BTG Pactual posts record net income of R$1.719bn in Q2, up 74% y/y

The best quarter in history, with strong growth in all business lines

SÃO PAULO, Aug. 11, 2021 /PRNewswire/ --

• Record Net New Money (NNM) of R$98bn 
• Assets under Management/Custody of R$880bn, up 77% y/y  
• AuM/AuA grew 65% y/y to R$502bn  
• WuM rose 96% y/y to R$379bn  
• Corporate and SME lending portfolio expanded 51% y/y to R$86bn – SME portfolio of R$14bn, up 265% y/y 
• Revenues rose 52% y/y to R$3.8bn  
• Strong (above-industry average) capital and liquidity ratios: 
• BIS ratio of 17.3%   
• LCR of 215%  
• Adjusted ROAE of 21.6%  

BTG Pactual (B3: BPAC11) posted Q2 revenues of R$3.77bn, up 52% y/y. Adjusted net profit was R$1.719bn, up 74% y/y. The Bank achieved record NNM of R$98bn, while third-party assets grew 77% y/y to R$880bn.  

According to BTGP's CEO Roberto Sallouti, "we had the best quarter in our history, with strong results in all business lines, accelerated growth in our client franchises and high profitability, while our capital ratios remained above the industry average. Our integrated business model simultaneously enables high growth rates and a robust balance sheet. We thank our clients for their invaluable support and partnership."  

Investment Banking more than tripled its revenue y/y to R$685mn, with a strong contribution from all business lines, especially DCM and ECM. 

The Corporate and SME loan portfolio reached R$86.4bn, up 51% y/y. The SME portfolio (BTG + Business) reached R$14.1bn, up 36% q/q and 265% y/y, and currently represents 16% of the Bank's total credit portfolio.  

BTG Pactual reported a strong revenue contribution from Sales & Trading, where revenues rose 23% y/y to R$1.25bn, with the lowest level of risk allocation in history (VaR of 0.25%).  

Asset Management posted record NNM for the third consecutive quarter: R$44bn in Q2 and R$129.4bn LTM. Assets under Management (AuM/AuA) ended Q2 at R$501.9bn, up 65% y/y. 

Wealth Management & Consumer Banking saw impressive NNM of R$54bn and R$127.7bn LTM. WuM was R$378.9bn, up 19% q/q, and revenue hit a record of R$375mn (+89% y/y). 

Adjusted ROAE was 21.6%, with a BIS ratio of 17.3% and comfortable liquidity levels. 

On June 8, BTG Pactual concluded its fourth follow-on (R$2.98bn) to continue expanding its digital retail unit and preserving strong capital and liquidity ratios. We also continued to implement a selective M&A agenda to accelerate growth and value creation. Please find below the strategic acquisitions during the period:

Partnerships with Acqua-Vero and Wise  

Partnerships with independent financial advisors (IFAs) Acqua-Vero and Wise, with AuC of R$8.5bn and R$2.5bn, respectively, continuing the strategy of broadening its product distribution. 

Acquisition of Grupo Universa 

On May 31, BTG agreed to buy 100% of the shares of Grupo Universa, formed by Empiricus and Vitreo, as well as their respective subsidiaries, including the content portals Seu Dinheiro, Money Times and the Real Valor app. This move will strengthen the Bank's ecosystem, improving content generation and reinforcing the importance of financial education. 

Partnership with Perfin  

Perfin, a fund and Wealth Management platform with R$21bn under custody, will give BTG Pactual clients access to a range of sophisticated investment products.  

Sale of CredPago to Loft, with part of the proceeds payed in shares. 

On July 2, BTG Pactual sold its 49% stake in CredPago to Loft Brasil, and will receive the proceeds in 24 months, including a participation in Loft Holding Ltd shares. Deal conclusion remains subject to regulatory approvals. 

Also, we are glad to announce all awards we received recognizing our products and services: 

BTG Pactual´s teams received several awards in Q2: Best ESG Research Team in Brazil (Institutional Investor); Best Research, Trading & Sales Team in Brazil and Latin America (Institutional Investor); Best Investment Bank in Latin America (Global Finance); Best Investment Bank in Brazil (Euromoney); Best Performance, Growth, Profitability, Operational Efficiency, Product Quality, Return and Liquidity in Brazil (The Banker); Best Bank to Invest in the High-Income Client Digital Category (FGV/Fractal Consult); Best Private Bank for Businessmen Globally (Global Finance) and Best Bank for Digital Client Service in Latin America (PMW).  

About BTG Pactual

BTG Pactual (BPAC11) is the largest investment bank from Latin America, operating in Investment Banking, Corporate Lending, Sales & Trading, Wealth Management and Asset Management. Since inception, in 1983, the Bank has been run based on a meritocratic partnership culture, focused on clients, excellence and a long-term vision. BTG has cemented its status as one of the most innovative players and has won numerous national and international awards. We currently have more than 4,000 employees in offices across Brazil, as well as in Chile, Argentina, Colombia, Peru, Mexico, the US, Portugal and England. For more information go to http://www.btgpactual.com 

Related Links

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SOURCE BTG Pactual