Buyout Firms Are Looking At Brazil Again According To Bradesco CEO Luiz Carlos Trabuco
Brazil’s Central bank is going where it hasn’t gone before. The Central bank slashed interest rates by 675 basis points because the Brazilian economy is not responding as fast as the bank thought it would. The interest rate cut means Brazilians may be able to get a loan from one of Brazil’s banks for an incredibly low-interest rate. But that low rate is still high in the United States and other developed countries. Some Brazilians say a seven percent rate in Brazil is like winning the lottery in the largest country in Latin America. One of the other perks that might come Brazil’s way thanks to the rate cut is an increase in merger and acquisition activity. Buyout firms are looking at Brazilian companies again because of the relatively low funding costs. According to Leandro Miranda, the head of Bradesco investment banking department thinks Brazil’s M&A activity will increase in 2018, and other Brazilian bankers say he’s right. New York investors are seriously looking at Brazilian tech firms as well as other innovative companies now that the government is making a little progress in the quest for an economic recovery.
Bradesco’s new Chairman of the Board Luiz Carlos Trabuco isn’t wasting any time getting the bank ready for an influx of foreign investors. Trabuco knows Brazil is ripe for the investment picking. He wants Bradesco to be at the top of the list for the foreign investors who need help maneuvering through the Brazilian red tape. Trabuco is one of those bankers who has a sixth banking sense. After more than 48 years in the banking business, Trabuco has seen it all when it comes to the ups and downs in the investment market. Mr. Trabuco is responsible for bringing the bank into the 21st century, thanks to his push to make online banking Bradesco’s number one priority. For the last eight years, Trabuco has put his CEO skills to work, and Wall Street likes the results. Bradesco has $413 billion in assets and its $4.6 billion net income in 2016 put the bank in rare company in the banking world. Trabuco may not be an accountant by education, but he is a financial and management star in Bradesco’s world. That’s why he is the new chairman of the bank’s Board of Directors.
Mr. Lázaro de Mello Brandão, Bradesco’s 91-year-old chairman is hanging up his banking shoes. That opens the door for Trabuco to give the bank more leverage on Wall Street. At 68, Trabuco is still young enough to be chairman, but he is too old to be the bank’s CEO. Bradesco has an age cap on the CEO position, and Trabuco is over that 67-year-old limit.
The first order of business in 2018 will be the announcement of a new CEO, according to Trabuco. Trabuco plans to make that announcement right before the annual shareholders meeting in Osasco in March. The new CEO is a bank executive now. There are seven bankers with the right qualifications, and they all are familiar with Trabuco’s management style. There are a lot of internal rumors floating around. Some bankers say chief lending officer Domingos Figueiredo Abreu is the man for the job, and other bankers like insurance division head Octavio de Lazari. But the two men who have the best shot, according to the press, are IT chief Mauricio Machado de Minas and risk management chief Alexandre da Silva Glüher.
But some people still think human resource head Andre Cano is the man for the job. But no one is ruling out operation head Josué Augusto Pancini or investment division chief Marcelo Noronha.