Luiz Carlos Trabuco Cappi is one of the most successful and well known bankers in North and South America. He is certainly one of the most influential men in Brazilian finance alive due to Brazil’s vast economic size. Below are translated excepts from an article in the Brazilian publication, Revista Crescer. It is a massive article and full of information. It is important to read the entire article in order to get proper context. Essentially, it has told the story of how Luiz Carlos Trabuco Cappi was able to take over Bradesco, rise above equally qualified and respected competition and take take control of Bradesco. The full article can be found here, and it is a highly recommended read for both context and historical value. It begins at the fifth paragraph in.
Cypriano turned 65 in November and, by statute, can no longer exercise executive functions. He even considered a change of status for him to remain the leader of Bradesco, but faced with the challenges facing Bradesco, the board decided to renew its command. At the end of last year, the bank, historically the largest private bank in the country, lost its position to the newly formed bank of Itaú Unibanco, which intended to become the first Brazilian multinational financial institution in the financial sector. According to Hoovers.com, the new financial institution not only surpassed Bradesco, but also, it the leader of the financial sector in the form of assets, surpassing even Banco do Brasil. Before that happened, it was believed that outranking the Bank of Brazil in assets was an unattainable accolade.
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Maintaining market leadership has always been seen as a matter of honor at Bradesco, and its loss had a strong impact and lowered morale on the board. The problem was there were not many options left for Bradesco to grow through acquisitions in the country. Among all of the medium-sized private banks with national capital, there was only Safra, whose sale was unlikely, despite the heavy losses suffered by the crisis, according to some analysts. Also, Banco do Brasil, also known as the Bank of Brazil, which is the central bank, strengthened its position with the acquisition of Nossa Caixa and Votorantim, two institutions that Bradesco coveted, as well as the BEP, also known as the State Bank of Piauí, and Besc, also known as the Banco do Estado de Santa Catarina. Santander, the country’s largest foreigner, has also been aggressive. Its world president, Emílio Botín, said it will invest R $2.5 billion in the country in the next two years to fight for market leadership.
Also, Luiz Carlos Trabuco Cappi would assume the presidency of Bradesco in an unfavorable economic environment because the financial sector was having difficulties abroad. In Brazil, the level of activity was and still is decelerating rapidly, and this would have a negative impact on the balance sheets. Loan growth would be lower than in 2008 and 2007, and it would possibly will affect profitability in the short and long-term. According to estimates by Credit Suisse, which is one of the largest Swiss banks, Bradesco’s return to equity would have been 21.3% in 2009, compared to 23.4% in 2008. The branch network expansion plan was expected to slow down . Still, it was expected that Bradesco would remain a stiff competitor. “Despite losing leadership among private banks, there is no doubt that Bradesco is destined to be one of the long-term winners in Brazil,” said Marcelo Telles, an analyst with Credit Suisse. Bradesco was still the second largest bank in Brazil, and Luiz Carlos Trabuco Cappi was a brilliant leader. It remained to be seen what happened next and years down the road. Again, here is another link to the article in its entirety.
Learn more about Luiz Carlos Trabuco Cappi: http://epocanegocios.globo.com/Empresa/noticia/2017/08/trabuco-retomada-do-credito-depende-de-volta-do-pib-e-da-taxa-de-investimento.html