At certain points in our lives, we are all faced with situations that truly test our resolve. The same goes for companies – they too come across challenging times. For the ever-resilient Brazilian bank, Banco Bradesco, a testing circumstance has presented itself. On the 11th of October, the bank’s chairman of the board, Lazaro Brandao decided to resign from his post. It was immediately decided that his position will be taken up by the board’s current vice chairman and president of the bank, Luiz Carlos Trabuco Cappi. Given the high demands of both positions, it has also been decided that Mr. Cappi will have to vacate his position as president of the bank. Consequently, Banco Bradesco now has to select a new president to take over from the highly impressive Mr. Cappi. If the succession decision is correctly made, Banco Bradesco is set for a prosperous future. On the other hand, should the decision be wrongly made, it could spell a bleak future the bank.http://www.istoedinheiro.com.br/noticias/negocios/20151218/luiz-carlos-trabuco-cappi-empreendedor-ano-nas-financas-2015/327856
Lazaro Brandao’s decision to resign from the position of chairman at Banco Bradesco has been received well in the industry. The 91-year-old has given his all for Bradesco over the past seven decades and is consequently one of the most respected bankers in the country. In addition to being the chairman of the bank, he has also served in numerous other capacities including taking over as president from Banco Bradesco’s founder, Amador Aguiar. Additionally, he leaves the bank in good hands having been one of the individuals that heavily mentored and influenced Luiz Carlos Trabuco Cappi.
While names of who will be Banco Bradesco’s next president have already started floating around, no decisions on succession will be made until March 2018. The board will select the next president at the meeting that will follow the shareholders’ general meeting set for March next year. It is also speculated that by the time the board selects a new president, it could have a completely different face thanks to an expanded membership. Until the March 2018 meeting takes place, Luiz Carlos Trabuco Cappi. Is expected to hold the dual roles of president and chairman at the bank. Given his exemplary performance in the past, there is no doubt that Mr. Cappi will be able to hold down both positions effectively.
Luiz Carlos Trabuco Cappi has held the position of president for the last eight years. He was selected for the position in March 2009 following the retirement of his predecessor, Marcio Cypriano. The first few months of Mr. Cappi’s tenure were quite challenging as Brazilian economy struggled under the effects of a global financial crisis. Additionally, Banco Bradesco had just lost its dominant industry position among private banks to a newly formed bank, Itau Unibanco. However, despite the insurmountable challenges ahead of him, Mr. Cappi soldiered own and managed to grow the bank’s branch network by more than 200 new offices in his first year alone. As the economy started to improve, he applied a more aggressive expansion strategy that saw Banco Bradesco purchase HSBC in 2015. The reported fee for the purchase was $5.2 billion – representing the highest financial transaction of the year. In that single deal, however, Banco Bradesco grew by a margin as significant as it would have taken to six years to grow using organic methods. In fact, it is the completion of this deal that has kept Luiz Carlos Trabuco Cappi at Banco Bradesco for this long. He was initially meant to retire in 2016, but the bank saw it wise to extend his stay until the integration of HSBC was complete. After being named chairman, his stay at the bank is set to continue for a lot longer.