By Brazil Stock Guide – Banco BTG Pactual (BPAC11) reported adjusted net income of R$4.808 billion in the first quarter of 2026, with return on average equity (ROAE) of 26.6% and total revenues of R$9.968 billion.
Reported net income reached R$4.570 billion, up 42.4% from the same period a year earlier. The result reinforced the bank’s ability to combine revenue growth, strong inflows and high profitability even in a more challenging macroeconomic and geopolitical environment.
The numbers show a bank still growing across almost every relevant part of its balance sheet. Corporate Lending delivered record revenues of R$2.332 billion, up 20.7% year over year, while the credit portfolio expanded 22%. Wealth Management also reached a record, with revenues of R$1.516 billion, supported by higher client activity and growth in assets under management.
Perhaps the most important figure of the quarter, however, sits outside the income statement: BTG’s ability to keep attracting client money. The bank added R$83 billion in net inflows during the period and reached R$2.6 trillion in combined assets under management and administration across Asset and Wealth Management. In a market still pressured by high interest rates and competition for funding, that figure highlights the strength of the BTG franchise among institutional, private banking and corporate clients.
The quarter also made the group’s structural transformation clearer after the full incorporation of Banco Pan. The Consumer Finance & Banking division posted revenues of R$1.125 billion, already reflecting the full consolidation of the lender after BTG acquired the remaining minority stake in January. A significant part of the increase in operating expenses — up 25.5% year over year to R$4.231 billion — was linked to Pan’s integration, as well as salary adjustments and platform expansion.
Operationally, the quarter also showed why rising expenses did not change the market’s broader positive reading. Total revenue increased 34% year over year, while the adjusted efficiency ratio improved to 38.1% from 41.3% in 1Q25 — a sign that BTG is still converting scale into margins. The counterpoint emerged in Consumer Finance, where loan growth was accompanied by higher provisions in vehicle financing following the annual provisioning review under Resolution 4,966.
Still, the central reading of the quarter remains positive: scale gains are still offsetting cost pressure. BTG ended March with shareholders’ equity of R$74.5 billion, a Basel ratio of 15.9% and a liquidity coverage ratio of 160.9%, preserving a comfortable capital position while continuing to expand credit, wealth and international operations.
Investment banking remains less exuberant. The division generated R$627.9 million in revenues in a quarter marked by higher volatility and a still uneven capital markets environment. Even so, the performance suggests BTG remains well positioned to capture strategic transactions while waiting for a broader reopening of Brazil’s equity and corporate issuance markets.
Another relevant point was the continued international expansion. The bank continues to move ahead with acquisitions and integration of assets outside Brazil, including Julius Baer Brazil, JGP Gestão Patrimonial and HSBC Uruguay, as well as the conversion of the former M.Y. Safra Bank into a U.S. national bank under the BTG Pactual Bank, N.A. brand.
BTG’s 26.6% ROAE is the number that best summarizes the quarter. It shows that the bank did not merely grow revenues and assets; it converted that expansion into high returns for shareholders. The challenge is that this level also raises the bar. The larger BTG becomes, the harder it may be to preserve a return above 25% without taking on more risk, consuming more capital or relying on favorable market cycles.
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