Banco BTG Pactual (BPAC11) Q4 2024 earnings summary

Executive summary

• Achieved record revenues of R$25.1 billion and net income of R$12.3 billion for 2024, with a 23.1% ROAE, demonstrating 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.

• Strategic acquisitions included Órama, MY Safra, Sertrading, and Julius Baer (pending regulatory approval), expanding product offerings and scale.

• Investment Banking revenue rose 30% year-over-year, with record DCM 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$6.7 billion (up 19% YoY), with net income of R$3.3 billion and ROE of 23%.

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

• Unsecured funding reached R$265 billion, a 30% year-over-year increase.

• Cost-to-income ratio improved to 37.5% for the year (from 38.2% in 2023), reflecting operational efficiency.

Outlook and guidance

• Management remains optimistic about sustaining growth and further ROAE expansion in 2025, driven by 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.

• Continued focus on diversification, operational leverage, and ESG initiatives.