BTG Pactual raised a record R$ 76 billion (NNM) in the quarter, and earnings grew 52% to R$ 1.197 billion
Strong growth in all business lines, and an impressive operational result
- Record net new money (NNM) of R$76bn
- Assets under custody (AuC) grew 79% y-o-y to R$767bn
- AuM/AuA grew 67% y-o-y to R$450bn
- WuM increased 98% y-o-y to R$317bn
- Total revenues grew 84.2% in 12 months, to R$ 2.8 bn
- Adjusted net income were up 52% y-o-y to R$1.2bn
- Corporate & SME lending portfolio of R$80bn (+69% y-o-y) - the SME portfolio reached R$10.4bn
- Above industry-average capital and liquidity ratios:
- BIS ratio of 17.7%
- LCR of 238%
- ROAE of 17%
SÃO PAULO, May 11, 2021 /PRNewswire/ -- BTG Pactual (B3: BPAC11) posted revenues of R$2.79 billion in the first quarter of 2021 (1Q21), 84.2% higher than the first quarter of 2020. Adjusted net income was R$1.197 billion, up 51.7% y-o-y. Operating revenues totaled R$2.40 billion in the quarter - 86.1% more than in 1Q20. BTG Pactual delivered record funding levels in the first quarter, with R$76 billion of net new money (NNM) and assets under custody (AuC) of R$767 billion, a 79% increase y-o-y.
According to BTG Pactual's CEO, Roberto Sallouti: "We had another strong quarter, recording solid results and high growth in all business lines. We continue to deploy our strategic acquisition agenda to expand our retail presence, offer more products and provide the best service to our customers. We continue to strengthen our ESG and Impact Investments initiatives, reaffirming our commitment to society and to our employees".
Asset Management revenues totaled R$ 264.7 million in the first quarter of 2021, a 24% increase compared to the same period of 2020. The area delivered a record funding (NNM) for the second consecutive quarter, reaching R$ 42.9 billion in 1Q21. In the last 12 months, it raised a total R$ 97.3 billion.
Wealth Management & Consumer Banking revenue grew 74% in the last 12 months, totaling R$ 294.7 million, a record result for a single quarter. The area raised R$ 33 billion in the quarter, and R$ 84.3 in the last 12 months.
In Asset Management, total assets under management (AuM/AuA) reached R$ 449.9 billion on March 31, 2021, up 67.4% from 1Q20. In Wealth Management, wealth under management (WuM) reached R$ 317.4 billion, almost twice (+98% y/y) 1Q20 due to our increased share of the high-income retail banking segment.
Our Corporate and SME loan portfolio totaled R$80.4billion in 1Q21, up 68.8% y/y, with the SME portfolio alone (BTG + Business) reaching R$10,4billion – an increase of 9.5% y/y (and 39% y/y adjusting for year-end seasonality). ROAE was 17%, with a BIS ratio of 17.7% and comfortable liquidity levels.
Investment Banking delivered revenues of R$483.6 million in the quarter, up 156.5% y/y. Sales & Trading also delivered strong revenues of R$810.9 million in the period, 78% higher than the first quarter of 2020, preserving risk allocation levels below our historical average (VaR of 0.44%).
In January, BTG Pactual priced its subsequent primary offer, issuing R$ 2.57 billion in new units. In the same month, it announced a US$ 500 million green bond issue, due in January 2026, for financing or refinancing green and/or social projects. Also, in January, BTG Pactual established a Partnership Agreement with Mosaico, Brazil's largest digital content and sales origination platform for e-commerce, aiming to accelerate the onboarding of new retail banking clients.
In March, BTG Pactual announced the acquisition of 100% of the share capital of fintech Kinvo, the largest Brazilian investment consolidation platform. The acquisition expands BTG Pactual's digital ecosystem. Also, in March 2021, BTG Pactual bought a minority acquisition in Kawa Capital, an asset manager in the USA. Closing of these transactions are subject to verification of certain precedent conditions, including obtaining all necessary regulatory approvals, as well as from the Brazilian Central Bank.
In April, BTG Pactual signed an agreement with CaixaPar to acquire 100% of the latter's voting shares in Banco Pan for R$ 3.7 billion (R$ 11.42 per share), and also agreed to purchase Fator Corretora, one of the most respected brokerage houses in the Brazilian financial market.
About BTG Pactual
BTG Pactual (BPAC11) is the largest investment bank in Latin America and operates in the Investment Banking, Corporate Lending, Sales & Trading, Wealth Management and Asset Management markets. Since its creation in 1983, BTG Pactual has a meritocratic partnership culture, with a focus on its customers, excellence and a long-term vision. The institution has established itself as one of the most innovative players in the industry, winning several national and international awards. BTG Pactual currently employs more than 3,800 in offices across Brazil, Chile, Argentina, Colombia, Peru, Mexico, United States, Portugal and the UK. For more information, visit https://www.btgpactual.com.
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