Browse Category: Banking

Luiz Carlos Trabuco to step down, choose replacement by March 2018

The last decade has been an roller-coaster ride for Bradesco, the largest bank in Brazil by many different measures. Trabuco is set to retire from his post of CEO by March of next year. He says that he will be choosing his replacement from within the company’s own ranks, a tradition going back to the bank’s origins.

Lazaro Brandao retires

Trabuco’s departure will coincide of that Lazaro Brandao, the long-time chairman of the board who has held that position since 1990. Brandao has worked, in one capacity or another, for Bradesco since the age of 16. In 1943, Bradao became a teller for the bank and eventually rose through the ranks, attaining the highest positions in the firm. The 91 year old chairman has said that the decision to retire was completely his own and that his main reasoning was to ensure continuity in the bank’s operations and give younger executives and chance to rise up through the ranks.

A tumultuous decade, but things are looking up

Luiz Carlos Trabuco has had a bumpy ride as CEO of one of Brazil’s most important banks. After taking over the helm in 2009, the firm was rocked by the financial crisis and slipping market share. Shortly after Trabuco took over, Bradesco’s chief rivals, Banco Itau and Unibanco both merged, creating the largest single bank in Brazil and throwing Bradesco back to a distant second place.

This heralded bad things to come. Under the strain of a slumping economy and ongoing problems competing with its now far-larger rival, Trabuco oversaw an historic collapse in Bradesco’s stock price, with the stock steadily declining by more than 80 percent. By 2015, the stock price was severely depressed and there was talk that Trabuco would soon be replaced.

However, in the middle part of that year, Trabuco was able to execute one of the greatest coups in Brazilian banking. He announced in the middle of 2015 that Bradesco would be acquiring HSBC Brazil in an all-cash deal for $5.2 billion. When the deal had completed, Bradesco was immediately shot back to the number-one spot in Brazilian banking across a wide number of segments. The stock price almost immediately began a rally that still has not ended to this day, with Bradesco’s stock trading at more than 2.5 times its 2015 lows.

But what is perhaps even more important is the strategic position that Trabuco was able to put his bank into. With a single acquisition, he was able to completely turn the tables, giving Bradesco the same competitive advantage and huge economies of scale that just a few months before had belonged to Itau Unibanco.

Who will Trabuco choose to replace him?

The duty to choose a replacement will fall on Trabuco per the corporate bylaws. There has been wide speculation about who will be the lucky candidate chosen to replace the outgoing CEO. But it has widely been acknowledged by those in the know that the most likely candidate will be Maruicio Minas, a 58 year old IT executive with the bank who has been responsible for overseeing the technological integration of all of HSBC Brazil’s technology into those of Bradesco.

Another of Minas’ major accomplishments was the creation and spinoff of Next, an internet-based banking platform that has been lauded for giving Bradesco a huge edge in the market of tech-savvy banking customers. Although there are up to six other contenders for the position, the smart money is heavily favoring Minas, both for his track record with the firm and his relative seniority and longevity with the bank.https://www.bradescori.com.br/site/conteudo/interna/default3.aspx?secaoId=572

Bradesco’s Banco Seguros Is Increasing Through bank Clients According To CEO Luíz Carlos Trabuco

Banco Bradesco is one of the up-and-coming shining stars on Wall Street. Foreign investors are jumping back into Brazilian companies, and Bradesco is at the top of the list. Bradesco is currently the second largest bank in Brazil, thanks to the 2015 acquisition of the Brazilian division of HSBC. Itaú Unibanco is a little bigger in terms of assets under management.

The thing that makes Brazilian bank stocks so attractive is their ability to make money in the lean times as well as the good times. For the last two years, while the country of Brazil was under economic water due to the worst recession in almost 100 years, Bradesco was turning in better-than-expected profit numbers. One of the major profit centers in the Bradesco family is Banco Seguros, the insurance arm of the bank, according to Bradesco CEO Luíz Carlos Trabuco.

Mr. Trabuco is the 66-year-old bank president who has never worked for any other bank. Trabuco came on board in 1969, and he didn’t start at the top. He was a rookie, but he was smart enough to learn how the bank functions internally. Luíz quietly went from one job to another within the bank, and he became a director and a couple years later a vice-president. One reason for Bradesco’s profit performance during the recession was the insurance arm of the bank, Banco Seguros. Trabuco took over as president of Seguros in 2003, and for the next five years, Mr. Trabuco and his staff were able to pump more than 30 percent of the Bradesco Seguros profits to the group’s bottom line. In 2008, the Bradesco Board of Directors gave Trabuco the title of bank president and he’s not going anywhere.

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Some Bradesco clients take advantage of in-company products. The average client uses about two bank products. In the first half of 2017, Seguros’ premiums were more than $13.4 billion and bank analysts say the total growth for the year will in the 6 percent to 10 percent range. Growth in life, health and pension coverage continues to be between 13 percent and 14 percent, according to Luíz Carlos Trabuco. Seguros has a “BB” rating for its financial strength, and the new sales approach will help maintain the bank’s overall growth.

Fitch, the rating company, thinks Seguros is playing a strategic role in the Bradesco group strategy. Bradesco Seguros is on track to continue to contribute 30 percent or more to the Bradesco Group’s bottom line. One reason for the optimism is the dramatic growth in life and the pension segments. Last year those segments were responsible for 57 percent of Seguros earnings. The auto and P&C segments were next with 24 percent. Health chipped in 10 percent, and savings bonds were eight percent of the earnings. The other good news is Seguros has great liquidity and capitalization ratios, according to Trabuco.

The consensus among Brazilian bankers is the same. Bank executives believe the Brazilian economy is on the mend, and inflation and unemployment numbers are heading in the right direction. Michel Temer’s government may not be as stable as it was last year, but export figures are up, and the government is cutting some of the red tape out of the political equation, according to Trabuco.

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Brad Reifler Has Advice for Middle Class Investors

Putting money into a certificate of deposit or a money market account is not a bad idea. The interest is low, but such is the tradeoff for seeking a low-risk investment. There are other ways of investing money, but people new to investing their funds may not be familiar with them. Brad Reifler, the CEO of Forefront Capital wants to help those people out. A financial expert, Reifler has been very public about discussing steps newbie investors should take.

The advice Reifler presents is based on simple common sense. He discusses steps that are perfect for someone hoping to avoid common mistakes. The strategies are equally helpful to those interested in avoiding risk and volatility.

Reifler stresses that putting money into safe vehicles is the best way to preserve it. Diversification is a key point in this process. Putting 100% of one’s investment capital in the stock market undermines the concept of having a diverse investment portfolio.

Before putting any money into the market or any investment vehicle, Reifler suggests on Twitter figuring out all specific goals. Defining investment goals does help lead someone to the right vehicles or even the right assistance.

Seeking assistance from brokers or fund managers can be a wise move, but be sure to look into the background and reputation of such professionals. working with the wrong manager or broker could prove disastrous.

Brad Reifler has made a career out of coming up with smart decisions in the financial world. Reifler is not new to finance and investing. He has over 30 years of experience in the industry. His early forays date back to 1982 when he founded Reifler Trading Corporation. He did so not long after graduating Bowdoin College with a degree in economics and political science.

The ensuring several decades reflect Reifler’s consistent success in the world of business and finance. Before his achievements with Forefront Capital, Reifler was enormously successful with another company named Pali Capital.

Reifler positively does want people who fall into the “99%” category to succeed. The “99%” comprise the great middle class.  Reifler wants people with less than a net worth of $1 million to know there is a lot they can do with their money. Hopefully, many will take his advice and start looking into reputable investment vehicles.  Follow along on Reifler’s website, as he seeks to help the world.

Why Is Investing With Martin Lustgarten Easier Than Going It Alone?

Martin Lustgarten is an international banker who helps people make their dreams come true when they are trying to build up a nest egg, and it is important for people to go ask Martin Lustgarten what he can do for them. He is not a broker, but he is an investment adviser who is going to help people who are trying to think of the best thing to do with their money. He is an international citizen, and he knows how all the countries around the world work when people invest there.

 

The first thing that Martin Lustgarten wants to know is what people’s goals are. He is going to ask his clients how they want to use their money when it is flowing in, and he is going to show everyone what their best case scenario is going to be. This is going to be much easier for people who do not know what to do, and they can just ask for the advice so that they can get going on what it means to invest internationally.

 

The next thing that people need to do is to make sure that they are investing in countries that match their needs. Martin Lustgarten knows what people should do when they have a specific goal, and they are going to be able to save a lot of money because they are going to send their money to the right places at the right times. Martin Lustgarten also helps people move their money around when it is necessary.

 

There are a lot of people who can work with Martin Lustgarten to learn about investment, and they are going to learn what to do by asking him for help He shows people how to increase their net worth, and he helps them move their money to that end. Martin Lustgarten is an expert who understands how to maximize a small cash investment for everyone. Follow Lustgarten on Twitter @mlustgarten2

More information about Lustgarten:

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Instagram: @mlustgarten