Banco BTG Pactual (BPAC11) Q3 2025 earnings summary

Executive summary

• Achieved a 28.1% return on equity for Q3 2025, surpassing the previous quarter, with total revenues of R$8.8bn and adjusted net income of R$4.5bn, up 37% and 42% year-over-year, respectively, reflecting strong operational leverage and execution across business lines.

• All business segments delivered record or strong results, notably in Investment Banking, Corporate Lending, Sales & Trading, Wealth Management, and Asset Management.

• Cost-to-income ratio improved to a record low of 34.1%, driven by disciplined cost management and efficiency gains.

• Total assets rose to R$685bn, with shareholders' equity at R$65.6bn and Basel ratio at 15.5%.

• Continued expansion into new business lines and geographies, including the launch of BTG Pay and development of cash management and international banking licenses.

Financial highlights

• Q3 2025 revenues reached R$8.8bn, up 37% year-over-year; adjusted net income was R$4.5bn, up 42% year-over-year.

• Net new money reached R$83bn in the quarter, a 32% year-over-year increase; AuM/AUA grew 19% year-over-year to R$1.2tn.

• Wealth management assets grew 32% year-over-year to R$1.1tn; asset management assets grew 19% to R$1.2tn; total AuC grew 25% year-over-year to R$2.3tn.

• Unsecured funding increased 20% year-over-year to R$308bn; corporate and SME portfolio up 17% to R$247bn.

• Adjusted cost-to-income ratio improved to 34.1%, the lowest historical level.

Outlook and guidance

• Management expects continued growth and consolidation from maturing initiatives, with further expansion in Brazil and internationally.

• Focus remains on scalable platforms, disciplined cost management, and ongoing business diversification, including new initiatives like BTG Pay.

• Some accommodation in ROE is expected due to the law of large numbers, with no new long-term ROE guidance provided; 2026 is anticipated to be volatile, and no specific forward guidance was issued.

• Strategic partnerships and sustainability initiatives are expected to drive future growth and reinforce market leadership.