BTG Pactual’s loan book expected to growth by 30% in 2019

Latin America’s largest independent investment bank, Banco BTG Pactual SA, expects its loan book to grow at least 30% this year, Chief Financial Officer João Dantas told Reuters.

«Companies started to ask for loans at a more regular pace and the potential approval of a pension reform is likely to increase demand for loans,» said Dantas, adding that the bank has appetite for a higher pace of growth in loans.

BTG’s expanded loan book stood at R$ 43.6 billion in June, up 33% from a year earlier and 8.5% from March.

Besides extending loans to large companies, BTG has been seeking small- and medium-sized corporate clients as a way to expand its loan book.

Dantas said the bank targets providers of services and products to its own big clients through a digital platform of receivables-backed credit.

In addition to loans, Dantas said the bank will offer checking accounts for small companies next year.

BTG’s move comes as an increasing number of digital platforms has been targeting smaller companies, such as C6 Bank and Nubank.

BTG posted a 50.2% jump in second-quarter recurring profit, as trading and proprietary investment gains increased, as well as management fees.

Recurring net income, which excludes onetime items, rose to R$ 1.029 from R$ 685 million a year earlier.

BTG’s total second-quarter revenues came in at R$ 2.181 billion, up 76% from the same period a year earlier, mainly helped by trading gains.

Original Story: Reuters | Author: Carolina Mandl 
Photo: BTG Pactual site
Edition: Prime Yield