Banco Bradesco is a loyal employer. The 74-year-old bank doesn’t like to change its executive team often. The bank is the second largest private bank in Brazil, but only two men are able to say they were chairman of this powerful banking institution. And only four men can claim they were CEO.
The longest running Chairman of the Board, Lázaro de Mello Brandão, is finally retiring at age 91, but he’s not giving up his desk. He’s only giving up his title. Mr. Brandão will still be around to give his associates advice when they need it. The new chairman, Luiz Carlos Trabuco knows Brandão’s advice will be vital in the coming months.
The bank is on a financial roll, and foreign investors are buying Bradesco stock because they see the bank’s earnings and the potential for expansion in other areas of the country. Trabuco is one reason Bradesco is the new darling of the Wall Street crowd. Mr. Trabuco is one of the top CEOs in the country, and now that he is serving as chairman and CEO, all investments eyes are on him. But the 66-year-old Trabuco is always under a banking microscope. He knows how to manage the bank, thanks to his extensive knowledge of internal banking procedures. Luiz has never had any other employer. His four decades of banking and insurance experience prove he can handle the issues facing the bank.
Read more: O Bradesco, de Brandão a Trabuco
Luiz Carlos Trabuco isn’t an accountant, but he is an expert when it comes to managing people and understanding the psychology of banking in Brazil. For the last nine years, Mr. Trabuco and his executive team have been in the financial trenches. The team treats the 5,000 bank branches like an extended family, and the more than 100,000 bank employees have not disappointed Trabuco. The bank acquired HSBC’s Brazilian operations in 2015, and Trabuco and the team didn’t disappoint shareholders. In fact, the Trabuco executive team did something few people expected. The team continues to surprise banks like Itaú Unibanco with its aggressive online presence and innovative banking projects.
But Trabuco has another mission staring him in the eyes. He must pick his successor. He has to do that by the beginning of February 2018, so the new CEO can hit the ground running after the March 2018 shareholders meeting. And the good news is, Trabuco will pick his replacement from seven outstanding members of his team. The seven bankers in the race for the chief executive officer position are all Bradesco Vice Presidents. The list includes Mauricio Minas, Alexandre Glüher, Josué Pancini, and Octavio Lazari. Those four bankers are at the top of the list for the CEO position. But three other VPs, Andre Cano, Marcelo Noronha, and Domingos Abreu are also on the list.
The new CEO will face challenges as Brazil recovers from a nasty recession. Brazil is coming back from a financial nightmare. There are signs of economic progress, but the political arena is still questionable. President Michel Temer is trying to implement new projects, but his political opponents are not making his job any easier. In spite of the political turmoil, Trabuco and the seven candidates beat second-quarter earnings projections, by lending more money to its 26 million clients and by reducing loan losses. In other words, Trabuco’s team only lends money to clients that can pay the loan back.
Meanwhile, Mr. Brandão will offer his knowledge and expertise to his predecessor and the new CEO. Longevity at the top of the banking food chain is not common, but Bradesco manages to keep competent people in the right jobs for long periods of time.
Learn more about Luiz Carlos Trabuco: http://www1.folha.uol.com.br/mercado/2017/10/1926243-proximo-presidente-do-bradesco-saira-da-diretoria-do-banco-diz-trabuco.shtml