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BTG Pactual reports record revenues and net income in 1Q24, resulting in 22.8% ROAE

Published

8 months ago

May 13, 2024

SÃO PAULO, May 13, 2024 /PRNewswire/ — BTG Pactual (BPAC11) once again reported record revenues in the first quarter of 2024, totaling R$ 5.9 billion, a 22.7% increase y-o-y. Adjusted net income also reached all-time-high of R$ 2.9 billion, a 27.7% increase when compared to 1Q23. Adjusted return on equity (ROAE) reached 22.8% in the first quarter.

“We have reported record revenues and net income in this first quarter, with robust net inflows despite a challenging macroeconomic environment, both domestically and internationally. The sustained growth of our client franchises and the diversification of our business model underscore our commitment to excellence in servicing our clients, investors and partners ,” says Roberto Sallouti, CEO of BTG Pactual.

In the first quarter, BTG Pactual registered R$ 64 billion in Net New Money (NNM), with R$ 43.6 billion in Wealth Management and R$ 20,2 billion in Asset Management, including R$15.9 billion from the acquisition of Órama Investimentos, totaling R$ 1.64 trillion in assets (AuM/WuM) under management and administration.

Investment Banking maintained its leadership in key industry rankings and presented higher revenues in the first quarter, totaling R$ 654 million. The result is 41% higher than 4Q23 and 151% higher year-on-year, positively driven by record revenues in M&A and higher volumes in the debt market (DCM).

Corporate Lending and Business Banking reported record revenues of R$ 1.4 billion in 1Q24, a 20.5% increase y-o-r. The credit portfolio totaled R$ 181.6 billion in the quarter, a 26.7% increase compared to the first quarter of 2023, with increased market share both in large corporations and small and medium-sized enterprises, representing R$ 22.1 billion of the total portfolio.

Sales & Trading reported revenues of R$ 1.37 billion in the first three months of the year, with a strong contribution from client franchises. In a macroeconomic environment of increased uncertainty, both in the local and international markets, the bank maintained efficient risk allocation, with VaR of 0.36%, still below historical averages. From this quarter onwards, the Principal Investments area will be reported within Sales & Trading, due to the similar nature of the business and reduced relevance to total revenues. For reference, the Principal Investments line in 1Q24 had a contribution of R$ 13 million.

Asset Management reported another quarter of record revenues, with a 29.8% increase year-on-year and a 13% increase compared to 4Q23, totaling R$ 574 million. The total assets under management and administration (AuM and AuA) amounted to R$ 880 billion in the first quarter, a 22.7% increase over 1Q23.

Wealth Management and Personal Banking reported record revenues for the 21st consecutive quarter, totaling R$ 879 million, a 26.7% increase compared to 1Q23. Wealth under management (WuM) totaled R$ 756 billion, a 33% increase during the same period.

The Basel ratio closed the quarter at 16.4%, impacted by the repurchase of subordinated level 2 bonds in the amount of US$ 600 million. The liquidity coverage ratio (LCR) was 166.5%.