Category Archives: Banking Industry

Home / Banking Industry
2 Posts

Luiz Carlos Trabuco Cappi is the current CEO of Bradesco Bank, which is known as one of the leading banks in Brazil. In the past, Bradesco Bank enjoyed being on the top, and they have the largest assets in the entire country. However, after the merging of Unibanco and Banco Itau into a single company, the distinction was taken away from Bradesco Bank, and they fell onto the third place. The union between their rivals has overthrown Bradesco Bank from their top position. However, even if they fell from the top spot, Bradesco Bank continues to be a reliable and stable bank, much to the joy of the locals who have trusted the financial institutions for decades.

Bradesco Bank was established in the city of Marilia, the same city where its present CEO was born and raised. Luiz Carlos Trabuco Cappi has witnessed how Bradesco Bank grew from being a local bank to a national financial institution. The success story of the company also inspired him, and he promised himself that he would be joining the company’s executive branch and he will be working for them in the future. To support his goal, he had to enroll himself at the University of Sao Paolo and study. While studying, he had the idea to try getting a job with Bradesco Bank, and at the age of 17, he became one of their clerks.

Read more on istoedinheiro.com.br

After he graduated from the university, Luiz Carlos Trabuco Cappi continued to serve Bradesco Bank. He would be promoted multiple times until he managed to reach the executive department director. Because of his perseverance and hard work, Luiz Carlos Trabuco Cappi became the company’s president and CEO. Under his management, he promised the board of directors that he would be doing his best to make Bradesco Bank number one again. Being the leader of the financial institution, Luiz Carlos Trabuco Cappi focused on improving the lives of the people working for the firm. He also likes to personally look at the current state of each department at Bradesco Bank, so he can have the idea of what he can do to improve their services. During every meeting held inside the financial institution, Luiz Carlos Trabuco Cappi would always ask each head about how their departments are doing, and since he wanted to be hands-on, he would give them advice on how they can face each challenge that is starting to overcome their departments.

Aside from being one of the nicest executives that Bradesco Bank ever had, Luiz Carlos Trabuco Cappi is also active in looking for potential talents who are outside the company premises. He would scout different areas in Brazil to find what he is looking for. Since the merging of Banco Itau and Unibanco, it has been the goal of Luiz Carlos Trabuco Cappi to retake their top spot and become the leading bank in Brazil. He had the idea to purchase HSBC’s Brazilian arm, and he had to visit their office in Brazil to negotiate the terms. He offered them $5.2 billion, and the company accepted the offer. The sale went on naturally, and just minutes after HSBC Brazil was sold to Bradesco Bank, the value of the company in the Brazilian stock market started to climb up.

According to Luiz Carlos Trabuco Cappi, he is just starting his mission. He is aware that there are still things that he has to fix, and he knew that the transaction between HSBC and Bradesco Bank is just the beginning. He assured everyone who stayed loyal to Bradesco Bank that they will experience something new now that Bradesco Bank is getting pumped.

Search more about Luiz Carlos Trabuco Cappi: http://www.valor.com.br/financas/5194121/trabuco-apesar-das-incertezas-investidores-acreditam-no-pais

Brazilian banking has undergone a wave of consolidations that make even the American banking industry look diffuse. Since the 1990s, nearly all Brazilian banks larger than the regional level have been gobbled up by larger competitors. Today, the only two significant players that remain are Bradesco and its arch rival, Itau Unibanco.

But one bank, Bradesco, has been making inroads to become the undisputed king of the Brazilian banking market. Under the leadership of Mario Cypriano, from 1999 to 2009, Bradesco grew by amounts unprecedented in the history of Brazilian finance. With the stock price increasing by a factor of more than 200 times, Cypriano eventually pushed the bank to the number one slot in the country. But then, shortly after his successor, Luiz Carlos Trabuco, took over in 2009, Itau and Unibanco merged, becoming the single largest banking entity in the country.

This pushed Bradesco back to a distant number-two spot in an increasingly high stakes game for who will ultimately control the Brazilian banking industry. But now, in a market that was already largely consolidated and in a macro economic environment that had rendered further organic growth extremely difficult, Trabuco found himself in a nearly intractable position. Getting significantly more Brazilians to sign up for Bradesco’s products would be nearly impossible, at least on a scale that would propel the bank back to the number one position. Furthermore, there were no immediate viable candidate companies for acquisition.

This meant that, for the first 6 years of his reign as CEO, Trabuco oversaw a declining stock price and stagnant business. He tried and failed at making various inroads to acquiring other banks. There simply weren’t any suitable deals with motivated sellers.

Like Luis Carlos Trabuco on Facebook.

But then, in 2015, rumors began flying around the Brazilian banking industry that HSBC Brazil, a subsidiary of the second largest bank in the world, was looking to divest itself of its Brazilian holdings according to banco.bradesco. The increasingly consolidated and hyper-competitive Brazilian market had proven too difficult to turn a profit in. HSBC, with hundreds of profitable markets across the globe, had been sinking valuable capital and human resources into the losing Brazilian market for years. The bank’s management had finally had enough.

Trabuco quickly pounced on the opportunity. He immediately contacted the head of HSBC Brazil and let him know that Bradesco was a serious and motivated buyer. Trabuco was pleased to learn that HSBC was, indeed, looking to quickly and completely divest its Brazilian assets. Throughout the summer of 2015, both firms ironed out the details of what the final acquisition would look like. By the fall of 2015, they had come to a deal. Bradesco would buy the firm outright for $5.2 billion in and all-cash deal, the largest of its kind in Brazilian history. By late 2015, the deal had closed, rocketing Bradesco back to the number-one spot in the Brazilian financial space, across a number of metrics.

Trabuco was widely lauded in the Brazilian financial press, being awarded the Isto E Dinheiro Entrepreneur of the Year award as well as many other accolades. The stock price, which had lost significant value throughout Trabuco’s tenure, began rebounding. By the middle of 2017, it had booked gains over its 2009 level for the first time in years. The deal seemed to be a major coup for Trabuco and his organization.

However, what the deal, which has placed Bradesco over the $400-billion-in-assets mark, will ultimately mean for the firm has yet to be seen. Bradesco is in a position to begin consolidating itself as the major bank of Brazil. Whether Trabuco will be able to ultimately capitalize on this favorable position remains to be seen.

For more details about Luis Carlos Trabuco, just click here.