Bradesco’s Luiz Carlos Trabuco Is Heading Into The Last Two Years Of His Presidency But Will Leave A Strong And Lasting Legacy
Banco Bradesco is one of the oldest banks in Brazil. By the end of 2017, the bank will be 74 years old. The company’s continued stay at the top of the Brazilian financial sector has been partially due to its strong traditions. Among the bank’s longest-held traditions is that the mandatory retirement age for the chief executive officer is 65. However, the bank went against the grain this year deciding to extend the retirement age for the current CEO and President, Luiz Carlo Trabuco by two more years, shocking the entire country in the process. The unexpected decision was made by Bradesco’s board because Luiz Carlo Trabuco’s talent was too valuable to let go, despite hitting the previously set retirement age. He has been one of Bradesco’s most loyal servants and has guided the bank through arguably the hardest period in its modern history. As we head into the final two years of his presidency, it is safe to say that Luiz Carlo Trabuco will continue performing above what is expected.
While Luiz Carlo Trabuco is today considered one of the best leaders in Bradesco’s history, his has had to prove himself immensely. At the time Luiz Carlo Trabuco took over as the new CEO and President of Bradesco in 2009, he was faced with two key challenges. The first was an ongoing global financial crisis whose impacts had spread as far out as Brazil. Consequently, the financial sector in Brazil was not as vibrant as it was under the reign of his predecessor, Marcio Cypriano. The opportunities for growth were highly limited, and many of the larger banks experienced reductions to their bottom lines while some of the smaller banks died out. Trabuco Bradesco successfully came out of this challenge by switching tact from acquisitions as a growth strategy to the safer, but slower, organic strategy. The second challenge he faced was the fact that Bradesco had just been unseated as the biggest private bank in the country. Only eight years after its inception Amador Aguiar, Bradesco had risen to become the largest private bank in the country and held the position until 2008 – the eve-year of Luiz Carlo Trabuco’s appointment to president. The loss of market position was to Itau Unibanco, a bank that was formed through the merger of Banco Itau and Unibanco. While Itau Unibanco remains the biggest private bank in the country today, Luis Carlo Trabuco has managed to close down the gap substantially. With the single action of acquiring HSBC Brazil in 2015 for approximately 5 billion dollars, Bradesco surpassed Banco Itau in the number of accounts held, investments made and coverage of the branch network. Itau Unibanco remains ahead of Bradesco in only a few areas, including the total assets.
While the five-decade stay at Bradesco means that Luiz Carlo Trabuco is one of the most knowledgeable employees on the company’s culture, he is known to deviate and mix it up a little where it is in the best interest of the bank. For instance, while Bradesco has largely been promoting talent from inside the bank, Luis Carlo Trabuco has expanded the search to include talents working outside the Bradesco group. Additionally, he has also created a Corporate University, Unibrad. Unibrad has earned considerable acclaim both within and outside Brazil. In fact, it was the 2017 recipient of the GlobalCCU Awards for the best corporate institution in the world.
All in all, given all that he has accomplished over the last seven years, the next two years look to be very promising for Bradesco and its subsidiaries.
For more information about Luiz Carlo Trabuco, just visit consultasocio.com