BTG Pactual Q3 total net revenue surges 19%, beats expectations

Brazil's Banco BTG Pactual SA BBPAC11M on Wednesday reported third-quarter total adjusted net revenue rose 19% to 5.76 billion reais ($1.18 billion), exceeding market expectations, driven by an increase in client franchises, which continue to grow at a fast pace, the company said in a statement.

Analysts had expected 5.53 billion reais, LSEG data showed.

BTG Pactual, the largest investment bank in Latin America, said the "record results" were driven by revenue growth and diversification, the company added.

Adjusted net profit reached 2.73 billion reais, up 19% on a yearly basis, with BTG's return on average equity (ROAE) - a gauge of profitability - hitting 23.2%.

For the third quarter, BTG exceeded its "soft guidance" of more than 20% ROAE for the long term.

BTG Pactual said its investment banking unit reported "the best result of the year" at 590.1 million reais ($121.11 million), supported by a record contribution from debt underwriting (DCM). This coincides with the Brazilian central bank's reduction of benchmark interest rates from 13.75% to 12.25% over the past three meetings, a trend that is anticipated to further spur BTG Pactual's investment banking growth.

BTG Pactual BBPAC11M announced last month that it began operations of its international accounts in the United States, entering a market where competitors such as XP XP or Inter INTR are already established.

($1 = 4.8724 reais)