Trabuco Says That HSBC Brazil Acquisition Was Worth “6 years Of Organic Growth”

Bradesco, one of the largest banks in Brazil, has had a productive last few years. Under the leadership of its famous CEO, Luiz Carlos Trabuco, the company has made an incredible turnaround. Much of this is attributable to the acquisition of HSBC Brazil, the largest acquisition in the history of Brazil. The deal has placed Bradesco in the dominant market position, and things are looking better than ever for the bank’s future.

Not willing to use the M-word

When taking a close look at Luiz Carlos Trabuco’s career in banking, what stands out is his tactic of creating absolute dominance in whatever market it is that he is competing in. Although Trabuco himself is loath to say it, he, like all good businessmen, actively seeks to create monopolies in the markets in which he is participating.

While the term monopoly has a negative ring to the ears of many North Americans, throughout Latin America, the history of monopolistic businesses is a bit more nuanced. Companies such as the United Fruit Company, International Telephone and Telegraph and Telmex have all been ruthless in their dealings and have left many losers in their wake. However, these companies have also brought civilization and jobs to areas that were little more than Hobbesian jungles, with citizens living in crushing poverty and most primitive conditions imaginable.

It is for this reason that when people throughout Brazil hear the term monopoly, it doesn’t have all negative connotations. Even so, Trabuco himself is careful not to state outright that it is his strategic goal to turn Bradesco into the undisputed private banking monopoly of Brazil. But Trabuco’s record largely speaks for itself.

Read more: Trabuco: Despite the uncertainties, investors believe in the country

A record of no-nonsense success

As a young executive with the bank, in 1992, Trabuco was assigned as the president of the firm’s financial planning division. The division had been struggling for years to turn a profit and represented only a tiny fraction of the bank’s total revenues. Trabuco had the reputation of being an efficient and capable manager. He was tapped in a last-ditch effort to reform the department, hopefully bringing it to a state of profitability before the bank would be forced to shut it down.

One of the first moves Trabuco made was to go to a completely non-egalitarian banking model on Throughout the history of Bradesco, the bank had clung to a model whereby all of the clients, no matter their value to the bank, were treated roughly equally. Someone with $1,000,000 on deposit stood in the same lines and talked to the same tellers as someone with only a few dollars in their checking account.

Luiz Carlos Trabuco, who was an enthusiastic student of the great banks of North America, immediately recognized the error of this system. He moved to create a tiered banking system, with the top-value clients receiving the bulk of the bank’s customer service resources. The new banking service, called Bradesco Prime, offered high-net-worth clients access to 24/7 personal banking, preventing them from having to stand in lines or deal with tellers who may be overburdened with other clients.

The top-end banking product also gave the best clients complementary items, such as free stays at five-star resorts or first-class airfare. The model proved to be a major success. By the time Trabuco left the position, Bradesco had cornered the high-net-worth banking market, adding tens of millions of dollars to Bradesco’s balance sheets and facilitating the creation of hundreds of millions in new loans according to

This is just one example of Trabuco’s sharp eye for eliminating inefficiencies and cornering markets in the process. All told, the many mini-monopolies he has created for the bank have been a boon to its bottom line.

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Spotlight On Luiz Carlos Trabuco Cappi

Luiz Carlos Trabuco Cappi was born in 1961 in Marilia, Sao Paulo. He holds a postgraduate degree in Social Psychology from Sao Paulo’s Faculty of Philosophy, Science, and Letters. Besides that, he has numerous other qualifications in economics, engineering, accounting, and management.

Mr. Luiz Carlos Trabuco Cappi began his career at Bradesco as a clerk in 1969. In 1984, he was appointed the Marketing Director of Bradesco’s Marilia branch, a position he held before becoming the group’s Executive Director between 1992 and 1998.

In his illustrious career, Luiz has served in various managerial positions in a career spanning over 40 years. His numerous accomplishments in these posts have helped him transform Bradesco into one of Brazil’s leading bank and insurance firm. His significant accomplishments include increasing Bradesco’s customer base, the opening of new branches, and raising its net profits. As such, various organizations have awarded Luiz in recognition of his contribution.

As one of Brazil’ highly influential business executives, many consider him the embodiment of Bradesco’s culture, philosophy, and commitment to the people of Brazil. In this respect, he is known for his honest approach to business, modesty, and devotion to the company’s business processes. Presently, Luiz Carlos Trabuco Cappi is Bradesco’s CEO, a position he attained in 2003. In this capacity, he capably maneuvered Bradesco through turbulent economic times and stiff competition. His most remarkable achievement as Bradesco’s CEO was orchestrating the group’s buyout of HSBC’s Brazilian operations at a record price of $5.2 billion. This move in effect catapulted Bradesco to the top of the Brazilian banking and insurance industry.

A characteristic of his management style is organic growth. In respect to this approach, Luiz Carlos Trabuco Cappi believes in strengthening the company’s position through the strategic acquisition of smaller business ventures into a giant corporate entity. As such, his passion is in improving the group’s internal management structure to weather challenges present in this sector. With this in mind, Trabuco is currently designing a growth strategy targeting approximately 100 million new customers by 2025. To achieve this goal, he has developed various expansion plans into the country’s untapped insurance and banking sector. His vision is to capitalize on the potential offered by the country’s unbanked and uninsured populace.

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