Brazil's Banco BTG Pactual Q3 Results

By Natalia Siniawski

(Reuters) – Brazil's Banco BTG Pactual (BVMF:BPAC3) reported a 15% increase in adjusted net income for the third quarter, compared to the same period last year. This growth was driven by higher revenue and improved operational leverage.

Adjusted net income for the quarter reached 3.21 billion reais ($557.83 million), while revenue at the largest investment bank in Latin America grew 14% to 6.45 billion reais.

> "Client franchises continued to expand, posting record revenues in Wealth, Asset, and Corporate Lending businesses," BTG stated.

This increase occurred despite the central bank raising interest rates to 11.25%, and analysts anticipating a slowdown in BTG's earnings growth due to effects on corporate credit and capital markets.

However, investment banking revenue decreased 36% due to challenges in deal-making and reduced market activity amid higher rates.

The return on average equity (ROAE), which measures profitability, reached 23.5% for the quarter.

Last month, the bank received preliminary approval from Brazil's antitrust regulator to purchase the hotel operations of AccorInvest for 1.7 billion reais.

BTG funds hold $5.5 billion in assets within the real estate sector, primarily in Brazil.

In October, BTG issued a $500 million 5-year Unsecured Senior Note via its Cayman Islands branch at a yield of 5.875%, decreasing from 6.45% in an earlier April sale, marking its tightest spread ever.

> ($1 = 5.7544 reais)