Complete Financial Statements
BTG Pactual S.A. and Subsidiaries
March 2023
(A free translation of the original in Portuguese)
Banco BTG Pactual S.A.
Parent company and consolidated interim financial statements at March 31, 2023
and report on review
(A free translation of the original in Portuguese)
Report on review of parent company and consolidated interim financial statements
To the Board of Directors and Stockholders
Banco BTG Pactual S.A.
Introduction
We have reviewed the accompanying interim balance sheet of Banco BTG Pactual S.A. ("Company") as at March 31, 2023 and the related statements of income, comprehensive income, changes in shareholder's equity and cash flows for the three-month period then ended, as well as the accompanying consolidated interim balance sheet of Banco BTG Pactual S.A. and its subsidiaries ("Consolidated") as at March 31, 2023 and the related consolidated statements of income, comprehensive income, changes in shareholder's equity and cash flows for the three-month period then ended, and notes, comprising significant accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these parent company and consolidated interim financial statements in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN). Our responsibility is to express a conclusion on these interim financial statements based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" and ISRE 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim financial statements referred to above do not present fairly, in all material respects, the financial position of Banco BTG Pactual S.A. and of Banco BTG Pactual S.A. and its subsidiaries as at March 31, 2023, and the parent company financial performance and its cash flows for the three-month period then ended, as well as the consolidated financial performance and the consolidated cash flows for the three-month period then ended, in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN).
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PricewaterhouseCoopers Auditores Independentes Ltda., Avenida Brigadeiro Faria Lima, 3732, Edifício B32, 16oSão Paulo, SP, Brasil, 04538-132
T: +55 (11) 4004-8000, www.pwc.com.br
Banco BTG Pactual S.A.
Emphasis of matter
Deferred tax credits recorded in jointly controlled subsidiary
As mentioned in note 18 to the interim financial statements, the Company has an investment in the jointly owned subsidiary Banco Pan S.A., which, on March 31, 2023, recorded income tax and social contribution tax credits, in the amount of approximately R$ 3.3 billion, recognized based on expected realization of tax credits. This projection of realization of tax credits was reviewed by the management of Banco Pan S.A. based on a study of the current and future scenario and approved by the Board of Directors on January 31, 2023, whose main assumptions used were the macroeconomic, production and funding cost indicators. The realization of these tax credits, in the estimated realization period, depends on the materialization of these projections and the business plan as approved by the management bodies. Our conclusion is not qualified in respect of this matter.
Other matters
Statements of value added
The interim financial statements referred to above include the parent company and consolidated statements of value added for the three-month period ended March 31, 2023. These statements are the responsibility of the Company's management and are presented as supplementary information for purposes of the Brazilian Central Bank. These statements have been subjected to review procedures performed together with the review of the interim financial statements for the purpose concluding whether they are reconciled with the interim financial statements and accounting records, as applicable, and if their form and content are in accordance with the criteria defined in the accounting standard CPC 09 - "Statement of Value Added". Based on our review, nothing has come to our attention that causes us to believe that these statements of value added have not been properly prepared, in all material respects, in accordance with the criteria established in this accounting standard, and that they are consistent with the parent company and consolidated interim financial statements taken as a whole.
São Paulo, May 8, 2023
PricewaterhouseCoopers
Auditores Independentes Ltda.
CRC 2SP000160/O-5
Edison Arisa Pereira
Contador CRC 1SP127241/O-0
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Complete Financial Statements
BTG Pactual S.A.
(in thousands of Reais, except if otherwise indicated)
Balance sheet
Bank | |||
Assets | Note | 03/31/23 | 12/31/22 |
Cash and cash equivalents | 6 | 1,095,169 | 1,084,210 |
Financial instruments | 280,049,345 | 269,602,092 | |
Interbank liquidity investments | 7 | 88,070,411 | 75,635,337 |
Bonds and securities | 8 | 104,448,222 | 104,742,199 |
Derivative financial instruments | 9 | 14,521,338 | 9,562,657 |
Interbank relations | 13,534,683 | 14,739,812 | |
Credit transactions | 10 | 62,068,551 | 67,456,322 |
Provision for expected losses associated with credit risk | 10 | (2,593,860) | (2,534,235) |
Other credits | 51,930,808 | 65,743,022 | |
Credit for guarantees and sureties performed | 194,714 | 195,924 | |
Foreign exchange portfolio | 11 | 33,256,484 | 47,294,145 |
Income receivable | 12 | 988,164 | 584,140 |
Securities trading and brokerage | 11 | 2,898,219 | 3,660,026 |
Miscellaneous | 12 | 10,943,757 | 10,035,420 |
Deferred tax assets | 4,110,697 | 4,440,686 | |
Provision for impairment of assets | (461,227) | (467,319) | |
Other amounts and assets | 1,138,078 | 1,179,415 | |
Prepaid expenses | 1,042,932 | 1,129,930 | |
Others | 95,146 | 49,485 | |
Permanent | 32,955,594 | 31,979,451 | |
Investments | 32,151,463 | 31,165,911 | |
Interest in subsidiaries, affiliates and companies with shared control | 13 | 32,150,233 | 31,164,681 |
Other investments | 1,230 | 1,230 | |
Property, plant and equipment for use | 14 | 213,634 | 209,114 |
Real estate in use | 3,089 | 3,089 | |
Other fixed assets for use | 464,824 | 451,707 | |
Accumulated depreciations | (254,279) | (245,682) | |
Intangible assets | 14 | 590,497 | 604,426 |
Other intangible assets | 1,004,141 | 939,321 | |
Accumulated amortization | (413,644) | (334,895) | |
Total assets | 367,168,994 | 369,588,190 |
The accompanying notes are an integral part of these financial statements.
Consolidated
03/31/23 | 12/31/22 | ||||
3,239,320 | 3,068,946 | ||||
378,310,447 | 351,186,195 | ||||
78,789,028 | 74,114,273 | ||||
133,018,565 | 124,374,033 | ||||
38,672,265 | 14,288,216 | ||||
18,078,672 | 23,786,655 | ||||
115,144,391 | 120,109,049 | ||||
(5,392,474) | (5,486,031) | ||||
74,291,623 | 81,814,724 | ||||
195,057 | 196,267 | ||||
33,508,591 | 47,101,490 | ||||
2,054,307 | 1,574,936 | ||||
5,166,305 | 5,298,359 | ||||
25,077,396 | 19,409,040 | ||||
8,794,274 | 8,707,089 | ||||
(504,307) | (472,457) | ||||
1,767,516 | 1,751,908 | ||||
1,405,614 | 1,416,685 | ||||
361,902 | 335,223 | ||||
12,792,570 | 12,790,315 | ||||
7,742,414 | 7,578,310 | ||||
7,566,336 | 7,394,235 | ||||
176,078 | 184,075 | ||||
506,267 | 508,618 | ||||
8,936 | 8,904 | ||||
1,022,147 | 993,763 | ||||
(524,816) | (494,049) | ||||
4,543,889 | 4,703,387 | ||||
6,074,052 | 6,036,529 | ||||
(1,530,163) | (1,333,142) | ||||
470,401,476 | 450,612,088 |
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Banco BTG Pactual SA published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 09:30:06 UTC.