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 Q2 2025, with ROE/ROAE at 27.1% driven by strong performances in Investment Banking, Corporate Lending, Sales & Trading, Asset and Wealth Management.

• Growth attributed to maturation of past investments, digital platform expansion, increased LATAM presence, and the acquisition of HSBC Uruguay, pending regulatory approval.

• All-time high results in Investment Banking, Corporate Lending, Sales & Trading, and Wealth Management, with organic net new money inflows and market share gains.

• Net new money inflows of R$59bn in the quarter, reflecting strong client franchise expansion across Wealth and Asset Management.

• Credit and SME portfolios grew 22% and 22.4% year-over-year, with the credit portfolio reaching R$238bn.

Financial highlights

• Total revenues grew 38% year-over-year to R$8.3bn; net income up 42% year-over-year to R$4.2bn.

• Wealth Management AUM up 32% year-over-year to R$1.56tn; Asset Management AUM up 19% to R$1.90tn; AuM/WuM totaled R$2.1tn, up 25% year-over-year.

• 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% in the quarter, reflecting operational leverage.

• Basel ratio improved to 16.2%, up 80bps in the quarter; liquidity coverage ratio at 170.1%.

Outlook and guidance

• Management signals comfort in delivering full-year ROE of 24% or above, maintaining conservative guidance despite strong Q2 performance.

• Expectation of continued operating leverage and growth, with potential to outperform guidance if current trends persist.

• Ongoing focus on cross-selling, disciplined execution, and franchise consolidation to drive growth.

• Ongoing expansion in Latin America and leadership in sustainable finance are strategic priorities.

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