BTG Pactual Profits Pop

SÃ O PAULO—Brazilian investment bank Banco BTG Pactual saw its net profit rise 25.4% in the first quarter, as its wealth management unit drove an increase in revenue.

The bank reported a profit of 1.07 billion reais ($306 million), up from BRL854 million in the year ago period. BTG's total revenue reached BRL3.61 billion, up from BRL1.96 billion in the year-ago period.

Its return on equity ended at 18.8% in the first quarter, up from 18% a year earlier.

Revenues from wealth management soared in the period, after the bank accounted results from BSI SA. BTG completed the acquisition of Swiss private bank BSI in September 2015 from Italian insurer Assicurazioni Generali SpA. However, in February, BTG agreed to sell BSI Zurich-based bank EFG International.

At the end of last year, the Brazilian bank started selling certain assets to generate cash and restore the confidence of investors since the arrest in November of its former CEO and founder André Esteves.

Mr. Esteves was arrested in November on charges of obstructing a federal investigation into corruption at state-run oil company Petró leo Brasileiro SA, or Petrobras. Mr. Esteves was released from jail in December.

Earlier this month, Mr. Esteves rejoined BTG as "a Senior Partner focused on partnership matters advising Banco BTGPactual on strategy and supporting the development of its activities and operations."

Mr. Esteves, who remains a major shareholder of the bank, previously denied wrongdoing. The charges against him are still pending.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

May 11, 2016 07:15 ET (11:15 GMT)

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