Banco BTG Pactual S A : 1Q23 Complete Financial Statements

Complete Financial Statements

BTG Pactual S.A. and Subsidiaries

March 2023

(A free translation of the original in Portuguese)

Banco BTG Pactual S.A.

Parent company and consolidated interim financial statements at March 31, 2023

and report on review

(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 Stockholders

Banco BTG Pactual S.A.

Introduction

We have reviewed the accompanying interim balance sheet of Banco BTG Pactual S.A. ("Company") as at March 31, 2023 and the related statements of income, comprehensive income, changes in shareholder's 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, 2023 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 (BACEN). 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, 2023, 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 (BACEN).

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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

Banco BTG Pactual S.A.

Emphasis of matter

Deferred tax credits recorded in jointly controlled subsidiary

As mentioned in note 18 to the interim financial statements, the Company has an investment in the jointly owned subsidiary Banco Pan S.A., which, on March 31, 2023, recorded income tax and social contribution tax credits, in the amount of approximately R$ 3.3 billion, recognized based on expected realization of tax credits. This projection of realization of tax credits 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 on January 31, 2023, whose main assumptions used were the macroeconomic, production and funding cost indicators. The realization of these tax credits, in the estimated realization period, depends on the materialization of these projections and the business plan as 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, 2023. These statements are the responsibility of the Company'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 8, 2023

PricewaterhouseCoopers

Auditores Independentes Ltda.

CRC 2SP000160/O-5

Edison Arisa Pereira

Contador CRC 1SP127241/O-0

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Complete Financial Statements

BTG Pactual S.A.

(in thousands of Reais, except if otherwise indicated)

Balance sheet

		Bank
Assets	Note	03/31/23	12/31/22
Cash and cash equivalents	6	1,095,169	1,084,210
Financial instruments		280,049,345	269,602,092
Interbank liquidity investments	7	88,070,411	75,635,337
Bonds and securities	8	104,448,222	104,742,199
Derivative financial instruments	9	14,521,338	9,562,657
Interbank relations		13,534,683	14,739,812
Credit transactions	10	62,068,551	67,456,322
Provision for expected losses associated with credit risk	10	(2,593,860)	(2,534,235)
Other credits		51,930,808	65,743,022
Credit for guarantees and sureties performed		194,714	195,924
Foreign exchange portfolio	11	33,256,484	47,294,145
Income receivable	12	988,164	584,140
Securities trading and brokerage	11	2,898,219	3,660,026
Miscellaneous	12	10,943,757	10,035,420
Deferred tax assets		4,110,697	4,440,686
Provision for impairment of assets		(461,227)	(467,319)
Other amounts and assets		1,138,078	1,179,415
Prepaid expenses		1,042,932	1,129,930
Others		95,146	49,485
Permanent		32,955,594	31,979,451
Investments		32,151,463	31,165,911
Interest in subsidiaries, affiliates and companies with shared control	13	32,150,233	31,164,681
Other investments		1,230	1,230
Property, plant and equipment for use	14	213,634	209,114
Real estate in use		3,089	3,089
Other fixed assets for use		464,824	451,707
Accumulated depreciations		(254,279)	(245,682)
Intangible assets	14	590,497	604,426
Other intangible assets		1,004,141	939,321
Accumulated amortization		(413,644)	(334,895)
Total assets		367,168,994	369,588,190

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

Consolidated

	03/31/23			12/31/22
3,239,320	3,068,946
	378,310,447			351,186,195
78,789,028	74,114,273
	133,018,565			124,374,033
38,672,265	14,288,216
	18,078,672			23,786,655
115,144,391		120,109,049
	(5,392,474)			(5,486,031)
74,291,623	81,814,724
	195,057			196,267
33,508,591	47,101,490
	2,054,307			1,574,936
5,166,305	5,298,359
	25,077,396			19,409,040
8,794,274	8,707,089
	(504,307)			(472,457)
1,767,516	1,751,908
	1,405,614			1,416,685
361,902	335,223
	12,792,570			12,790,315
7,742,414	7,578,310
	7,566,336			7,394,235
176,078	184,075
	506,267			508,618
8,936	8,904
	1,022,147			993,763
(524,816)	(494,049)
	4,543,889			4,703,387
6,074,052	6,036,529
	(1,530,163)			(1,333,142)
470,401,476		450,612,088

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