Brazil’s Central Bank Could Cut Rates Again According To Bradesco’s New Chairman Luiz Carlos Trabuco

Brazilians are finally getting some interest rate relief. For years, Brazilians had to deal with double-digit interest rates. Those rates made borrowing money a ridiculous option. Brazil’s high than high-interest rates forced people to find other ways to buy a home or a car. Credit in Brazil was a luxury for the wealthy. Banks didn’t lend money to average Brazilians, but that may be changing now that the Central Bank slashed the interest rate. The interest rate is now seven percent, and banks like Bradesco, the second largest private bank in the country, is preparing for an influx in consumer borrowing.

The Central Bank stresses the need for caution, but in spite of the warning, the members of the Central bank board are pondering another rate cut. Bradesco’s new Chairman and current CEO, Luiz Carlos Trabuco doesn’t worry about the wave of new borrowers that will be knocking on the doors of the 5,000 bank branches across the country. He knows the borrowing requirements his executive team set up will keep the bank on the right track, and they will keep the bad debt ratio low.

Luiz Carlos Trabuco may have the lending part of the banking business down pat, but the bank is going through some internal changes that could impact the bank’s stock price as well as the fiscal health of the bank. Chairman of the Board, Lázaro de Mello Brandão is retiring, so he is no longer a daily presence in the bank’s executive offices. At 91, Lázaro de Mello Brandão is one one of the oldest, if not the oldest, chairman in the history of Brazilian banking. President and CEO Luiz Carlos Trabuco is taking over as chairman, but he will keep his CEO title until a new CEO surfaces at the March 2018 annual shareholders meeting. Trabuco has a list of seven candidates, and all those men are current members of his executive team.

Read more: Bradesco: New president to leave executive body, says Trabuco


Trabuco isn’t worried about picking a replacement. Mr. Trabuco is not only a shrewd banker; he is also a people’s person thanks to his University of Sao Paulo degree in philosophy. He also did graduate work in psychology so he knows how to read people. That’s why he’s been so successful over the last 47 years. Luiz knows how to deal with people. While he was president of the insurance arm of the bank, Banco Seguros, he was instrumental in turning in record profit numbers. Trabuco was the Seguros president from 2003 to 2009. At the end of 2009, the Board of Directors gave him the role of president and CEO. Bradesco’s personable and competent CEO made Wall Street a believer. The bank’s stock is on Wall Street’s must-buy list for 2018 on terra.com.br.

All the candidates for the CEO position can do the job. They all know the internal workings of the bank, and they all contribute something to the financial health of Bradesco according to folha.uol.com.br. But one or two candidates stand out thanks to their recent efforts. Chief Tech executive Mauricio Machado de Minas could be the next CEO thanks to his work on Bradesco’s digital banking platform, Next. The man who put the 2015 HSBC acquisition together, Alexandre da Silva Glüher, is also a top candidate. But operations head, Josué Augusto Pancini, the man who keeps the 5,000 Bradesco branches functioning, could take over.

Seguros President Octavio de Lazari is also in the hunt for the job, and so it chief lending officer Domingos Figueiredo Abreu. Investment executive, Marcelo Noronha, and Human Resource executive, Andre Cano also have a shot at the head job.

Search more about Luiz Carlos Trabuco: https://economia.estadao.com.br/noticias/geral,prisao-dos-irmaos-batista-nao-impactam-risco-da-jbs,70001996105

Luiz Carlos Trabuco Cappi Salvages Bradesco From Its Market-Leadership Back-Drop

Only a handful of people has the charisma and influence to breathe life and cause real market disruptions across the Brazilian economy. Luiz Carlos Trabuco Cappi, the President of Bradesco, the leading financial company in Brazil’s private market, fits well among that lot. He is one individual who passes through credit operations and significantly scaled financial projects taking place within the country.

At the Bradesco headquarters, the succession process at the executive level is faced with a lot of resistance, and the rise of Trabuco Cappi to Bradesco’s presidency was nothing short of that. The shortlisted hardly take part in the discussions. That said, little surfaced regarding Lazaro Brandao’s succession by Marcio Cypriano in 1999. Likewise, in 1981, the same case replicated when the “underdog” Brandao was set to succeed the bank’s founder Amador Aguiar. It was in 2009 that the Board of Directors saw it fit to appoint Trabuco Cappi as the President of Bradesco after being of service to the bank for more than 40 years.

The HSBC –Brazil Acquisition by Bradesco

Mr. Luiz Carlos Trabuco Cappi took over at the helm amid economic turbulence. The financial market outlook in a global scale was less promising than earlier. Profitability margins from loan proceeds in 2007 and 2008 were on a downward plunge. Most significantly, his appointment came after Banco de Deus’s formidable market competitor, Utau Unibanco, ousted the company as the industry’s leader. Commenting about dwindling influence of Bradesco on the financial markets, Trabuco said, “Leadership, on its own, is not an objective. Our unspoken mandate is to perform to the best of our ability in the various municipalities we serve.”

Read more on Bloomberg.com

Trabuco’s presidency was a potent coalesce of collective election from the board members, and its fruits could come at any better time. According to reports by the Credit Suisse, Bradesco’s come back growth was expected to hit the 21.3% mark in 2009, as compared to 23.4% in 2008. In 2005, a few years after assuming the position, with the consent of the Board’s Chair, Lazaro Brandao, acquired the Brazilian HSBC for 5.2 billion.

Career Achievements & Awards

“The acquisition of HSBC has enabled us to reach economic milestones, that with organic growth, we would have achieved in six years,” he told MONEY during the time of purchase. Nonetheless, market projections were that Bradesco would get the green light starting the first quarter of 2016. Due to this, Luiz Trabuco Cappi took the prestigious Entrepreneur of the Year in Finance Award by Dinheiro.

In addition to his accolades, the Entrepreneur of the Year Award comes as the third significant career award under his affiliation to the bank. In 2003, while working as the Chairman of Bradesco Insurance and Pension Group, he was awarded the Insurance Personality of the Year, an award which was received by Norton Glabes Labes, the General Director of Bradesco Capitalizacao. Again, 2007 saw the exact translation of that feat when he won the award for the second time. These achievements come as a result of his robust contribution and advocacy of achieving insurance through brokerage channels. According to Trabuco Cappi, insurance is an extended state’s arm that is essential to the societal welfare. His primary concern is majorly focused on how market segments will see its importance because with the nation still evolving, the urgency and perspective of insurance whims.

Education & Work Life

Luiz Carlos Trabuco Cappi was born in 1951 in Marilia, Sao Paolo. His positivism began before starting on his career path, and perhaps a characteristic that led the executive to graduate with a Philosophy’s Degree certificate from the University of Sao Paolo.

Mr. Trabuco Cappi’s day is one of a litany of schedules and meeting. Typically, his day commences at 7.00 am, and ends at 6.00 pm, though he tends to extend his working hours through evening business dinners. It is no wonder his name came up in consideration of the person suitable to assume office at the Ministry of Finance: An appointment he declined for the dedication he has to Bradesco.

Learn more about Luiz Carlos Trabuco Cappi: http://www.tostoadv.com/bradesco-quer-mudar-regra-para-trabuco-ficar-no-cargo/