Banco BTG Pactual (BPAC11) Q4 2024 earnings summary

Executive summary

• Achieved record revenues and net income for 2024, with adjusted ROAE of 23.1%, driven by operational leverage and business diversification despite a challenging macroeconomic environment.

• Net new money inflows reached R$247 billion, with total AuM/WuM rising 21% to R$1.9 trillion.

• Credit portfolio grew 29% year-over-year, supported by product, segment, and geographic diversification, and lower funding costs.

• Expanded product and service offerings through strategic acquisitions, including Órama, MY Safra, Sertrading, and Julius Baer (pending regulatory approval).

• Investment Banking revenue rose 30% year-over-year, with record DCM activity and strong M&A performance.

Financial highlights

• Full-year revenues reached R$25.1 billion, up 16% year-over-year; adjusted net income was R$12.3 billion, up 18%.

• Q4 revenues were R$6.73 billion (up 19% YoY), with adjusted net income of R$3.28 billion (up 15% YoY).

• Shareholder equity increased 16.4% year-over-year to R$57.5 billion.

• Net New Money for 2024 reached R$247 billion; AuM/WuM combined hit R$1.9 trillion, up 21% YoY.

• Adjusted efficiency ratio improved to 37.5% in 2024 from 38.2% in 2023.

Outlook and guidance

• Expects continued ROE expansion in 2025, driven by growth in asset management, wealth management, credit, and a recovery in sales and trading.

• Guidance is for cost growth to remain below revenue growth, leveraging technology and productivity gains.

• Corporate lending portfolio expected to grow around 20% in 2025, with continued focus on diversification and risk-adjusted returns.

• Management remains optimistic about delivering consistent growth and ROAE expansion, supported by a resilient and diversified business model.

• Continued focus on expanding ESG and impact investment strategies, with sustainable finance initiatives and green bond structuring.