Luiz Carlos Trabuco’s standing as one of the finest bankers in recent years in Brazil was confirmed by a recent announcement that he would be taking over as the chairman of Bradesco’s board. He took over the position from an equally legendary Brazilian banker, Lazaro Brandao. Having been in the banking industry for close to eight decades, Lazaro Brandao saw it fit to call an end to his illustrious career in October 2017.
The decision to have Luiz Carlos Trabuco take over as the next chairman was largely unchallenged as he has for the last few years served as Lazaro Brandao’s deputy on the board as well as the president of the bank. However, with Trabuco now confirmed as the chairman of the board, the position of bank president has once again become vacant. While there is little doubt that taking the reins at such a huge bank could be somewhat intimidating for the incoming president, he/she will take heart in the fact that Luiz Carlos Trabuco will be there to offer guidance.
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Bradesco is one of the largest financial institutions in Latin America. The $400-billion company has since 2008 been the second largest private lender in Brazil, having previously been the largest one for more than five decades. The bank has a number of subsidiaries working in the key segments of the financial sector with the most prominent ones being Bradesco Seguros and Bradesco Vida e Previdencia. Given the size and the complexity of operations at Bradesco, the bank typically prefers to select presidents from among the senior executives that have been at the bank for a long time. This ensures that whoever is selected to take over in the position is entirely green as he/she at least has a competent understanding of the bank’s culture. This strategy has been followed when appointing each of the bank’s last three presidents and is again expected to be followed during the current succession process.
Some of the names being touted to become the next president are quite encouraging. Among these names is Mauricio Minas, who currently serves as the chief overseer of technology at the bank. Fellow vice president and chief risk officer, Alexander Gluher is also seen as a key contender. Current Bradesco Seguros president, Octavio Lazari is also hoping to follow the same journey to the top as Luiz Carlos Trabuco did. Lastly, retail banking expert, Jose Pancini is also seen as having a strong chance. All of these top candidates are currently vice presidents and have been with the bank for more than two decades.
The new president at Bradesco will not be selected for another four months. The appointment is expected to be done 30 days before the shareholders meeting set for March 2018. Until then, therefore, Luiz Carlos Trabuco will continue serving in his current capacity as president of the Brazilian lender. He will at the same time also fully assume the responsibilities of board chairman, thus following in the footsteps of his mentor, Lazaro Brandao who also concurrently held both positions for a few years.
The incoming president will find the most accommodating business climate in recent years as the Brazilian economy continues to recover following the worst recession in the South American nation in a century. The challenging economic climate had forced most banks in the country, including Bradesco to lower their interest rates according to economia.estadao.com.br. While such moves ensured Bradesco’s continued survival, they also placed significant pressure on its margins. Hopefully, in the coming months, however, the incoming manager will be able to boost the bank’s profitability significantly.
Search more about Luiz Carlos Trabuco: https://www.terra.com.br/economia/trabuco-assumira-presidencia-do-conselho-do-bradesco-banco-nomeara-novo-chefe-executivo-em-marco,9fb1d7fe927d7f26678a7543f82f02edw3u6oihm.html