Brazil’s economy is making a comeback, and investors around the world are clapping their hands and opening their wallets. Brazil is a member of the BRICS group of emerging markets. Most investors know there is money growing on the recessionary trees in the largest emerging market in Latin America. Now that the four-year recession is running out of gas, foreign investors are pouring money into the country. One of the prime investments in Brazil is Banco Bradesco.
Bradesco is the second largest private bank in Brazil and one of the banking industry’s most profitable private banks. Bradesco is a great stock for foreign investors because of its growth and income. The man behind the fantastic growth and income is CEO Luiz Carlos Trabuco.
Luiz Carlos Trabuco is the fourth president in the history of the bank. Bradesco’s market value went from $5 billion to more than $30 billion, thanks to Trabuco’s leadership. The 57-year-old CEO is a 40-year veteran of the banking industry. And during those forty years, Trabuco never left Bradesco. Rather than leaving the bank, he put his philosophy education from the University of São Paulo to work. Luiz got his banking experience by working in every department in the bank. Trabuco was president of Bradesco Seguros for six years, and that’s where Luiz, an intelligent, personable, and confident man from Marília hit the banking industry’s radar. Today, Bradesco Seguros makes up 30 percent of Bradesco’s profits.
The key to Trabuco’s success is the bank’s diverse product mix. The bank’s performance is not the result of consumer loans and mortgages. It is the result of income from bonds, insurance sales, wealth management fees, and other banking fees. Like most banks, the success of their loan exposure depends on consumer spending, unemployment, and low inflation. Thanks to recent political and social changes, Brazil’s consumer spending is trending upwards, especially in the new tech products and services. Bradesco’s sales are out of control, according to recent reports. Bank sales in 2016 were 21 percent higher than 2015 sales. And the net income for the first quarter of 2017 was R$9.3 billion. That profit number gave foreign investors the green light to invest in Bradesco.
Bradesco is a bank that cares about Brazilians. Luiz Carlos Trabuco is a CEO who gives back and pays forward, through the various social-economic initiatives the bank has in place. Some of those initiatives include the Carbon Disclosure Program, Companies for Climate Change, Global Compact, and the Brazilian Green House Emissions Program. Plus, the 60-year-old Bradesco educational program helps thousands of students’ complete school and get better jobs.
But it’s not just the social and educational programs that make Bradesco a great investment. Trabuco believes in mergers and acquisitions. When Bradesco brought the Brazilian subsidiary of HSBC into the bank’s family, the investment world took notice. The soft-spoken Trabuco may have a great sense of humor, but he also has a keen business sense, and that sense puts him in rare company in Brazil’s banking industry. Outside of the bank, Luiz lives a quiet life with his wife and three children. But when he is behind his desk for 18 hours a day, or when he is traveling to the to Bradesco bank location around the country, he is all business.
Banco Bradesco S.A. is a great investment for foreign and local investors. And Luiz Carlos Trabuco is the CEO who will continue to make that investment worthwhile. Luiz believes in giving his customers services that other banks avoid, and he believes in giving investors what they want by implementing bank strategies that keep other Brazilian banks guessing what he’ll do next.
For more information about Luiz Carlos Trabuco and Braesco, just click here.