Banco BTG Pactual S.A. (BSP:BPAC3) Q1 2025 Earnings Call Highlights: Strong Profit Growth Amid ...

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Tue, May 13, 2025, 2:00 PM 3 min read

Release Date: May 12, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Banco BTG Pactual S.A. (BSP:BPAC3) reported a managerial nett of 2 cardinal BL, marking an 8.3% summation compared to the aforesaid play past year.

• The institution saw a 38% enlargement successful nett concern income, contributing importantly to the bottommost line.

• Brokerage revenues accrued by 4.1%, totaling 1.4 cardinal BL.

• The company's integer platforms achieved 99% availability, enhancing lawsuit acquisition and reducing clip to market.

• The motorboat of caller products, specified arsenic BB Sigudus Consortium Proteid, opened important maturation avenues for the company.

• Premiums dropped by 6%, influenced by products related to inflation, peculiarly cultivation insurance.

• The redemption complaint successful the pension concern accrued from 8.6% to 11.6%, impacting nett inflows.

• The institution experienced a 95% simplification successful operating results owed to accrued expenses.

• The mean absorption interest successful the pension concern grew astatine a slower gait owed to hazard aversion successful the market.

• The institution faced challenges successful recognition beingness insurance, peculiarly successful the firm segment, affecting wide premium growth.

Q: Could you supply much details astir the nett concern income of Prevvvi and the clip mismatch adjustment? A: Rafael Spirio, CFO: We reclassified PCC adjustments successful the nett concern income, which resulted successful a 35 cardinal little interaction this quarter. This accommodation was made to amended bespeak fiscal expenses alternatively than operational results. The ground for Q1 2024 was besides reclassified. We haven't yet afloat appropriated the improvements seen implicit the past months, peculiarly successful bonds pegged to inflation. The IGPM effect successful March besides impacted our results, but we expect a much affirmative result successful Q2.

Q: Regarding the guidance connected premiums, which lines are expected to retrieve much intensely? A: Rafael Spirio, CFO: We anticipated a weaker period, particularly successful recognition beingness insurance. However, we spot imaginable betterment successful recognition beingness and consortium lines, peculiarly for backstage payroll loans. The opening of income for these products successful branches started recently, and we expect issuance to summation speed. The consortium merchandise volition supply much semipermanent results, portion recognition beingness is expected to summation spot soon.

Q: Can you explicate the redemption complaint successful nett inflow and whether it volition normalize successful the 2nd fractional of the year? A: Rafael Spirio, CFO: The redemption complaint has been supra 11% owed to customers buying existent property oregon complementing income. This inclination is expected to stabilize arsenic the marketplace conditions improve. We expect a much favorable script for inflows successful the 2nd quarter, assuming the involvement complaint curve remains unchangeable oregon continues to close.