Category: Banking Bosses

Banco Bradesco’s Push Towards Becoming The Largest Private Bank In Brazil Again All Rests On The Input Of Luiz Carlos Trabuco Cappi

For dominant players in any industry, having the greatest market share is more than just about survival – it is about pride. They all have the desire to be number one. As such, losing the leading spot in the industry to a competitor can quite devastating as it demoralizes a company’s employees and shareholders. In 2009, Banco Bradesco found itself in this spot.

After, having been the biggest private bank in Brazil for close to six decades, it was overtaken overnight by a newly formed bank, Itau Unibanco. Itau Unibanco had come into existence through the merger of smaller banks, Unibanco and Banco Itau. All the stakeholders at Banco Bradesco were in unanimous agreement that their bank needed to retake the leading spot from Itau Unibanco as fast as possible. However, with the bank’s president at the time Marcio Cypriano retiring, the bank’s ability to become first again solely rested on the individual that would be selected to take over the reins. Fortunately, Banco Bradesco made the best possible decision by selecting Luiz Carlos Trabuco Cappi as the bank’s next president. The last seven years of his presidency have shown that he is more than capable of making Banco Bradesco the biggest private bank in the country again.

A look at Luiz Carlos Trabuco Cappi’s professional background shows that Banco Bradesco’s decision to appoint him as the president was more of a sure bet than it was a risk. After joining the bank as a clerk in 1969, Luiz Carlos Trabuco Cappi quickly rose up the hierarchy and was eventually called upon to head the bank’s insurance subsidiary, Bradesco Seguros. In six short years, he managed to more than double the insurer’s value thus making it the biggest of its kind in the entire Latin American region. Additionally, he also managed to increase the subsidiary’s impact on the bank’s financials by close to ten percent.

While Luiz Carlos Trabuco Cappi is known for his calm and collected demeanor, he has not hesitated in making shrewd but risky moves that are in the best interest of the company. In 2015, for instance, Banco Bradesco was at the center of the largest financial deal of the year as it purchased HSBC’s Brazilian operation for a figure of $5.2 billion. From this acquisition, Banco Bradesco grew in one deal by as much as it would have in six years if went about it organically. Additionally, the acquisition took the bank beyond Itau Unibanco in the areas of branch network coverage, total investments made and the total number of account holders. Now Banco Bradesco is only left with the areas of total deposits held, the value of the loan book and total assets to its competitor and become the outright leader in the private bank sub-sector.

The HSBC deal was so significant for Banco Bradesco that Luiz Carlos Trabuco Cappi was that year named the entrepreneur of the year in the finance category by This is Money. However, that was only one of numerous awards and acknowledgments that he has received over the course of his extensive professional career. While working as the president of the bank’s insurance subsidiary, he was on two different occasions named the insurance personality of the year by Coverage Magazine. In between these two awards, Luiz Carlos Trabuco Cappi was also named the business personality of insurance for 2016 by the Association of Marketing Officers of Brazil. Additionally, the highly acclaimed Forbes Magazine included his name in their 2016 list of the best Chief Executive Officers in the South American Country.

The Phenomenal Growth of this Dallas Bank

The Dallas, Texas regional bank, Nexbank is growing by leaps and bounds. It’s currently the 266th largest bank in the U.S. because of its 48% growth last year. Part of that growth could be attributed to its acquisition of Princeton, New Jersey’s College Savings Bank, a notable 529 college savings plan specialist.

Nexbank is well positioned to continue its phenomenal growth in the next years. It is developing new deposit channels, growing that area by 32%. In 2015 it boosted its outstanding loans to $1.97 billion. It expanded its acquisition of assets, ending with $1.88 billion in 2015.

Nexbank’s capitalization looks promising. It has deposits of a little over $13 for every $100 it lends giving it a 13.5$% capital ratio, four points higher than the required base ratio. Nexbank has consistently grown its revenue year after year due to their goal to be both efficient and profitable. It appears they have met that goal and surpassed it.

The future for Nexbank, the bank that got its start in 1934 will surely include more acquisitions and continued growth of its assets and loans. The bank is currently in excellent shape according to the banking regulators and Nexbank’s customers. As long as it keeps doing what works, Nexbank can continue climbing up the ladder from number 266 in the country to number one in due time.

Lessons from Investment Banker Martin Lustgarten

Investment banking can be defined by understanding what an investment bank does. Some of the roles of an investment bank include raising capital and securities as well as underwriting by playing the agent’s role in a company issuing securities and the public that is interested in buying the securities. The banks are also involved in assisting companies involved in mergers and acquisitions by advising buyers and sellers on matters valuation, pricing, negotiation, and transaction structuring

Investment banks, unlike commercial and retail banks, do not take deposits. There has always been a separation between investment and commercial banking in the United States until the repeal of the Glass-Steagall Act in 1999. However, other industrialized countries like the G7 countries have not been maintaining such a separation.

The business of an investment bank is divided along two main lines namely the sell side, where trading of securities for cash or even for other securities or promotion of the securities is done, and the buy side, where activities include giving advice to the institutions that buy the investment services.

Building a career in investment banking is one of the prestigious things do in life though it is not easy. Beyond the knowledge acquired in class, one has to be patient and have observation and research skills. One of the most known investment bankers is Martin Lustgarten. The resident of Miami, Florida is also the founder and also the CEO of Lustgarten Martin an investment banking firm in Florida. The firm is one of the best Investment banks in the history of American banking.

Martin has been in the industry of investment banking for long, and is said to be one of the most experienced and knowledgeable investment bankers in America. This has made his investment firm famous and the most sought after. With a success and good record with its already existing clients, the firm has been able to continue attracting new clients every day.

The traits that have contributed to Martin’s success in the industry is effective communication skills. He can inform his customers in an easy and understandable way hence the best possible customer service. His employees also say that he handles them in a personal way and guides them hence improving their productivity. Martin has indeed made great contributions in this sector of investment banking.

More information for Lustgarten:

https://www.facebook.com/lustgarten.martin

https://www.crunchbase.com/person/martin-lustgarten#/entity

Martin Lustgarten and The Art of Investment Banking

An investment bank is quite simply a financial organization that revolves around facilitating increases the financial capital of numerous corporations, governments, and individuals. The bank provides a service via underwriting. In other words, they represent clients as agents, insuring them a certain degree of investment security. Additionally, such banks offer company and specific clientele assistance in mergers and acquisitions, derivatives, market creation, equity, fixed income instruments, commodities, as well as currencies. Overall, investment banking is compromised of what is called the ‘buy side’ and the ‘sell side’. The ‘buy side’ typically operates in various forms, namely mutual funds, equity funds, life insurance, hedge funds and unit trusts. The prior is based around providing counsel to organizations and institutions purchasing investment advice. The ladder is defined by the exchange of cash for security, security trades, transaction facilitation, and market-creation.

Investment banking phenomenon Martin Lustgarten (https://www.crunchbase.com/person/martin-lustgarten#/entity) has worked with Venezuelan clientele, as well as companies in Hong Kong, Panama, and Singapore. He has dual citizenship in Austria and Venezuela, but currently resides in Florida. He is a man with a wide array of investment banking connections. He demonstrates a knack for international business that is only developed through extensive experience. He is a collector of vintage watches. Such a hobby, albeit small, suggests an eye for nuance and sense of specificity that defines Lustgarten’s well-travelled character.

Martin Lustgarten is especially enthusiastic in the sales department, and is a pioneer in the import sector. Ultimately, Lustgarten is a well-known figure for a good reason. He is ambitious without being reckless, and strategic, but active, never static. If one is interested in investment banking, look no further than Martin Lustgarten. Although, he may be difficult to emulate, he has demonstrated himself to be an impressive and inspiring figure who has remained successful and innovating in an ever-shifting world. Visit his Tumblr page to find more of his interests.