Brazil’s economy is rebounding from a nasty recession, according to Brazilian economists. Retail sales were higher in September. Lower interest rates and lower inflation remain intact as the labor market gets stronger.
Retail sales jumped six percent in September 2017 thanks to strong supermarket sales, and a slight increase in income. IBGE economist Isabella Nunes expects Brazil Gross Domestic Product output to hit 2.5 percent in 2018. Brazilian banks are banks are lending people money again, and Banco Bradesco is preparing for a major shift in its business model because the technology sector of the economy is getting stronger.
New Chairman of the Board Luiz Carlos Trabuco Cappi is rolling out a new franchise, and the bank calls it, “Next.” Next is a data-based franchise. Trabuco Cappi and the executive team are teaming up with Microsoft, Xbox, and Apple in order to give Brazilian FinTechs some stiff competition in 2018. But that’s not the only news coming out of Bradesco’s media department. Lázaro de Mello Brandão, the 91-year-old oldest bank chairmen in the history of Brazilian banking, is stepping aside. That move will give Trabuco Cappi a chance to incorporate changes in the way the bank offers its products and services to 69 million customers. Bradesco’s Chairman Lázaro de Mello Brandão knew Trabuco Cappi would take his place this year, but he’s not really leaving the bank. Mr. Brandão will still have a desk and a say in the bank’s decision-making process.
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Lázaro de Mello Brandão and Trabuco Cappi were a strong team, but Mr. Trabuco Cappi and the bank’s board of directors are searching for a new CEO who can carry on that type of relationship in the digital age of banking. The Bradesco board doesn’t like to hire people who are not part of the Bradesco family, so the seven candidates for the CEO position all have an executive position with the bank. Trabuco Cappi will continue to fill the CEO position as well as the Chairman’s position until March 2018. That’s when the new CEO will officially take over. Bradesco will make the CEO announcement one month before the bank’s annual March shareholders meeting.
According to jusbrasil.com.br, all seven candidates have the skill and the qualifications to be the Chief Executive Officer, but according to inside sources, IT Vice President Mauricio Machado de Minas is the top pick. Mauricio Machado de Minas is the man who put the Next franchise together, and he is the man Trabuco Cappi relies on to bring the bank into the 21st century in terms of online and mobile banking. But even though Mauricio Machado de Minas is a favorite, Alexandre da Silva Glüher is also a great choice for the job. Alexandre da Silva Glüher is responsible for organizing the 2015 acquisition of HSBC’s Brazilian banking operations. Bringing the HSBC’s branches into the Bradesco family was a monumental task, but Glüher did it successfully. Bradesco’s 2017 revenues reflect that success, and Wall Street’s interest in Bradesco stock confirms how important that acquisition is in terms of future earnings.
But the other five candidates also have a shot at the CEO position. Vice-President Josué Augusto Pancini is the VP in charge of branch operations, and he has a good chance to be the next CEO. Chief lending officer, Domingos Figueiredo Abreu knows how to make Bradesco money by lending money, so he can certainly fill the CEO vacancy. But Seguros President Octavio de Lazari is also a great candidate. Seguros is the president of the profitable insurance division of the bank. But chief investment Marcelo Noronha and Andre Cano the VP of Human Resources are also on the short list of candidates but those men are dark horse candidates at this point.
Learn more about Luiz Carlos Trabuco Cappi: http://economia.estadao.com.br/noticias/geral,trabuco-afirma-que-anuncio-de-substituto-pode-acontecer-antes-do-calendario-de-sucessao,70002039084