After serving as the president of Brazilian bank, Banco Bradesco for the last eight years, Luiz Carlos Trabuco was last month named the new chairman of the board. His appointment to this powerful position is the culmination of close to five decades’ work at the large lender.
The previous holder of the position was the legendary banker, Lazaro Brandao who had been at Bradesco for more than seven decades. Among the earliest responsibilities of Luiz Carlos Trabuco as the new chairman of Bradesco will be to oversee the process of selecting his replacement in the position of bank president.
Banco Bradesco is the second largest private bank in Brazil. It was founded in 1943 by Amador Aguiar with the objective of helping advance social welfare. By 1951, it had already grown to become the largest private lender in the country. Unfortunately, however, it lost this coveted title to Itau Unibanco in 2008. Today, the bank is worth close to $400 billion, undoubtedly making it one of the largest financial institutions in Latin America. It has an extensive branch network of about 5,500 offices that are staffed by more than 100,000 employees. It has a number of subsidiaries, with the largest and most prominent being the insurance company, Bradesco Seguros. Given the bank’s continued growth into a financial giant, the need for effective and competent leadership is greater today than it has ever been.
Banco Bradesco has over the years created a name for itself for strictly sticking to certain traditions and practices on folha.uol.com.br. One such tradition is promoting from within the bank. It is a strategy that was used during the last three presidential appointments at the bank. As such, the next president will almost certainly be one of the senior executives at the bank currently employed as vice presidents. One of the most prominent vice presidents without a doubt is Alexander Gluher, who is the bank’s chief risk officer. He has been heavily involved in some of the largest deals completed by the bank in the last few years. Another strong contender is Octavio Lazaro who has for the last few years been serving as the president of Bradesco Seguros. Jose Pancini who has been at the bank for over two decades is also a considered a likely candidate owing to his extensive experience in retail banking. Despite being a recent addition to the bank, IT director Mauricio Minas has also had his name mentioned favorably to claim the position.
Not in a Hurry
While speculation and talk have already started, the next Bradesco president will not be announced for another four months. By the bank’s bylaws, the announcement on who will replace Luiz Carlos Trabuco will be made in March 2018 during the yearly shareholder’s meeting. Since a competent leader will still be needed to run the day-to-day activities at the bank, Luiz Carlos Trabuco will continue serving as the president in an acting capacity for the next few months. He will be encouraged by the fact that he is not the first individual at Bradesco to serve as both president and chairman at the same time.
Improved Business Climate
For the last two years, the economic climate in Brazil has not been very accommodating according to globo.com. In 2015, the country suffered its worst recession in decades and had been struggling to recover since. During this tumulus period, the margins at many banks in Brazil, including Banco Bradesco have been quite suppressed. Fortunately, with the economy improving, the incoming president will find a better business climate to operate in. This will allow him/her greater flexibility in the ideas and strategies he implements.
Search more about Luiz Carlos Trabuco: http://www1.folha.uol.com.br/mercado/2017/10/1926427-sucessao-no-bradesco-vira-alvo-de-aposta.shtml