Bradesco’s CEO Luiz Carlos Trabuco Think Lower Interest Rates Will Help The New Bank Team

Brazil’s Central Bank is going where they haven’t gone before. The Central Bank cut interest rates to seven percent recently, and that news is shaking up the consumer loan divisions of several Brazilian banks. The government’s economic recovery is slower than expected in 2017 so giving Brazilians a chance to borrow money at a lower rate might speed up the recovery. The government is still trying to overhaul the country’s social security. Brazil sovereign credit rating depends on the government passing pension reform before Christmas, but that seems unlikely at this point.

According to recent news reports on folha.uol.com.br, pension reform will come in 2018. But Bradesco, the second largest private bank in the country, is not waiting for the government to get its economic act together. Bradesco recently announced major changes in management, and more changes are on the way, according to CEO Luiz Carlos Trabuco on valor.com.br.

The oldest bank chairman in Brazilian banking history, 91-year-old Lázaro de Mello Brandão, is retiring. Luiz Carlos Trabuco is stepping into his position. Brandão is one of Bradesco’s oldest employees. His banking career started when Bradesco opened its doors more than 70 years ago. He is one of the reasons Bradesco is breaking revenue records. But one of the main reasons for Bradesco success is the new banking systems put in place by Luiz Carlos Trabuco and his executive team. Trabuco has a reputation for being a competent banker who relies on Bradesco’s executive talent. He has a philosophy degree from the University of Sao Paulo and a graduate degree in psychology. Some old Bradesco bankers didn’t think Trabuco would make it as a banker when Luiz was a bank trainee in 1969. He didn’t have an accounting or finance degree. But he did have business sense and a personality that people couldn’t resist.

Read more: PDV exceeded expectations, says Bradesco president

Even though Brazil is going through tough economic times; Bradesco is turning in record profit numbers in 2017. The bank’s stock is trading around $10 a share, and foreign investors are putting the stock into their portfolios again. The Lázaro de Mello Brandão announcement isn’t scaring investors. They know Trabuco can handle the chairmanship as well as function as the president and CEO until the bank announces his replacement. Seven current Bradesco executives are in the hunt for the CEO position. All of those men are loyal employees, and they all have a close relationship with Trabuco.

No one is saying who the best candidate is, but some bank’s employees think IT executive, Mauricio Machado de Minas has the inside track, because of Bradesco’s push to be more digitally banking friendly. Mauricio Machado de Minas is responsible for rolling out Bradesco’s digital banking platform, Next. But acquisition executive Alexandre da Silva Glüher is also in the running for the CEO position. Alexandre da Silva Glüher is responsible for putting the HSBC acquisition together in 2015. Bradesco acquired HSBC’s Brazilian operation. Josué Augusto Pancini, the bank’s operations executive, is also on the list. And so is Andre Cano. Cano is the head of the bank’s human resource department.

But some bank employees think Seguros President Octavio de Lazari will get the job. Seguros is the insurance division of the bank, and Trabuco is a past president of that division. Trabuco was president of Seguros from 2003 to 2009. Chief investment banker, Marcelo Noronha, is in the hunt, and so is Andre Cano. Cano heads up human resources. But chief loan officer Domingos Figueiredo Abreu has a shot at getting the big job in March 2018.

Learn 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