Why Strategic Approach is Important for Enhancing Community Banking

Why Strategic Approach is Important for Enhancing Community Banking

The fifth annual strategic opportunities conference in New Orleans witnessed the participation of John Holt, Chief Executive Officer of the Dallas-based NexBank. The convention was organized by the Texas Bankers Association hence, NexBank involvement as one of the leading banking institutions in Texas.

The conference convenes banking players to share different perspectives on challenges and profitable areas of the Texas Banking Industry and the nation in general. In this fifth conference, the topic of discussion was centered on community banking. The participants discussed various ways of prioritizing community banks through innovation and dynamic models.

The annual forum brought together leading banking industry players, expert advisers, and consultant personnel equipped with broad knowledge of community banking. The panelists discussed the challenges bank leaders face and how to handle them. They also tackled the issue of identifying new profitable opportunities for community banks and utilizing them. On this regard, the panelists stressed on the need to build branches for broader reach and growing the banking sector using organic growth approach.

About NexBank

NexBank is one of the oldest banks in the state of Texas. It was founded 1934 and has grown to have employees totaling 87. In the Texas State, the bank takes the 11th position in the list of largest banks. Countrywide, it is in place 152 of the most massive companies list. Though NexBank is headquartered in Dallas 2515 McKinney Ave (Suite 1100), the company has two other locations – 6121 Luther Lane Dallas TX which houses the Preston Center Branch; Suite 1700 of McKinney Av. Dallas which houses the McKinney Branch.

By 2018, NexBank had a total of 8.37 billion US dollars as the value of the assets. The firm is regulated by FDIC and rated A by Deposit Accounts. The bank deals with mortgage banking, and institutional services. These services are characterized by customized services, flexibility, and over eight decades of experience.

Luiz Carlos Trabuco Makes Big Play For Dominance In Brazilian Banking Sector

Throughout the 2000s, Bradesco, one of the largest banking conglomerates in Brazil, experienced phenomenal growth. Under the direction of its CEO, Mario Cypriano, the stock price exploded by more than 100 times, and the total assets of the bank increased more than 30-fold. This incredible period of growth continued throughout the 2000s. When Mario Cyrpiano retired, in 2009, there were great expectations for his replacement, Luiz Carlos Trabuco, as he took the reins of a firm that had just begun to show signs of slowing growth.

However, Trabuco was wading into tumultuous waters. Through factors far outside his control, Bradesco was entering a period of stagnant growth and even decline. Brazil was still rocked from the 2008 global financial crisis, kicked off by Bradesco’s North American counterparts in their maniacal quest for ever-expanding mortgage profits. The prospects for organic growth looked weak for Bradesco, as the bank faced some of the worst macroeconomic indicators in living memory.

This was the context in which Luiz Carlos Trabuco took over. It was, therefore, unsurprising that the first six years of his tenure were marked by continual declines in both the market cap and market share of Bradesco. Although Trabuco’s stated mission was to foment organic growth within the bank’s retail products, the prospects for doing so looked slim at best. The Brazilian banking industry itself continued to contract.

Read more on Bloomberg.com

Perhaps even worse was the merger between two of Bradesco’s chief rivals, Banco Itau and Unibanco, shortly after Trabuco became CEO. This rival created what was, by far, the largest banking conglomerate in the country, shoving Bradesco back to a distant second place and putting them in an extremely unfavorable strategic position. It was widely speculated that Itau Unibanco would soon begin leveraging its large economies of scale and pricing advantages to punish Bradesco through undercutting it in its prime markets. This, it turned out, is exactly what Itau Unibanco did.

By 2014, things were looking fairly dire for Bradesco. The company had lost large amounts of its market share, and its stock had slipped more than 50 percent. There was talk of Trabuco resigning or even being let go. At the pace the firm had been going, it was only a matter of time until Bradesco itself became the target of acquisition or was forced into bankruptcy. Trabuco was running out of viable plays.

Then the seemingly impossible happened. In 2015, word began circulating on the street that HSBC, the second largest financial company in the world, was looking to shed its Brazilian assets. The global powerhouse had been attempting, in vain, to turn a profit for the better part of a decade in the uber-competitive Brazilian banking market. But all they had accomplished was to hemorrhage cash and take up valuable managerial talent just to keep its operations afloat.

Trabuco jumped at the opportunity. He immediately drafted a proposal, ensuring HSBC that Bradesco was a serious buyer who could give them a fair price and that the firm had the cash on hand to make the deal happen. By the middle of 2015, it was announced that a deal had been struck for Bradesco to acquire HSBC Brazil, in full, for $5.2 billion in an all-cash deal. The transaction closed in the fall of that year, marking the largest transaction in Brazilian history.

The deal instantly rocketed Bradesco back to the number-one spot across a wide variety of measures. Today, Trabuco has turned the tables on his competitors. It is now Bradesco that holds the cards, with economies of scale that may allow it to start pricing Itau Unibanco out of many of its markets.

Learn more about Luis Carlos Trabuco: http://istoe.com.br/5442_NOVO+COMANDO/

How Martin Lustgarten’s Experience has Helped Shape Investment Banking

There are many investment banks in the United States and many other countries around the globe. Investment banks are essential for the growth of a country and have come to become one of the pillars that greatly support the financial sector of any country. Essentially, an investment bank is a financial institution that assists individual investors, corporations and their governments to raise funds by underwriting. They can also do this by being the investor’s agent in purchasing of securities for them at the stock exchange. An effective and experienced investment banker ought to give the client or investor, sound investment of the best stocks to purchase or dump based on certain factors. An example, where one is an amateur but is interested in buying shares, he or she ought to approach an investment bank where he will receive investment advice and the shares to buy.

 

Commercial banking and investment banking services are also regulated under different legislations in many countries. An investment bank may at times also be involved in mergers and acquisition of companies that are publicly listed at the bourse. They are mainly involved in what is referred to as sell side and buy side. Sell side involves the investment bank buying and selling securities on behalf of investors. On the other hand, buy side means providing investment advice to corporations such as hedge funds and private equity funds. One of the places that investment banks have thrived significantly is the United States. This is informed by the large number of individual investors and corporate investors.

 

One of the best investment bankers in the United States is Martin Lustgarten. He is the Chief Executive Officer of Lustgarten Martin an investment banking company in Florida in the United States of America. The Investment bank has managed to help many locals make informed investment decisions.

 

Fueled by tenacity and high ethical standards, the firm has set itself apart from other investment banks in the United States of America. The firm has advised many of its clients and has helped them secure funds for financial transactions.

More information for Martin Lustgarten:

https://www.facebook.com/lustgarten.martin

https://www.gofundme.com/martinlustgarten