With the announcement by current Grupo Bradesco chairman Lazaro Brandao that he will soon be departing his role at the firm for good, it has been revealed that Luiz Carlos Trabuco Cappi, the current CEO of the firm will take his place. Among his many accomplishments, Trabuco Cappi was the orchestrator of the 2015 acquisition of HSBC Brazil. The deal was the largest in Brazilian history, instantly propelling Grupo Bradesco to the number-one spot across many different metrics.
The man with the magic touch
After years of a declining stock price and slipping market share, Trabuco Cappi was able, in 2015, to reverse the misfortunes of his firm, immediately putting Bradesco back in the driver’s seat of the Brazilian finance space and positioning the firm to make big strategic plays going forward.
At the time, Bradesco had lost nearly 80 percent of its market value, and its market share across many business lines was suffering. Rival bank Itau Unibanco had managed to beat its opponent into a corner, dominating it on pricing and using its economies of scale to punish Bradesco’s weaknesses by undercutting them. But in one deal, Trabuco Cappi put an end to all of that.
In early 2015, HSBC, one of the largest banking concerns on the planet, put word out on the street that it was looking to dump all of its Brazilian assets. The bank had been trying to cut it in the ultra-competitive Brazilian market for over a decade, all to no avail. The higher ups had finally had enough. They had been chasing bad money with good and expending valuable time and human resources trying to keep the losing Brazilian operation afloat.
Trabuco Cappi immediately sprang into action. He quickly secured an exclusivity period with the bank, ensuring that if Bradesco fulfilled every part of the agreement, they would be considered first for the sale. However, the mechanisms through which Trabuco Cappi secured such an unusually favorable deal, allowing his bank, which had been hemorrhaging cash for the last 6 years, to jump to the front of the line in the bidding process, is the source of much speculation.
Sources close to Trabuco Cappi say that the inveterate banker is well known to be one of the most powerful behind-the-scene power players in Brazilian business today, with deep connections across the industry and even in government. An abiding truth of business is that who one knows is often just as important of what one knows. This is certainly even more true for those who head up large corporations.
Regardless of how Trabuco Cappi pulled off the deal, its closing marked a major turning point for Bradesco. Without the acquisition of HSBC Brazil, there is a significant chance that ailing Bradesco itself would have soon become the target of a hostile takeover or even eventually faced bankruptcy.
Trabuco Cappi is credited with saving the firm. The deal earned him the 2015 Isto E Dinheiro Entrepreneur of the Year Award. After a rough six years at the start of his tenure as CEO, Trabuco Cappi had redeemed himself in the eyes of shareholders and the business press.
What comes next
Two years after the acquisition of HSBC Brazil, Bradesco’s stock price is once again approaching record highs. It has massively outperformed rival Itau Unibanco across almost every available metric. And Trabuco has widely been vindicated, with a vision and strategic leadership that has led to Bradesco being the number-one bank in Brazil.
As Trabuco Cappi transitions to the chairmanship, he will likely continue playing his hands in the same successful way he has done so far.
Search more information about Luiz Carlos Trabuco Cappi:https://www.brasil247.com/pt/247/economia/321974/Trabuco-Bradesco-vai-privilegiar-“prata-da-casa”-em-escolha-de-presidente.htm