BTG Pactual ended the third quarter of 2021 with accounting net income of R$1.743 billion, 3.9% higher than the previous record, from the second quarter, and 74% higher than that calculated in the same period last year.
The bank also reported record adjusted net income for a single quarter of R$1.794 billion, 4.4% higher than the previous quarter and 76.6% higher than a year earlier. The adjusted annualized ROAE was 20.1% and the liquidity coverage ratio (LCR) was 213.5%.
BTG ended the period with a Basel ratio of 16.1%. Shareholders’ equity ended the quarter at R$36.3 billion, growth of 3.5% compared to the previous quarter and 39.2% compared to a year ago.
Total revenue reached R$3.845 billion, 2.0% higher than the second quarter (the previous record) and 55.2% higher than the same period in 2020.
“Given the volatile and challenging market conditions during the quarter, our performance proved solid and consistent, benefiting from growing customer activity – as we continued to gain market share, particularly in the retail segment – plus our greater diversification of revenues”, states the institution in its performance report.
According to the document, Investment Banking registered record revenue for the second consecutive quarter, with growth of 80.7% year-on-year, totaling R$726.6 million – the result of the combination of a leading position in all rankings in the sector, greater capacity distribution and growth in market share.
“And, for the first time in our history, we were ranked first in terms of volume and number of transactions in the debt market in Brazil”, highlights the institution.
Corporate and SME Lending revenues totaled R$642.3 million, 1.9% down on the second quarter and 51.1% up on the same period last year. The Corporate and SME Lending portfolio increased to R$97.6 billion, of which R$14.3 billion is allocated to Small and Medium Enterprises (SMEs).
The Sales & Trading segment had a strong performance, according to BTG, with revenues of R$ 1.305 billion, 4% above the second quarter and 46.2% higher than the same period last year, with contributions mainly from customer activities and earnings from the sale of CredPago.
Asset Management recorded record funding for the fourth consecutive quarter, totaling R$50 billion, with a growing management fee, reaching revenues of R$290.8 million, 7.7% higher than the previous quarter and 14.3% higher than the third quarter of 2020.
Wealth Management and Consumer Banking posted record revenues of R$409.6 million, 9.3% higher than the previous quarter and 75.1% higher than the same period last year – and the second best quarter in history in terms of funding, ending the quarter with R$37.7 billion.
Principal Investments and Participations posted consistent performance, with revenues of R$135.9 million and R$90.7 million, respectively.
Operating expenses totaled R$1.637 billion, up 6% compared to the second quarter of 2021. BTG Pactual recorded an efficiency ratio of 42.6%, in line with historical levels and within what the bank considers appropriate, given the growing investments in technology and human capital.
Reference: CNN Brasil
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