There are few factors as useful in facilitating economic growth as credit. Credit empowers everyday people to achieve more. Understandably, therefore, as the primary providers of credit, banks occupy an essential position in every economy. The decisions made by bank executives can either adversely or positively affect the welfare of a country’s citizens. To understand this state of affairs, one can merely look at Brazilian bank Bradesco and its president, Luiz Carlos Trabuco.
Big Brazilian Bank
Slightly over seven decades ago, Bradesco was founded as a small financial institution by Amador Aguiar. Since then, under the guidance of Mr. Aguiar and three more successive CEOs: Lazaro Brandao, Marcio Cypriano, and Luiz Carlos Trabuco, the bank has grown to become one of the largest in the country. Its value today runs into the hundreds of billions of dollars. It also directly employs over a hundred thousand employees, with thousands more being indirectly touched by the bank. The growth experienced by the bank over the decades has even allowed it to develop some subsidiaries. The biggest of this subsidiaries is Bradesco Seguros, the largest insurance company in the country and a contributor of approximately a third if the bank’s annual returns. Owing to Bradesco’s massive size, any news coming, out of the bank, especially relating to leadership, often attracts a lot of industry attention.
Luiz Carlos Trabuco
Luiz Carlos Trabuco is the fourth president of Bradesco. He succeeded Marcio Cypriano in March 2009 following the retirement of the legendary leader. Mr. Trabuco’s appointment was an extension of the bank’s culture of continuation and renewal. All of the bank’s presidents thus far have been appointed from among its pool of senior leadership. This strategy not only rewards the bank’s loyal employees but also ensures that all senior leaders already understand the workings of the bank at the time of their appointment. Having spent more than four decades at Bradesco, few of the bank’s employees have been as loyal as Luiz Carlos Trabuco according to istoedinheiro.com.br. It is little wonder that he was also considered a strong candidate for the presidency a decade before his appointment. The bank, however, went with Marcio Cypriano as the then 48-year old Mr. Trabuco was considered too young.
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Before his appointment to the position of Bradesco president, Luiz Carlos Trabuco was already well known in the Brazilian financial sector, owing to his highly successful six-year spell at the helm of Bradesco Seguros. Mr. Trabuco was appointed the president of the insurance subsidiary in 2003 at a time when the Brazilian insurance industry was still in its infancy. He quickly set about growing the insurer’s market share by expanding its broker network. This strategy paid off immensely as Bradesco Seguros rose to control a quarter of the market share by the time Luiz Carlos Trabuco was leaving the insurer in 2009. The subsidiary’s contribution to the bank’s total income also grew by ten percentage point during Mr. Trabuco’s six-year tenure. Industry players quickly took note of Luiz Carlos Trabuco’s managerial brilliance and consequently twice named him the insurance personality of the year.
Better Days Ahead
After five consistent decades of Bradesco being the leading private lender in the country, Luiz Carlos Trabuco was unfortunate to take over as president only a few months after the bank lost the position to Itau Unibanco. Understandably, Bradesco’s pride was wounded by losing the top spot to a competitor. Since Luiz Carlos Trabuco already understands Bradesco’s culture and the intricacies of running a large financial institution, it is expected that he will hit the ground running and quickly regain market leadership.
Search more about Luiz Carlos Trabuco: http://www.valor.com.br/financas/5194121/trabuco-apesar-das-incertezas-investidores-acreditam-no-pais