By Brazil Stock Guide – BTG Pactual (B3: BPAC11; NYSE: BPAC) ended the third quarter of 2025 with record results, consolidating its dominance among regional investment banks. Adjusted net income reached R$ 4.54 billion, up 42% from a year earlier, while total revenue rose 37% to R$ 8.82 billion. The bank delivered an adjusted ROAE of 28.1% and a record-low efficiency ratio of 34.1%, with total assets of R$ 685 billion and a Basel ratio of 15.5%.
BTG’s performance remains anchored in its diversified business model, with Corporate Lending, Wealth Management, and Asset Management all reporting record highs. The total loan portfolio reached R$ 246.9 billion, up 17.4% year-over-year, while SME lending totaled R$ 29 billion. The newly launched BTG Pay marks the bank’s entry into the merchant-acquiring market, broadening its reach among small and mid-sized enterprises. In Wealth Management, assets under management jumped 32.5% to R$ 1.14 trillion, boosted by the integration of JGP Wealth Management and R$ 49.2 billion in net inflows during the quarter. Asset Management also reached a record R$ 747.5 million in revenue, with total AuM/AuA of R$ 1.15 trillion.
Total net new money reached R$ 83 billion in the quarter and R$ 296 billion over the past 12 months — the highest in BTG’s history. Despite a 17.8% sequential decline, Investment Banking grew 69% year-on-year, driven by a record 52 debt transactions and solid M&A activity. Sales & Trading revenue rose 16% to R$ 1.94 billion, supported by higher client activity and disciplined risk allocation, with an average VaR of 0.30%.
Operating expenses totaled R$ 3.37 billion, a modest 3% increase from the previous quarter, reflecting strict cost discipline even after a series of acquisitions such as JGP, Sertrading, Julius Baer Brasil, and Justa. The compensation ratio remained steady at 19.9%. Shareholders’ equity climbed to R$ 65.6 billion, already factoring in R$ 2.3 billion in interest on capital distributed in the period. Unsecured funding reached R$ 308 billion, up 20% year-over-year, while leverage held at 8.8x and LCR at 168.5%, indicating ample liquidity. In a market where leading banks such as Itaú and Bradesco reported returns below 15%, BTG delivered a ROAE twice the system average, supported by strong margins and scalable digital and advisory platforms.
The quarter benefited from Brazil’s Selic rate at 15%, which supported spreads and trading income but tested credit origination resilience. Even so, 96% of BTG’s portfolio remains classified as Stage 1, signaling high-quality assets. Total credit exposure reached R$ 275.8 billion, up 3% from the previous quarter. The Basel ratio stood at 15.5%, underscoring solid capitalization, while the 12-month ROAE of 26.4% confirms consistent profitability through cycles. With a stable leverage ratio and a low-risk loan book, BTG continues to expand without compromising capital — a rare balance in Brazil’s banking sector.
Sustainability took center stage this quarter. BTG acted as coordinator for Aegea Saneamento’s US$ 750 million blue bond, described as the largest corporate issuance of its kind worldwide, and has now structured or distributed US$ 23.1 billion in labeled bonds. The bank also announced a partnership with the International Finance Corporation (IFC) to mobilize up to US$ 1 billion by 2028, focusing on Amazon bioeconomy, infrastructure, and impact investing in Latin America. BTG was additionally selected in Brazil’s Eco Invest auction, committing R$ 4.9 billion to regenerative agriculture projects, and chosen by the Espírito Santo Development Bank to manage the state’s Decarbonization Fund, with an initial R$ 500 million contribution. It also signed a US$ 160 million agreement with the Asian Infrastructure Investment Bank (AIIB) to finance climate infrastructure projects in Brazil. These initiatives cement BTG Pactual’s status as Latin America’s leading private-sector player in sustainable finance.
With R$ 23.95 billion in revenue and R$ 12.1 billion in net income in the first nine months of 2025, BTG Pactual continues to expand on all fronts. The bank heads into the final quarter focusing on strengthening its presence among corporate and high-net-worth clients, leveraging synergies between lending, wealth management, and digital platforms — while reinforcing its dual identity as a high-performance investment bank and a key agent in Brazil’s green transition.
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