Good morning, and thank you for holding. Welcome to the second quarter of 2020 results conference call of Banco BTG Pactual. With us here today, we have Roberto Sallouti, João Dantas, and José Miguel Vilela. We would like to inform you that this event is being recorded, all participants will be in listen-only mode during the bank's presentation. After Banco BTG Pactual's remarks, there will be a question and answer session for investors and analysts when further instructions will be given. Should any participant need assistance during the call, please press star zero to reach an operator. Today, we have a simultaneous webcast that may be accessed through the website www.btgpactual.com/ir, and the platform. There will be a replay facility for this call from August 11th through August 17th.
Before proceeding, let me mention that this call may contain forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to the growth prospects of Banco BTG Pactual. These are merely projections, and as such, are based exclusively on the expectations of Banco BTG Pactual's management concerning the future of the business. Such forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Banco BTG Pactual's filed disclosure documents, and are therefore subject to change without prior notice. I'll turn the floor over to Mr. Roberto Sallouti, who will begin the presentation. Mr. Sallouti, please go ahead.
Thank you very much, and good afternoon or good morning to all of you. Thank you for joining our quarterly call. I would like to start by saying that we are extremely proud of the results that we had this quarter. It was a quarter where we were able to support and be there for our clients. We were able to support society at a very dramatic time with the whole coronavirus pandemic. We were able to keep our team safe and giving them working conditions to perform phenomenally. Finally, we're delivering what we consider to be excellent financial results to our shareholders.
I'd like to take this opportunity to congratulate all of our team for their commitment, dedication, and their efforts, because clearly the results can be seen across the board, be it in client satisfaction, be it in the results for society or be it in the financial results which we're presenting this quarter. Starting on page three, I would like to talk a bit about the highlights of the quarter. Just starting out, I'd like to remind all of you that we had a successful follow-on offering at the end of the quarter, where we were able to issue equity in the amount of BRL 2.65 billion, which we are using to continue to grow our digital retail platform and our credit portfolio at the same time that we keep very strong capital metrics. We finalized the first quarter with a Basel ratio of 19.6%.
Very conservative, very robust capital base. In the quarter, we had revenues increasing 64% quarter-on-quarter. This was done by a strong business activity in all of our client franchise. It is very rare that we have a quarter like this one where we had all of our client franchise firing on all cylinders. In the quarter, our unsecured funding base grew around BRL 19 billion, roughly 31% quarter-on-quarter, with a very broad dispersion of inflows in all segments and all maturities. In the quarter, we achieved significant net new money, BRL 22.5 billion in Asset and Wealth Management. In Wealth Management includes our retail businesses. We think we're very much on track to have over BRL 100 billion of net new money in the year.
This quarter, we also grew our Corporate Lending book BRL 9.5 billion, roughly 20% quarter-on-quarter, and our SME portfolio, which is all digitally originated supplier financing, reached BRL 3.8 billion. Finally, we had a significant revenue contribution from Sales and Trading with record levels of brokerage fees and flow trading income. Clearly, a semester that was very strong across the board. Turning on to page four, we talked a bit about the numbers in the quarter. We had total revenues of BRL 2.48 billion and adjusted net income of BRL 987 million, which gives us an ROE for the quarter of 17.5%. We had normalized cost income ratios and comp ratios of around 42% and 27%. We finalized the quarter with assets of BRL 230 billion. As mentioned previously, a capital ratio, Basel ratio of 19.6%, and shareholders' equity of BRL 25.6 billion.
Moving to page five, we talk a bit about the first semester or the first half of the year, where we had revenues of BRL 4 billion, adjusted net income of BRL 1.776 billion, an annualized ROE for the first half of the year of 16%. Cost income at 42% and comp ratio at 24%, within the historical averages. We had an increase in the year of 16.2% in the shareholders' equity, finishing the quarter or the semester at BRL 25.6 billion, as mentioned previously. Moving on to page six, we can see the distribution of revenues among our different businesses, and we continue to see the consistent growth and importance of all of our revenue franchises. We can see that quarter-over-quarter, year-after-year, the consistency, the recurrence of our client franchises continues to grow in importance in our business.
Finally, on page seven, we give you an update on our ESG initiatives. First, we take the opportunity to clarify all of the ESG commitments, which we are signatories. At the institutional level, we are signatories of the UN Global Compact, the Principles for Responsible Banking, the United Nations Environment Program Finance Initiative, and we have offset for the last two years Scope 1 and Scope 2 of our carbon emissions. In our business commitments, we are signatories of the Principles for Responsible Investment, Investidores pelo Clima, and the Carbon Disclosure Project. Talking a bit about the highlights of the quarter. We continue putting to work the BRL 50 million donation that we committed to combat the effects of the COVID-19 crisis. We have impacted over 2.2 million people, distributed more than 155,000 basic food baskets, have supported 21 hospitals.
We have started some initiatives to try to help the economy to pick up, so we launched a microcredit program, subsidized, that has lent money to over 280 micro entrepreneurs across 19 states of the federation. This has impacted over 850 people, because around every micro entrepreneur, on average, has around two employees. In the quarter, we finalized the quarter with an $11.5 billion exposure in our credit portfolio to the green economy, of which $1 billion was disbursed during the last quarter. We finalized our timber portfolio, our forest Asset Management, with $3.5 billion of assets, 2.6 million acres under management, reaching 92% of our assets in this business certified. Finally, we were the joint book runners of a green bond offering of $500 million for the largest Brazilian railroad operator.
We structured BRL 129 million insurance transaction into a blended finance structure, contributing to scale the production of the main producer of ventilators by 10 times in Brazil. All of these were already delivered to the public hospitals and are now saving lives in this terrible moment that we live. With this, I'll pass the word to João Dantas, which will talk about each of our business units.
Thank you, Roberto. Thanks everyone joining our call today. We start in section one with the comments about the performance of our business units. I'll start with an opening remark just to put things a little bit in context. As Roberto said, we rarely see performance as consistent as this reflected in the P&L of all our business areas. In this quarter, beyond the performance reflected in the P&L, we're also presenting very strong growth in all our franchise areas, with strong inflows, strong net new money, strong volumes of transactions, a very consistent growth of market share of BTG Pactual. This performance is the result of three factors.
First of all, is the recovery of markets that have benefited from a very effective central bank attitude, not only in Brazil, where in Latin America, where monetary authorities were present in markets, and helping the reality of markets on a daily basis since the beginning of the pandemic, but also globally. Second of all, the significant investments that we have been doing in our platform to enhance it, expand it and make it more complete, and also very stable throughout this phase where we are working from home and experiencing very high volumes of execution in markets. Third is the strength of our balance sheet. As you will see later in the presentation, we have maintained, throughout the times, very high levels of capitalization and liquidity.
I think it's worth mentioning as well, the excellent work done by our teams, who have kept themselves very close to our clients, very focused on the execution and delivering in all our segments, businesses, products and services. Moving to page nine, we start here with Investment Banking, where we reached BRL 222 million of revenues, basically coming from DCM, where we had the best quarter ever, with very strong activity as companies were seeking to raise cash. It's worth mentioning that inside the BRL 222 million of revenues, almost the entirety of that is composed by DCM. This quarter for DCM was a two-month quarter. We didn't have a lot of activity in April. We started to see activity in May, and then we saw a stronger activity in local DCM in June. We also had a quarter without activity in ECM, very weak activity.
ECM, as a market in Brazil and Latin America, started to see some activity towards the end of June, when we had our own follow-on offering. M&A was also a very weak quarter. The only weaker quarter that we saw in M&A activity in Brazil was 2005. For a very weak quarter, we saw this BRL 222 million level of revenues as very welcomed. Also worth mentioning that we kept, even though during this very weak market, the number one ranking in ECM in number of transactions in Brazil, number two in Latin America, number one in volume of transactions in Brazil as well, and in M&A, despite very low volumes, number three in volume of transactions in Brazil.
Finally, worth mentioning as well, the level of interaction and engagement of our teams with our clients remains very high, demonstrating that there is confidence from entrepreneurs in the recovery of markets, so we can look forward for better performance in the second half of the year. Moving to page 10. Here we see the performance of corporate lending. The highlights are the increase in revenues. We reached BRL 303 million of revenues, a 13.5% increase when compared to the first quarter of 2020. Also, the growth in the corporate lending book, which grew 20% compared to the first quarter and 67% year-on-year. Third is the growth of the SME portfolio, where we had about 15% growth quarter-on-quarter, moving from BRL 3.3 billion to BRL 3.8 billion of supply financing trade and exposure.
During the crisis, our high capitalization levels and the growing liquidity of the bank allowed us to keep supporting companies, as Roberto mentioned, with a consistent offering of credit throughout the months. Because of that, our Corporate Lending portfolio grew close to BRL 10 billion in the quarter, concentrated on high-quality names. The levels of provisions didn't grow as a percentage. They grew nominally. They are now at the highest levels, in the past, nominally, around 4% of the portfolio. The spreads of the new transactions that were added to the portfolio were also very attractive, raising the level of the yield of the business. Also, the PME book was able to grow with increasing yields. The running rate of our Corporate Lending business, all in all, has increased.
The nominal growth in provisions also gives us the comfort that we are with very adequate levels at this point. It's also worth remembering that the legacy portfolio or the portfolio of credit that we had before the start of the [Non-English Content], keeps performing in a very adequate manner without exercising any pressure over the levels of provisions. We keep running the business at comfortable levels of provisions, growing levels of returns with a growing market share in portfolio. Moving to page 11. Here we have the performance of Sales and Trading, where we reached BRL 1.08 billion of revenues. It's one of our highest historical revenues in Sales and Trading, and it's been benefiting by a multitude of factors.
With the recovery of markets and also due to the strong capitalization of Banco BTG Pactual, which is at this point, highly above the average of the Brazilian banks, we had the confidence to increase the use of balance sheet, to do more financial intermediation. With that, our VaR, as a percentage of average equity, increased from 0.37% to half a percentage point. Also our brokerage and intermediation fees increased to levels that are the highest in our history. Flow trading and brokerage fees recording record high levels. We also had strong contribution on the P&L from equities and FX desks. It's also worth mentioning that the fixed income credit trading desk also increased its level of operations, contributing more and more as an additional source of revenues for the revenue mix of Sales and Trading.
If we average out the first, second quarter, our first half for Sales and Trading was already a very strong performance. Even though we had a lower capital usage and a lower revenue contribution from Sales and Trading in the first quarter, the average of the first and the second quarter makes for a very good first half for Sales and Trading. Moving to page 12, we are now with the Asset Management business picture and starting at the graph on the right, we see that we reached BRL 304 billion of assets under management, and we had BRL 11.8 billion of net inflows in the quarter. We had consistent revenues reaching BRL 195 million. They are down almost 9% compared to the first quarter of 2020. Basically because we have a lower level of performance fees captured in the second quarter when compared to the first quarter.
Year-over-year, the management fees inside the revenues of Asset Management have grown about 20%, pretty much in line with the growth in assets under management. The substantial net new money of BRL 11.8 billion in the quarter came especially from Brazil fixed income and equities funds and from fund services. As you can see in the graph, all of our business lines inside Asset Management have experienced growth quarter-over-quarter and year-over-year. Including even global hedge funds, where we had a slight decrease in assets under management just because we reduced our seed money allocation. If you consider just the client funds, we have an increase as well in global hedge funds. Our Asset Management business, I think it is worth mentioning, continues growing in a very accelerated pace.
The combination of this scenario of low interest rates with the good performance of the products is delivering this growth. As you can observe in the graph, all our client franchises are presenting consistent growth, not only in Brazil but also in LATAM. I think it's worth mentioning as well the alternative funds, especially in the segments of private equity and real estate, which have been capturing strong growth, strong net new money, and delivering very good performance above the industry average in Brazil and LATAM. Moving to page 13, here we have the performance of Wealth Management. Starting on the right part of the page, you see that we reached BRL 193.4 billion of Wealth Management with BRL 10.7 billion of inflows. Our revenues increased 17% quarter-over-quarter, reaching BRL 198.6 million.
Second quarter of 2020 was marked by record levels of brokerage fees and trading activity, contributing to this strong result in Wealth Management, also due to the strong growth on the digital business. Our digital business continues to demonstrate strong growth capacity and a best-in-class operational environment. The strong market performance, the strong recovery of markets also contributed from the growth from BRL 160 billion to BRL 193 billion of wealth under management in the quarter. We have been registering record volumes and revenues in the brokerage segment inside Wealth Management because we had very high operational standards throughout this more volatile phase of market since the start of the pandemic and the crisis. Also we have growing number of clients through the digital platforms trading in our home broker and execution platforms.
The growth of wealth management also benefited from the growth in the share of wallet of our clients and in the growth of number of clients during the quarter. It's worth mentioning that during the quarter, we didn't have any acquisitions, which demonstrates the strength of this net inflow coming basically from a higher share of wallet and higher number of clients in all the segments of wealth management. Moving to page 14, here we have principal investments reaching BRL 395 million of revenues. Part of the performance coming from global markets, where had presented good recovery, in comparison to the first quarter. We have solid recovery of local stock markets, which contributed to the appreciation of our investment in Eneva. That investment continues to be marked at a significant discount to the screen price.
It is worth mentioning our investments in Banco Pan and in ESG, which are marked at book value while these two companies trade at a multiple of price to book. Moving to page 16. Here we have the expenses and main ratios. I would like to highlight a few aspects of our performance in the quarter. We had an increase in salaries and benefits going from BRL 205 million to BRL 225 million. This is basically due to the hirings. We have been hiring people during all these months to accelerate the pace of delivery of the projects we are building internally, most of them related to the digital retail unit.
We had a reduction in administrative and other costs, which went from BRL 273 million to BRL 226 million. We had an increase in the bonus provision that in the first quarter was very weak due to the performance, in the second quarter, came back stronger since we had a growing top line with costs under control. With that, we have run the bank at a 43% cost-income ratio in the first quarter and a 42% cost-income ratio in the second quarter, which shows the strength of our model, where the variable component of compensation creates a cushion that maintains our efficiency throughout the economic cycles.
If you look at the performance year-to-date for the six-month period of 2020, we ran the bank with a cost income ratio of 42%, which is exactly the same cost income ratio for the first six months of 2019, even though we have been growing, as you know, investments to deliver the digital platform, the technology and the services to our digital clients. Last comment on the page, our effective income tax ratio for the first quarter was 11.4%, for the second quarter was 32.4%, basically because as we had a stronger performance in the second quarter, the contribution of JCP, which are the deductible tax dividends in Brazil, were smaller on a percentage basis. In average, our effective income tax for the six months of 2020 was at 24.6%, very much in comparison and in line with the 23.1% of the initial six months of 2019.
Moving to page 18, our balance sheet analysis. I start by showing that our total assets grew from BRL 200 billion to BRL 230 billion. They are now at about 8.8, 8.9x total equity, and it was a nominal increase of 15% or BRL 30 billion. Of these BRL 30 billion of increase, the core increase or the more structural increase of usage in the balance sheet is about BRL 10 billion, which is the growth in our corporate lending portfolio.
The other BRL 20 billion came only from the fact that we had more flows, so more receivables and payables to and from the market and to and from our clients and counterparties, which don't represent more use of risk. Therefore, risk density reduced as a percentage of total assets and required capital increased because basically we deploy more of the balance sheet in credit and as well in market risk.
We recorded high liquidity, with BRL 29.6 billion of cash instruments and cash equivalents, which is much more than our own equity as we have been maintaining very high cash, not only throughout the crisis but in the recent past. We have a comfortable coverage ratio where unsecured funding base have grown 30.9%, while on-balance credit portfolio increased only 25.6%. Moving to page 19, we can see here a little bit more detail on the growth of the unsecured funding base, which went from BRL 61.1 billion to BRL 80 billion. The main growth was on the securities and time deposits line, which is basically representing the growth of local deposits. We have been issuing [Non-English Content ], LFs, and CDs in local currency in Brazil and in local currency and in Chile as well.
We also have benefited from government liquidity programs, the LTRO program in Brazil, that allowed us to expand our credit offering in the quarter. That represented less than half of our total net inflows. We believe that the strength of the balance sheet capitalization of Banco BTG Pactual has contributed to this strong inflow of deposits in local currency, which came mainly from corporate clients, but also from private and institutional clients. We believe that this constitutes the flight to quality that we have been benefiting from in the last two quarters. Finally, moving to page 20. Our Basel index finished the quarter at 19.6% growth compared to the where we reached 19.4% Basel ratio. Two factors here contributing to this small growth.
On one side, we had the expansion of risk-taking, not only in credit but also in market risk, represented by the expansion of the VaR that you can see on the chart to the right, which went from 0.37% to 0.5% of the average equity in the quarter. On the other hand, we raised BRL 2.6 billion on the follow-on, which increased our level of core equity. Our core equity reached 15.7%. Our total capitalization is at 19.6%, which is about 5% above the average of the Brazilian private banks, or privately owned banks. The big three banks, Itaú, Bradesco and Santander, they have an average of 15% Basel ratio, total capitalization in the end of the second quarter.
We have been maintaining higher capitalization ratio, which gives us the room and the oxygen to continue to grow the use of balance sheet as we see opportunities going forward. We open for Q&A. Thank you very much again for joining the call. Please feel free to ask your questions.
Our first question today comes from Tito Labarta with Goldman Sachs.
Hi. Good afternoon. Thank you for the call. A couple questions. First, if you can give some color in terms of the sustainable level of ROE you think, more like in the short term. We saw the big increase this quarter in sales and trading. I know that line can be volatile, but just to try to think. I think in the past you've given guidance there, like BRL 600 million-BRL 800 million. How do we think about, I guess, the sustainable ROE in the next couple of quarters, given the volatility we see there? I guess the second question is more longer term. On the back of your capital increase, where do we think that the benefits of that will show up? I guess maybe looking at your business mix today, is that we'll see much stronger contribution from asset and wealth management because of that.
How do you see that you'll be deploying that capital, and where the benefits will come from? Just trying to think the growth and the business mix in a couple of years as you deploy that. Thank you.
Thank you, Tito. On your first question, in the past, we had always told you that our goal was to reach a 20+ % ROE. That is still the case. When we said this 20%, we had not factored in that local interest rates in Brazil would go to 2%. This 20% factored in what we consider "neutral" in Brazil. Let's say it's 3% real rate, 3% inflation, let's say around 6%. At the same time, we are now investing around 1%-2% of ROE in our growth initiatives. We think that over the next couple, two to three years, we will have anywhere between 15% and 20% ROE. After this, as local interest rates normalize, as our investments mature, we think that we will be back to the 20+ ROE. How will we be deploying this capital?
First of all, we want to run the bank probably with a bit more conservative capital ratio than we were in the past. We probably want to run around 13% Core Tier 1, 16% total capital ratio. At the same time, we want to continue increasing our credit portfolio, as we do think that the opportunities to support our clients at attractive spreads is there. We want to continue investing in the development of our digital bank, our Wealth Management, and Asset Management franchise. We expect that over the next few quarters, we will be able to benefit from the operating leverage of our platform as we continue to grow. This is what you can expect over the next few quarters. I think Dantas wants to add something also.
Yes. Tito, just to add to the first part of your question, important to note, as we grow, we capture more operational leverage. That's what I wanted to mention when we showed costs. As you see, our cost income ratio today is at 42% for the first six months, compared to the same period in 2009, the same 42%. However, as we have been saying, we are spending more, hiring more people, investing more on the digital platform, and spending those investments through P&L as we disburse them, as the cash goes out. Everything is fully recorded as an expense. Even though we do that, we maintain the 42% cost income ratio. That is exactly because we are capturing operating synergies as we grow our market share, as we grow volumes, as the top line grows, we get more efficient.
Another reason why we can sustain the levels of ROEs that Roberto mentioned.
All right, thanks. Very helpful. I guess a couple questions just to follow up, if I may. Back on the first question, in terms of maybe just the short-term volatility that we saw in Sales and Trading, do you think that continues and Sales and Trading should remain at these elevated levels for the rest of the year? I know it's hard to predict, just to get a sense. I don't think you will go back to the level we saw in the first quarter when you were very conservative on the capital there. Just to try to get a sense there because that does have a big impact on the ROE.
Following up on your second point, Dantas, in terms of the cost income ratio at 42% now, do you think that that can improve at any point in the future, or do you see just that kind of remaining stable and earnings will grow in line with revenues?
Tito, on the ROE, we believe we will continue to operate the bank with this level of efficiency, so something around 42% is what you should expect. As I said, we plan to increase the number of people, the hiring, and the speed in which we deliver the investments, the services, the products. I think if you look from a long-term perspective, the bank, as you know, started as a trading house in the 1980s and the 1990s. We transformed it into a fully fledged investment bank in 2000, 2010. Right now, we are transforming ourselves into a fully fledged digital bank, which entails as well the capacity to serve retail clients on a broad offering of services and products.
That requires us to continue to invest more, and as we continue to invest more, this kind of a self-fulfilling prophecy, we have ability to capture market share, grow top line, and increase efficiency. I think as a result of these two forces, you will see the bank operating at these levels of efficiencies that we see today, spending more, but also capturing more revenues in the market. Can you say again your first part of your question?
The first part is more short-term oriented in terms of the big spike we saw in Sales and Trading. How sustainable you think that is? I don't think you'd go back to the levels we saw in the first quarter when you were very cautious there. Given that line can be very volatile, how you see that evolve for at least the rest of the year?
Yes. That Sales and Trading is reducing its volatility and growing. We don't believe Sales and Trading revenues will grow more than the franchise businesses and the service revenues, but we believe that the revenues in Sales and Trading will grow. We have more contribution from new business lines. With low interest rates, we see markets more sophisticated, allowing us to act on a wider range of products that we can manage, offer, intermediate inside Sales and Trading. Credit is an asset class that is growing in the performance of our trading desk. We see the ability of Sales and Trading to grow revenues, but we don't expect them to grow more than the service revenues that the bank produces. All in all, we believe that this tendency of returning around BRL 600 million of revenues continues with a upside going forward.
Okay. That's helpful. If I may, just one more follow-up. Sorry for all the questions. Back on the second question, I guess, in terms of the deployment of capital, you said, I guess, that'll mostly come through your investments in the digital bank and wealth management. Just to make sure I got that correct. In terms of the digital bank, should we consider that mostly coming through Banco Pan, or are you doing it more independently of that? Just to get a sense of where those investments are going.
No, that is not counting Banco Pan at all. This is our own investments. We have been investing internally and externally. We believe there is opportunity for us to consolidate the platform. There are some opportunities for acquisition. There is also opportunity to invest in technology internally. We can have a combination of build and buy solutions that allow rate the growth of our own digital platform. This is beyond whatever Banco Pan is investing on their own platform, which, by the way, has been consolidating and growing in a steady state pace that makes us very happy with the performance of Banco Pan as well.
All right, perfect. Thank you very much for that.
Just adding to Dantas's comments, we will be launching a transactional banking platform to our clients in the fourth quarter this year. Credit cards, transaction banking, expanding the services that clients are able to execute on our platform.
Okay, great. Thank you very much.
Our next question comes from Nicolas Riva with Bank of America.
Yes. Thanks very much for taking my questions. I got two questions. The first one is a follow-up on Tito's prior question on your excess capital. I think you mentioned that you have a target of CET1 of 13%. You ended the quarter at 15.7%, very high. You did the equity follow-on offering in the second quarter. I guess my question is how fast would you think of deploying this excess capital, for example, in the digital business for Asset Management or maybe even perhaps in Corporate Lending? My second question regarding Corporate Lending, of course you had a very strong quarter in this business as well. The Corporate Lending book grew quite substantially. I guess you feel comfortable with this business despite what's going on with the economy. If you can talk about what you have done in terms of debt relief for clients.
You mentioned the support for some clients during the quarter. If you can talk about that. Also in general, what's your outlook for this business and how comfortable do you feel with asset quality? Maybe you can also touch on coverage of NPLs for your Corporate Lending book. Thank you very much.
Thank you, Nicolas. on your two questions, on deployment of capital
The speed as we continue to grow credit, it should be incremental, no big rush. If the market continues with the current spreads for the current quality, we think that we can grow our book to three times equity. As we continue to deploy this in investments of our franchises, the speed of consumption will be a matter of buy versus build. We have no significant transactions to announce. We are analyzing various possibilities. If we do any acquisition, we would probably consume this excess capital faster than if we just continue to build our incremental investments as we have been doing. I would say that's what will decide the speed of the use of capital. On our Corporate Lending business, as Dantas said, we are very comfortable with the current level of provisioning. We are very comfortable with the portfolio that we had going into the crisis.
Sincerely, here it was more luck than competence, but we were fortunate not to have any significant exposure to sectors or companies that were heavily affected by the coronavirus pandemic. The growth has been concentrated on very high quality with very attractive spreads, which this combination only happens in moments like the one we live, where all of a sudden there is a surge in demand and a lack of offers, as the big banks already had a lot of capital consumption from their FX exposures, as the local credit funds had a lot of redemptions, and as international investors also concentrated in their domestic market. You had a combination where all of a sudden the clients were very interested in borrowing and there was very little offer. That's why the conditions were so good to increase the portfolio.
Dantas can comment maybe a bit on the details of the portfolio, but we are quite comfortable with the quality of what we inherited, what we expanded, and as long as these market conditions continue, we plan to continue expanding gradually to three times our equity or credit portfolio.
Yes. Just to complement on Roberto's answer. As you know, our credit is primarily concentrated on the growth of companies. We typically don't finance the short-term cycle of companies. We finance them on the long-term prospect. We typically constitute our credit, not only with companies that we understand very well, that we have been advising, that we have very good visibility in terms of the cash flows and the balance sheets, but also because of the nature of the credit that we concede, we can constitute very good collateral. The quality and the resilience of the Corporate Lending portfolio of BTG Pactual tends to be significantly higher than the average of the industry, which is proven by the past performance of our portfolio.
We never had losses, as you know, in any given quarter, even though the Brazilian economy has been through significant recessions in multiple times in our history. In this particular time of crisis and [Non-English Content], we were able to deploy that kind of knowledge and that kind of ability to structure transactions in very specific terms that fit the requirements of companies. It allowed us to be ahead of the competition, to capture market share in a very contributive way to the average of the portfolio. This is why, in the end of the day, we have expanded the credit portfolio, increased our market share, adding to the portfolio better quality on good names with attractive spreads and extremely good collateral.
We are sure that this has helped the companies to endure these tough moments of the economy and also helped us grow our market share on top of that.
Okay. Thanks very much for that, João and Roberto. Maybe just one quick follow-up. Did you have to restructure a relevant amount of corporate loans during the quarter?
No, on the contrary, we didn't have to do that. We saw this as an important effort undertaken by the large retail banks in Brazil. This was not the case for our platform. For the nature of the transactions that we have in our balance sheet, which are longer term and well-structured to start with, we didn't have to perform any restructuring of credit different from the normal situations that we face in any quarter. A normal performance of the credit.
Thanks very much.
I'll take the opportunity to add a final comment, which I think is a question that is shared by some of the analysts around the building up of our B2C platform, the platform of the independent financial advisors that we have been building. The first one, after six months of the migration to our platform. Our RIAs typically reach, or in average, they reach 100% of the AUC that they had before the migration. After they hit that target, after they reach the 100% of the AUC they had before the migration, almost all of the RIAs keep growing on a very speedy pace. We are happy with the growth, and we are very happy with the conversion.
We cannot say if it's a conversion of preexisting clients of our OFPs, our new clients, but we are very happy with the pace in which they reach the levels of AUC they had before they migrated from the previous houses to our house. We believe this is a consequence of the fact that our platform is today in a level of development that is very well advanced. Not only we offer the widest product offering for investments, we offer our clients concession of credit, and very soon, as Roberto mentioned, we'll be offering complete current account services, debit card, credit card. At this point, we have already a few thousand clients testing the consumer bank platform, and this will grow as towards the end, we expect to launch the platform, the consumer banking platform, to the open market in Brazil.
We could say we are very close to being able to offer to our clients digitally, a complete range of products and services that is in line with our offering of the investment bank to the Investment Banking clients. With that, we believe that the pace of growth of that AUC will continue, the attraction of RIAs will continue, and that the B2C platform will combine with the other strategies and platforms on the digital business to allow us to accelerate our growth even further.
Thank you. That brings us to the end of the question and answer session. I would like to return the floor to Mr. Roberto Sallouti for his closing remarks.
I'd like to thank all of you for once again joining us on our quarterly call. Once again, we're very happy to what we consider to have delivered the results which you were expecting as investors. We'd like to thank you once again for your trust and for your confidence, and we look forward to seeing all of you in the next quarter. Thank you very much.
This concludes today's presentation. You may disconnect your line at this time, and have a nice day.