What’s New For Luiz Carlos Trabuco Cappi And Bradesco

Lazaro Brandao, longtime President, Chief Executive Officer, and employee of Banco Bradesco, stepped down from his then-current post of President in the month of October, 2017, just a few weeks ago.

Upon the date Mr. Lazaro de Mello Brandao resigned from his position, he was 91 years of age, making him the oldest such executive of any major financial institution in the world. Most people don’t make it to 91, let alone work and make sound, industry-competitive decisions, something he’s done throughout the entirety of his financial career.

Brandao appointed Luiz Carlos Trabuco Cappi as President, who was most recently the Chief Executive Officer for Bradesco since 2009. The pair has worked closely alongside each other in recent years, ever since Trabuco became a member of the ring of executives atop Banco Bradesco.

This comes as good news for Mr. Trabuco, as just earlier this year, he was facing job loss on the immediate horizon. People over the age of 65 aren’t allowed to be in any executory roles at Banco Bradesco. However, thanks to Lazaro Brandao, he decided to extend the highest possible age of any current executive to 67, effectively granting Mr. Trabuco two more years as CEO. However, because Lazaro Brandao has now stepped down, Luiz Carlos Trabuco Cappi will remain as President for many years to come.

Both Brandao and Trabuco had started working for the organization at a young age. While Brandao had begun his career with the financial institution as a teenager in 1943, the same year that Amador Aguiar founded Banco Bradesco in Marilia – it’s notable that Marilia would even become the birthplace of to-be President, CEO, and general employee for the company Luiz Carlos Trabuco Cappi.

Lazaro de Mello Brandao had previously worked as the bank’s second CEO, from 1981 to 1999, and its second President, as well, from 1999 through this year.

Prior to stepping down, Mr. Brandao shared that the board of directors at Bradesco would be renewed sometime in the near future, as doing so can help extend the life of financial institutions.

Ever since Lazaro Brandao has initially moved into an executory role in the 1980s, he wanted executives to be promoted from within the bank, rather than looking to other organizations or people not working at Bradesco to earn the job.

An unnamed source that works at Banco Bradesco said that seven of the highest-ranking executives at Bradesco will be considered for the upcoming opening of Chief Executive Officer. In the meantime, another leading executive that’s worked at Bradesco for several years is set to take over Mr. Trabuco’s old spot, and will remain in the capacity until Luiz Carlos Trabuco Cappi officially becomes President sometime in March, when the new CEO will be selected.

The bank is waiting until March to evaluate past performances and the potential of the seven highest-ranking executives, as it only wants to complete the hiring process before the annual shareholder meeting commences in March of next year.

Luiz Carlos Trabuco Cappi went to the University of Sao Paulo and the Foundation School of Sociology and Politics of Sao Paulo, both located several hours from his home in Marilia, to boost his chances of doing well in his professional life. Although he didn’t study in a business-related field like accounting or finance, as he majored in philosophy and sociopsychology, respectively, Mr. Trabuco was still able to rise the ranks of Bradesco’s ladder.

Mr. Trabuco was hired a bank teller in 1969 in Marilia, at Bradesco’s first office. He then went to the corporate office, although it was several hours away from home, to become a leading banker.

Search more about Luiz Carlos Trabuco Cappi: https://br.reuters.com/article/topNews/idBRKBN1CF35D-OBRTP

Luiz Carlos Trabuco Completes Largest Purchase In Bradesco history

Over the past two decades, the Brazilian banking industry has followed the lead of many of its global counterparts. The trend towards consolidation has been unstoppable, with only two real players emerging as the leaders of the country’s banking system, having gobbled up almost all of their viable competitors. Those two banks are Itau Unibanco and Bradesco.

Since taking over in 2009, Bradesco’s CEO, Luiz Carlos Trabuco, had been looking for a suitable acquisition target. While the Brazilian banking system had experienced phenomenal growth over the decade of the 2000s, that organic growth had slowed by 2009. Since then, the industry has stagnated, with many banks actually declining in revenues. In this environment of stagnating growth and declining profits, Trabuco saw the only way his bank had any chance of catching up with its larger competitor was through strategic acquisitions. The problem was that almost all the good targets had already been acquired.

Then, in 2015, rumors started swirling that HSBC, the second largest private bank in the world, was looking to dump its Brazilian assets. Word on the street was that the global firm had been heavily losing on its Brazilian operations and wanted out for good. Trabuco jumped on the case, immediately reaching out and beginning talks with HSBC higher-ups about a possible acquisition. By the middle of 2015, it became clear that a deal was in the works.

Read more on Crunchbase.

By late 2015, Bradesco had made official announcements that it would complete the all-cash purchase of HSBC Brazil by the end of the year for $5.2 billion, marking the largest business transaction in the history of Bradesco. Upon completion of the deal, Trabuco was awarded the Isto E Dinheiro Entrepreneur of the Year Award. He was also lauded in the media for having instantaneously grown his company, with one single transaction, from a distant second place to a serious competitor for the status of largest bank in Brazil. It was a great triumph for Bradesco.

Today, Bradesco is one of the largest Brazilian financial institution in a number of measures. In fact, they come out ahead of Unibanco on almost every measurement of success except for total assets. Bradesco has the largest number of branches in Brazil, at over 5,000. They also have the highest amount of assets under management, the largest number of account holders and the highest deposit amount from retail customers.

This is more than just a vanity contest for the respective banks’ executives. In the current de facto duopoly market, the firm that ultimately comes out on top has a road to becoming the undisputed leading bank in Brazil. That is likely to come with many rewards, including monopoly pricing power across many different products. In a stagnating market, where no real growth has occurred in the better part of a decade, this zero sum game of winner-take-all may be the only way for either one of the two firms to actually create value for their shareholders.

Given Luiz Carlos Trabuco’s long history in upper management and his formidable experience in the banking industry, it would be a good bet that he and Bradesco are poised to come out on top. And the stakes could not be higher.

But Luiz Carlos Trabuco Cappi is circumspect about his ambitions. He says that his real goal is only to provide the best possible customer service to the bank’s clients and that getting to be the largest bank in Brazil is not a major goal in itself. Time will tell.

Learn more about Luiz Carlos Trabuco Cappi: https://relationshipscience.com/luiz-carlos-trabuco-cappi-p3489986