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