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A Look Into The Past

Why Luiz Carlos Trabuco Spearheaded the Purchase of the Brazillian Branch of HSBC for a Whopping $5.2 Billion

     Banco Bradesco SA forms an integral part of the Brazilian banking industry; it is the second largest private bank, after Itaú Unibanco. In fact, starting in 1951 to 2008, Bradesco was the largest private bank in Brazil. However, mergers and acquisitions characterize the Brazilian banking sector. And when Banco Itaú and Unibanco merged on November 4, 2008, to create Itaú Unibanco Holdings SA, the newly established Itaú Unibanco emerged the biggest Latin American bank by assets and market capitalization.

However, Bradesco has put up a fight in an attempt to regain market leadership. Case in point is the 2015’s acquisition of HSBC Holdings Plc.’s retail unit in Brazil. Bradesco acquired the Brazilian branch of HSBC for a whopping $5.2 billion. The face of the acquisition was the outgoing CEO, Luiz Carlos Trabuco. He, together with the immediate former chairman, Lazaro de Mello Brandao, and other high-ranking executives including Alexandre da Silva Gluher and Domingos Figueiredo Abreu successfully negotiated the deal that became known as the largest transaction in the sector in 2015. The acquisition altered the prospects of the bank, making it larger than Itaú Unibanco in three aspects: branch network, number of account holders, and total investment funds. However, Bradesco fell short of overtaking Itaú Unibanco regarding assets, deposits, and loans granted.

Lazaro de Mello Brandao was among the executives who were unhappy with Bradesco being dethroned. As the bank chairman, Brandao made it a personal mission to see Bradesco emerge the leading private bank. However, at the time of his resignation—October 11, 2017—Bradesco was still, and still is, trailing Itaú Unibanco. However, he remains optimistic that the incoming chairman, Luiz Carlos Trabuco, shares his vision.

Brandao’s resignation marked the end of his 74-year stint at the Osasco-based Bradesco. The 91-year-old executive joined Bradesco in 1943 and has been at the bank ever since. Patience, persistence, and hard work saw him rise from working as a clerk to become the president of Bradesco in 1981 and its chairman ten years later. In fact, he became the second professional, after Amado Aguiar—the founder of the bank—to serve both as the chairman and the CEO of Bradesco. Brandao stepped down as CEO in 1999.

Luiz Carlos Trabuco is the third professional to serve as the chairman of the board of directors and the CEO concurrently. Luiz Carlos Trabuco assumed the presidency of Bradesco in 2009, succeeding Marcio Cypriano. With Brandao’s resignation, Luiz Carlos Trabuco was elevated to replace him. However, Luiz Carlos Trabuco’s tenure in office, as demanded by the bank’s bylaws, will elapse in March. The bank is presently faced with the challenging task of naming a new CEO.

Luiz Carlos Trabuco’s successor, according to insiders, will be picked from a talent pool consisting of high-ranking executives. The unofficial list composed of potential Luiz Carlos Trabuco’s successors has the names of team leaders of departments and subsidiaries. Following are some of the professionals in the frontline to succeed Luiz Carlos Trabuco.

  • Mauricio Machado de Minas
  • Alexandre da Silva Gluher
  • Domingos Figueiredo Abreu
  • Josué Augusto Pancini
  • Marcelo de Araujo Noronha
  • Octavio de Lazari
  • André Rodrigues Cano

Preliminary investigations carried out by Bloomberg suggest that the seven have been part of Bradesco for as long as 43 years. Pancini, 57, joined Bradesco in 1975 and is the longest-serving of the seven. In addition, each professional whose name appears on the list has been instrumental in pushing Bradesco’s agenda. For instance, Alexandre da Silva Gluher and Domingos Figueiredo Abreu pushed Bradesco’s 2015 agenda that saw Bradesco make its most significant inorganic growth move in the recent past.

Learn more at http://economia.estadao.com.br/noticias/geral,prisao-dos-irmaos-batista-nao-impactam-risco-da-jbs,70001996105.

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