When Bradesco was negotiating with HSBC for their Brazilian operation, no one was sure what would happen in terms of operational and financial results. Bank executives from both banks thought it would be a good deal in 2015, but what “good” actually meant in terms of cost savings was a mystery.
What Bradesco CEO Luíz Carlos Trabuco Cappi knew was his bank would have enough assets under management to be the third largest banks in the country. But after two years of integrating bank operations, the HSBC deal is turning out to be a goose that lays some serious cost savings eggs. The HSBC deal will generate $1.1 billion in synergies and cost savings by the end of 2018, according to Bradesco’s Chief Financial Officer Alexandre Glüher. It’s no wonder Bradesco plans to buy back a total 15 million preferred and common shares through June 26, 2018, according to a recent securities filing. Bradesco’s CFO said the buyback would be an equal split between preferred and common shares. If the recent closing price stays in the same neighborhood, which is about $10.89 a share, the bank will spend more than $125 million on the buyback.
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In order to stay competitive and maintain its position in the Brazilian banking industry, 66-year-old CEO Luíz Carlos Trabuco Cappi and his executive team are providing a personalized banking experience for their 26 million clients, according to CRM and marketing director Márcio Parizotto. Luíz Carlos Trabuco Cappi and his team are taking steps to make the 5,000 branch bank more customer-centric using digital technology. Ninety-five percent of all customer transactions are digital transactions, thanks to 60 different bank websites. But the current challenge, according to Parizotto, is to develop internal strategies that bring technology and marketing together. The bank must combine traditional advertising with the brand recognition that is taking place in the digital world. But the bank is not going to lose the personal banking touch that makes Bradesco stand out in the crowded banking industry. Bradesco employees are learning to work effectively using an integrated approach to online, offline services as well as product offerings, according to Parizotto.
Bradesco is not the oldest bank in Brazil, but it is one of the most innovative and consumer friendly banks in the country. The credit for the bank’s success is due, in part, to the foresight of the four banking presidents who were astute enough to navigate the tumultuous economic waters in Brazil. Luíz Carlos Trabuco Cappi is the bank’s fourth president, and his hands-on approach to customer service is making a difference in the way bank employees treat their clients. Cappi does not have an accountant or a financial pedigree, but he does have a philosophy degree from the University of Sao Paulo, and he has more than 35 years of experience in the banking industry. When Trabuco Cappi got the job of managing the bank he went to work for in 1969, a dream became a reality for him. But he didn’t let all the notoriety go to his head. Mr. Trabuco put a banking team together, and that team works as a cohesive unit. Cohesiveness, a strong sense of traditionalism, and the desire to be the best in the banking world are the Trabuco Cappi trademarks.
Wall Street is pushing Bradesco stock and giving Luíz Carlos Trabuco Cappi and his executive team high management marks. With more than 5,000 branch offices and thousands of ATMs across the country, Bradesco is a people’s bank and Trabuco Cappi wants to keep the bank people friendly. Some people say, good bankers are born that way, but Luíz Carlos Trabuco Cappi thinks a good work ethic, technology, teamwork, and genuine caring are the ingredients that make bankers and banks successful.
Find more about Luiz Carlos Trabuco Cappi: http://www.istoedinheiro.com.br/noticias/negocios/20151218/luiz-carlos-trabuco-cappi-empreendedor-ano-nas-financas-2015/327856