Banco BTG Pactual (BPAC11) Q1 2025 earnings summary

Executive summary

• Achieved record adjusted net income of R$3.4bn in 1Q25, up 17% year-over-year, and total revenues of R$6.8bn, up 16% year-over-year, with ROAE at 23.2%, demonstrating resilience in a challenging macroeconomic environment.

• Credit portfolio expanded 27% year-over-year; Asset and Wealth Management platforms each surpassed R$1 trillion in AuM/AUA, with net new money inflow of R$105bn, including R$60bn from Julius Baer acquisition.

• Maintained strong liquidity and capital structure, with LCR at 169.1% and Basel ratio at 15.4%.

• Successfully consolidated Julius Baer Brazil and announced the acquisition of JGP Wealth Management, pending regulatory approval.

• Continued focus on sustainability, winning seven Sustainable Finance Awards in 2025.

Financial highlights

• Adjusted net income per unit was R$0.88, up from R$0.76 in 1Q24; accounting net income was R$3.2bn, up 15.7% year-over-year and 2.7% sequentially.

• Shareholders’ equity reached R$59.8bn, a 4% increase from the previous quarter, despite a R$964mn negative impact from regulatory changes.

• Operating expenses were R$2.8bn, down 1.8% sequentially, with an adjusted cost-to-income ratio of 37.0%.

• Total assets stood at R$608.4bn; total funding base was R$260.3bn.

• Liquidity coverage ratio was 169.1%, and leverage ratio decreased to 8.9x.

Outlook and guidance

• Management expects continued resilience and growth, supported by a strong client base, diversified business model, and disciplined risk management.

• Healthy pipeline in M&A and further integration of recent acquisitions, including JGP Wealth Management.

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