Brazil’s Largest Crypto-Friendly Bank Posts 42% Rise In Q4 2019

The largest standalone investment bank in Latin America, Banco BTG Pactual SA, recorded an impressive 42% net income growth during last year’s fourth quarter.

The bank is regarded as one of the cryptocurrency-friendly traditional banking establishments. Last year, BTG started utilizing the Ethereum and Tezos blockchain networks for security token offerings.

BTG’s Net Income On The Rise

As reported earlier today by Reuters, BTG’s Q4 numbers have exceeded analysts’ expectations.

The recurring net income, which excludes one-offs, came at around $232 million. It represents an increased year on year revenue by 61%.

The bank’s loan book continues to rise as well, this time noting a growth of over 11% from the Q3 results. This came after a November announcement, indicating that BTG will extend loans in other South American countries like Colombia and Chile.

Corporate lending, proprietary investments, and banking unit investments marked an increase of 21% in operating expenses, including employee bonuses.

The only slight decrease compared to Q3 came in terms of the annualized return on equity – down to approximately 19.1%.

All of these generally rising numbers contributed to a total Q4 net income surge of over 42%.

BTG’s Cryptocurrency-Friendly Attitude

In early 2019, the large Brazillian bank launched a security token offering (STO) for a real estate fund. Dubbed, REITBZ, it was the first-ever similar endeavor in South America. All tokens were issued on the Ethereum Blockchain. Initially, it raised over $3 million from retail investors.

Shortly after, the bank partnered with a Dubai asset manager – Dalma Capital. Both companies decided to switch the blockchain network from Ethereum to Tezos. The latter announced it in July 2019, claiming that both financial institutions will “address a deal pipeline in excess of $1bn for existing and prospective token issuances.”

According to Andre Portilho, BTG’s Partner responsible for the STO initiative, the bank sees Tezos “as a global player with a robust blockchain for asset tokenization.”

Hubertus Thonhauser, a principal of the Tezos Foundation, also spoke on the matter. He pointed out the positive impact that such a partnership could have on the company’s network:

“BTG Pactual and Dalma Capital have been leaders in implementing tokenization and blockchain solutions in the realm of traditional investment banking and asset management. We are encouraged by forward-thinking investment banks embracing blockchain as the market progresses to institutionalization and mass adoption.”