Crisis hit BTG Pactual reveals rise in income and revenues

ProfitBrazilian investment bank BTG Pactual released its fourth quarter 2015 results early, revealing a 45% increase in income and a 122% rise in revenues compared to the same period in 2014. This may go some way to convince investors that the bank has recovered from the arrest of its founder and chief executive Andre Esteves at the end of last year on corruption charges involving energy group Petrobras. Chairman of the bank, Persio Arida, said in the statement that the end of last year was tough, ‘with a degree of stress unparalleled in the history of the institution’. The bank’s total assets were down 12% on the previous quarter to 266.6 billion Brazilian reais (€60.4 billion), as co-chief executive officer of BTG said the new management team, no longer containing Esteves who was released from custody last month, are negotiating the sale of certain assets. One asset that the bank is looking to unload is Swiss private bank BSI, which it bought last year for 1.25 billion Swiss francs (€1.15 billion). This deal gave the bank a wider footprint in Europe as well as 2000 extra employees. The fact that BTG’s net income rose to 1.25 billion reais came despite Brazil entering its second year of recession and its own internal crisis. The bank said the results were preliminary and unaudited. The final result for the period, together with audited financial statements, will be announced before the official reporting deadline. ©2016 funds europe

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