largest lender in Brazil. This, however, has not stopped many in the industry from speculating who will be selected to be the new president. In line with the bank’s long-held culture, the next president will be selected from among the current crop of senior leadership at Bradesco. In particular, the current vice presidents are speculated to have the highest chance of being named to the position.

The new Bradesco president is expected to operate in an economic climate that is considerably different to that Luiz Carlos Trabuco found when he was named the president in 2009. After a few rocky years, the Brazilian economy is this year starting to experience a resurgent rebound. This is in stark contrast to 2009 when a global financial crisis greatly limited the flexibility of the Brazilian financial sector.

Consequently, Luiz Carlos Trabuco primarily had to rely on organic growth techniques to expand the bank. For the new president, however, there will likely be a number of viable acquisition opportunities in the industry.

Despite the difficult economic climate he has faced throughout his tenure, Luiz Carlos Trabuco has greatly risen above them and significantly grown the brand. Arguably, the greatest testament to Trabuco’s effectiveness as a banking executive is the 2015 HSBC acquisition deal.

The financial industry was that year shocked at the news that British financial conglomerate, HSBC was putting up its Brazilian operation for sale. At that point. HSBC was the fourth largest non-public bank in the country. Under the guidance of Luiz Carlos Trabuco, Bradesco moved quickly to acquire the mid-tier bank. The deal was ultimately valued at $5.2 billion, making it the largest for the year in a receding economy. The shrewdness with which Trabuco went about to negotiate and complete the acquisition got him named the entrepreneur of the year for the finance category by Money magazine.

Find more about Luiz Carlos Trabuco: http://insiders.morningstar.com/trading/executive-profile.action?PersonId=PS00003Y11&flag=Executive&t=XNYS:BBD&region=usa&culture=en-US&cur=

Bradesco’s President Luiz Carlos Trabuco Identifies With The Culture Of Brazil

The Brazilian banking industry is a money making industry in good times and in bad. Even a four-year recession didn’t hurt Brazil’s banks that much. For example, the largest bank in Brazil, Banco do Brazil is a government-owned business so the executives that work in that bank are not under pressure to make money. But banks like Banco Bradesco and Banco Itaú are profit centers, and they do a great job when it comes to making money. Banco Itaú and Banco Bradesco make billions of dollars in profit every year. And most of that profit comes from the bonds they buy and the insurance they carry. Consumer loans are a small percentage of bank profits.

Bradesco is the third largest bank in Brazil and the second largest private bank right behind Banco Itaú. Bradesco is a consumer favorite for a variety of reasons. The bank has been around since 1943, and the bank employs 100,000 people. There are 5,000 service branches around the country, and Brazilians have access to thousands of Bradesco ATMs. But it’s not just the convenience of banking with Bradesco that makes the bank so popular. The bank’s CEO, Luiz Carlos Trabuco, is a lightning rod when it comes to identifying with Brazilian consumers. Fifty-six-year-old Trabuco knows what it takes to please the people.

Trabuco is not one of those stuffy bankers. He’s not the kind of bank executive that sits behind a desk and looks at numbers all day long. Trabuco is a personable as well as a relatable bank executive who has his customer’s interests in mind. The social programs and the education programs that Bradesco has in place are people pleasers. And Trabuco does all he can to expand those programs, so more people benefit from Bradesco’s success. The Brazilian Green House Emissions Program, Carbon Disclosure Program and the educational program help the people of Brazil deal with social and environmental issues. Plus, the educational program helps students learn how to function when they leave school. Luiz Carlos Trabuco also believes in the Companies for Climate Change, and the Global Compact program. Those programs help the bank connect with other countries that want to reduce the harmful gases that are changing the way Brazilians live every day.

In 2003, Luiz became a Bradesco vice president. His job was to manage Bradesco Seguros, the bank’s profitable insurance division. Under Trabuco’s guidance, In 2009, Bradesco Seguros profits went from 25 percent to 35 percent of the bank’s total profits. Trabuco’s performance was not the result of a banker’s keen eye for accounting or even finance. Luiz was successful because he was able to connect with customers, thanks to his years of working for Bradesco as well as his degree in philosophy from the University of São Paulo. Trabuco is a down-to-earth bank executive. He grew up in Marília in the state of São Paulo. His humble roots still show in his enormous smile and sense of confidence.

The list of Trabuco achievements is a long one, according to the other bank executives. Trabuco is a team player who understands the importance of good business practices. And those good business practices are paying off. The bank’s income for the first semester of 2017 was more than R$9.35 billion. And a 16.8 percent increase in total bank assets gave the bank’s board something to smile about. Plus, the smiles grew bigger when shareholder equity grew by 10.8 percent. Trabuco doesn’t take all the credit for the Bradesco’s success. He knows his hand-picked team plays a major role in Bradesco’s quest to be the largest private bank in the country. So he lets his team do what they do best, and he continues to shine a bright light on their accomplishments.

Find more about Luiz Carlos Trabuco: http://www.istoedinheiro.com.br/noticias/negocios/20151218/luiz-carlos-trabuco-cappi-empreendedor-ano-nas-financas-2015/327856