Banco Bradesco is one of the oldest banks in the South American, Portuguese-speaking nation of Brazil, having been founded in 1943 by Amador Aguiar in Marilia. Whether it’s a coincidence or something more, we’ll never know, as the long-time employee and current executive of Bradesco, Luiz Carlos Trabuco, was also born in Marilia, just eight years after Bradesco’s initial branch started to experience success.
Luiz Carlos Trabuco has received a lion’s share of positive press about his background, how he helped mold Bradesco for its betterment, and thinking behind great decisions he’s made at the financial institution he’s been a part of since 1969. However, likely the brightest point of Mr. Trabuco’s career was his involvement in the purchase of HSBC, a bank owned and operated by multinational commercial conglomerate HSBC Holdings from its corporate office in London, England.
August of 2015 marked the month when formal negotiations for the $5,200,000,000 proved successful, Bradesco’s side of the table led by none other than Luiz Carlos Trabuco. February of 2016 brought all necessary paperwork regarding the purchase and adherence to applicable Brazilian and international law to a close, immediately earning the equivalent of six years’ worth of organic growth. While Luiz Carlos Trabuco has brought a great deal of organic growth to Bradesco’s proverbial table, the purchase of HSBC’s assets related to its Brazilian financial institutions were absolutely necessary to maintain a competitive advantage in its fiercely-competitive marketplace.
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The largest bank in all of Brazil since 2008, Itau Unibanco, was created as a merger between Brazilian banking giants Banco Itau and Unibanco, bumping each bank’s size from under that of Bradesco to above Bradesco’s. Even though Bradesco had held that title for numerous decades, Luiz Carlos Trabuco was in no way accepting of Itau Unibanco taking first place. Furthermore, because that financial institution had grabbed first place in Brazil, it meant another competitor could attempt to do the same. Even if they didn’t make themselves the largest bank with the taking home of HSBC’s Brazilian operations, it made far more sense to Luiz Carlos Trabuco and his fellow executives to purchase it, rather than allow the opportunity for another organization to do so.
But how did Luiz Carlos Trabuco reason that HSBC was potentially up for sale?
Although the assets of HSBC were thought by Luiz Carlos Trabuco to prove potentially beneficial to Bradesco’s needs – which they very much did, as it’s proven today – HSBC had been underperforming for some time closely following the turn of the millennium. November of 2014 was the first time when Luiz Carlos Trabuco thought purchasing HSBC’s assets could be worthwhile, as parent companies with many individual subsidiaries don’t often maintain failing operations for years on end; rather, they cut subsidiaries not yielding enough profit to their respective bottom lines.
Mr. Luiz Carlos Trabuco directly approached HSBC Holdings’ executives in 2015, when he received affirmation to his assumptions – HSBC’s banking assets in the nation of Brazil could possibly be up for sale. Within a few short months, August of 2015 rolled around, in which Luiz Carlos Trabuco agreed on a purchase price of $5.2 billion. Even though the price was full of goodwill – or, an excess of purchase price over the total value of net assets – the transaction has unarguably proved worthwhile.
Luiz Carlos Trabuco began working for Bradesco’s first branch in 1969, directly after earning two degrees in metropolitan Sao Paulo. He was invited to work at the institution’s headquarters in Sao Paulo, after living in Marilia for two years, in 1971. Mr. Trabuco has ascended virtually every rank of Bradesco since the late 1960s.
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