Banco do Brazil is the largest bank in Brazil. Since it is a state-owned bank, making a profit isn’t the top priority. But the bank has a new strategy, and that plan is impressing equity analysts. It is true. Banco do Brazil did sell off a lot of assets during the political firestorm that never seems to go away in the largest economy in Latin America. The firestorm may be a low flame at times, and then some corruption story hits the news, and the firestorm turns into a blazing mess. Now that the economy is recovering, the big Banco do Brazil is ready to enter another phase of its strategy, according to the CEO of Banco do Brazil CEO Paulo Rogerio Caffarelli.
Mr. Caffarelli is cutting jobs, and he is rebuilding the bank’s customer base. Caffarelli also wants to sell the bank’s Argentinian asset, Banco Patagonia. Mr. Caffarelli is all about efficiency and profitability, and Banco Bradesco CEO Luíz Carlos Trabuco knows a lot about those two important pieces of a bank’s longevity. Bradesco is going on its 75th year in business.
The banks in Brazil know how to make money without lending money to businesses and individuals. The Brazilian banks invest in bonds, and they have insurance that covers an economic downturn. That’s why the big banks in Brazil produce healthy profits consistently; especially over the last two years. This year will be a record profit year for Bradesco. That’s why all eyes on Wall Street are on Bradesco’s executive team.
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Investors like Nationwide Fund Advisors, US Bancorp DE, and Aberdeen Asset Management PLC UK, and other international hedge fund managers are investing in Banco Bradesco stock this year. And the forecast for 2018 is even brighter, according to some Wall Street analysts. Foreign Investors are not immune to investing in companies that look good, but fizzle-out when the bank’s management makes a costly mistake. Wall Street is on Trabuco’s side right now because his executive team is managing the bank’s assets correctly.
The suits on Wall Street also believe Bradesco will meet or beat, their 2017 profit projections. That’s good news for the bank and even better news for the Brazilian economy. Trabuco and his team of executives have a Personas Program in place and the bank gets to know their clients better from the data the program collects. The program analyzes the buying and spending habits of clients, so the bank can help them make the right decision. Plus, the other goal is to sell more bank products and services. It doesn’t matter if the products are from Banco Seguros, the insurance branch of the bank, or from the 4,500 local branches.
The other good news is the Brazilian economy is showing some upbeat signs. The recession seems to be over, but the political turmoil is still not helping economy fully recover. Brazilian President Michel Temer put some new economic programs on the table, and he is actively pursuing new business with China, the United States, and the European Union, so investors will come back in 2018.
Sixty-six-year-old CEO Luíz Carlos Trabuco will continue to do what he always does. He is a people person, and he knows how to treat people who work for Bradesco. It’s close-knit group, and that is why investors like the stock. Bradesco is a big bank with a “down home feeling” and that feeling attracts clients from all over the country. Brazilians want to be part of a winning combination, and Trabuco and his team give people what they want.
Learn more about Luiz Carlos Trabuco: http://www.istoedinheiro.com.br/noticias/negocios/20151218/luiz-carlos-trabuco-cappi-empreendedor-ano-nas-financas-2015/327856