Banco BTG Pactual S A : 1Q24 Complete Financial Statements

DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Complete financial statements

Banco BTG Pactual S.A. and subsidiaries

March 2024

DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

(A free translation of the original in Portuguese)

Banco BTG Pactual S.A.

Parent company and consolidated interim financial statements at March 31, 2024

and report on review

DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

(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 Shareholders

Banco BTG Pactual S.A.

Introduction

We have reviewed the accompanying interim balance sheet of Banco BTG Pactual S.A. ("Bank") as at March 31, 2024 and the related statements of income, comprehensive income, changes in 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, 2024 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. 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, 2024, 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.

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

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

DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Banco BTG Pactual S.A.

Emphasis of matter

Deferred tax credits in consolidated subsidiary

As mentioned in note 18 to the interim financial statements, the Bank has an investment in the subsidiary Banco Pan S.A., which, on March 31, 2024, recorded deferred tax assets, in the amount of approximately R$ 3.4 billion, recognized based on expected realization of deferred tax assets. This projection of realization of deferred tax assets 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 in January 30, 2024, whose main assumptions used were the macroeconomic, production and funding cost indicators. The realization of these deferred tax assets, in the estimated realization period, depends on the materialization of these projections and the business plan was 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, 2024. These statements are the responsibility of the Bank'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 10, 2024

PricewaterhouseCoopers

Auditores Independentes Ltda.

CRC 2SP000160/O-5

Edison Arisa Pereira

Contador CRC 1SP127241/O-0

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DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Complete financial statements

Banco BTG Pactual S.A.

Balance sheet

(In thousands of reais)

			Bank	Consolidated
Assets	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023
Cash	6	1,498,021	1,323,966	2,903,932	2,439,095
Financial instruments		392,357,939	358,682,001	482,025,533	420,671,514
Interbank deposits and securities purchased under agreements to resell	7	98,101,804	76,709,394	97,244,516	73,564,489
Securities	8	164,769,898	167,438,407	183,385,577	180,909,251
Derivative financial instruments	9	52,140,249	40,746,460	43,477,012	19,983,627
Interbank relations		16,451,157	15,881,267	24,875,212	23,712,400
Loan operations	10	63,164,356	60,146,918	138,308,857	127,528,305
Expected loss allowances associated with credit risk	10	(2,269,525)	(2,240,445)	(5,265,641)	(5,026,558)
Other receivables		44,490,931	33,137,180	68,447,674	55,507,058
Credits for sureties and guarantees honored		154,706	182,271	155,049	182,614
Foreign exchange portfolio	11	27,688,803	15,733,743	28,175,399	16,051,810
Income receivable	12	2,836,794	1,926,797	2,928,804	3,090,093
Others	12	10,655,782	11,945,987	29,487,625	28,341,600
Deferred tax assets	18	3,469,545	3,694,137	8,132,351	8,289,494
Provision for impairment of assets		(314,699)	(345,755)	(431,554)	(448,553)
Other assets		1,378,694	1,970,086	1,949,246	2,512,437
Prepaid expenses		1,109,985	1,127,497	1,448,240	1,419,358
Other		268,709	842,589	501,006	1,093,079
Permanent		47,530,320	47,134,904	12,350,901	12,102,745
Investments		46,920,737	46,471,872	7,370,656	7,346,744
Interest in subsidiaries, affiliates, and jointly controlled companies	13	46,919,507	46,470,642	7,342,179	7,278,897
Other investments		1,230	1,230	28,477	67,847
Fixed assets for use	14	185,701	188,275	491,155	515,092
Property for use		3,038	3,038	9,245	23,608
Other fixed assets for use		478,628	470,835	1,121,246	1,096,927
Accumulated depreciation		(295,965)	(285,598)	(639,336)	(605,443)
Intangible assets	14	423,882	474,757	4,489,090	4,240,909
Intangible assets		1,144,751	1,119,000	6,834,016	6,374,227
Accumulated amortizations		(720,869)	(644,243)	(2,344,926)	(2,133,318)
Total assets		487,255,905	442,248,137	567,677,286	493,232,849

The accompanying notes are an integral part of these financial statements.

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DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Complete financial statements

Banco BTG Pactual S.A.

Balance sheet

(In thousands of reais)

			Bank	Consolidated
Liabilities	Note	03/31/2024	12/31/2023	03/31/2024	12/31/2023
Financial instruments		397,426,962	363,908,469	427,130,377	367,070,355
Deposits	15	133,197,523	121,499,655	150,565,998	133,273,103
Securities sold under repurchase agreements	15	115,754,363	104,225,884	114,533,195	97,075,862
Funds from acceptances and issuance of securities	15	61,929,476	54,939,272	83,536,180	73,531,521
Borrowings and onlendings	15	14,921,807	16,930,097	15,719,019	17,582,218
Derivative financial instruments	9	55,065,318	46,718,063	45,727,601	25,488,283
Subordinated debts and debt instruments eligible to capital	15	16,558,475	19,595,498	17,048,384	20,119,368
Interbank relations		1,410,275	1,347,803	3,150,798	3,051,068
Interbranch accounts		278,342	401,335	278,342	401,335
Other liabilities		34,342,939	25,486,548	75,705,921	63,743,285
Collection and levy of taxes and alike		18,800	14,062	37,971	32,250
Foreign exchange portfolio	11	27,944,593	16,027,100	27,898,199	15,961,812
Social and statutory	16	674,136	2,771,674	1,352,206	4,034,629
Tax and social security	16	657,338	957,833	2,401,074	4,020,634
Deferred tax liabilities	18	3,932	3,357	474,357	476,244
Others	16	5,044,140	5,712,522	43,542,114	39,217,716
Provision		1,835,279	1,722,176	5,425,527	5,431,338
Expected loss allowance for financial guarantees provided	10	503,368	411,188	517,539	435,897
Provision for contingent liabilities	17	1,331,911	1,310,988	4,907,988	4,995,441
Equity	19	51,962,108	49,381,806	55,986,321	53,535,468
Capital		15,760,364	15,760,364	15,760,364	15,760,364
Capital reserves		652,515	652,515	652,515	652,515
Other comprehensive income		1,641,813	1,835,385	(158,470)	35,102
Revenue reserves		31,665,970	31,665,970	33,466,253	33,466,253
Treasury shares		(532,428)	(532,428)	(532,428)	(532,428)
Retained earnings		2,773,874	-	2,773,874	-
Total equity of controlling shareholders		51,962,108	49,381,806	51,962,108	49,381,806
Non-controlling interest		-	-	4,024,213	4,153,662
Total liabilities and equity		487,255,905	442,248,137	567,677,286	493,232,849

The accompanying notes are an integral part of these financial statements.

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DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Complete financial statements

Banco BTG Pactual S.A.

Statement of income Quarter ended March 31

(In thousands of reais, except net income per share)

			Bank	Consolidated
	Note	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Revenues from financial intermediation		10,711,336	8,702,660	16,304,646	15,547,675
Credit transactions		1,671,648	2,169,279	7,713,916	7,507,200
Income on bonds and securities and derivative financial instruments		8,382,129	5,027,409	7,894,079	6,405,901
Income from mandatory investments		417,349	348,472	496,344	434,201
Results from foreign exchange transactions		240,210	1,157,500	200,307	1,200,373
Expenses with financial intermediation		(8,526,764)	(6,410,997)	(10,877,443)	(10,276,241)
Funding transactions in the market		(7,404,226)	(5,653,876)	(8,083,664)	(7,005,639)
Loan and on-lending transactions		(1,195,715)	(675,421)	(1,974,466)	(2,644,418)
Expected loss allowances associated with credit risk	10	73,177	(81,700)	(819,313)	(626,184)
Gross income from financial intermediation		2,184,572	2,291,663	5,427,203	5,271,434
Other operating revenues / (expenses)		1,157,167	443,416	(1,306,293)	(2,184,495)
Revenues from service provision	20	723,041	828,304	2,811,688	2,015,315
Personnel expenses		(426,771)	(306,050)	(922,539)	(799,149)
Other administrative expenses	22	(1,083,936)	(945,912)	(2,787,898)	(2,414,829)
Tax expenses	23	(159,479)	(192,186)	(589,354)	(428,550)
Income from interest in subsidiaries, affiliates and jointly-owned subsidiaries	13	2,059,721	1,015,445	100,934	247,189
Other operating income	21	44,591	43,815	80,876	(804,471)
Provision expenses		(120,697)	(57,061)	(69,185)	(154,746)
Provision for contingent liabilities	17	(28,829)	(33,969)	26,361	(129,734)
Expected loss allowance for financial guarantees provided		(91,868)	(23,092)	(95,546)	(25,012)
Operating result		3,221,042	2,678,018	4,051,725	2,932,193
Non-operating income		-	(13,974)	2,181	3,772
Income before income tax and interests		3,221,042	2,664,044	4,053,906	2,935,965
Income tax and social security contribution	18	(234,246)	(318,094)	(564,820)	(182,068)
Provision for income tax		(29,462)	(12,615)	(420,872)	(384,716)
Provision for social security contribution		-	-	(279,195)	(301,277)
Deferred tax assets	18	(204,784)	(305,479)	135,247	503,925
Statutory profit sharing		(212,922)	(212,727)	(644,453)	(540,191)
Non-controlling shareholders		-	-	(70,759)	(80,483)
Net income for the period		2,773,874	2,133,223	2,773,874	2,133,223
Net income per share - Basic	25	0.24	0.19	-	-
Net income per share - Diluted		0.24	0.19	-	-

The accompanying notes are an integral part of these financial statements.

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DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Complete financial statements

Banco BTG Pactual S.A.

Statement of comprehensive income

Quarter ended March 31

(In thousands of reais)

	Bank		Consolidated
	03/31/2024	03/31/2023	03/31/2024	03/31/2023
Net income for the period	2,773,874	2,133,223	2,773,874	2,133,223
Change in the equity valuation adjustment for financial assets available for sale	5,136	(8,740)	5,136	(8,740)
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-
owned subsidiary	(150,480)	(6,548)	(150,480)	(6,548)
Accumulated conversion adjustments	2,421	(6,249)	2,421	(6,249)
Foreign exchange variation on investments	169,400	(204,021)	169,400	(204,021)
Net investment hedge of foreign operations	(169,644)	197,029	(169,644)	197,029
Goodwill in the acquisition of interests	(50,405)	32,301	(50,405)	32,301
Total comprehensive income	2,580,302	2,136,995	2,580,302	2,136,995

Items presented in the statement of comprehensive income may be subsequently reclassified to income (loss).

The accompanying notes are an integral part of these financial statements.

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DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Complete financial statements

Banco BTG Pactual S.A.

Statement of changes in equity

Quarter ended March 31

(In thousands of reais, except dividends and interest on equity per share)

Bank						Income reserves
			Capital						Other	Treasury	Retained
	Note	Capital	Special profit reserves	Legal	Unrealized	Statutory	Total	comprehensive	Total
	reserves	shares	earnings
								income
Balances on December 31, 2022		15,760,364	652,515	-	2,303,878	1,980,484	20,432,042	24,716,404	1,473,736	(231,252)	-	42,371,767
Acquisition of treasury stock		-	-	-	-	-	-	-	-	(301,176)	-	(301,176)
Change in the equity valuation adjustment of financial assets available for sale		-	-	-	-	-	-	-	(8,740)	-	-	(8,740)
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary	19	-	-	-	-	-	-	-	(6,548)	-	-	(6,548)
Accumulated conversion adjustments		-	-	-	-	-	-	-	(6,249)	-	-	(6,249)
Foreign exchange variation on investments		-	-	-	-	-	-	-	(204,021)	-	-	(204,021)
Hedge of net investments in foreign operations		-	-	-	-	-	-	-	197,029	-	-	197,029
Intermediary interest on equity		-	-	350,000	-	-	(350,000)	-	-	-	-	-
Goodwill/ Bargain purchase in the acquisition of interests		-	-	-	-	-	-	-	32,301	-	-	32,301
Net income for the period		-	-	-	-	-	-	-	-	-	2,133,223	2,133,223
Balances on March 31, 2023		15,760,364	652,515	350,000	2,303,878	1,980,484	20,082,042	24,716,404	1,477,508	(532,428)	2,133,223	44,207,586
Balances on December 31, 2023		15,760,364	652,515	-	2,800,106	1,980,484	26,885,380	31,665,970	1,835,385	(532,428)	-	49,381,806
Acquisition of treasury stock	19	-	-	-	-	-	-	-	-	-	-	-
Change in the equity valuation adjustment of financial assets available for sale		-	-	-	-	-	-	-	5,136	-	-	5,136
Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary		-	-	-	-	-	-	-	(150,480)	-	-	(150,480)
Accumulated conversion adjustments		-	-	-	-	-	-	-	2,421	-	-	2,421
Foreign exchange variation on investments		-	-	-	-	-	-	-	169,400	-	-	169,400
Hedge of net investments in foreign operations		-	-	-	-	-	-	-	(169,644)	-	-	(169,644)
Goodwill/ Bargain purchase in the acquisition of interests		-	-	-	-	-	-	-	(50,405)	-	-	(50,405)
Net income for the period		-	-	-	-	-	-	-	-	-	2,773,874	2,773,874
Balances on March 31, 2024		15,760,364	652,515	-	2,800,106	1,980,484	26,885,380	31,665,970	1,641,813	(532,428)	2,773,874	51,962,108

The accompanying notes are an integral part of these financial statements.

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DocuSign Envelope ID: 81428F75-20DF-4F32-AB4C-B9B990CAA499

Complete financial statements

Banco BTG Pactual S.A.

Consolidated

Balances on December 31, 2022

Acquisition of shares in treasury

Change in the equity valuation adjustment of financial assets available for sale

Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary

Accumulated conversion adjustments

Foreign exchange variation on investments

Hedge of net investments in foreign operations

Goodwill/ Bargain purchase in the acquisition of interests

Net income for the period

Intermediary interest on equity

Addition / (Exclusion) of non-controlling

Balances on March 31, 2023

Balances on December 31, 2023

Acquisition of treasury stock

Change in the equity valuation adjustment of financial assets available for sale

Variation from equity valuation adjustments of subsidiaries, affiliates and jointly-owned subsidiary

Accumulated conversion adjustments

Foreign exchange variation on investments

Hedge of net investments in foreign operations

Goodwill/ Bargain purchase in the acquisition of interests

Net income for the period

Addition / (Exclusion) of non-controlling

Balances on March 31, 2024

				Income reserves
Note	Capital	Capital reserves	Special profit	Legal	Unrealized	Statutory	Total	Other comprehensive	Treasury shares	Retained earnings	Statutory profit sharing	Non-controlling	Total
reserves	income	shareholders
	15,760,364	652,515	-	2,341,075	1,980,478	22,195,135	26,516,688	(326,548)	(231,252)	-	42,371,767	4,241,544	46,613,311
19	-	-	-	-	-	-	-	-	(301,176)	-	(301,176)	-	(301,176)
	-	-	-	-	-	-	-	(8,740)	-	-	(8,740)	-	(8,740)
	-	-	-	-	-	-	-	(6,548)	-	-	(6,548)	-	(6,548)
	-	-	-	-	-	-	-	(6,249)	-	-	(6,249)	-	(6,249)
	-	-	-	-	-	-	-	(204,021)	-	-	(204,021)	-	(204,021)
	-	-	-	-	-	-	-	197,029	-	-	197,029	-	197,029
	-	-	-	-	-	-	-	32,301	-	-	32,301	-	32,301
	-	-	-	-	-	-	-	-	-	2,133,223	2,133,223	80,483	2,213,706
	-	-	350,000	-	-	(350,000)	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-	-	-	-	69,321	69,321
	15,760,364	652,515	350,000	2,341,075	1,980,478	21,845,135	26,516,688	(322,776)	(532,428)	2,133,223	44,207,586	4,391,348	48,598,934
	15,760,364	652,515	-	2,837,303	1,980,478	28,648,471	33,466,253	35,102	(532,428)	-	49,381,806	4,153,662	53,535,468
19	-	-	-	-	-	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	5,136	-	-	5,136	-	5,136
	-	-	-	-	-	-	-	(150,480)	-	-	(150,480)	-	(150,480)
	-	-	-	-	-	-	-	2,421	-	-	2,421	-	2,421
	-	-	-	-	-	-	-	169,400	-	-	169,400	-	169,400
	-	-	-	-	-	-	-	(169,644)	-	-	(169,644)	-	(169,644)
	-	-	-	-	-	-	-	(50,405)	-	-	(50,405)	-	(50,405)
	-	-	-	-	-	-	-	-	-	2,773,874	2,773,874	70,759	2,844,633
	-	-	-	-	-	-	-	-	-	-	-	(200,208)	(200,208)
	15,760,364	652,515	-	2,837,303	1,980,478	28,648,471	33,466,253	(158,470)	(532,428)	2,773,874	51,962,108	4,024,213	55,986,321

The accompanying notes are an integral part of these financial statements.

9