Luiz Carlos Trabuco Cappi Personality Making Him the Right Bradesco President

 Luiz Carlos Trabuco Cappi is the current nominated leader of Bradesco. The bank is among the leading players in financial institutions in Brazil. The headquarters are in Cidade de Deus. Trabuco was the chair of the group insurer since 2013. His name was among the most quoted in conversations with Bradesco and financial market executives.

Luiz Carlos Trabuco Cappi has worked at Bradesco for forty years. He joined the firm as a clerk, and over the years, he has served in various positions. Trabuco had worked under the leadership of different presidents in the Bank before he was nominated for privacy.

The board of directors chose Trabuco, but he has to be approved during the first council meeting that is taking place after the general meeting. Márcio Cypriano is the outgoing president and has led the Institute for ten years. The talented leader left a remarkable history by acquiring ten banks. After turning 65 years, Cypriano could no longer exercise his executive duties at Bradesco.

Trabuco took over Bradesco after it lost its market leadership in the financial sector. He will assume the presidency in a hostile economic environment. In Brazil, the activity level is decelerating causing a negative effect on the balance sheets hence affecting the profitability of the bank. Credit Suisse estimated that the Bradesco returns to equity in 2009 will be 21.3% compared to 23.4% in 2008. Plans to open new outlets network will slow down.

Luiz Carlos Trabuco Cappi is an old student at the University of São Paulo where he completed his undergraduate studies in philosophy. He later joined School of Sociology and Politics of São Paulo for his postgraduate studies in socio-psychology. The future CEO started practicing at Bradesco in 1969. His first post was a clerk in Marília agency. In 1971, the gifted leader moved to São Paulo, headquarters where he became the marketing director in 1984. Between 1992 and 1998, Trabuco worked in Bradesco private pension company as an executive director and president. He was selecting the executive vice president in 1999 before becoming the insurance unit president in 2003.

In the 1980s, Trabuco and his marketing team took part in modernizing the publicity of the bank and its openness to the press since the firm was averse to media. He joined group insurer in 2003, and this could be his final stamp for his journey to become the president. Under his tenure, the insurance entity doubled in size, merged its leadership across the country, and obtained a 25% market share making it the largest in the field in Latin America. He led the firm in increasing its net income to 35% more than the previous years. Trabuco advocated for segmentation where Bradesco has differentiated agencies and special check services to serve the high-income customers.

Career Life

The head of the newly established Fenasaúde and Fenaseg Council member passed a message of hope to the community. At Institute for Supplementary Health Studies (IESS) Trabuco is the vice president. He has been the president of the National Financial Marketing Commission of Febraban (Brazilian Federation of Bank Associations), Bradesco Vida e Previdência SA, the International Association of Economic Studies of Insurance, Geneva, and National Association of Private Pensions (AnaPP).https://br.linkedin.com/in/luiz-carlos-trabuco-trabuco-37a79229

Successor

Trabuco leads the party that provides almost 40% of the earnings made by Bradesco. Working in the insurer group has enabled him to build his name in the firm and position his name in the list of nominated presidents of the company. Bradesco had had only three presidents from when it was founded. They include Amador Aguiar, founder, Lázaro Brandão, the current chair of the board of directors, and Cypriano who will be living the organization in March 2009. Luiz Carlos Trabuco Cappi will take care of the large part of the growth of the insurance markets. Trabuco is the ideal leader of Bradesco as he was familiar with its culture. In the 40 years, he has served the bank. The charismatic manager has gone through numerous areas such as marketing and the private regions.

 

Is Luiz Carlos Trabuco Cappi Trying To Achieve Monopoly Status With Bradesco?

Throughout the course of its tumultuous history, Latin America has had a love-hate relationship with a large number of corporate monopolies. In a region that has long suffered from unstable governments and widespread poverty, a number of companies, which anyone would have to admit are textbook, hard monopolies, have brought both stability and modernity to locales that had neither. At the same time, corporate interests have been fingered in coups and society-wide oppression from the Noriega regime to that of Anastasio Somoza and Augusto Pinochet.

No matter what one thinks of the Latin American monopoly, there is not doubt that it has played a central role in the development and industrialization of the region. Names such as International Telephone and Telegraph, The United Fruit Company and Telmex evoke strong emotions, both positive and negative, to residents across much of Latin America. The truth is that, for a variety of historical and anthropological reasons, the monopoly has proven more relevant, beneficial and enduring in Latin America than it has in more developed countries. And the stakes for those who can play the game of Latin American Monopoly are astonishingly high.

Read more on Bloomberg.com

The Rise of Bradesco

Recent, widespread consolidation in the Brazilian banking industry has led many experts to warn that the sector is ripe for the appearance of a hard monopoly. The industry is dominated by two major banks – Itau Unibanco and Bradesco. The latter has been one of the most stunning examples of growth out of seemingly nothing that Brazil has ever seen. Amounting to little more than a small local bank, as late as 1970, today, Bradesco is one of the largest financial companies in Latin America.

Its inveterate CEO, Luiz Carlos Trabuco Cappi, is largely responsible for the bank’s tremendous growth. Since joining the firm in 1969, Trabuco Cappi has done more than, perhaps, any employee in the firm’s history to transform it into a global powerhouse.

The company’s most spectacular growth came throughout the decade of the 2000s, when the stock price increased by more than 100-fold and the firm rapidly expanded its assets and its client base. This eventually resulted in Bradesco briefly snatching the number-one spot in the Brazilian banking industry. But its time as king of the hill was short lived. In 2009, shortly after Trabuco Cappi ascended to CEO, rival banks Itau and Unibanco merged, forming the largest banking conglomerate in the country and pushing Bradesco back to a distant second place.

By this point, so concentrated was the Brazilian banking industry that the third place bank was just a fraction of the size of either Bradesco or Itau Unibanco. This created an environment of intense competition, with both firms vying for the potential prize of holding a virtual banking monopoly over the country.

For the next six years, Itau Unibanco strengthened its position as Bradesco fell into decline. By 2014, Bradesco’s stock price had plummeted to less than 50 percent of its 2009 highs, marking a low point in the career of CEO Trabuco Cappi.

But then an opportunity knocked on Trabuco Cappi’s door. HSBC Brazil had long been losing money. It’s parent company was looking to offload all of its Brazilian assets. It figured that it could no longer profitably compete in such as cutthroat industry as Brazilian banking.

Luiz Carlos Trabuco Cappi was able to put together a deal, whereby Bradesco would acquire all of HSBC Brazil’s assets for $5.2 billion in cash. The deal marked the largest transaction in Brazilian business history and instantly rocketed Bradesco back to the number-one spot across many important measures. The firm was now back in the running to crush all of its opposition.

Today, Bradesco’s stock has recovered to all-time highs. Although Trabuco Cappi is coy about his intentions to continue growing the firm into an unchallengeable foe, observers say that his actions speak louder than any lack of words. If he can pull it off, Bradesco may become one of the most profitable banks in the world.

For more information about Luiz Carlos Trabuco Cappi, just click here.