BTG Pactual posts record second quarter net profit of R $ 1.719 billion, up 74% year-on-year
The best quarter in history, with strong growth in all businesses
SÃO PAULO, August 11, 2021 / PRNewswire / –
- Record Net New Money (NNM) of R $ 98 billion
- Assets under management / custody of 880 billion reais, up 77% year on year
- AuM / AuA increased 65% year-on-year to reach 502 billion reais
- WuM grew 96% year-on-year to 379 billion reais
- The business and SME loan portfolio grew 51% year-on-year to reach 86 billion reais – SME portfolio of R $ 14 billion, up 265% year-on-year
- Revenue increased by 52% a / a at R $ 3.8 billion
- Strong capital and liquidity ratios (above industry average):
- BIS ratio of 17.3%
- LCR of 215%
- ROAE adjusted from 21.6%
BTG Pactual (B3: BPAC11) achieved Q2 revenue of 3.77 billion reais, up 52% year-on-year. Adjusted net profit was R $ 1.719bn, up 74% year-on-year. The Bank achieved a record NNM of 98 billion R $, while third-party assets grew 77% year-on-year to reach 880 billion reais.
According to the CEO of BTGP Roberto Sallouti, “We had the best quarter in our history, with solid results in all businesses, accelerated growth in our client franchises and high profitability, while our capital ratios remained above the industry average. Our integrated business model enables both high growth rates and a strong balance sheet. We thank our customers for their invaluable support and partnership. ”
Investment Banking more than tripled its revenues year-on-year to R $ 685 million, with a strong contribution from all business lines, in particular DCM and ECM.
The portfolio of loans to businesses and SMEs reached 86.4 billion reais, up 51% year-on-year. The SME portfolio (BTG + Entreprises) reached 14.1 billion reais, up 36% q / q and 265% y / y, and currently represents 16% of the Bank’s total loan portfolio.
BTG Pactual recorded a strong contribution to Sales & Trading revenue, where revenue grew 23% year-on-year to reach 1.25 billion reais, with the lowest risk allocation level in history (VaR of 0.25%).
Asset Management posted a record NNM for the third consecutive quarter: 44 billion reais at T2 and 129.4 billion reais LTM. Assets under management (AuM / AuA) ended the second quarter at 501.9 billion reais, up 65% year-on-year.
Wealth Management & Consumer Banking recorded an impressive number of NNMs of R $ 54 billion and 127.7 billion reais LTM. WuM was R $ 378.9 billion, up 19% q / q, and sales reached a record of R $ 375mn (+ 89% y / y).
The adjusted ROAE stands at 21.6%, with a BIS ratio of 17.3% and comfortable liquidity levels.
On June 8, BTG Pactual has concluded its fourth follow-up (2.98 billion reais) to continue to develop its digital retail unit and maintain strong capital and liquidity ratios. We also continued to implement a selective program of mergers and acquisitions to accelerate growth and value creation. Please find below the strategic acquisitions of the period:
Partnerships with Acqua-Vero and Wise
Partnerships with independent financial advisers (ACI) Acqua-Vero and Wise, with AuC de 8.5 billion reais and 2.5 billion reais, respectively, pursuing the strategy of expanding its product distribution.
Acquisition of Grupo Universa
On May 31st, BTG has agreed to buy 100% of the shares of Grupo Universa, formed by Empiricus and Vitreo, as well as their respective subsidiaries, including the content portals Seu Dinheiro, Money Times and the Real Valor app. This decision will strengthen the Bank’s ecosystem, improving content generation and reinforcing the importance of financial education.
Partnership with Perfin
Perfin, a fund and wealth management platform with 21 billion reais in custody, will give BTG Pactual clients access to a range of sophisticated investment products.
Sale of CredPago to Loft, part of the proceeds of which is paid in shares.
On July 2nd, BTG Pactual has sold its 49% stake in CredPago to Loft Brasil, and will receive the proceeds within 24 months, including a stake in the shares of Loft Holding Ltd. Completion of the transaction remains subject to regulatory approvals.
In addition, we are happy to announce all the awards we have received recognizing our products and services:
BTG Pactual teams received several awards in the second quarter: Best ESG research team in Brazil (Institutional investor); Best research, negotiation and sales team in Brazil and Latin America (Institutional investor); Best Investment Bank in Latin America (Global Finance); Best Investment Bank in Brazil (Euromoney); Better performance, growth, profitability, operational efficiency, product quality, yield and liquidity in Brazil (The banker) ; Best Bank to Invest in Digital High Income Client Category (FGV / Fractal Consult); Best Private Bank for Business People in the World (Global Finance) and Best Bank for Digital Customer Service in Latin America (PMW).
About BTG Pactual
BTG Pactual (BPAC11) is the largest investment bank in Latin America, operating in investment banking, corporate lending, sales and trading, wealth management and asset management. Since its inception in 1983, the Bank has been managed on the basis of a culture of meritocratic partnership, focused on clients, excellence and a long-term vision. BTG has established itself as one of the most innovative players and has won numerous national and international awards. We currently have over 4,000 employees in offices across Brazil, As well as inside Chile, Argentina, Colombia, Peru, Mexico, United States, Portugal and England. For more information, visit https://www.btgpacual.com
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SOURCE BTG Pactual