BTG Pactual reports record revenues of R$ 4.8 billion and adjusted net income of R$ 2.3 billion in 1Q23

SÃO PAULO, May 8, 2023 /PRNewswire/ -- BTG Pactual (BPAC11) REPORTED record revenues of R$ 4.8 billion in the first quarter of 2023, an increase of 10% COMPARED TO 1Q22. Adjusted net income was R$ 2.3 billion, an increase of 10% over 1Q22. The adjusted return on equity (ROAE) reached 20.9% in the first quarter. If BPAN had completed the recent credit portfolio sales to the market (vs BTGP) Q1 BTGP ROAE would have been 23.0% vs. 20.9%. This difference will be accrued in the next quarters.

"The first quarter was marked by record revenues and strong net inflows even in a more challenging environment, reflecting the resilience and diversification of our business model. Our client franchises continue to grow, based on a long-term commitment and client-centric culture. We are also very proud to inform that the White House announced an investment in our Reforestation Fund, which will help mobilize US$1 billion to support the restoration of nearly 300,000 hectares of degraded areas in Brazil, Uruguay, and Chile. This is another important milestone in our history and in our commitment to society.", says Roberto Sallouti, CEO of BTG Pactual.

In the first quarter, BTG Pactual raised R$ 43 billion in Net New Money (NNM) and reached a total of R$ 1.3 trillion in assets (AuM/WuM) under management and administration, an increase of 23% compared to 1Q22.

The Investment Banking area reported record revenues in M&A and maintained industry-leading rankings, despite lower market activity in DCM and ECM segments. IBD total revenue for the period was R$ 260 million.

The Corporate & SME Lending area posted record revenue of R$ 1.2 billion in 1Q23, a growth of 46% in the annual comparison, with higher spreads and adequate provisioning levels. The credit portfolio totaled R$ 143.4 billion in the quarter, an increase of 29% compared to the first quarter of 2022. We continued to acquire part of Banco Pan's payroll loan portfolio in 1Q 2023, increasing the diversification of our portfolio.

The Sales & Trading area recorded record revenue of R$ 1.5 billion in the first three months of the year, in line with the performance of the first quarter of 2022, and an increase of 31% compared to 4Q22, with a strong contribution from client franchises. Therefore, efficient risk allocation stands out, with a VaR of 0.29%, below the historical average.

In Asset Management, the total assets under management and administration (AuM and AuA) reached R$ 717 billion in the first quarter, an increase of 22% over 1Q22, with net inflows (NNM) of R$ 12.5 billion in the period. The area posted record revenues, with a growth of 41% in the annual comparison, reaching R$ 443 million.

Wealth Management & Consumer Banking reported record revenues for the 17th consecutive quarter, totaling R$ 694 million, a 22% increase compared to 1Q22. Assets under management (WUM) reached R$ 568 billion, a 24% increase compared to the same period. Despite the more challenging macroeconomic scenario, the area reported strong net inflows (NNM) of R$ 30.7 billion. The Bank was ranked by Euromoney as the best private bank in Brazil, the best retail platform in Latin America, the best bank for High-Net-Worth Individuals (HNWI) in Latin America, and the best international private bank in Colombia.

The Basel Index ended the quarter at 15.5%, while the liquidity coverage ratio (LCR) was 174%.