Brazil is finally showing positive gross domestic product growth. After three years of negative growth, Brazil is getting its feet back on solid ground. IT growth is opening the door for more investors to sink their money into this massive South American country. The digital age hit Brazil with the force and fury of a category four hurricane, and banks like Bradesco are taking advantage of this newfound wealth stream. The mobile phone business is just one segment of the IT market, and it is on fire. New startups are popping up all over the country, thanks to President Temer’s push to get Brazil into the digital age. Temer may not be around after the elections, but he’s in the driver’s seat right now. The country is making progress. Interest rates are coming down, and more people are credit-worthy, so consumer spending is on the way up.
The banks in Brazil are in a great position. They make money by investing and having insurance in place that protects them from economic downturns. Interest rates are falling, but that doesn’t hurt the banks as much as banks in other countries because Brazilian banks carry insurance policies that protect them. Plus, the big banks have insurance divisions that sell home, life, auto and other insurance products, and that puts a lot of revenue on the bottom line. The president of the bank’s insurance division, Seguros, is the new CEO of the bank. That is some indication of how powerful the insurance segment of the market is in Brazil.
Read more: O Bradesco, de Brandão a Trabuco
Insurance executive Octavio Lazari is the new CEO of Bradesco. He is filling the shoes of Luiz Carlos Trabuco Cappi. Cappi was a Seguros president before he got the big CEO job, so Lazari knows he has a lot of support at the top. Trabuco Cappi is the new Chairman of the Board, so he’s not going anywhere. Cappi is the face of the bank on Wall Street and in Sao Paulo, so Lazari will have work to do to reinforce Cappi’s way of doing business. Chairman Lázaro de Mello Brandão, the oldest banker on the planet, is finally calling it quits after 75 years with Bradesco the second largest bank in Brazil. Brandão was around when Bradesco was a small city bank. He knows Cappi’s reputation and Lazari’s age will give the bank the right mix of talent.
At 91, Mr. Brandão is going to try to pull back, but banking is in his blood. And advice is something he dishes out on a regular basis and no one believes he will stop doing that, according to Cappi. Cappi knows first-hand what’s it like to have Brandão in the banking trenches. Cappi and Brandão have long working relationship. In 1969, Cappi was fresh out of school, University of Sao Paolo. He sat down with Bradesco executives, and they gave him the opportunity to join the bank’s training program as clerk. That was the start of a long banking career for Cappi. Cappi’s education did not include finance, but that didn’t stop him from becoming one of the top banker’s in the world. His executive team is one of the best in the industry, and Lazari is not going to upset that team in the future. Wall Street is depending on Lazari to follow in Cappi’s footsteps.
Four members of the executive team will have board seats in 2018, so it appears it will be business as usual for Bradesco except for the fact that Lazari will now be the face of the bank according to insiders.morningstar.com. Cappi will still call the shots behind the scenes, according to some employees. He plays a major role in the bank’s revenue stream, so Lazari will have plenty of help after the shareholders vote him in on March 12th. No one expects the shareholders to oppose Lazari because he has what it takes to be a strong CEO, according to Luiz Carlos Trabuco Cappi.
Find more about Luiz Carlos Trabuco Cappi: http://www.valor.com.br/financas/5153264/bradesco-novo-presidente-saira-do-corpo-executivo-afirma-trabuco