Category Archives: Banking Industry

Luiz Carlos Trabuco Cappi, The CEO Of Bradesco Named As The Entrepreneur Of The Year

Luiz Carlos Trabuco Cappi is the current chief executive officer of one of the largest Brazilian banks, Bradesco. Cappi is regarded as a professional who combines virtues such as determination, persistence, and wisdom to produce positive organizational results. He has served in the Executive position of the bank for several decades and has been advocating for selling insurance through the broker channel. He served different sectors of the company including marketing before becoming Bradesco’s vice president.

Cappi is indeed among few entrepreneurs in the Brazilian economic life who have made a positive influence in the banking and insurance industry. As credit operator and trader, Cappi has initiated some of the largest projects in Brazil. Due to his influence, Cappi is featured prominently in most newspapers and magazines in the country. As the CEO of Bradesco, Cappi steered his company to outperform its main rival, Brazil’s Itaú-Unibanco. While assuming the position of the presidency, Itaú-Unibanco had already overtaken the Brazil’s Itaú-Unibanco in terms of market share.

Luiz Carlos Trabuco Cappi is popularly known as Trebuchet. He replaced Marcio Cypriano as the new CEO of Bradesco in the year 2009 at the age of 57 years. The main reason behind such replacement is that Bradesco does not allow Presidents whose age is over 65 years. Trabuco became the fourth President of Bradesco after Cypriano, Lazaro Brandao, and Aguiar. When he took office, Trabuco was very conversant with Bradesco’s organization culture having served in various hierarchical positions in the company. He served in the company’s various strategic areas including pension and marketing for four decades before receiving his promotion to become the CEO. Additionally, he was promoted to the position of vice presidency at only the age of 47 years.

Under Trabuco’s command as the vice President of Bradesco, the company’s market share increased from 23 percent to 25 percent in few years. In addition, the company’s contribution also rose from 26 percent to 35 percent under his command. Trabuco was born in Manila (SP) just like his predecessor and founder of Bradesco, Amador Aguiar. Later on, he joined the University of São Paulo and graduated with a master’s degree in philosophy. Trabuco’s leadership and management style is similar to that of his predecessor, Marcio Cypriano.

Luis Carlos Trabuco had an immense challenge of revamping Bradesco back to its original position in the banking industry. Particularly, the company’s value of assets was R $422 billion which was R $150 billion less than that of its main rival, Itaú Unibanco. The best option to bridge this gap was to acquire smaller banks in Brazil. However, there were limited possible acquisition opportunities in the Brazilian market. Trabuco was quoted in an interview shortly after taking office as the CEO of Bradesco claiming that his key goal was to offer excellent services to the municipalities rather than leadership.

Rather than relying on organic growth, Trabuco made a bold move and acquired the subsidiary of HSBC in Brazil. This acquisition was approved by the President of the Council, Lazaro Brandao costing the company a whopping $5.2 billion. This was the biggest acquisition in the Brazilian market in the year 2015. With the acquisition HSBC’s Brazilian subsidiary, Bradesco was able to overcome its main rival, Itaú Unibanco in three major items; number of branches, total investment funds, and number of the total account holders. It also overcame the competitor in three other approaches: loans, deposits, and assets.

In an interview after the acquisition of HSBC, Trebuchet claimed that Bradesco experienced a growth which could have been achieved after six years through organic growth. The term “organic growth” refers to the improvement in the company’s internal performance. His unprecedented performance at Bradesco made him to be named as the entrepreneur of the year.