Q2 2024 Banco BTG Pactual SA Earnings Call Transcript
Key Points
- Banco BTG Pactual S.A. (BSP:BPAC3) achieved record results in Q2 2024, driven by revenue growth and increased operational leverage, with a return on equity (ROE) of 22.5%.
- The company reported robust results in investment banking, particularly in debt capital markets (DCM) and corporate lending, with strong portfolio growth and healthy spreads.
- Total assets under management (AUM) surpassed BRL1.7 trillion, with a 23% year-over-year growth, and BRL56 billion in new money.
- The funding base expanded by 30% year-over-year, maintaining strong capital and liquidity metrics with a Basel ratio of 16.2%.
- The wealth management business showed a 27% growth in AUM year-over-year, reaching BRL799 billion, and the asset management business grew by 20% year-over-year, closing at BRL920 billion.
- Sales and trading revenues remained flat compared to the last two quarters, facing challenging market conditions and low VaR allocation.
- Investment banking revenues decreased compared to Q1 2024, despite strong DCM activity, due to lower M&A and ECM contributions.
- Asset management revenues saw a 4.6% decrease during the quarter, impacted by the absence of dividends from independent asset management companies.
- The effective tax rate remained stable at 19.9%, influenced by the JCP distribution, which could impact net income.
- The company's unsecured funding base grew, but retail funding remained stable at 28%, indicating potential challenges in increasing retail funding share.
Good morning, and welcome to the second quarter of 2024 results conference call of Banco BTG Pactual. With us here today, we have Roberto Sallouti, Renato Cohn, Julia Rocha. We would like to inform that this event is being recorded (Operator Instructions)
Today, we have a simultaneous webcast that may be accessed through the website, www.btgpactual.com/ir and the platform. There will be a replay facility for this call from today.
Before proceeding, let me mention that this call may contain forward-looking statements relating to the prospects of the business, estimates for operating and financial results and those related to the growth prospects of Banco BTG Pactual. These are merely projections, and as such, are based exclusively on the expectations of Banco BTG Pactual's management concerning the future of the business.
Such forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry.
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