The Making Of A Strong And Resilient Financial Institution

Most people do not make Trabuco as someone who can lead a large institution such as Bradesco. In fact, most of the bank executives are graduates in engineering, accounting, economics, and administration but Trabuco graduated in philosophy and later did his post graduate studies in socio-psychology.

Trabuco started working at Bradesco as a clerk in 1969, and two years later, he moved to San Paulo and worked at the head quarters. In 1984, he was the director of marketing, and between 1992 and 1998, he was serving as the director of marketing.

In his acting capacity, he was among those who were responsible for modernizing the bank’s publicity by opening it up to the media. Later in 1992 to 1998, he served as the director and president of the Bradesco Private Pension Company and then became the executive vice president in 1999. In 2003, he became the president of Bradesco, a position he held until today. Given that the insurer’s headquarters is in Reo de Janeiro, Trabuco had to live on the air bridge. Also, he is a member of the bank’s board of directors.

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The changes within the financial sector

After being elected to head one of the biggest insurers, Trabuco has done a lot to change its current operation. First, he has been a member of the organization for over 40 years and this means that he had a good grasp of its operation. Trabuco will still need the approval of the council after the outgoing president Cipriano left the institution after working for about 10 years. Trabuco successor did a lot to improve Bradesco operation by buying ten banks which included BMC, Boavista, and Spanish BBVA. This aggressive investment in opening branches led to the doubling of the volume of credit.

Although Bradesco had doubled up the credit volume, it was still stalling when it comes to maintaining market leadership, and given the loss recorded prior to Luiz Carlos Trabuco joining as president, it had a strong impact on the board. The greatest concern for the company is that it doesn’t have a lot of options to grow through acquisition in the country. According to analysts, Bradesco could target medium sized private banks such as Safra, but its sale is unlikely given the huge losses suffered by the crisis.

Creating a sustainable institution

Trabuco will also be joining the institution in an unfavorable economic environment since the countries financial market has a lot of difficulties abroad. Also, the level of activities is decelerating rapidly in Brazil and this is thought to have a huge impact on the balance sheets. The loans growth is also expected to be lower compared to the year 2007 and 2008, and this is likely to affect profitability.

According to estimates by Credit Suisse, one of the largest Swiss banks, Bradesco’s returns to equity is valued at 21.3% in 2008 compared to 23.4% in 2009, but it’s expected that Bradesco will still remain a stiff competitor despite losing its leadership to a private bank.

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