BTG Pactual Posts Record Profit, Approves Buyback of Units Worth 2 Billion Reais
Key Facts
BTG Pactual posted record profit in the third quarter of 2026, with revenue rising about 14% to 10.81 billion Brazilian reais, Reuters reported, citing the bank on November 12. Reuters said continued revenue growth drove the increase in profit despite higher costs, which it attributed mainly to inorganic growth. This reflects the bank's expansion alongside improved income during the period. As part of its results announcement, the board approved a program to buy back the bank's units. The move sets a buyback limit of 2 billion Brazilian reais, with a term of up to 18 months.
Adjusted return on average equity was 26.4% in the third quarter, compared with 28.2% in the same period a year earlier, according to Reuters. The decline in returns presents a more balanced picture alongside record profit growth and revenue. The bank increased revenue, but the return on equity fell year over year. Reuters linked profit growth to higher revenue despite rising costs, noting that inorganic expansion was the main driver of higher expenses. The results therefore combined business expansion, cost pressure and a decline in relative return on equity.
On customer flows, net new money totaled 58 billion Brazilian reais during the quarter, while assets under management and advisory reached 2.8 trillion reais, according to Reuters. These figures point to continued inflows to the bank and a broader base of assets it manages or advises. By contrast, the main business units did not perform uniformly. Investment banking and trading revenue declined, while comments from the bank cited in Reuters' report indicated record revenue in corporate lending and wealth management. The results highlight the different sources of growth within the bank during the period.
Investment banking revenue was 412 million Brazilian reais, down 36% year over year, according to Reuters. Revenue in the business was relatively stable compared with the previous quarter, but the annual comparison showed a sharp decline. Sales and trading revenue totaled 1.74 billion reais, down 11% from a year earlier. This means weakness in these two businesses coincided with growth in the bank's overall revenue, which was supported by other sources, according to the report. These differences offer a more detailed picture of the results' composition than the overall revenue figure alone.
On regional expansion, the bank completed its acquisition of HSBC Uruguay and received regulatory approval to operate as a bank in Peru, Reuters reported. The acquisition and approval came in the context of the report's link between higher costs and inorganic growth. The report also cited record revenue in corporate lending and wealth management, alongside net new money of 58 billion Brazilian reais. These developments show the bank expanding its regional presence as assets under management and advisory grew to 2.8 trillion reais. The results report cited in the evidence does not separately explain the contribution of either the acquisition or the regulatory approval to quarterly revenue.
The board approved on November 11 a buyback of BPAC11 units worth up to 2 billion Brazilian reais, for a period of no more than 18 months, according to Reuters. The bank said the program aims to improve capital allocation and use available liquidity efficiently. The announcement follows record profit, but sets a cap and duration for the program and does not state the value of units that will actually be bought. The bank had listed a conference call on third-quarter results on its investor relations calendar for November 12. The calendar also lists a public meeting with analysts on November 25, 2026, the next date shown in the investor relations schedule.