Bankers can be a finicky bunch when it comes to lending money. In Brazil, banks don’t rely on consumer borrowing to make money. The big Brazilian banks have other ways to make money, and Osasco-based Bradesco is no exception. Bradesco executives put $4.6 billion on the bank’s bottom line in 2016, and that figure will be higher in 2017. There are a lot of reasons for the huge bottom line.
Bradesco has a 40 percent market share in the insurance business in Brazil. The bank’s insurance division, Banco Seguros, is an exceptional money maker. Most of the income comes from health insurance coverage. Investments also play a huge role in Bradesco profits. The bank currently has more than $413 billion in assets under management, and new bank Chairman Luiz Carlos Trabuco Cappi thinks that figure will increase in 2018.
Bradesco also makes money by acquiring and merging with other banks. Before founder Amador Aguiar went to that big ATM in the sky, Bradesco acquired 17 banks in the 1970s. And in 2003, the man who took Amador Aguiar place as chairman, Lázaro de Mello Brandão, decided to buy BBVA’s Brazilian operation. Then in 2006, Brandão made a deal with American Express to purchase that companies Brazilian subsidiary. And to put the icing on the acquisition cake in 2015, Brandão got HSBC to sell him their Brazilian subsidiary. To make a long story short. Lázaro de Mello Brandão reign as Bradesco’s CEO and Chairman of the Board was a lesson in acquisitions. And his executive hiring talent took the bank to the next level in the international banking arena.
Lázaro de Mello Brandão gets a lot of credit for the success of Bradesco, but Luiz Carlos Trabuco Cappi is the banker who put Bradesco on the foreign investor’s radar for the last nine years. Trabuco Cappi, the University of Sao Paulo graduate, with no formal financial training, except for the Bradesco training program, is the man who Wall Street calls when they need information about IPOs and M&As in Brazil. Cappi is the guy who makes the tough decisions when there’s trouble in the more than 5,300 bank branches. And Cappi is the man who is replacing Brandão on the bank’s six-member Board of Directors. Mr. Trabuco Cappi is responsible for the bank’s new online banking program, and the new digital program the bank calls, Next.
But in spite of all the bank’s exterior challenges, Cappi is dealing with the challenge of finding his replacement. His replacement won’t come from a Wall Street bank or from another Brazilian bank. His replacement works for Bradesco now. Seven Bradesco executives are in the running for the CEO position, and Cappi likes all of them. They are part of his team, so he knows what they can do in terms of leadership and fiscal management. But picking just one name to follow him into the Bradesco CEO Hall of fame is not easy. All the executive bring different talents to the table. But Cappi and the board will have to pick one man that has all the talents the bank needs to maintain its global presence.
The new CEO announcement will come in February 2018 right before the annual March meeting. Some employees say they already know who the next CEO is, but no official announcement will come until February. Cappi will pick, Octavio de Lazari, according to people in the insurance division, but Andre Cano, Alexandre da Silva Glüher, Domingos Figueiredo Abreu, Marcelo Noronha, Josué Augusto Pancini and Mauricio Machado de Minas have their internal supporters too, so any one of them could get the job.
Learn more about Luiz Carlos Trabuco Cappi: http://www.istoedinheiro.com.br/noticias/negocios/20151218/luiz-carlos-trabuco-cappi-empreendedor-ano-nas-financas-2015/327856