Banco BTG Pactual (BPAC11) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenues of BRL 6.4 billion, with adjusted net income of BRL 3.2 billion, a 17% year-over-year increase, and 23.5% ROAE, driven by strong operational leverage and organic growth across business lines.

• Wealth Management and Asset Management posted record results, with net new money of BRL 78 billion and assets under management reaching BRL 970 billion, all organic.

• Sales & Trading delivered strong results, supported by client franchise expansion and a historical low VaR of 0.16%.

• Successfully issued BRL 2 billion in perpetual notes and USD 500 million in 5-year senior unsecured notes, strengthening capital and funding profile.

• Expanded credit portfolio supported by solid capital ratios and a growing unsecured funding base, benefiting from lower funding costs.

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.

• Unsecured funding base grew 33% year-over-year to BRL 256 billion; Basel ratio at 16.4%.

• Cost-to-income ratio improved to 36.4%; effective tax rate at 20.2%.

Outlook and guidance

• Expect continued balanced growth between investment management, corporate and investment banking, and sales and trading.

• Ongoing expansion of client franchises and market share in key business segments.

• Management expects continued growth supported by strong capital position and recent successful funding transactions at favorable rates.

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

• Forward-looking statements note risks and uncertainties, with no guarantee of future results.