Banco BTG Pactual S A : Dados Econômico-Financeiros

Consolidated financial statements under IFRS

Banco BTG Pactual S.A.

December 2023

www.pwc.com.br

(A free translation of the original in Portuguese)

Banco BTG Pactual S.A.

Consolidated financial statements at

December 31, 2023

and independent auditor's report

(A free translation of the original in Portuguese)

Independent auditor's report

To the Board of Directors and Stockholders

Banco BTG Pactual S.A.

Opinion

We have audited the accompanying consolidated financial statements of Banco BTG Pactual S.A. and its subsidiaries ("Institution" or "Consolidated"), which comprise the consolidated balance sheet as at December 31, 2023 and the consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial statements, including significant accounting policies and other explanatory information

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Banco BTG Pactual S.A. and its subsidiaries as at December 31, 2023, and their financial performance and their cash flows for the year then ended, in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) (currently described as "IFRS Accounting Standards" by the IFRS Foundation).

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing.

Our responsibilities under those standards are described in the "Auditor's responsibilities for the audit of the consolidated financial statements" section of our report. We are independent of the Institution and its subsidiaries in accordance with the ethical requirements established in the Code of Professional Ethics and Professional Standards issued by the Brazilian Federal Accounting Council, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matters

Key Audit Matters are those matters that, in our professional judgment,

were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We planned and performed our audit for the year ended December 31, 2023 taking into consideration that the operations of the Institution had not changed significantly in relation to the previous year.

In this respect, the Key Audit Matters, as well as our audit approach, have remained substantially in line with those in the prior period.

PricewaterhouseCoopers Auditores Independentes Ltda., Avenida Brigadeiro Faria Lima, 3732, Edifício B32, 16o São Paulo, SP, Brasil, 04538-132

T: [phone],www.pwc.com.br

Why it is a Key Audit Matter	How the matter was addressed in the audit
Fair value measurement of complex or illiquids financial instruments As disclosed in Notes 3(b), 4(b), 4(d), 7, 8 and 9, the fair value measurement of complex or illiquid financial instruments is an area that includes subjectivity, as it depends on valuation techniques performed based on internal models and involving Management's assumptions for valuation of instruments and/or observable data. We kept to consider this a focus area in our audit as the use of different valuation techniques and assumptions may produce significantly different fair value estimates and due to the materiality of the financial instruments in the context of the financial statements.	Our main audit procedures considered, among others, our understanding of the main processes involving the fair value measurement of financial instruments related to: (i) recording and confirmation of transaction data; (ii) criteria for fair value measurement; and (iii) reconciliation of accounting balances with analytical reports for balance sheet and income statement balances. We also (i) tested the completeness and integrity of the data extracted from the underlying systems that serve as a basis for fair value measurement; and (ii) independently re-performed, on a sample basis, the calculations for measurement of financial instruments with the support of our specialists in pricing financial instruments in accordance with the requirements provided for by the International Financial Reporting Standards (IFRS). We believe that the criteria adopted by management in the fair value measurement of these financial instruments are consistent with the information analyzed in our audit.
Measurement of the provision for expected losses associated with credit risk As disclosed in Notes 3(b), 4(b and c) and 12, the provision for expected losses associated with credit risk is estimated based on the analysis of the loan operations and specific risks presented in each portfolio, considering the contractual terms, loss scenarios weighted by probability, the risk rating of the client based on the periodic analysis of the quality of the customer and sectors of activity, according to the criteria established by IFRS 9. This is an area that has been defined as the focus of audit, because application of different criteria and judgment in measuring the provision for expected losses associated with credit risk could result in significant variations in the estimate of this provision.	Our procedures considered, among others, our understanding of the main processes related to: (i) granting of credit; (ii) attribution of risk level; and (iii) reconciliation of account balances with auxiliary reports. We also performed (i) analysis, on a sample basis, of the criteria described in the policy and their consistency with those used by management to determine the credit risk of the operations; (ii) tests regarding the validation of models applied in the determination of recoverable credit value on a sample basis, with the assistance of our specialists, considering the parameters developed for the most significant portfolios; (iii) tests on classification in stages provided for in IFRS 9, and (iv) test of the completeness and integrity of the data extracted
Why it is a Key Audit Matter	How the matter was addressed in the audit
from the underlying systems that serve as a basis for calculating the provision. We believe that the criteria adopted by management to measure and record the provision for expected losses associated with credit risk are consistent with the information analyzed in our audit.
Deferred tax assets in consolidated subsidiary As disclosed in Notes 2 and 22, Banco Pan S.A. ("Bank"), an indirect subsidiary of the Institution, included in the consolidation process in the consolidated financial statements, has deferred tax assets totaling R$ 3.3 billion, arising from temporary differences in the calculation basis of corporate income tax and social contribution on net income and income tax and social contribution losses, recognized based on the projection of taxable income for the realization of these deferred tax assets. This projection, prepared based on a study of the current and future scenario by the Bank's management, involves subjective judgments and assumptions. We kept this an area of audit focus, as the use of different assumptions in the projection of taxable income could significantly modify the terms and amounts expected for the realization of deferred tax assets.	Our key audit procedures considered the understanding of the calculation and recording processes, as well as an understanding of the significant assumptions used by management to project future taxable profit for purposes of estimating the realization of deferred tax assets. We compared the main assumptions used by Banco Pan S.A. to project taxable profits with the budget projections approved by its Board of Directors and with the macroeconomic projections disclosed in the market and analyzed historical data to corroborate the consistency of these realization estimates. We believe that the assumptions and criteria adopted by management are consistent in relation to the initial recognition, maintenance and realization of the deferred tax assets and are aligned with information approved by those charged with governance.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) (currently described as "IFRS Accounting Standards" by the IFRS Foundation), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the ability of the Institution and its subsidiaries, as a whole, to continue as a going concern, disclosing, as applicable,matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Institution and its subsidiaries, as a whole, or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Institution's financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Brazilian and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Institution and its subsidiaries.

• • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Institution and its subsidiaries, as a whole, to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Institution and its subsidiaries, as a whole, to cease to continue as a going concern.

• • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether these financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats to our independence or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the Key Audit Matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

São Paulo, March 28, 2024

PricewaterhouseCoopers Auditores Independentes Ltda. CRC 2SP000160/O-5

Edison Arisa Pereira Contador CRC 1SP127241/O-0

Consolidated financial statements under IFRS Banco BTG Pactual S.A.

Balance sheet

At December 31

(All amounts in thousands of reais)

Note	12/31/2023	12/31/2022
Assets
Cash	6	2,439,095	3,069,046
Financial instruments	436,303,404	398,146,160
Financial assets at fair value through profit or loss	7	178,807,129	156,996,525
Financial assets at fair value through other comprehensive income	8	22,070,238	16,455,650
Financial assets at amortized cost	235,426,037	224,693,984
Money market repurchase commitments	10	66,382,691	65,365,726
Interbank deposit investments	11	7,181,798	8,748,546
Deposited with the Central Bank	22,542,833	17,629,141
Credit operations	12	119,808,899	111,157,950
Marketable securities	13	18,138,572	15,431,811
Other receivables	1,371,244	6,360,809
Deferred tax assets	22	5,592,892	5,800,485
Other assets	15	32,427,762	27,044,878
Investments in affiliates and jointly controlled subsidiaries	16	7,826,277	7,917,758
Property and equipment	515,092	508,618
Right-of-use	322,262	401,066
Intangible assets	17	9,689,026	10,253,420
Total assets	495,115,810	453,141,430
Note	12/31/2023	12/31/2022
Liabilities
Financial liabilities at fair value through profit or loss	7	44,730,105	62,834,530
Financial liabilities at amortized cost	14	341,911,634	297,156,935
Money market funding	97,075,862	87,139,332
Deposits	133,273,103	115,749,672
Acceptances and endorsements	73,531,521	67,944,679
Borrowings, onlendings and leases	17,911,780	18,103,247
Subordinated debts and debt instruments eligible to capital	20,119,368	8,220,005
Tax liabilities	18	4,496,878	2,178,344
Current	4,020,634	1,484,157
Deferred	476,244	694,187
Sundry liabilities	19	30,031,428	23,214,981
Other liabilities	20	8,209,895	9,268,805
Social and statutory liabilities	4,034,629	3,569,719
Provision for contingent liabilities	21	4,995,441	5,091,446
Provision for expected loss arising from credit risk for financial guarantees	317,633	275,636
Total liabilities	438,727,643	403,590,395
Equity
Share capital	23	15,760,364	15,760,364
Treasury shares	(532,428)	(231,252)
Capital reserves	652,515	652,515
Revenue reserves	32,123,118	25,139,020
Other comprehensive income	3,951,687	3,590,324
Total equity of controlling stockholders	51,955,256	44,910,971
Non-controlling interest	4,432,911	4,640,064
Total equity	56,388,167	49,551,035
Total liabilities and equity	495,115,810	453,141,430
7

See the accompanying notes to the consolidated financial statements under IFRS.

Consolidated financial statements under IFRS

Banco BTG Pactual S.A.

Statement of income Years ended December 31

(All amounts in thousands of reais, unless otherwise stated)

Note	12/31/2023	12/31/2022
Net profit (loss) from financial instruments	25	23,508,085	21,333,925
Expected losses from credit risk	12	(2,280,246)	(4,650,965)
Net foreign exchange variations	1,109,240	1,200,631
Revenue from provision of services	26	9,098,936	8,400,584
Equity in the earnings of subsidiary, affiliates, and jointly controlled subsidiaries	16	1,076,706	748,437
Administrative expenses	28	(10,381,413)	(9,194,637)
Personnel expenses	(5,803,678)	(4,997,240)
Tax expenses	(1,882,157)	(1,628,460)
Other revenues / (expenses)	27	(2,781,697)	(2,267,891)
Operating profit before taxes	11,663,776	8,944,384
Income tax and social contribution	22	(1,409,016)	(1,293,642)
Provision for current income tax and social contribution	(2,138,356)	(904,145)
Provision for deferred income tax and social contribution	729,340	(389,497)
Net income for the year	10,254,760	7,650,742
Net income attributable to controlling stockholders	9,980,342	7,194,764
Net income attributable to non-controlling stockholders	274,418	455,978
8

See the accompanying notes to the consolidated financial statements under IFRS.

Consolidated financial statements under IFRS

Banco BTG Pactual S.A.

Condensed statement of comprehensive income Years ended December 31

(All amounts in thousands of reais)

Net income for the year

Other comprehensive income with reclassification to profit or loss

Change in carrying value adjustments - affiliates and jointly controlled subsidiary

Change in carrying value adjustments of financial assets at fair value through other comprehensive income

Accumulated translation adjustments

Foreign exchange variations on foreign investments on non-monetary items Hedge from foreign investments

Goodwill/negative goodwill in acquisition of interest in subsidiaries Others

Total comprehensive income

12/31/2023

10,254,760

247,042 (114,422)

81,455 (10,499)

(2,158) (60,127)

(1,095,838) 1,099,909 31,239

(286) 10,616,123

See the accompanying notes to the consolidated financial statements under IFRS.

12/31/2022

7,650,742

(1,088,823) 1,090,005 - - 7,466,876

9