Banco BTG Pactual (BPAC11) Q1 2025 earnings summary

Executive summary

• Achieved record net income of R$3.4bn in 1Q25, up 17% year-over-year, and total revenues of R$6.8bn, up 16.1% year-over-year, with a 23.2% ROAE, demonstrating resilience in a challenging environment.

• Credit portfolio grew 27% year-over-year, maintaining stable spreads and disciplined risk management.

• Asset and Wealth Management franchises delivered record revenues, each surpassing R$1 trillion in AuM/AUA and WuM, with net new money of R$105bn.

• Successfully consolidated Julius Baer Brasil, adding R$60bn to WuM, and announced the acquisition of JGP Wealth Management, pending regulatory approval.

• Strong performance across client-related businesses, with diversification and business resilience.

Financial highlights

• Total revenues reached R$6.8bn, up 16.1% year-over-year; adjusted net income was R$3.4bn, up 16.5% year-over-year.

• Net income per unit was R$0.88; cost-to-income ratio improved to 37%.

• Total assets stood at R$608.4bn, up 3.6% sequentially; shareholders' equity at R$60bn.

• Basel capital ratio at 15.4%, tier one at 12.2%; leverage ratio at 8.9x.

• Liquidity coverage ratio was 169.1%, and effective tax rate stable at 20.2%.

Outlook and guidance

• Expectation for ROE to be higher in 2025 than in 2024, maintaining strong profitability and growth.

• Healthy pipeline in M&A and continued expansion in Asset and Wealth Management, including the announced acquisition of JGP Wealth Management.

• Profits anticipated to sustain target capital ratios and support continued growth.

• Anticipate deceleration in credit portfolio growth toward 20% by year-end, but still outpacing the market.

• No material impact anticipated from Central Bank Resolution 4,966 on credit provisions.