BTG Pactual achieves new performance records, with a net income of R$2.7 billion and total revenues of R$5.7 billion in 3Q23

Strong Net New Money (NNM) of R$59 Billion in the quarter, reaching R$1.5 trillion in AuA/WuM

ROAE of 23.2% and BIS ratio of 17.4%

• Adjusted net income grew 19% over the past 12 months, reaching R$2.7 billion in 3Q23.
• Total revenues grew 19% over the past 12 months, reaching R$5.7 billion in 3Q23, with record revenues in most business lines.
• Significant growth in client franchises:
  • Investment Banking reported revenues of R$590.1 million, 12% above 3Q22, with record revenues in DCM.
  • Wealth Management & Consumer Banking reported strong NNM of R$31.3 billion and record revenues for the 19th consecutive quarter, of R$791.7 million, up 21% compared to 3Q22.
  • Asset Management reported NNM of R$28.0 billion and record revenues of R$467.4 million, 15% higher than 3Q22.
• Record revenue also in Corporate & SME Lending of R$1.32 billion, 41% above 3Q22. The credit portfolio reached R$160.6 billion, with R$17.7 billion in SME lending.
• Total AuM/WuM reached R$1.5 trillion, a 25% increase compared to 3Q22.
  • Net new money of R$59.3 billion (NNM).
  • WuM rose 31% compared to 3Q22, reaching R$665.8 billion.
  • AuM/AuA increased 21% compared to 3Q22, reaching R$807.5 billion.
• Adjusted cost-to-income ratio of 38.2%, once again below the historical average.
• ROAE of 23.2%.

SÃO PAULO, Nov. 8, 2023 /PRNewswire/ -- BTG Pactual (BPAC11) once again posted record results for a single quarter. Adjusted net income reached R$2.7 billion in 3Q23, while total revenues reached R$5.7 billion in the same period. Both results marked a 19% increase y/y (3Q22). ROAE totaled 23.2%, the highest level since 2015.

During the quarter, total third-party assets reached R$1.5 trillion (AuM/WuM), a 25% increase compared to 3Q22. BTG Pactual achieved NNM of R$59.3 billion, with R$31.3 billion in the Wealth Management and R$28.0 billion in Asset Management.

"In this quarter our client franchises continued growing significantly. We reached the mark of R$1.5 trillion in assets under management and administration (AuM/WuM), with strong net inflows throughout the year, even in the face of a challenging macroeconomic scenario. We are very proud to report another quarter of record results, a reflection of the quality of the services we provide to our clients and of our revenue diversification" said Roberto Sallouti, CEO of BTG Pactual.

Investment Banking reported revenue of R$590.1 million in 3Q23, a 93% increase over 2Q23 and 12% year-on-year, with record revenues in DCM. BTG maintained its leadership in all three segments (DCM, ECM, and M&A) in Brazil and Latin America.

Corporate & SME Lending posted record revenue of R$1.32 billion in 3Q23, up 41% y/y. Credit portfolio reached R$160.6 billion in the quarter, up 24% y/y, with R$17.7 billion (or 11% of the total) contribution from the SME portfolio. BTG Empresas was once again voted by Global Finance as the "Best bank for SMEs in the World".

In Sales & Trading,  BTG once again posted strong results, with revenues of R$1.45 billion, up 5% y/y. There was a significant contribution from client activities, with the average Value at Risk (VaR) decreasing significantly in the quarter to 0.33%.

In Asset Management, AuM/AuA were R$807.5 billion at the third quarter, a 21% increase compared to 3Q22, with NNM of R$28.0 billion. Asset Management reported revenue of R$467.4 million in 3Q23.

Wealth Management & Consumer Banking reported record revenues for the 19th consecutive quarter, of R$791.7 million, up 21% y/y. WuM was R$665.8 billion, a 31% increase y/y. The WM business continues to experience strong net inflows (NNM) of R$31.3 billion, confirming the quality of the distribution channels. This is another quarter of record revenue, with strong net inflows while maintaining the same levels of ROA.

The bank's balance sheet ended the quarter even more robust, with a basel ratio of 17.4%, and the liquidity coverage ratio (LCR) of 196%.

Strategic Acquisition

In October, BTG Pactual announced the acquisition of Órama, one of Brazil's leading investment platforms with R$18 billion in assets under custody. The deal is part of the bank's strategy to expand its digital platforms, increase its customer base, and enhance the offering of products and services for retail clients.

Nine Months

BTG Pactual ended the first nine months of the year with strong revenue generation and operational leverage. Total revenue reached R$15.9 billion, up 17% y/y. Adjusted net income grew 16% in the period, reaching R$7.6 billion. Both results are historical records, with significant growth mainly in client franchises. Total assets/wealth under management (AuM/WuM) reached R$1.5 trillion, a 25% increase y/y. Net New Money (NNM) accumulated in nine months was of R$163.3 billion, and ROAE was of 22.4%.