Why Banco Bradesco SA Needs A New CEO

CEOs and chairpersons of institutions wield a lot of power over the success, or lack of it thereof, of a company more so if that organization is Banco Bradesco SA, the second largest private bank in Brazil. Bradesco has over 74 years of quality service delivery to Brazilians and its customers across the globe. Bradesco, which is based in Osasco, came into being in 1943. The bank is the brainchild of the deceased Amado Aguiar (1904 – 1991). Apart from being the founder of the bank, Aguiar was also the first CEO and the first president of the board of directors of Bradesco.

Obviously, during Aguiar’s time at the helm of Bradesco, Bradesco was not huge a financial institution that currently is. As per the 2016’s balance sheet, Bradesco earned gross revenues totaling to $50 billion. As at last year, the banks’ totals assets were slightly below $420 billion. Bradesco has over five thousand branches and over 100 thousand employees delivering services to customers in those branches. Apart from banking services, Bradesco has ventured into other businesses including insurance. Credit goes to all the leaders that came after Aguiar; they include Lazaro de Mello Brandao, Marcio Cypriano, and Luiz Carlos Trabuco.

Read more: Trabuco will assume the presidency of Bradesco’s board; bank to appoint new chief executive in March


Lazaro de Mello Brandao

Starting his career at Bradesco as a clerk and with modest academic qualifications, nobody envisioned that Brandao would be Aguiar’s successor. Bradesco hired Brandao in 1943—the same year that Aguiar established the bank in Marilia. Although it took 20 years for Brandao to earn a significant promotion, director, the experienced banker was unstoppable. The bank named him vice president in 1977 and president four years later. As the president of the bank, Brandao worked alongside Aguiar who had retained his position as the chairman of the board of directors. However, Aguiar passed on in 1991, and Brandao was named the new chairman of the bank.

At the time, Bradesco was rapidly expanding, and in 1999, Brandao could no longer hold both positions on brasil247.com. Marcio Cypriano was appointed to become the third president of the bank. Relieved of some duties, Brandao continued serving the bank as chairman. Brandao and Cypriano were keen on expanding Bradesco’s control of the Brazilian banking sector. The two acquired 10 smaller banks cementing Bradesco’s position as the leading private bank.

After 10 years of service to Bradesco, it was Cypriano’s turn to step down and allow a new CEO to carry on with the work he had initiated. Since the bank has no age limit for chairpersons, Cypriano stepped down for Luiz Carlos Trabuco while Brandao held on to the chairmanship of the bank according to globo.com.

Under the leadership of Luiz Carlos Trabuco and Brandao, Bradesco witnessed significant changes. Itaú and Unibanco merged creating Itaú Unibanco which emerged as the most prominent private bank—bigger than Bradesco. The merger was completed in 2009. After being used to being market leaders, Brandao and the entire board of directors of Bradesco were not amused by the occurrence. The new CEO—Luiz Carlos Trabuco—began figuring out various ways the bank could regain its lost glory. He settled on inorganic growth strategies. In 2015, Brandao and Luiz Carlos Trabuco agreed to purchase the Brazilian branch of HSBC for $5.2 billion. Although the acquisition did not put Bradesco ahead of Itaú Unibanco, it edged it closer to its rival.

On October 11, 2017, Brandao, 91, stepped down as chairman of Bradesco. Owing to the sensitivity of the position, Luiz Carlos Trabuco was named the new chairman. However, after serving as president for eight years, Luiz Carlos Trabuco will resign in March. Bradesco needs a new CEO. Who will it be?

Search more about Luiz Carlos Trabuco: http://www1.folha.uol.com.br/mercado/2017/10/1926243-proximo-presidente-do-bradesco-saira-da-diretoria-do-banco-diz-trabuco.shtml