BTG Pactual achieved record revenues of BRL2.560 billion in the third quarter of 2015, up 50 per cent on the same period last year and up 25 per cent on the previous quarter.
Net income totalled BRL1.510 billion, up 96 per cent on the same period last year and 48 per cent versus the previous quarter. The Bank´s return on average equity (ROAE) ended the third quarter at 28.8 per cent.
In the nine months to September 2015, BTG Pactual’s revenues and net income grew 28 per cent and 32 per cent respectively, compared to the same period last year, as a result of strong performances across the Bank’s business areas. Annualised ROAE for the nine months to September was 22.1 per cent.
The Bank´s Sales and Trading platform posted record revenues in the quarter, mainly driven by the FX and Commodities trading desks. Corporate Lending also continued to perform well despite the challenging economic backdrop in Latin America.
The asset management divisions continued to see good results, with the Wealth Management division performing particularly strongly. The Principal Investments division recorded lower revenues, mainly due to a reduction in balance sheet risk and capital exposure. In Investment Banking, lower revenues mainly reflected weak capital markets, however BTG Pactual continues to be the leader in this sector.
The Bank ended the third quarter with Assets under Management (AuM) and Assets under Administration (AuA) of BRL230.5 billion, 7 per cent higher than the previous quarter. Wealth under Management (WuM) rose 360 per cent to BRL422.5 billion in the period, reflecting the consolidation of BSI and the strong performance of the Latin American platform.
The Bank recognised BRL306 million as a result of a change to income tax rates in Brazil. Net equity rose 12 per cent, from BRL19.753 billion in the second quarter to BRL22.119 billion in the third quarter, impacted by the issuance of 33.7 million units (BRL 977 million) related to the purchase of BSI. Compared to the third quarter of 2014, net equity rose 22 per cent.
“We are pleased to announce record revenues and net income in a period in which we significantly reduced our balance sheet risk. We also successfully concluded the acquisition of BSI, a move that we expect to be a major catalyst for our global growth in Asset and Wealth Management,” says André Esteves (pictured), CEO of BTG Pactual.