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Banco BTG Pactual S.A. (BSP:BPAC3) Q4 2024 Earnings Call Highlights: Record Revenues and ...

In This Article:

  • Total Revenues: BRL25.1 billion, 16% growth year-over-year.

  • Adjusted Net Income: BRL12.3 billion, 18% growth year-over-year.

  • Return on Equity (ROE): 23.1% for the year.

  • Net New Money: BRL247 billion for the year.

  • Credit Portfolio Growth: 29% increase, reaching BRL222 billion.

  • Investment Banking Revenue Growth: 30% year-over-year.

  • Quarterly Revenues: BRL6.7 billion, 19% growth year-over-year.

  • Quarterly Net Income: BRL3.3 billion.

  • Assets Under Management (Wealth Management): BRL901 billion, 26% growth year-over-year.

  • Assets Under Management (Asset Management): BRL992 billion, 16% growth year-over-year.

  • Unsecured Funding Base Growth: 30% year-over-year, reaching BRL265 billion.

  • Cost/Income Ratio: 37.5% for the year.

  • Total Assets: BRL647 billion.

  • Capital Ratio: 15.7%.

  • JCP Distribution: BRL1.72 billion announced for the quarter.

  • Investment Banking Quarterly Revenue: BRL510 million, 34% increase from the previous quarter.

  • Corporate Lending Revenue Growth: 35% year-over-year, reaching BRL6.5 billion for the year.

  • Sales & Trading Revenue: BRL1.550 billion for the quarter.

  • Asset Management Revenue Growth: 29% year-over-year, reaching BRL2.389 billion for the year.

  • Wealth Management Revenue Growth: 23% year-over-year, reaching BRL3.8 billion for the year.

  • Effective Tax Rate: 19.8% for the year.

  • Retail Funding Growth: 6.5x increase since 2020, reaching close to BRL80 billion.

Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Banco BTG Pactual S.A. (BSP:BPAC3) achieved record revenues and net income for 2024, with a 23.1% return on equity.

  • The company experienced strong net inflows, with BRL247 billion of net new money, increasing total assets under management by 21% to BRL1.9 trillion.

  • The credit portfolio grew by 29% in 2024, maintaining attractive net spreads due to product, segment, and geographic diversification.

  • Investment banking revenues grew by 30% year-over-year, driven by strong performance in debt capital markets and M&A activities.

  • The company successfully expanded its product and service offerings through strategic acquisitions, including Orama, MY Safra, Sertrading, and Julius Baer in Brazil.

Negative Points

  • Sales & Trading revenues declined by 4% year-over-year, with the lowest historical VaR recorded, indicating a challenging market environment.

  • The cost/income ratio increased to 39% in Q4 2024 due to year-end one-off expenses and the acquisition of Sertrading.

  • The common equity Tier 1 ratio decreased by 50 basis points quarter-on-quarter, raising concerns about capital adequacy.

  • The macroeconomic environment remains challenging, with potential impacts on corporate lending growth and spreads.

  • Competition from tax-exempt fixed income products offered by retail banks poses a risk to net new money inflows in asset and wealth management.