Emerging market bank stocks are in vogue this year. Bradesco, Brazil third largest private bank, is #6 in the Banks-Foreign industry group, in the IBD rating system. Bradesco just went from a score of 77 to a score of 89. Any score over 80 usually means that company’s stock will have bigger gains. Investors are still cautious about Brazil, but most investors do their homework before they buy emerging market stock. Investors who research what’s going on in Banco Bradesco usually find nothing but a smooth-running banking machine that is beating last year’s revenue figures. The Bradesco executive team is under the leadership of Luíz Carlos Trabuco. Luíz Carlos Trabuco is a banker with solid experience and an impressive background.
Bradesco is having a good year for several reasons. Luíz Carlos Trabuco is one reason, but other bank executives are helping the bank stand out in a very competitive market. Another reason for the bank’s success is the Personas project. The Personas project maps the attitudinal, behavioral, and psychographic characteristics of the more than 26.1 million consumers who have a Bradesco account. Bradesco’s tech department is one of the best in Brazil, and it is helping the bank become more consumer friendly. The project identifies consumer consumption as well as consumer spending, saving, and other consumer behaviors. When Bradesco or any other bank knows what consumers need, they try to fill that need. That could mean lower interest rates, special personal loans or business loans.
But It is the bank’s responsibility to make sure that information is safe, and it is only available to a select group of executives. Bradesco’s marketing team gets the consumer information they need to keep present clients happy as well as attract new consumers. Trabuco has a degree in philosophy, and his tech team is Silicon Valley worthy, according to team members.
The bank is still trying to incorporate the 2015 HSBC acquisition, and that is making Trabuco, and his team works overtime. Bradesco now has more than 5,000 bank branches, thousands of ATMs and a plethora of service centers around the country. In other words, Bradesco is big. And Bradesco is getting bigger thanks to the technology advancements initiated by Trabuco and his executives. And that’s what foreign investors are interested in. They want to know about Trabuco and his team. They want to know Trabuco is a 38-year bank veteran. And they want to know Trabuco is a company man who started with the bank in 1969 and is still there. Mr. Trabuco also has a winning record when it comes to managing profitable companies. When he was president of Banco Seguros, he was responsible for turning in 30 percent of the Bradesco’s total profits in 2008.
Foreign Investors are buying Bradesco stock now, and they are keeping their fingers crossed that President Michel Temer is the man who will help Brazil recover from a crippling recession. There are signs he can do that, but there are also signs he may be another shady politician. But that’s not stopping Bradesco, or any of the other bank, from making money. Big Brazilian banks make money in the good times and the bad. They don’t make money lending money. They make money by investing, and by having insurance that protects them from downturns in the economy.
Luíz Carlos Trabuco and his executive team at Bradesco have big plans, even though Trabuco is in it for the short haul. Trabuco is 66-years-old, but he’s not ready to retire. He is the fourth president of Bradesco. He wants the fifth president to take over at just the right time, but no one knows what the right time is, and that’s okay.
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