The time to buy Brazilian bank stocks is now, according to the big Wall Street investment firms. The Brazilian government is still a mess, but President Michel Temer is trying to work through the political fiasco. That’s not an easy task, according to some economists. Brazil’s government and the complicated red tape it put in place years ago still holds businesses hostage. Temer is implementing several new mandates, and they will help get the economy moving, but it is a slow process. Some Brazilians businesses aren’t happy with Temer or his government programs.
Former President Dilma Rousseff wants to right the wrong she felt when she got the boot last year. Her supporters are still throwing a lot of political mud at Temer and his administration. Corruption is always the flavor of the day in Brazil’s political scene. But all the political fire and fury and the nasty comments don’t impact the banking industry in Brazil. The banks in Brazil are moneymakers in good and bad economic times. The banks know how to protect their assets, and expand their financial reach by investing, carrying insurance protection, and by taking advantage of some of the government policies that keep the government-owned banks in business.
Not all banks in Brazil function the way Banco Bradesco does, and that fact is becoming obvious to foreign investors. According to 66-year-old CEO Luíz Carlos Trabuco, Bradesco’s stock is making Wall Street a believer in the bank again. Trabuco and the bankers who work with him didn’t waste any time when they put a team of techno-experts to work. Bradesco has a formidable presence online, and the bank’s Personas Project is bringing the bank and its customers closer together. Bradesco knows the spending and buying habits of its customers thanks to the Personas Project, and that gives the bank a closer relationship with its client base. The project also helps the marketing department find new customers. Trabuco’s team is also responsible for putting new incentives in place for customers and those incentives are working.
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Luíz Carlos Trabuco doesn’t like to take credit for Bradesco’s success. But the bank knows his worth. Trabuco is only the fourth president in the Bank’s six-decade history, and he is the most popular according to feedback from current employees. Mr. Trabuco is a dedicated Bradesco employee. His banking career is well-documented, and his team’s accomplishments put Bradesco in the running for the title of “the second largest bank in the country.” Bradesco has more than 5,000 bank branches and thousands of service centers around the country. When the Trabuco executive team put the HSBC deal to bed in 2015, some people thought it would take years to sort out all the issues that develop from a large acquisition. But the transition is working better than expected. Bradesco is making believers out of the naysayers. The Bradesco executive team is responsible for the success, according to other bank executives.
Bradesco stock is outperforming Itaú stock this year. And that is a sign that Trabuco and the other bank executives are making the right operational and financial decisions. But even though Trabuco and his team are in the limelight, no one is taking their eyes off the bank’s goal. Bradesco’s Board of Directors wants the bank to be the largest privately held bank in the country in terms of assets. Thanks to the bank’s 2017 performance that goal is in sight. But Itaú Unibanco has the same goal, so the race to the top is far from over.
Learn more about Luis Carlos Trabuco: http://www.istoedinheiro.com.br/noticias/negocios/20151218/luiz-carlos-trabuco-cappi-empreendedor-ano-nas-financas-2015/327856