Bradesco Taps Insurance Chief for CEO

Bradesco chairman Lazaro de Mello Brandao has picked Luiz Carlos Trabuco Cappi to be the bank’s next CEO. The appointment of Trabuco, who is head of the bank’s insurance business, is no big surprise and seems to have been received reasonably well by the market. Trabuco, EVP and head of Bradesco BBI Jose Luiz Acar Pedro, and Milton Vargas, EVP and IR chief, were among the names cited as the viable candidates, say market watchers. “I think Acar would have added more dynamism to the bank’s leadership,” says a Sao Paulo-based analyst at a local shop, adding Trabuco is a more obvious choice given his longer career at Bradesco. “Given Mr. Trabuco’s experience as the president of Bradesco Seguros, we believe the board is implicitly stressing the group’s commitment to the bancassurance model,” notes Goldman in a report. Bradesco faces an uphill battle to win back market share following a flurry of bank mergers among competitors pushed it into third place by assets. Goldman notes Bradesco has a good opportunity to expand organically while its competition focuses on integrating newly acquired units. Bradesco’s bylaws state its chief executive can be no older than 65 years and Marcio Cypriano, CEO, commemorated his 65th birthday at the end of 2008. The decision will be voted on at Bradesco’s next board meeting on March 10 and is expected to be approved.