In 2016, Banco Bradesco raised its CEO retirement age from 65 to 69, so CEO Luiz Carlos Trabuco could stay in that position until 2019. The leading candidate to take CEO Luiz Carlos Trabuco’s position, Marco Antonio Rossi, the Seguros insurance executive, died in a plane crash last year. Recently, Mr. Trabuco let the press know his successor will come from a pool of qualified candidates within the Bradesco Group. Trabuco’s announcement came after the resignation of the aging Chairman of the Board Lázaro Brandão. Lázaro Brandão is another longtime Bradesco employee, and he is one of Brazil’s most powerful bankers. Mr. Brandão is well-known in the banking industry, He started his banking career the year Bradesco opened for business. Lázaro was CEO of the bank for 18 years, and he became chairman in 1990.http://www.camar.sp.gov.br/images/imagesnoticias/851/principal.html
Mr. Trabuco is starting a long-overdue internal management shakeup. While the shakeup is in progress, he will serve as the CEO and Chairman of the Board. Once his successor is in place, Trabuco will continue as chairman of the bank. The internal search for a successor will end 30 days before the March 2018 annual shareholder meeting. Bradesco is the second-largest private bank in the country, and one of Wall Street’s favorite stock picks for 2018. The bank’s stock recently closed at $11.59 a share. The bank’s stock continues to amaze investors because the stock was not a candidate for a “buy” rating while it was in the $7.40 a share to $9.50 a share range. Once the stock hit $10.50 a share, investors who didn’t want to invest in Brazilian assets because of the economic and political situation in the country started to see Bradesco as a moneymaker even in the bad times. Trabuco knows he is facing several challenges. One challenge is developing a strategy for the 5,000 bank locations that serve local markets. The bank is scaling back its branch network after acquiring HSBC’s Brazilian division in 2015 for more than $1 billion.
Bradesco is in a position to make a real impact on web-related banking. The bank has 60 websites where millions of Bradesco clients do their banking. That’s why outgoing Chairman Lázaro Brandão is serious about changing the internal structure of the bank branches and thousands of service centers around the country. Brazilians are using the Internet to buy merchandise and to surf for new companies that offer them what they want when they want it. Trabuco, the longtime philosophy and psychology student, knows the bank must incorporate more client-friendly banking programs into their business model, but that takes time, and time in Brazil is on steroids right now. The country is exploding out of a three-year recession, and the political uncertainty is forcing Brazilians to look for alternatives that save them money and time.
The Brazilian government is trying to incorporate a new pension plan and President Michel Temer is negotiating new bilateral trade agreements with the U.K., China, and the United States. But the political turmoil is taking a toll on the new president, so it’s unclear what will happen to him over the next year. Former presidents Dilma Rousseff and Lulu are back, and they are talking to the press. Plus, Lulu appears to be running for office again. Even though Lulu was one of the most popular presidents in Brazil’s history, his personal track record is not the best.
In spite of the political fiasco, CEO, and now Chairman, Luiz Carlos Trabuco is doing what he knows how to do. He is expanding the reach of the bank online, and he is making sure more than 5,000 bank branches make it easier for clients to borrow money and take advantage of other bank services.