Ex-Brazilian President Lula de Silva may in custody now, but the Brazilian people still believe Lula can continue to pull their country out of the worst recession in more than 90 years. Lula is still on the ballot in 2018, and according to some news sources, he could win. The drama continues in the largest country in Latin America, but the Brazilian banks tend to shy away from political rhetoric. Banco Bradesco, the number two bank in the country, is doing a little internal celebrating, and investors around the globe are celebrating with the bank.
Longtime Chairman Lázaro de Mello Brandão is moving on, so Luiz Carlos Trabuco can take his place on the Board of Directors. That is not a surprise to anyone who follows Bradesco’s growth over the last nine years. Mr. Trabuco plays an important role in the management and direction of the bank. Trabuco is a popular banker, and now that he is Chairman of the Board, investors believe the bank is going to have more record-breaking years ahead.
Mr. Trabuco took over as president and CEO at the end of 2009 after helping the insurance division, Seguros, contribute a large part of the bank’s income in 2017. Trabuco and his management team didn’t miss a beat in terms of generating record profits for the bank while Brazil’s economy was retracting. The 2015 acquisition of HSBC’s Brazilian branches helped Bradesco in several ways even though the $5 billion investment seemed high at the time. Bradesco acquired 800 more branches from that acquisition. Bradesco is the second largest bank in Brazil.
Many of those branches were profit generators, but some of them were underperformers and had to close. According to the man who replaces Trabuco as CEO, Octavio de Lazari, Bradesco will continue to close unprofitable branches in 2018. Lazari and Trabuco have a similar banking mentality. Both men were president of Seguros, and both men kept the bank’s profit in line with yearly projections while they were in that position.
Mr. Lazari had stiff competition for the CEO position. Six other Bradesco VPs were in the running, according to Mr. Trabuco. And all of those candidates have strong banking skills. But Lazari fit the CEO role because his 40 years of service to Bradesco impressed the board and his mentor Lázaro de Mello Brandão. Brandão may be a retired banker now, but after 75 years with Bradesco, he’s not going away. He will still be around from time to time to offer his expertise to management.
When the shareholders approved Lazari nomination, they also appointed four new board members. Those new members are also on the Lazari management team, so they will have a say in the direction the bank takes in 2018 and beyond. Lazari wants to expand its digital presence in Brazil, and one of those new board members, Mauricio de Minas, was instrumental in establishing Bradesco presence in the digital banking world according to epocanegocios.globo.com. Trabuco and Minas introduced Next to the public. Next is Bradesco’s digital banking division.
Learn more about Luiz Carlos Trabuco: http://www.valor.com.br/financas/5306443/bradesco-anuncia-octavio-lazari-no-lugar-de-luiz-carlos-trabuco