Bradesco, the second largest private bank in Brazil, is shaking things up internally and externally. In the first nine months of 2017, the bank’s net income was R$4.1 billion. That figure is two percent higher than the bank’s 2016 income for the same period. Pension income, insurance premiums and revenue capitalization came to R$55.1 billion for the first nine months of 2017, and that figure is 9.8 percent higher than the same period a year ago.
The expanded loan portfolio hit R$486.9 in September 2017, and the bank’s adjusted net income at the end of the third quarter was R$14.2 billion. Bradesco’s total assets hit a whopping R$1.3 trillion, and that represents 3.3 percent growth over the total assets in 2016.
The bank’s 2017 performance is giving Wall Street some serious investment hot flashes. Foreign investors are adding Bradesco to their portfolios because the bank is doing everything right while Brazil tries to pull out of the worst recession in more than 90 years.
The main reason Bradesco is setting income performance records is the bank’s executive team, according to several Wall Street firms. Luiz Carlos Trabuco, the president and CEO of the bank is a competent banker with 48 years of Brazilian banking experience. Luiz began his career in 1969, and in 1984, he was one of the bank’s officers. In 1999, Trabuco became an Executive Vice President, and from 2003 to 2009 he was president and CEO of Bradesco Seguros, the bank’s insurance division.
At the end of 2009, the board gave him the keys to the big office. He became the CEO of Banco Bradesco. For the last eight years, Trabuco put his University of Sao Paulo’s philosophy degree to work. And thanks to his Fundação Escola de Sociologia e Política de São Paulo graduate degree in social psychology, Trabuco put a new banking mentality in motion, and his efforts haven’t gone unnoticed.
Trabuco is the new Chairman of the Board due to the retirement of Lázaro de Mello Brandão. Lázaro de Mello Brandão is the oldest running chairman in Brazil’s banking industry. The 91-year-old bank executive became a banker in 1943 which is the same year Bradesco became “Banco Brasileiro de Descontos S.A.”
Even though Brandão is turning over the chairmanship to Trabuco, Mr. Brandão will still have an office, and he will do what he always does, according to Trabuco. Mr. Trabuco will wear two hats until the annual March 2018 meeting, A new president will surface from the list of qualified internal candidates. Bradesco likes to hire from within, and there are seven candidates from different Bradesco divisions that have what it takes to continue the programs Trabuco started.
The seven candidates are Mauricio Machado de Minas, Domingos Figueiredo Abreu, Josué Augusto Pancini, Andre Cano, Octavio de Lazari, and Marcelo Noronha. Mauricio Machado de Minas seems to be the front-runner. He is head of the bank’s IT department, and he is responsible for launching Next, the bank’s new digital bank spinoff. Next will go head-to-head with Brazilian FinTechs. The bank’s target audience is the 18 to 34-year-olds who are tech savvy Brazilians. So Trabuco’s and Mauricio Machado de Minas decision to partner with Apple, Microsoft, and Xbox make sense. Those companies will help get the digital banking concept off the ground.
But no one is ruling out the other six candidates. Chief lending officer, Domingos Figueiredo Abreu, and branch operations Vice-President Josué Augusto Pancini have a pretty good shot at getting the CEO job too and so do the other four Bradesco executives.
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