Bradesco, the private Brazilian bank, is making headlines for a number of reasons. The bank is rolling out a high-income client area, and the bank is also promoting its insurance division, Banco Seguros, as the insurance provider that will cover Brazilians when things go sour in the largest country in Latin America. Only 43 percent of the bank’s clients have enough insurance to cover them personally and in business. Health insurance is Seguros main source of revenue. Health insurance revenue in 2016 was $11.5 billion. That was an 11 percent increase over the 2015 revenue figure. Seguros is the golden goose in the Bradesco family, and that is one reason Seguros President Octavio de Lazari may be the next CEO of Bradesco. Octavio de Lazari got the Seguros job in May 2017, but he has a reputation for being a man who can get things done. The Seguros figures confirm that statement.
Bradesco is looking for a new CEO, but the bank is not looking outside the bank for management expertise. Bradesco likes to promote from within, and that practice has paid off. The bank is a well-organized banking machine with more than 4,600 local branches, and more than 29,000 ATMs spread across the country. The current CEO, Luiz Carlos Trabuco, is a former Seguros president. Trabuco is the man Wall Street likes. That’s one reason he is replacing long-time bank Chairman Lázaro de Mello Brandão. Lázaro de Mello Brandão is a permanent fixture in the banking world. He got into banking when he went to work for Bradesco in 1943. Trabuco didn’t arrive on the banking scene until 1969, but both men have contributed an enormous amount of talent, knowledge, and hard work to make the Bank what it is today. Today, Bradesco is a revenue giant with a net worth of more than $65 billion.
Replacing Trabuco is not the easiest thing, even though there are seven qualified men standing in line for the job. Trabuco is one of those CEOs that likes to mingle with the more than 100,000 Bradesco employees. He may not know all of them, but he has an open-door policy that encourages employee feedback and employee complaints. Some bank employees say Lázaro de Mello Brandão will be a hard act to follow, but Trabuco and Brandão have a special banking relationship. The men complement each other because they have different management styles according to valor.com.br. But it’s time for 91-year-old Brandão to move on, and investors think Trabuco is the right man to replace him.
The seven bankers who have a shot at the CEO position are Octavio de Lazari, Domingos Figueiredo Abreu, Josué Augusto Pancini, Mauricio Machado de Minas, Andre Cano, Marcelo Noronha and Alexandre da Silva Glüher. Those men currently hold high-level Bradesco positions. Octavio de Lazari is president of Seguros, Abreu is in charge of the loan division, de Minas is the head of the bank’s IT department, Cano is the human resource director, Noronha is the investment specialist, Pancini is chief of operations, and da Silva Glüher is the head of risk management.
The new CEO will take over after the annual shareholders meeting on folha.uol.com.br. The March 2018 meeting will be a great time to introduce a new CEO as well as discuss the wins and losses of 2017. The meeting will also give Brandão a chance to say a few words about his banking career. The meeting will also give Trabuco a chance to discuss future projects and revenue projections, and to keep the slogan, “Presence is Bradesco” in play. Bradesco is riding high in the banking world, and the new management structure should keep the bank on the right track, according to Wall Street financial analysts.
Search more about Luiz Carlos Trabuco: http://www1.folha.uol.com.br/mercado/2017/10/1926043-lazaro-brandao-sera-substituido-por-trabuco-no-conselho-do-bradesco.shtml