Investment Bank of the Year Brazil, Investment Bank of the Year Latam and Wealth Management Bank of the Year: BTG Pactual
October 31, 2019
An emphasis on investment banking and wealth management helped the bank stage an impressive turnaround
Thanks in large part to solid returns from its investment banking and wealth management businesses, BTG Pactual reported a 56% increase in profits at the end of the second quarter of 2019 to 972 million reais as revenues jumped 76% to more than 2 billion reais ($258 million).
The bank’s return on equity topped 20%, up more than 5 percentage points from the year earlier. The turnaround in investment banking has been stunning. Less than four years ago, some feared the bank was on the brink of collapse. During the awards period, BTG Pactual ranked fourth in fee generation in the league tables in Brazil behind Itaú, JPMorgan and Morgan Stanley.
What’s more, BTG Pactual ranked fourth in Brazilian M&A and debt capital markets. The bank has also moved up the league tables in Chile and Colombia as it begins to reassert its regional presence.
When it comes to building a wealth management business, BTG Pactual has been the most aggressive of the country’s legacy banks. Its digital platform, BTG Pactual Digital, was launched in January 2017. It has 150 fund managers responsible for about 400 different funds, including those offered by third-party managers.
In the fourth quarter of 2018, it introduced an equity investing platform. The bank hopes to expand the digital services to Mexico, Chile and Colombia.
At the end of the second quarter, the BTG Pactual reported a 30% increase in assets under management in its wealth division compared to a year ago. Revenues were up 26% in the same period.