Luiz Carlos Trabuco Cappi Spearheaded Bradesco’s Purchase of the Brazilian Branch of HSBC

Presidents of any institutions (private or public) wield a lot of power and are responsible for the success of the company or lack of it thereof. Luiz Carlos Trabuco Cappi is the president of the second largest private bank in Brazil, Bradesco; a position that was conferred to him in 2009 on merit by the bank’s board chaired by Lázaro Brandão.

Trabuco, as he is popularly known, has been with Bradesco for 48 years. When the bank’s presidency post fell vacant following the retirement of Márcio Cypriano (who had led the bank for ten years), many names that would replace him were suggested. Surprisingly, Trabuco’s name did not feature so much. Pundits speculated that José Luiz Acar Pedro (the then commander of the group’s investment bank) or Roger Agnelli (the then Vale president) would replace Cypriano. However, Trabuco emerged the winner of the contest and rightly so. Even the bank’s chief competitor in the private bank’s category Itaú Unibanco through the then vice president, Antonio Jacinto Matias, recognized Trabuco’s appointment as a wise move for Bradesco.

When Trabuco assumed office, Itaú Unibanco had managed to beat Bradesco and emerge as the largest private bank in Brazil consequently putting Bradesco to the second place. Also, the Brazil’s economic outlook was gloomy as activity in the financial sector was decelerating quickly. Credit Suisse had estimated that Bradesco’s return on equity in 2009 would decline by 2.1 percent, down from 23.4 percent in 2008. Bradesco’s board was under pressure to set the firm on the right path, and they placed a bet on Trabuco to alter the company’s prospects.

Although Trabuco was of the opinion that leadership among private banks was not as noble as providing customers with satisfactory services in all Bradesco’s branches, he believed that Bradesco needed an improvement pertaining to human resources. He oversaw the establishment of the Unibrad Corporate University to develop the firm’s employees as well as executives in line with attaining the company’s goals. He also advocated for the search of professional leaders outside of Bradesco who would join the firm’s team with fresh ideas and management styles.http://ultimosegundo.ig.com.br/os-60-mais-poderosos/luiz-carlos-trabuco/52382e759cd61ea113000004.html

Trabuco adopts both organic and inorganic growth strategies in developing Bradesco. In 2015, he announced one of the biggest inorganic growth strategies; Trabuco had managed to get the board’s approval to purchase the Brazilian branch of HSBC for $5.2 billion. He affirmed that the strategy was meant to accelerate growth as the company had achieved at once what it would have gained with six years of organic growth.

The purchase of HSBC meant a lot of things for Bradesco. Of course, the Osasco headquartered firm would have surpassed Itaú Unibanco or at least moved closer to it. Pundits suggested that the purchase would in fact put Bradesco ahead of Itaú Unibanco regarding branch network, number of account holders, and total investment funds. Also, the company would close second to Itaú Unibanco regarding assets, deposits, and loans granted. The purchase would awaken competition between the two giants.

Trabuco’s 48 years career in Bradesco has been marked with achievements, awards, and recognition. From when he started working as a clerk at Bradesco, Trabuco has had a positive impact on the firm in numerous ways. His work as the head of Bradesco Seguros between 2003 and 2007 got him the much-needed attention as a results-oriented leader. Trabuco is an award-winning executive. Last year, Forbes Magazine included him in the list of the “Best CEO in Brazil,’’ and in 2015 Isto É Dinheiro Magazine named him the “Entrepreneur of the Year” in the finance category. In 2009, he was awarded the Don Quixote Trophy.

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