Bradesco’s Chairman Luiz Carlos Trabuco Cappi Is Facing Challenges As The Bank’s Stock Drops To A 52-Week Low

Banco Bradesco is a giant in the Brazilian banking industry. Bradesco is right behind Itaú Unibanco in terms of assets under management. But Bradesco has something Itaú doesn’t have, and that is CEO Luiz Carlos Trabuco Cappi.

Cappi has an unstoppable desire to make stockholders proud as well as make them a lot of money. That’s the way Cappi rolls because deep down inside he is a man on a mission. And that mission is to make Bradesco the best digital bank in Brazil.

Trabuco Cappi took over as chairman when long-time Bradesco Chairman Lázaro de Mello Brandão decided he was going to retire at the end of 2017. Brandão was around when Bradesco was just a small Sao Paulo bank. That small bank helped farmers make ends meet. That was 75-years ago. But Brandão was able to adjust to the big bank mentality, so he was instrumental in giving the bank the direction and the executive energy it needed to make the Bradesco a banking force to reckon with in Brazil.

Even though Luiz Carlos Trabuco Cappi doesn’t have Brandão’s tenure, he has the reputation for helping Bradesco stay current in the Brazilian banking world. While he was CEO, Cappi put one acquisition after another together, and he built a team of high-powered banking executives that rival any bank team in any developed country in the world.

And the interesting part of the Cappi story is he’s not a banker in terms of education or personality. Cappi is a philosophy and psychology aficionado. He needed a job when he completed his post-graduate studies in psychology, and Brandão is the man who hired him. For decades, Brandão and Cappi worked as a well-oiled banking machine and Wall Street loved that executive combination.

Now that Brandão is not as active, Cappi has another long-time banking executive by his side. Octavio de Lazari, Bradesco’s insurance division director, is the new CEO. Octavio is building an executive team that can handle the challenges that face the bank in 2018 and beyond. Even though the new Bradesco team is stronger than ever, the bank’s stock hit a 52-week low recently. And that’s not what Cappi or any team member expected, but there are reasons for the stock’s lackluster performance, according to Cappi. Brazil’s startup digital banks are taking customers away from the big banks, and Bradesco’s digital bank, Next, isn’t performing as well as expected. Plus, Brazil’s high-interest rates are coming down. Even though Cappi and Octavio de Lazari are not pushing loans to middle-class Brazilians, the digital banks are pushing them, and that is having an impact on Bradesco’s stock.

But Luiz Carlos Trabuco Cappi and his executive team say the drop in stock prices is temporary. Cappi is making adjustments, and Octavio de Lazari is making sure those adjustments happen in real time. Bradesco’s management team is ready to show the world that Luiz Carlos Trabuco Cappi is following in Lázaro de Mello Brandão footsteps. But Cappi is expanding those footprints so Bradesco can stay current in the changing social environment in Brazil.

Learn more about Luiz Carlos Trabuco Cappi: http://www1.folha.uol.com.br/mercado/2017/10/1926243-proximo-presidente-do-bradesco-saira-da-diretoria-do-banco-diz-trabuco.shtml

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