Brazilian bank and asset manager BTG Pactual, which has increased its European presence this year, has seen its revenues increase by 50% in the third quarter (Q3) compared to the same quarter last year.
The firm, which extended its distribution in Switzerland with the purchase of Swiss private bank BSI in September, saw revenues of 2.56 billion Brazilian reals (€620 million) in the third quarter of this year. This figure also marked a revenue increase of 25% over the previous quarter.
The firm’s profit increased to 1.51 billion reals, up 96% from last year and its return on average equity ended the third quarter at 28.8%.
The BSI deal saw BTG Pactual pay 1.25 billion Swiss francs (€1.15 billion) for the Swiss bank and gain an extra 2000 employees. The firm’s assets under management increased by 360%.
The strong performance comes despite the fact that Latin America has suffered lately due to the commodities rout. However, the bank says that its sales and trading platform posted record revenues in Q3, mainly driven by foreign exchange and commodities trading.
“We are pleased to announce record revenues and net income in a period in which we significantly reduced our balance sheet risk,” says André Esteves, chief executive officer, adding that the acquisition of BSI, should boost its growth in asset and wealth management.
At the end of Q3, the bank had a combined assets under management and assets under administration of 230 billion reals, a 7% increase on Q2.
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