Banco BTG Pactual (BPAC11) Q2 2025 earnings summary

Executive summary

• Achieved record revenues of R$8.3bn and net income of R$4.2bn in 2Q25, up 38.5% and 42% year-over-year, with ROE/ROAE at 27.1%, driven by strong performances across all business lines and franchise expansion.

• Growth attributed to past investments, digital platform expansion, increased LATAM presence, and acquisitions including HSBC Uruguay and Julius Baer Brasil.

• Net new money inflows reached R$59bn in the quarter, with organic growth in Wealth and Asset Management.

• Total assets rose to R$656.1bn, and AuM/WuM/AuA totaled R$2.1tn, up 25% year-over-year.

• Announced acquisition of HSBC Uruguay for US$175mn, pending regulatory approval, expanding Latin America presence.

Financial highlights

• Total revenues grew 38% year-over-year to R$8.3bn; net income up 42% to R$4.2bn; net new money of R$59bn, split evenly between Wealth and Asset Management.

• Wealth Management AUM up 32% year-over-year to R$1.56tn; Asset Management AUM up 19% to R$1.90tn; WuM/AuM/AuA totaled R$2.1tn.

• Unsecured funding grew 19% year-over-year to R$280bn; credit portfolio up 22% to R$238bn.

• Cost-to-income ratio improved to 35.6%; compensation ratio stable at 21.0%.

• Basel capital ratio improved to 16.2%; liquidity coverage ratio at 170.1%; shareholders’ equity reached R$63.7bn, up 20% year-over-year.

Outlook and guidance

• Management expects full-year ROE of 24% or above, with continued operating leverage and franchise expansion.

• Strategic focus on cross-selling, sustainable finance, and Latin American growth, including the HSBC Uruguay acquisition.

• No change in dividend policy anticipated; capital position remains strong to support ongoing growth.

• Disciplined risk approach maintained, with average daily VaR at conservative levels.