BTG Pactual on Tuesday reported record net income and revenue for a single quarter after a “particularly strong” performance in commission-based business units.
BTG’s net income in the second quarter reached BRL 2.07 billion, an increase of 23.2% year-on-year, while total revenue increased 19.7% to BRL 4.51 billion, despite what the bank called volatile international markets and a more challenging local macroeconomic scenario.
Both metrics slightly exceeded the expectations, on average, of analysts consulted by Refinitiv of R$1.98 billion in net income and R$4.3 billion in revenue.
BTG Chief Executive Roberto Sallouti said in a statement that the results were combined with a “robust and well capitalized balance sheet”.
BTG’s sales & trading unit, one of the main contributors to the institution’s profits, recorded a 4% increase in revenue on an annual basis, to R$ 1.31 billion, given the high activity of the bank’s institutional clients.
The asset management business had its best performance in seven years, while the wealth management business (‘wealth’) achieved record revenue for the 14th consecutive quarter, the bank added.
BTG’s adjusted return on equity — an indicator of profitability — reached 21.6%, virtually unchanged from the immediately previous quarter.
Corporate and small and medium business credit unit revenue jumped 34% from a year earlier to a record R$877.5 million, as the loan portfolio rose 5.6% quarter-on-quarter to R$877.5 million. $117.7 billion.
Both helped offset a 29% annual decline in investment banking revenues due to reduced activity in the equity markets.
The unit presented revenue growth compared to the first quarter, driven by a greater contribution from mergers and acquisitions in which BTG acts as financial advisor.
“As we continue to gain ground in the high-end retail segment and maintain our leadership position in wholesale, our revenue stream becomes increasingly consistent and diversified,” the bank said in an earnings report.
Source: CNN Brasil
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