How Luiz Carlos Trabuco Led Bradesco To Purchase HSBC Holdings’ Brazilian Operations

Luiz Carlos Trabuco is the Chief Executive Officer of Banco Bradesco since his appointment From within the ranks of the financial institution nearly one decade ago, after more than forty years with Bradesco. Prior to becoming CEO in March of 2009, Mr. Trabuco was the President of Bradesco Seguros, the formal name of the bank’s insurance subsidiary, a role the experienced banker had held since 2003.

Mr. Trabuco has unarguably served Bradesco well throughout his nearly fifty years of service, starting in 1969 and slated to stay with the organization through at least the end of the current decade. He’s probably best known for his takeover of HSBC Holdings’ Brazilian banking operations. According to tostoadv.com HSBC Holdings is an international conglomerate that holds all sorts of investments from every corner of the globe imaginable. With innumerable projects on HSBC’s plate, combined with the difficulty of Brazilian banking to those who aren’t native Brazilians, made it extremely difficult for HSBC to succeed in their South American endeavors as a financial servicer.

He first birthed the idea of purchasing HSBC Brazil, the formal name of its Brazilian bank, in the latter months of 2014. While the deal was pushed forward to executives and attorneys at HSBC Holdings in August of 2015, it took several months of planning to get all the intricacies, nuances, and details sorted out. Luiz Carlos Trabuco was recently quoted as explaining the deal, in which Bradesco received the rough equivalent of six years’ organic growth, something Mr. Trabuco has been active in pushing for and quite skilled at maintaining high levels of organic growth. However, growth wasn’t the only thing Mr. Trabuco was looking for on behalf of Bradesco, as several crucial reasons encouraged the current CEO to move the deal ahead.

First off, banks in Brazil – much like everywhere else in the world with established financial institutions competing with one another – commonly acquire one another, if not merge entire organizations with one another. Considering the fact that Bradesco had lost its multi-decade reign as the largest bank in Brazil in 2008 to a merger between two top-ten banks, Unibanco and Banco Itau, Mr. Trabuco considered it important for Bradesco to secure the thousands of branch locations and other assets HSBC Brazil had to offer, rather than allowing another bank in Brazil to capitalize on the opportunity.

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While the $5.2 billion purchase price was quite expensive, worth far more than the fair or book value of the assets HSBC Holdings owned in the nation of Brazil, Bradesco could have lost footing in Brazil’s financial services sector, making it a good idea to purchase the assets, regardless of purchase price.

Luiz Carlos Trabuco firmly believed that HSBC Holdings’ executives would allow another organization to purchase its assets, as its financials had indicated gross underperformance in recent years. Although it makes sense to purchase a top-tier, solidly performing organization rather than a currently failing one, HSBC Brazil’s then-current underperformance made it a prime candidate for sale. Mr. Trabuco was correct in his assumption, as its executives and owners were more than willing to come off its South American assets once approached.

Mr. Trabuco gained such a sharp business sense in the 45 years prior to the aforementioned acquisition from working for Bradesco for 45 consecutive years. That’s right – Luiz Carlos Trabuco had spent his entire career with Bradesco, ever since he was first hired on in 1969 as a teller and clerk, as entry-level positions as humanly possible.

Also aiding in negotiations between the two entities were the Philosophy and Socio-Psychology degrees Mr. Trabuco had earned in his younger years, having boosted his communication skills throughout his entire career.

Search more about Luiz Carlos Trabuco: http://www1.folha.uol.com.br/mercado/2016/09/1810520-bradesco-quer-manter-trabuco-na-presidencia-por-mais-dois-anos.shtml