BTG Pactual's Net Profit Jumps 45% in Fourth Quarter
January 19 2016 - 7:10AM
Dow Jones News
SÃ O PAULO—Embattled Brazilian investment bank Banco BTG Pactual
said Tuesday its net profit in the fourth quarter jumped 45% from a
year earlier as revenue from trading activities increased.
The company had net income of 1.2 billion reais ($296 million)
in the quarter, according to the unaudited earnings figures the
bank sent Brazil's financial markets regulator. BTG had total
revenue of 3.5 billion reais in the fourth quarter, more than
double the 1.6 billion reais of income in the same period of 2014.
Net income fell in the fourth quarter from 1.5 billion reais in the
third quarter of 2015.
Revenue from trading and sales increased to 2.3 billion reais in
the fourth quarter of 2015 from 527 million reais a year earlier,
the bank said. For the full year 2015, BTG's net income rose to 4.6
billion reais from 3.4 billion reais in 2014, and revenue rose to
10.1 billion reais from 6.7 billion reais.
The lender's former chief executive officer, André Esteves, was
arrested at the end of November, 2015, on allegations he had
interfered with a criminal investigation regarding corruption at
state-controlled oil company Petró leo Brasileiro SA, or
Petrobras.
Mr. Esteves has denied any wrongdoing and was released from jail
shortly before Christmas, though he remains under house arrest.
The company acknowledged that the arrest of its former CEO, who
was replaced by co-CEOs Marcelo Kalim and Roberto Sallouti, has
affected its business and the price of its traded units. Control of
the bank was shifted from Mr. Esteves to a group of seven
partners.
The bank has begun selling assets and taken other actions that
have already "resulted in significant improvement in our liquidity
and solvency ratios, with important reduction in our liabilities,"
the bank said in the note to the regulator.
As a result of those measures, on Jan. 15 the amount of cash and
equivalents the bank had on hand was greater than it was the day
before Mr. Esteves was arrested, and the lender's liquidity
coverage ratio was at 112%, BTG said.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
January 19, 2016 06:55 ET (11:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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