For far too many banks across the globe, the most important currency is money. However, more successful and mature banks have grown to realize that there more important things than just the bottom line. For Brazilian bank, Bradesco the currency is customer integrity and trust. It is a concept that is engrained in the bank’s culture thanks to its current president and longest-serving employee, Luiz Carlos Trabuco. Using this concept, he has been able to defend the bank against new competitors while also managing to chase down the bigger players.
Brazil’s Second Largest Bank
Today, Bradesco is the second largest private bank in the country. Its size is only surpassed by Itau Unibanco. While being the second in a banking industry as competitive and saturated as Brazil’s is a remarkable achievement, it is frowned upon by many at Bradesco. For over five of the bank’s seven-decade existence, it was undisputedly the largest private bank in the country. However, a merger between Unibanco and Banco Itau in 2008 changed things overnight and relegated Bradesco to the second position. Since his appointment in 2009, Luiz Carlos Trabuco has been aggressively trying to get Bradesco back to being the market leader. Thus far, he has made considerable progress and one wrong move by Itau Unibanco will likely see Bradesco resume its rightful position.
While he has used a combination of strategies to guarantee Bradesco’s continued growth, the move that has brought Bradesco closest to Itau is the acquisition of HSBC Brazil in 2015. Thanks to the $5.2 billion deal, Bradesco was able to hit growth levels that would have taken 6 years to complete organically. The bank’s customer-base grew to over 30 million, the highest among private banks in the country. Additionally, its branches grew to 5500 branches and the asset value also grew to R$ 1.2 trillion, the second largest in the sector. Once the synergies of the deal are realized, the bank will be able to rival most of the financial institutions in Latin America.
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Commitments at Bradesco
In 2014, Luiz Carlos Trabuco surprised many when he turned down the invitation by then Brazilian President Dilma Rousseff to become the country’s new Minister of Finance. While he expressed that he was honored to be offered the opportunity to directly shape the economy, the commitments at Bradesco ahead of him would not allow him to. With his retirement slated for 2016 at the time (it has since been moved to 2018), many began to speculate that he turned down the position because he was being prepared to take over as the chairman of Bradesco’s board of directors from Lazaro Brandao. With Brandao now aged 91, the speculations will likely end up being true.
However, despite not being the finance minister, Luiz Carlos Trabuco has still been of great service to the Brazilian economy. As Bradesco president, he has previously supported government initiatives to provide low-cost credit to companies involved in infrastructure developments across the country. Additionally, with the economy experiencing hard times in 2015/2016, he was of those who strongly expressed confidence of a quick recovery at every opportunity he got. Being one of the most respected executives in the country, it prevented jittery investors from fleeing the economy with their badly needed resources.
Commitments away from Bradesco
In addition to working at Bradesco, Luiz Carlos Trabuco also sits on the boards of a number of organizations. He currently seats on the boards of Vale SA and the Brazilian Federation of Banks (FEBRABAN). Previously, he has also been the chair of Odontoprev’s board of directors.
Find 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