(Adds CEO comments and influx in asset management)
By Carolina Mandl
SAO PAULO, May 3 (Reuters) – Shares in Banco BTG Pactual SA tumbled 2 percent on Thursday, the day after Brazil’s largest independent investment bank reported profits fell more than 20 percent in the latest quarter.
Late on Wednesday, BTG said recurring net income in the first quarter fell 22 percent from a year earlier to 661 million reais ($185 million). Revenues were down 21 percent from a year earlier, as fees from investment banking, trading and merchant banking dropped.
Still, the bank said the growth of inflows into its funds and deposits signaled that investors may be regaining confidence in the bank.
Chief Executive Officer Roberto Sallouti said rising inflows into funds and deposits will allow the bank to accelerate the expansion of credit.
The bank’s time deposits grew 37 percent in the quarter and reached 12.8 billion reais ($3.6 billion) in March, the first double-digit rise since BTG’s founder André Esteves was arrested in November 2015.
In the first quarter, its loan book rose 2.7 percent from the previous quarter, to 29.4 billion reais.
Net influx of money into asset and wealth management also increased 15 percent in the quarter to 260 billion reais.
In a note to clients, analysts for Goldman Sachs said they considered growth in asset and wealth management strong. They said sustainable growth in these areas “can help reduce volatility in the bottom line.”
Total assets under management, however, remain just one third of the 650 billion reais the bank managed 2-1/2 years ago.
Chief Finance Officer João Dantas said assets under management grew with BTG’s digital platform, known as BTG Pactual Digital.
Units in BTG Pactual were down 1.65 percent on Thursday afternoon, at 21.46 reais. ($1 = 3.5245 reais) (Reporting by Carolina Mandl; Editing by David Gregorio)