The boom in stock offerings, mergers and acquisitions boosted the earnings of the Brazilian investment bank BTG Pactual, which reported on Tuesday a 74% increase in recurring net income for the second quarter compared to the results in the same period last year. The profit reached BRL 1.719 billion and revenue reached BRL 3.771 billion, a jump of 52% over the previous year.
According to BTG, the bank achieved record net income in the quarter and in the semester since its IPO, in 2012. The company credited the good result to the integration of digital platforms with the digital retail banking model.
The release of the financial results impacted BTG’s performance on the stock market on Tuesday: the bank’s units rose more than 4%, reaching BRL 32.65 per share. Considering the performance in the year, BTG’s units have appreciated 34% so far, contrary to what has happened with shares of large banks amid fierce competition with fintechs.
BTG also highlighted the subsequent stock offering held in June that raised BTG 2.98 billion, funds allocated to the acquisition agenda and to the expansion of the bank’s digital retail platform. Another highlight was the acquisition of Grupo Universa, a conglomerate that includes Empiricus, Vitreo, Money Times, Seu Dinheiro and Real Valor, for BRL 690 million.
BTG’s assets rose 19.8%, from BRL 279.8 billion at the end of the first quarter to BRL 335.2 billion, due to the impact of the acquisition of Banco Pan and the increase in assets financed through repurchase agreements.
João Dantas, BTG’s financial vice-president, said that the bank has no plans to merge with Banco Pan after it became the institution’s controller. BTG acquired full control of Pan in April, when it bought the asset from Caixa Econômica Federal for BRL 3.7 billion.