Banco BTG Pactual (BPAC11) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly revenues of BRL 6.4 billion in Q3 2024, up 13.9% year-over-year, with adjusted net income of BRL 3.2 billion, a 17% increase year-over-year, and annualized ROAE of 23.5%.

• Wealth Management and Asset Management posted record results, with net new money of BRL 78 billion and assets under management reaching BRL 970 billion, both up over 20% year-over-year.

• Unsecured funding base grew 33% year-over-year to BRL 256 billion, supported by successful issuances of BRL 2 billion in perpetual notes and USD 500 million in 5-year senior unsecured notes.

• Total consolidated assets reached BRL 611.4 billion, with shareholders' equity at BRL 56.3 billion, up 17.8% year-over-year.

• Major acquisitions included FIS Privatbank, Órama DTVM, Banco Nacional S.A., and Serglobal Participações; announced intention to acquire M.Y. Safra Bank in the US.

Financial highlights

• Q3 2024 revenues reached BRL 6.4 billion, up 14% year-over-year; adjusted net income was BRL 3.2 billion, up 17% year-over-year.

• Net new money totaled BRL 78 billion, with BRL 47.3 billion in Wealth Management and BRL 30.6 billion in Asset Management.

• Wealth Management assets grew 29% year-over-year to BRL 157 billion; Asset Management assets grew 20% to BRL 970 billion.

• 9M 2024 total revenues were BRL 18.3 billion, with adjusted net income of BRL 9.0 billion, up 19% year-over-year.

• Earnings per share (basic and diluted) were BRL 0.76, up from BRL 0.63 year-over-year.

Outlook and guidance

• Management expects continued balanced growth across investment management, corporate and investment banking, and sales and trading, supported by strong capital and funding positions.

• Corporate lending growth in high-grade segment expected to remain modest, with expansion driven by new segments and geographies.

• No material uncertainty identified regarding the Bank's ability to continue as a going concern.