Brazil's BTG Pactual Q2 profit up 22.6% on client activity, recurring revenue

Aug. 11 (Reuters) - Brazilian lender BTG Pactual on Tuesday reported second-quarter adjusted net income of 5.14 billion reais ($1.01 billion), up 22.6% from a year earlier, as total revenue rose 15.9% to a record 10.37 billion reais.

Latin America's largest investment bank said in its earnings report that strong client activity, expanding recurring revenue streams and improved operating efficiency supported earnings despite heightened geopolitical uncertainty, volatile markets and a more subdued operating environment in parts of its business.

• Adjusted return on average equity (ROAE), a key profitability metric, edged down to 26.7% from 27.2% a year earlier.
• Combined assets and wealth under management reached 2.7 trillion reais in the quarter, up 24.6% year-on-year.
• The bank's total loan portfolio grew 24.0% year-on-year to 366.6 billion reais.
• Sales and trading revenue totaled 1.86 billion reais in the second quarter, down 2.9% from a year earlier.
• Investment banking revenue fell 46.1% year-on-year as debt capital markets activity weakened.