AfE 2024
There is a new force in small and medium-sized enterprise banking in Latin America and that is BTG Pactual. The bank is renowned for forensically analyzing new segments before entering and then aggressively pursuing what it has identified as specific opportunities and market innovations.
Its impact on SME banking followed this pattern and the bank has been enjoying swift market penetration since it prioritized the sector in recent years. In 2023, the bank’s corporate and SME lending portfolio grew by 19%, and R$8.9 billion ($1.6 billion) of this was part of the bank’s sustainable financing framework, with the bank enforcing IFC Performance Standards for every transaction larger than $30 million.
BTG Pactual’s SME business – under the stewardship of the bank’s chief executive Roberto Sallouti – now accounts for 12.2% of the bank’s total business, up from just 4.5% in 2019. BTG’s SME credit portfolio has been growing at a compound annual growth rate of 21% – much faster than the rest of the market, albeit from a lower base.