SAO PAULO (Reuters) – Latin America’s largest unbiased funding financial institution, Brazil’s Banco BTG Pactual SA, posted a 9.75 % drop in third-quarter recurring profit on Monday as trading gains fell.
Recurring internet revenue, which excludes one-time gadgets, got here in at 685 million reais ($184 million) within the third quarter versus 759 million reais ($204 million) a yr earlier.
In a securities submitting, BTG stated trading gains decreased 77 % from a yr earlier as a result of “challenging market conditions marked by risk aversion and low volumes.”
Lower trading gains offset greater revenues in BTG’s different companies, resembling asset administration, company lending and proprietary investments.
The financial institution stated its funding in Petrobras Africa reported an fairness pick-up. Last week, Brazil’s Petroleo Brasileiro SA, BTG’s companion in Petrobras Africa, stated it can promote its 50 % stake within the firm to a consortium led by prime oil dealer Vitol for $1.53 billion.
BTG’s expanded mortgage ebook remained virtually flat within the quarter, at 32.9 billion reais, though administration advised analysts in August that leverage ought to slowly go up.
The Sao Paulo-based financial institution reported an annualized return on fairness, a measure of profitability, of 14.three %, down zero.2 proportion level from the earlier quarter.
Management will talk about leads to a convention name with analysts on Tuesday.
Reporting by Carolina Mandl; Editing by Lisa Shumaker and Tom Brown