DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Complete financial statements
Banco BTG Pactual S.A. and subsidiaries
March 2024
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
(A free translation of the original in Portuguese)
Banco BTG Pactual S.A.
Parent company and consolidated interim financial statements at March 31, 2024
and report on review
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
(A free translation of the original in Portuguese)
Report on review of parent company and consolidated interim financial statements
To the Board of Directors and Shareholders
Banco BTG Pactual S.A.
Introduction
We have reviewed the accompanying interim balance sheet of Banco BTG Pactual S.A. ("Bank") as at March 31, 2024 and the related statements of income, comprehensive income, changes in equity and cash flows for the three-month period then ended, as well as the accompanying consolidated interim balance sheet of Banco BTG Pactual S.A. and its subsidiaries ("Consolidated") as at March 31, 2024 and the related consolidated statements of income, comprehensive income, changes in shareholder´s equity and cash flows for the three-month period then ended, and notes, comprising significant accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these parent company and consolidated interim financial statements in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank. Our responsibility is to express a conclusion on these interim financial statements based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim financial statements referred to above do not present fairly, in all material respects, the financial position of Banco BTG Pactual S.A. and of Banco BTG Pactual S.A. and its subsidiaries as at March 31, 2024, and the parent company financial performance and its cash flows for the three-month period then ended, as well as the consolidated financial performance and the consolidated cash flows for the three-month period then ended, in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank.
2
PricewaterhouseCoopers Auditores Independentes Ltda., Avenida Brigadeiro Faria Lima, 3732, Edifício B32, 16oSão Paulo, SP, Brasil, 04538-132
T: +55 (11) 4004-8000, www.pwc.com.br
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Banco BTG Pactual S.A.
Emphasis of matter
Deferred tax credits in consolidated subsidiary
As mentioned in note 18 to the interim financial statements, the Bank has an investment in the subsidiary Banco Pan S.A., which, on March 31, 2024, recorded deferred tax assets, in the amount of approximately R$ 3.4 billion, recognized based on expected realization of deferred tax assets. This projection of realization of deferred tax assets was reviewed by the management of Banco Pan S.A. based on a study of the current and future scenario and approved by the Board of Directors in January 30, 2024, whose main assumptions used were the macroeconomic, production and funding cost indicators. The realization of these deferred tax assets, in the estimated realization period, depends on the materialization of these projections and the business plan was approved by the management bodies. Our conclusion is not qualified in respect of this matter.
Other matters
Statements of value added
The interim financial statements referred to above include the parent company and consolidated statements of value added for the three-month period ended March 31, 2024. These statements are the responsibility of the Bank's management and are presented as supplementary information for purposes of the Brazilian Central Bank. These statements have been subjected to review procedures performed together with the review of the interim financial statements for the purpose concluding whether they are reconciled with the interim financial statements and accounting records, as applicable, and if their form and content are in accordance with the criteria defined in the accounting standard CPC 09 - "Statement of Value Added". Based on our review, nothing has come to our attention that causes us to believe that these statements of value added have not been properly prepared, in all material respects, in accordance with the criteria established in this accounting standard, and that they are consistent with the parent company and consolidated interim financial statements taken as a whole.
São Paulo, May 10, 2024
PricewaterhouseCoopers
Auditores Independentes Ltda.
CRC 2SP000160/O-5
Edison Arisa Pereira
Contador CRC 1SP127241/O-0
3
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Complete financial statements
Banco BTG Pactual S.A.
Balance sheet
(In thousands of reais)
Bank | Consolidated | ||||
Assets | Note | 03/31/2024 | 12/31/2023 | 03/31/2024 | 12/31/2023 |
Cash | 6 | 1,498,021 | 1,323,966 | 2,903,932 | 2,439,095 |
Financial instruments | 392,357,939 | 358,682,001 | 482,025,533 | 420,671,514 | |
Interbank deposits and securities purchased under agreements to resell | 7 | 98,101,804 | 76,709,394 | 97,244,516 | 73,564,489 |
Securities | 8 | 164,769,898 | 167,438,407 | 183,385,577 | 180,909,251 |
Derivative financial instruments | 9 | 52,140,249 | 40,746,460 | 43,477,012 | 19,983,627 |
Interbank relations | 16,451,157 | 15,881,267 | 24,875,212 | 23,712,400 | |
Loan operations | 10 | 63,164,356 | 60,146,918 | 138,308,857 | 127,528,305 |
Expected loss allowances associated with credit risk | 10 | (2,269,525) | (2,240,445) | (5,265,641) | (5,026,558) |
Other receivables | 44,490,931 | 33,137,180 | 68,447,674 | 55,507,058 | |
Credits for sureties and guarantees honored | 154,706 | 182,271 | 155,049 | 182,614 | |
Foreign exchange portfolio | 11 | 27,688,803 | 15,733,743 | 28,175,399 | 16,051,810 |
Income receivable | 12 | 2,836,794 | 1,926,797 | 2,928,804 | 3,090,093 |
Others | 12 | 10,655,782 | 11,945,987 | 29,487,625 | 28,341,600 |
Deferred tax assets | 18 | 3,469,545 | 3,694,137 | 8,132,351 | 8,289,494 |
Provision for impairment of assets | (314,699) | (345,755) | (431,554) | (448,553) | |
Other assets | 1,378,694 | 1,970,086 | 1,949,246 | 2,512,437 | |
Prepaid expenses | 1,109,985 | 1,127,497 | 1,448,240 | 1,419,358 | |
Other | 268,709 | 842,589 | 501,006 | 1,093,079 | |
Permanent | 47,530,320 | 47,134,904 | 12,350,901 | 12,102,745 | |
Investments | 46,920,737 | 46,471,872 | 7,370,656 | 7,346,744 | |
Interest in subsidiaries, affiliates, and jointly controlled companies | 13 | 46,919,507 | 46,470,642 | 7,342,179 | 7,278,897 |
Other investments | 1,230 | 1,230 | 28,477 | 67,847 | |
Fixed assets for use | 14 | 185,701 | 188,275 | 491,155 | 515,092 |
Property for use | 3,038 | 3,038 | 9,245 | 23,608 | |
Other fixed assets for use | 478,628 | 470,835 | 1,121,246 | 1,096,927 | |
Accumulated depreciation | (295,965) | (285,598) | (639,336) | (605,443) | |
Intangible assets | 14 | 423,882 | 474,757 | 4,489,090 | 4,240,909 |
Intangible assets | 1,144,751 | 1,119,000 | 6,834,016 | 6,374,227 | |
Accumulated amortizations | (720,869) | (644,243) | (2,344,926) | (2,133,318) | |
Total assets | 487,255,905 | 442,248,137 | 567,677,286 | 493,232,849 |
The accompanying notes are an integral part of these financial statements.
4
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Complete financial statements
Banco BTG Pactual S.A.
Balance sheet
(In thousands of reais)
Bank | Consolidated | ||||
Liabilities | Note | 03/31/2024 | 12/31/2023 | 03/31/2024 | 12/31/2023 |
Financial instruments | 397,426,962 | 363,908,469 | 427,130,377 | 367,070,355 | |
Deposits | 15 | 133,197,523 | 121,499,655 | 150,565,998 | 133,273,103 |
Securities sold under repurchase agreements | 15 | 115,754,363 | 104,225,884 | 114,533,195 | 97,075,862 |
Funds from acceptances and issuance of securities | 15 | 61,929,476 | 54,939,272 | 83,536,180 | 73,531,521 |
Borrowings and onlendings | 15 | 14,921,807 | 16,930,097 | 15,719,019 | 17,582,218 |
Derivative financial instruments | 9 | 55,065,318 | 46,718,063 | 45,727,601 | 25,488,283 |
Subordinated debts and debt instruments eligible to capital | 15 | 16,558,475 | 19,595,498 | 17,048,384 | 20,119,368 |
Interbank relations | 1,410,275 | 1,347,803 | 3,150,798 | 3,051,068 | |
Interbranch accounts | 278,342 | 401,335 | 278,342 | 401,335 | |
Other liabilities | 34,342,939 | 25,486,548 | 75,705,921 | 63,743,285 | |
Collection and levy of taxes and alike | 18,800 | 14,062 | 37,971 | 32,250 | |
Foreign exchange portfolio | 11 | 27,944,593 | 16,027,100 | 27,898,199 | 15,961,812 |
Social and statutory | 16 | 674,136 | 2,771,674 | 1,352,206 | 4,034,629 |
Tax and social security | 16 | 657,338 | 957,833 | 2,401,074 | 4,020,634 |
Deferred tax liabilities | 18 | 3,932 | 3,357 | 474,357 | 476,244 |
Others | 16 | 5,044,140 | 5,712,522 | 43,542,114 | 39,217,716 |
Provision | 1,835,279 | 1,722,176 | 5,425,527 | 5,431,338 | |
Expected loss allowance for financial guarantees provided | 10 | 503,368 | 411,188 | 517,539 | 435,897 |
Provision for contingent liabilities | 17 | 1,331,911 | 1,310,988 | 4,907,988 | 4,995,441 |
Equity | 19 | 51,962,108 | 49,381,806 | 55,986,321 | 53,535,468 |
Capital | 15,760,364 | 15,760,364 | 15,760,364 | 15,760,364 | |
Capital reserves | 652,515 | 652,515 | 652,515 | 652,515 | |
Other comprehensive income | 1,641,813 | 1,835,385 | (158,470) | 35,102 | |
Revenue reserves | 31,665,970 | 31,665,970 | 33,466,253 | 33,466,253 | |
Treasury shares | (532,428) | (532,428) | (532,428) | (532,428) | |
Retained earnings | 2,773,874 | - | 2,773,874 | - | |
Total equity of controlling shareholders | 51,962,108 | 49,381,806 | 51,962,108 | 49,381,806 | |
Non-controlling interest | - | - | 4,024,213 | 4,153,662 | |
Total liabilities and equity | 487,255,905 | 442,248,137 | 567,677,286 | 493,232,849 |
The accompanying notes are an integral part of these financial statements.
5
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Complete financial statements
Banco BTG Pactual S.A.
Statement of income Quarter ended March 31
(In thousands of reais, except net income per share)
Bank | Consolidated | ||||
Note | 03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | |
Revenues from financial intermediation | 10,711,336 | 8,702,660 | 16,304,646 | 15,547,675 | |
Credit transactions | 1,671,648 | 2,169,279 | 7,713,916 | 7,507,200 | |
Income on bonds and securities and derivative financial instruments | 8,382,129 | 5,027,409 | 7,894,079 | 6,405,901 | |
Income from mandatory investments | 417,349 | 348,472 | 496,344 | 434,201 | |
Results from foreign exchange transactions | 240,210 | 1,157,500 | 200,307 | 1,200,373 | |
Expenses with financial intermediation | (8,526,764) | (6,410,997) | (10,877,443) | (10,276,241) | |
Funding transactions in the market | (7,404,226) | (5,653,876) | (8,083,664) | (7,005,639) | |
Loan and on-lending transactions | (1,195,715) | (675,421) | (1,974,466) | (2,644,418) | |
Expected loss allowances associated with credit risk | 10 | 73,177 | (81,700) | (819,313) | (626,184) |
Gross income from financial intermediation | 2,184,572 | 2,291,663 | 5,427,203 | 5,271,434 | |
Other operating revenues / (expenses) | 1,157,167 | 443,416 | (1,306,293) | (2,184,495) | |
Revenues from service provision | 20 | 723,041 | 828,304 | 2,811,688 | 2,015,315 |
Personnel expenses | (426,771) | (306,050) | (922,539) | (799,149) | |
Other administrative expenses | 22 | (1,083,936) | (945,912) | (2,787,898) | (2,414,829) |
Tax expenses | 23 | (159,479) | (192,186) | (589,354) | (428,550) |
Income from interest in subsidiaries, affiliates and jointly-owned subsidiaries | 13 | 2,059,721 | 1,015,445 | 100,934 | 247,189 |
Other operating income | 21 | 44,591 | 43,815 | 80,876 | (804,471) |
Provision expenses | (120,697) | (57,061) | (69,185) | (154,746) | |
Provision for contingent liabilities | 17 | (28,829) | (33,969) | 26,361 | (129,734) |
Expected loss allowance for financial guarantees provided | (91,868) | (23,092) | (95,546) | (25,012) | |
Operating result | 3,221,042 | 2,678,018 | 4,051,725 | 2,932,193 | |
Non-operating income | - | (13,974) | 2,181 | 3,772 | |
Income before income tax and interests | 3,221,042 | 2,664,044 | 4,053,906 | 2,935,965 | |
Income tax and social security contribution | 18 | (234,246) | (318,094) | (564,820) | (182,068) |
Provision for income tax | (29,462) | (12,615) | (420,872) | (384,716) | |
Provision for social security contribution | - | - | (279,195) | (301,277) | |
Deferred tax assets | 18 | (204,784) | (305,479) | 135,247 | 503,925 |
Statutory profit sharing | (212,922) | (212,727) | (644,453) | (540,191) | |
Non-controlling shareholders | - | - | (70,759) | (80,483) | |
Net income for the period | 2,773,874 | 2,133,223 | 2,773,874 | 2,133,223 | |
Net income per share - Basic | 25 | 0.24 | 0.19 | - | - |
Net income per share - Diluted | 0.24 | 0.19 | - | - |
The accompanying notes are an integral part of these financial statements.
6
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Complete financial statements
Banco BTG Pactual S.A.
Statement of comprehensive income
Quarter ended March 31
(In thousands of reais)
Bank | Consolidated | |||
03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | |
Net income for the period | 2,773,874 | 2,133,223 | 2,773,874 | 2,133,223 |
Change in the equity valuation adjustment for financial assets available for sale | 5,136 | (8,740) | 5,136 | (8,740) |
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly- | ||||
owned subsidiary | (150,480) | (6,548) | (150,480) | (6,548) |
Accumulated conversion adjustments | 2,421 | (6,249) | 2,421 | (6,249) |
Foreign exchange variation on investments | 169,400 | (204,021) | 169,400 | (204,021) |
Net investment hedge of foreign operations | (169,644) | 197,029 | (169,644) | 197,029 |
Goodwill in the acquisition of interests | (50,405) | 32,301 | (50,405) | 32,301 |
Total comprehensive income | 2,580,302 | 2,136,995 | 2,580,302 | 2,136,995 |
Items presented in the statement of comprehensive income may be subsequently reclassified to income (loss).
The accompanying notes are an integral part of these financial statements.
7
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Complete financial statements
Banco BTG Pactual S.A.
Statement of changes in equity
Quarter ended March 31
(In thousands of reais, except dividends and interest on equity per share)
Bank | Income reserves | |||||||||||
Capital | Other | Treasury | Retained | |||||||||
Note | Capital | Special profit reserves | Legal | Unrealized | Statutory | Total | comprehensive | Total | ||||
reserves | shares | earnings | ||||||||||
income | ||||||||||||
Balances on December 31, 2022 | 15,760,364 | 652,515 | - | 2,303,878 | 1,980,484 | 20,432,042 | 24,716,404 | 1,473,736 | (231,252) | - | 42,371,767 | |
Acquisition of treasury stock | - | - | - | - | - | - | - | - | (301,176) | - | (301,176) | |
Change in the equity valuation adjustment of financial assets available for sale | - | - | - | - | - | - | - | (8,740) | - | - | (8,740) | |
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary | 19 | - | - | - | - | - | - | - | (6,548) | - | - | (6,548) |
Accumulated conversion adjustments | - | - | - | - | - | - | - | (6,249) | - | - | (6,249) | |
Foreign exchange variation on investments | - | - | - | - | - | - | - | (204,021) | - | - | (204,021) | |
Hedge of net investments in foreign operations | - | - | - | - | - | - | - | 197,029 | - | - | 197,029 | |
Intermediary interest on equity | - | - | 350,000 | - | - | (350,000) | - | - | - | - | - | |
Goodwill/ Bargain purchase in the acquisition of interests | - | - | - | - | - | - | - | 32,301 | - | - | 32,301 | |
Net income for the period | - | - | - | - | - | - | - | - | - | 2,133,223 | 2,133,223 | |
Balances on March 31, 2023 | 15,760,364 | 652,515 | 350,000 | 2,303,878 | 1,980,484 | 20,082,042 | 24,716,404 | 1,477,508 | (532,428) | 2,133,223 | 44,207,586 | |
Balances on December 31, 2023 | 15,760,364 | 652,515 | - | 2,800,106 | 1,980,484 | 26,885,380 | 31,665,970 | 1,835,385 | (532,428) | - | 49,381,806 | |
Acquisition of treasury stock | 19 | - | - | - | - | - | - | - | - | - | - | - |
Change in the equity valuation adjustment of financial assets available for sale | - | - | - | - | - | - | - | 5,136 | - | - | 5,136 | |
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary | - | - | - | - | - | - | - | (150,480) | - | - | (150,480) | |
Accumulated conversion adjustments | - | - | - | - | - | - | - | 2,421 | - | - | 2,421 | |
Foreign exchange variation on investments | - | - | - | - | - | - | - | 169,400 | - | - | 169,400 | |
Hedge of net investments in foreign operations | - | - | - | - | - | - | - | (169,644) | - | - | (169,644) | |
Goodwill/ Bargain purchase in the acquisition of interests | - | - | - | - | - | - | - | (50,405) | - | - | (50,405) | |
Net income for the period | - | - | - | - | - | - | - | - | - | 2,773,874 | 2,773,874 | |
Balances on March 31, 2024 | 15,760,364 | 652,515 | - | 2,800,106 | 1,980,484 | 26,885,380 | 31,665,970 | 1,641,813 | (532,428) | 2,773,874 | 51,962,108 |
The accompanying notes are an integral part of these financial statements.
8
DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499
Complete financial statements
Banco BTG Pactual S.A.
Consolidated
Balances on December 31, 2022
Acquisition of shares in treasury
Change in the equity valuation adjustment of financial assets available for sale
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary
Accumulated conversion adjustments
Foreign exchange variation on investments
Hedge of net investments in foreign operations
Goodwill/ Bargain purchase in the acquisition of interests
Net income for the period
Intermediary interest on equity
Addition / (Exclusion) of non-controlling
Balances on March 31, 2023
Balances on December 31, 2023
Acquisition of treasury stock
Change in the equity valuation adjustment of financial assets available for sale
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary
Accumulated conversion adjustments
Foreign exchange variation on investments
Hedge of net investments in foreign operations
Goodwill/ Bargain purchase in the acquisition of interests
Net income for the period
Addition / (Exclusion) of non-controlling
Balances on March 31, 2024
Income reserves | |||||||||||||
Note | Capital | Capital reserves | Special profit | Legal | Unrealized | Statutory | Total | Other comprehensive | Treasury shares | Retained earnings | Statutory profit sharing | Non-controlling | Total |
reserves | income | shareholders | |||||||||||
15,760,364 | 652,515 | - | 2,341,075 | 1,980,478 | 22,195,135 | 26,516,688 | (326,548) | (231,252) | - | 42,371,767 | 4,241,544 | 46,613,311 | |
19 | - | - | - | - | - | - | - | - | (301,176) | - | (301,176) | - | (301,176) |
- | - | - | - | - | - | - | (8,740) | - | - | (8,740) | - | (8,740) | |
- | - | - | - | - | - | - | (6,548) | - | - | (6,548) | - | (6,548) | |
- | - | - | - | - | - | - | (6,249) | - | - | (6,249) | - | (6,249) | |
- | - | - | - | - | - | - | (204,021) | - | - | (204,021) | - | (204,021) | |
- | - | - | - | - | - | - | 197,029 | - | - | 197,029 | - | 197,029 | |
- | - | - | - | - | - | - | 32,301 | - | - | 32,301 | - | 32,301 | |
- | - | - | - | - | - | - | - | - | 2,133,223 | 2,133,223 | 80,483 | 2,213,706 | |
- | - | 350,000 | - | - | (350,000) | - | - | - | - | - | - | - | |
- | - | - | - | - | - | - | - | - | - | - | 69,321 | 69,321 | |
15,760,364 | 652,515 | 350,000 | 2,341,075 | 1,980,478 | 21,845,135 | 26,516,688 | (322,776) | (532,428) | 2,133,223 | 44,207,586 | 4,391,348 | 48,598,934 | |
15,760,364 | 652,515 | - | 2,837,303 | 1,980,478 | 28,648,471 | 33,466,253 | 35,102 | (532,428) | - | 49,381,806 | 4,153,662 | 53,535,468 | |
19 | - | - | - | - | - | - | - | - | - | - | - | - | - |
- | - | - | - | - | - | - | 5,136 | - | - | 5,136 | - | 5,136 | |
- | - | - | - | - | - | - | (150,480) | - | - | (150,480) | - | (150,480) | |
- | - | - | - | - | - | - | 2,421 | - | - | 2,421 | - | 2,421 | |
- | - | - | - | - | - | - | 169,400 | - | - | 169,400 | - | 169,400 | |
- | - | - | - | - | - | - | (169,644) | - | - | (169,644) | - | (169,644) | |
- | - | - | - | - | - | - | (50,405) | - | - | (50,405) | - | (50,405) | |
- | - | - | - | - | - | - | - | - | 2,773,874 | 2,773,874 | 70,759 | 2,844,633 | |
- | - | - | - | - | - | - | - | - | - | - | (200,208) | (200,208) | |
15,760,364 | 652,515 | - | 2,837,303 | 1,980,478 | 28,648,471 | 33,466,253 | (158,470) | (532,428) | 2,773,874 | 51,962,108 | 4,024,213 | 55,986,321 |
The accompanying notes are an integral part of these financial statements.
9
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Banco BTG Pactual SA published this content on 13 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 08:57:01 UTC.