It’s almost official. Octavio Lazari, the fifty-four-year-old Bradesco insurance executive, will be the new CEO of the bank on March 12th. Trabuco Cappi, the current CEO, and newly appointed Chairman believes Lazari will continue managing the bank in the same way he did for the last eight years. Cappi is a banker’s banker in the eyes of many Bradesco employees. He got his start in banking in 1969 when founder Amador Aguiar and Lázaro de Mello Brandão thought he would make a good bank trainee.
Cappi didn’t have a finance degree, and he wasn’t a numbers cruncher, but his personality and psychology and philosophy degree were enough for the men. Cappi exceeded the expectations of some bankers, but Aguiar and Brandão knew Cappi was going to be an excellent bank executive. When Cappi was the president of the bank’s insurance arm, Seguros, Cappi put more money on the bank’s bottom line than the plan. And when Octavio Lazari was the head of the insurance division, he did the same thing.
CEO Luiz Carlos Trabuco Cappi and outgoing Chairman Lázaro de Mello Brandão and board members knew Lazari’s retail banking experience as well as insurance management experience would help him tackle some internal issues facing the bank. Cappi and Brandão know the bank is facing IT challenges in 2018, so they wanted a CEO who could work with IT Vice-President Machado Minas. Machado Minas was also a candidate for the CEO position, but he is the man the bank depends on when it comes to expanding mobile and Internet banking services. Machado Minas is up for a board position along with three other members of Cappi’s executive team, so a third of the board members will be part of the management team.
The appointment of Lazari leaves a hole in the Seguros management team, but Lazari will name a new insurance president at the end of March. Lazari is expecting higher loan volume in 2018, thanks to new government regulations and a drop in interest rates according to jusbrasil.com.br. Higher loan volume will offset the lower loan margins, according to Lazari. Cappi is also lowering the CEO age cap from 67 to 65. Cappi is 67, but there is no age cap on the Chairman’s position. Outgoing Chairman Brandão is 91, and he is still competent enough to make Bradesco’s stock a “buy stock” on Wall Street and in Sao Paulo.
Credit demand is improving in 2018, according to Lazari. Bradesco is in a good position in terms of hitting their 2018 fiscal plan even though the Brazilian economy is just starting to show signs that the three-year recession is over. Lazari doesn’t plan on initiating any major acquisitions in 2018. The focus will be on tech advancements, reducing poorly performing bank branches, and offering new bank services that will make consumer and business banking easier.
Even though Brandão’s banking days are behind him, for the most part, he will still have an office, and a say in management decisions, according to Luiz Carlos Trabuco Cappi.
Learn more about Luiz Carlos Trabuco Cappi: http://insiders.morningstar.com/trading/executive-profile.action?t=BBD&PersonId=PS00003Y11&flag=Director®ion=USA&culture=en_US