If the number of initial public offerings is an indication of an economic recovery, then Brazil is well on the way out of the lingering recession. According to several economists, investors are back in the hunt for Brazil businesses. A good example of investor interest is the Burger King franchise activity, and the investor interest in Brazil’s primary fuel distributor, Petroleo Brasileiro SA. This week was the busiest week for new IPO listings since April 2013, thanks to those offerings. The combined total of new listings was $2.2 billion. But there is still a lot of anxiety in the market because the government’s reform agenda is not moving forward fast enough. And the political outlook in 2018 is murky at best, according to economists. Brazil’s stock index hit a record high earlier in the year, but no one is celebrating. Ten initial public offerings raised more than $5.5 billion compared to the nine IPOs that hit the $8.4 billion figure in 2013. According to Luiz Carlos Trabuco, the CEO of Bradesco, the country is making progress, but President Michel Temer’s market-friendly reforms are still not producing the IPO activity they should produce.
Bradesco is becoming the bank Brazilians like to call “their bank.” The Osasco based bank offers its clients insurance, annuities, credit card services, Internet banking, and savings bonds. The bank’s stock is one of Wall Street’s picks for 2018 because the bank is so diversified. Bradesco international presence is growing thanks to branches in New York, Hong Kong, Grand Cayman, Mexico, Tokyo, London, and Buenos Aires. Luiz Carlos Trabuco and the other Bradesco executives put the bank in a position of power in the international banking community. Luiz Carlos recently became Board Chairman. Trabuco and the Board of Directors will name a new CEO at the beginning of 2018.
The chairman position is open because the oldest banker in Brazilian history, Lázaro de Mello Brandão, is finally stepping down. Brandão is responsible for the growth of the bank over the last twenty-five years. Mr. Brandão and Mr. Trabuco are both long-term Bradesco employees. Brandão got his banking start in 1943 when Bradesco opened for banking business, and Trabuco entered the bank’s extensive trainee program in 1969 after graduating from Sao Paulo University. The team of Brandão and Trabuco is responsible for the group of bankers that put more than $4.6 billion on the bank’s bottom line in 2016. The two seasoned bankers along with the Board of Directors are looking for a new CEO and that person will come from the executive team the two men put together.
Luiz Carlos Trabuco understands what it takes to be an effective CEO. His philosophy and psychology background has always been an asset during his 48 years in the banking industry. All the acquisitions and mergers that Bradesco has implemented over the last 20 years are the result of a banking management style that allows team members to do what they do best. That’s why Trabuco wants the next bank CEO to come from within. There are seven qualified candidates for the job. The word on the street is IT Chief Mauricio Machado de Minas might be the man for the job, but operations manager Josué Augusto Pancini is also a prime candidate. Lending officer Domingos Figueiredo Abreu is on the list,and Seguros President Octavio de Lazari is also being considered. And so are investment specialist Marcelo Noronha, and human resource manager Andre Cano. But some employees say Alexandre da Silva Glüher could be the next CEO and president of the bank.