BTG Pactual ends 2023 with record revenue and net income, resulting in ROAE of 22.7% for the year and 23.4% in 4Q23

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AuM/AuM reached R$ 1.6 trillion, with a strong net inflow of R$ 205 billion for the year

SÃO PAULO, Feb. 5, 2024 /PRNewswire/ -- BTG Pactual (BPAC11), the largest investment bank in Latin America, concluded 2023 with total revenues of R$ 21.6 billion and adjusted net income of R$ 10.4 billion, record results for the period, with a 25% growth compared to 2022 in both balance sheet lines. The adjusted return on equity (ROAE) was 22.7%. In the fourth quarter of 2023, total revenues reached R$ 5.7 billion, a 56% increase compared to 4Q22, when we recognized the impact of a non-recurring provision. Adjusted net income was R$ 2.8 billion, a 61% growth in the same comparison.

The bank reported significant growth in key business lines throughout the year, especially in the client franchises. In 2023, BTG net inflows were R$ 205 billion, reaching R$ 1.6 trillion in client assets under management and administration. In the quarter, the net inflows (NNM) were R$ 41 billion.

"In a challenging year in credit and capital markets, we were able to deliver record performance, with significant expansion of our client franchises. We continue to gain operational leverage in our platform, while strengthening our customer-centric culture.", says Roberto Sallouti, CEO of BTG Pactual. 

The Investment Banking division maintained its industry-leading position, despite a more restricted capital market in the first semester, closing 2023 with R$ 1.6 billion in revenues. In 4Q23, market activities improved, and revenue reached R$ 464 million.

The Corporate & SME Lending division reported record revenues in 2023, R$ 5.1 billion, an 88% increase year-on-year. In the fourth quarter, revenue was R$ 1.4 billion, well above the figure recorded in 4Q22 when we had the impact of a non-recurring provision. The credit portfolio reached R$ 171.6 billion in the year, a 19% increase from 2022, with R$ 20.5 billion referring to the SME portfolio, with attractive spreads and appropriate levels of provision.

The Sales & Trading division achieved its best result in history, with a strong contribution from client franchises, closing 2023 with total revenue of R$ 6.2 billion, a 17% growth for the year. In the quarter, the area's revenue was R$ 1.4 billion, a 24% increase compared to 4Q22. The bank maintained efficient risk allocation, with VaR of 0.31% in the quarter and 0.35% for the year.

Asset Management reported record revenues in the quarter and for the year, R$ 509 million and R$ 1.85 billion, growth of 9% and 18%, respectively. The result was positively impacted by the increase in assets under management and administration (AuM and AuA), totaling R$ 856 billion in 2023, a 21% increase compared to 2022. Contrary to the market trend, the area had a net inflow (NNM) of R$ 14.5 billion in the quarter and R$ 80.4 billion for the year, while the fund industry recorded withdrawals of R$ 137.8 billion in 2023 (Source: Anbima).

Wealth Management & Consumer Banking reported record revenues for the 20th consecutive quarter, totaling R$ 862 million, a 26% increase compared to 4Q22, and R$ 3.1 billion for the year, a 21% increase compared to 2022. The total assets under custody (WuM) reached R$ 713 billion, with net inflows of R$ 26.9 billion in the quarter and R$ 124.3 billion for the year.

The Basel ratio closed the year at 17.5%, reinforcing the bank's robustness and strong capitalization. The liquidity coverage ratio (LCR) was 172%.

ESG & Impact Investments

We were voted by Global Finance, for the 4^th consecutive year as:

• Best Bank for Sustainable Finance in Latin America
• Best Bank for Sustaining Communities in Latin America
• Best Bank for Sustainable Financing in Emerging Markets in Latin America
• Sustainable Finance Awards – Brazil

About BTG Pactual

BTG Pactual (BPAC11) is the largest investment bank in Latin America, operating in Investment Banking, Corporate Lending, Sales & Trading, Asset Management, Wealth Management, and Banking. BTG Pactual has established itself as one of the most innovative investment platforms in the country, with a complete transactional bank to support its clients' life moments and history building. Moreover, it is a pioneer in the ESG agenda, offering financial products that support the transition to a greener and more sustainable economy. The institution is internationally recognized and awarded, with more than 7,000 employees in Brazil, Chile, Argentina, Colombia, Peru, Mexico, the United States, Portugal, and Luxembourg.