Good day, everyone. Thank you for waiting. Welcome to BR Partners' video conference call to discuss full year 2022 earnings results. We inform you that this video conference call is being recorded and can be accessed in the company's website, where you'll find the full package of our financial releases. During the presentation, all participants will be in listen-only mode. Later, we will have a Q&A session. To ask questions, click on the Q&A icon at the bottom of your screen and type in your question. If you prefer to use the mic to ask questions, just let us know by message, and we will send you a request to enable your microphone.
We emphasize that information contained in this presentation and forward-looking statements that might be made during this video conference relating to BR Partners' business prospects, projections, and operating and financial targets are based on the beliefs and assumptions of the company's management, as well as on information currently available. Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties, and assumptions as they refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions, and other operating factors may affect to the company's future performance and lead to results that differ materially from those expressed in such forward-looking statements. Today, we have the following officers present: Ricardo Lacerda, CEO, Marcelo Costa, CFO, Danilo Catarucci, Managing Director and Head of Capital Markets, and Vinicius Carmona, IRO. I will turn the floor to Mr. Carmona to start.
Good day, everyone. Thank you for participating in our earnings video conference call to discuss the year of 2022. First of all, I would like to say that we are proud of the results we have achieved in the turbulent year of 2022. We are proud but never satisfied and remain humble to continue to do our best for our clients. 2022 was the first full year after the capital raised with our IPO and a year during which we could show its real importance for the expansion, diversification, and resilience of the company's revenues.
We went through another difficult year with numerous events on the macroeconomic and political front that impacted our market, such as the turbulent presidential election in Brazil, the Selic rate at very high levels causing greater difficulty for the corporate sector to raise funds and promote investment, and lastly, all the uncertainty about the country's fiscal situation. At the international level, the geopolitical tensions between Russia and Ukraine and the resulting European energy crisis, the inflation imbroglio in the United States with its impact on interest rates, and the Chinese slowdown with the pandemic. Even in the face of such adversities, we were able to achieve solid results with profit and revenue growth and continued development of our franchise with healthy profitability and margins. We thank our clients and investors for their trust, and we aim to be an example of an honest, persevering, tireless, and resilient company.
Let us start the presentation on slide two with the company's highlights for the year. Our total revenue was BRL 413 million, up 13% year-over-year. Net income totaled BRL 147 million, increasing 6% over 2021, with a net margin of 36%. In turn, annualized ROAE was 19%. It is important to point out that our ROAE is an 100% accounting indicator. BR Partners is one of the only listed financial institutions in Brazil to present its results without any management adjustments. Basel ratio remained adequate and stable at 24% in December 2022. Efficiency and compensation ratios were 37% and 21% respectively. Our private securities portfolio and bridge loans reached BRL 1.5 billion at the end of June 2022.
At the end of December 2022, growing 126% compared with December 2021. We have also managed to continue to position ourselves as one of the main investment banking franchises, ranked 4th place in the Bloomberg ranking by deal volume, 2nd place in the origination of rates by ANBIMA Rate ranking, and 3rd place in the distribution of MBS. On the following slide, we also take the opportunity to announce the continued development of our capital markets area, in which we issued BRL 5.7 billion of debt in the full year in 43 deals, including eight debenture issuances, a market we began to access in a more competitive manner after the IPO.
We also highlight that we are proposing the payment of interim dividends referring to the Q4 of 2022. This is still subject to approval at an ordinary extraordinary shareholders meeting to be held on March 17th, 2023. If approved, BRL 0.30 per unit will be paid, totaling BRL 0.87 per unit of dividends distributed in the full year 2022, which is equivalent to a dividend yield of 7.5% and a payout of 62%. Next, we will explain the results of our business units, starting on slide four with investment banking. In IB, we felt a slowdown of activities in Brazil.
The high level of interest rates in the Brazilian economy and the great political and economic uncertainties in 2022 have established a less favorable scenario for doing business between companies, either due to the greater difficulty for companies to raise capital for inorganic growth, or due to the cost of capital itself, due to the more challenging dynamics in the pricing of assets, or even due to the more defensive posture of preserving cash in times of greater uncertainty. We saw a great opportunity to take advantage of the value of our independence, and throughout 2022, we started to consolidate an interesting pipeline in corporate restructuring advisory, which should continue to gain traction in 2023, even though we do not expect a cyclical economic rupture in the economy, but rather in some specific sectors.
We were able to generate BRL 160 million in revenue, a 13% slowdown in relation to 2021. With a very healthy level of revenue generation. We have managed to position ourselves in iconic, profitable transactions with a strong sell-side angle, such as our advisory services to the Casino Group on the sale of their stake in Assaí. We also had a strong performance in the buy side, as in the advisory services provided to Fleury and Tupy. In total, we concluded 18 deals in 2022. We were positioned fourth place in Bloomberg's ranking in volume of announced deals. In the pie charts on the right, we show our diversification by sector and by type of advisory services provided. We will see the highlights of capital markets on slide five. The year of 2022 was a watershed for our capital markets.
We grew and developed our thesis focused on financial disintermediation, and with the capital raised in June 2021, we were able to diversify our issuance base throughout 2022 and mark an important presence in the debenture market with the ability to provide firm guarantees, and consequently gain more competitiveness in this market, access new clients, and participate in different issuance sizes. In 2022, we faced a great dichotomy in the debt market. On the one hand, a Selic rate of 13.75%, which made the cost of debt more expensive for companies. On the other hand, the volume of debt issuances at ANBIMA reached almost BRL 500 billion, explained by some factors, such as the good asset quality and low leverage of the corporate sector in Brazil.
The very sophistication of our capital market, with new companies seeking alternative sources of funding with longer terms and competitive rates compared to direct bank financing and, on the other hand, with a more consolidated local investor market. The fact that the market was closed to funding via the stock market made room for DCM to absorb part of the company's demand for funds. We also experienced an active moment in infrastructure projects, especially in the energy sector. Finally, investor appetite for fixed income products increased considerably with the Selic rate at 13.75% last year. In this scenario, we were prepared to capture the good opportunities, and were able to have our best year in revenues of this area, which totaled BRL 96.6 million, up 5.6% compared to 2021.
We also had our best year in terms of volume of issuances, as we can see in the bottom left chart, with a total of BRL 5.7 billion of issuances carried out among different debt products such as MBS, ABS, rate, CRI, and debentures, totaling 43 issuances, as shown in the upper right corner of the slide. Regarding sector breakdown, we managed to be present in new sectors and present good diversification with a natural, stronger presence in real estate on the back of our strong origination capacity of MBS for this sector. Lastly, we were ranked second in rate origination and third in MBS distribution by ANBIMA. We will continue to do our best in 2023. We will talk more about the prospect for this year at the end of our presentation.
Now I will give the floor to our CFO, Marcelo Costa, who will continue the presentation. In the next slide, we will show the results of treasury, sales and structuring, investments and other revenues. In 2022, the treasury, sales and structuring business continued to consolidate the expansion of its action, taking advantage of the capital raised with the IPO. Total revenue was BRL 62.6 million, growing 19% over 2021. Revenue growth resulted from the consolidation of the business with greater capital allocation, which led to the expansion of counterparty limits and access to new clients, which was also boosted by the upgrades in the bank's rating from A+ to AA- by Fitch and Moody's. In addition, the active debt market in 2022 provided good business opportunities for our area or business, which was well-positioned in the market and with capital to sustain our growth.
In investments, we posted revenues of BRL 5.5 million in the period. Down 20% in relation to 2021. This is explained by the one-off effect of the structuring fee related to the beginning of FIP APE in the end of 2021 in the amount of BRL 3 million. Revenues from capital remuneration totaled BRL 89 million, up 174%, reflecting the increase in the bank's capital post-IPO and higher average Selic rate in 2022. On slide seven, we present our new revenue classification criteria in order to improve the disclosure of our results and in line with the company's main comparable peers. Starting this quarter, we began to report the total pre-tax revenue. That is, the revenue from all business lines becomes gross revenue.
In investment banking, capital markets and investments, the taxes on revenues, PIS, COFINS, and ISS, which were previously revenue reducers, are now allocated to the new line item called taxes on revenues. Capital revenues, which include private securities, treasury sales, and structuring and remuneration of capital, were already presented in gross form. Taxes on these revenues, which were previously allocated to the other expenses line, were also reclassified to the taxes on revenues line item. The new criteria have already been applied for fiscal years 2022 and 2021, and in our earnings release, we provide more transparency regarding the tax rates applied for each business line. On slide eight, we present the evolution of revenues generated directly in the client business, which considers revenues from investment banking, capital markets fees, revenues from treasury sales and structuring, and management fees from our FIPs.
In this gray band, we show the revenues from the capital invested in CDI and from the private bonds that we carry in our balance sheet. In 2022, client revenues totaled BRL 313 million, growing in relation to 2021. When we break down this revenue in the chart on the right, we have a better notion of how the IPO was a fundamental pillar to offset a lower investment banking activity in the year. Our capital markets area recorded a 44% growth in revenue from debt structuring and distribution fees as a result of the increased volume of debt issuances that we presented earlier. In treasury sales and structuring, client revenues grew 19% to BRL 63 million. On slide nine, we have our performance indicators. The graph on the left shows the evolution of our fee income.
It is important to note that even with the BRL 400 million of the IPO in 2021, the company's fee income continued above 60%, very close to pre-IPO levels, which is evidence of how important capital is to continue stimulating our service business with clients. Turning the graph on the right, our efficiency and compensation ratios reached 37% and 21% respectively, remaining at healthy levels and showing our operating leverage even with a considerable increase in personnel and with the increase in administrative expenses necessary to cope with the expansion of our business compared to last year. On slide 10, we present the evolution of our income, which was BRL 147 million, up 6% in the full year. Net margin was 36%.
As for profitability, the ROE reached 19% in the period, in line with the business plan we had before the IPO, even in a macroeconomic environment that deteriorated rapidly. The reduction in ROE in the period reflects its dilution with the capital increase that took place in June 2021. On slide 11, we show the growth of our private securities portfolio and bridge loans, which totaled BRL 1.5 billion at the end of December 2022. A growth of 13% in relation to September and 126% compared to December last year. This increase is explained by growth of the private securities portfolio in line with our strategy of using capital in an intelligent and more active way in the debt issuances that we structured and co-invest in with our investors.
It is worth remembering that 100% of this portfolio is made up of debt securities that we originated, structured, and distributed from companies which have a full due diligence performed by our credit and risk areas. We highlight that 96% of our portfolio is rated double A or B and has no non-performing loans according to the criteria of Resolution 2,682 of the Brazilian Central Bank. Also, in the first chart, we present the bank's leverage that was 2.2 times in December 2022, a considerable increase over recent quarters, but which still leaves plenty of room for the continuity of our strategy of asset growth, while respecting our strict credit quality criteria.
As regards the Basel ratio, we ended December 2022 with a Basel ratio of 24.3%, a stable level quarter-on-quarter, despite having expanded the private securities portfolio, and this is mainly explained by a recycling of the company's derivatives that were maturing and opening space for new opportunities. We underscore that 100% of the company's Basel ratio is Tier 1. On slide 12, we present the evolution of the company's shareholders' equity, which totaled BRL 804 million in December 2022, while shareholders' equity of the bank vehicle was BRL 674 million. We point out that the payment of all dividends is carried out with cash generated in the vehicles outside the bank, while the bank's results have been recapitalized. This can be seen by the 6% year-on-year growth.
On the bottom of the slide, we present the evolution of the company's funding. We recorded funding of approximately BRL 1.8 billion at the end of December 2022, up 108% compared to 2021. I would like to point out that we continue to maintain very comfortable levels of liquidity that are in line with the bank's leverage. Average term of funding with third parties was 238 calendar days. I turn the floor back to Vinicius, who will outline how we envision the outlook for 2023. On slide 13, we have our take on business prospects in 2023. We reinforce that the information here is merely perspectives and should not be interpreted as a guidance.
As we all know, the year of 2023 started with major challenges for the Brazilian capital market, with a troubled political landscape, especially in relation to the fiscal framework, but also with a black swan in the local credit market, in addition to the continuity of monetary tightening cycle with high interest rates and expected low GDP growth. Before commenting on how we view each business line, it is important to mention that we have already faced very difficult years in our history, but we have always managed to maintain our resilience and profitability. This is because we are a lean bank with versatility in equalizing revenues and expenses, but also because we are a financial services company operating in businesses that are profitable and have high margins, even in different economic cycles.
In investment banking, we still see a prolongation of the slowdown in activities vis-à-vis 2022, but with a different mix in the pipeline and one that can bear good fruits. M&A focused on growth, which was very much observed in 2021 and fostered by many IPOs in that period, and which opened a lot of space for companies to grow inorganically or scale up their businesses with private equity funding. Well, all that is scarcer. However, with the scarcity of equity funding and the rising cost of debt, we have seen some opportunities for market consolidation, with large players being able to use their cash firepower to acquire smaller and more stressed assets or those struggling to scale their businesses. Another angle is our restructuring advisory pipeline, which tends to gain traction in more complex economic cycles.
In capital markets, with the current interest rate levels and bad mood in the market, the industry's issuance volume should decrease from the record year of 2022. We are not immune to this movement. Although we still have a healthy pipeline, but with more complexity to settle operations given that the credit market was hurt by the event of a large retailer. However, a drop in volume should be partly offset by more profitable debt structuring with potentially better spreads. In treasury sales and structuring, we have been able to expand relationship with large clients and benefit from higher capital, which has allowed us to extend our client limits. We continue to seek good opportunities in the market as a result of our proximity and excellent services to clients, even in a more challenging environment.
Regarding remuneration of capital, this revenue continues to benefit from a high Selic rate and shareholders' equity growth. Lastly, relying on well-managed efficiency and compensation ratios, we will do our best to maintain high profitability and healthy margins as we have done throughout our history. We are now available to answer the questions from our investors. We will now begin the Q&A session. To ask questions, click on the Q&A icon on the bottom of your screen and type your question to get in line. When you are announced, a prompt to enable your microphone will appear on the screen, and you must open your mic to ask a question. We recommend that you ask all of your questions at once. Our first question from Eduardo Rosman, sell-side analyst, BTG. Eduardo, we'll enable your audio so you can proceed. Go ahead. Hello. Can you hear me well? Yes. Hello.
Thank you for the opportunity, and congratulations on the earnings. Very solid results in a very difficult year. I have two questions. First, you spoke a lot about this new restructuring platform. You have a strong pipeline. Recently, it's been in the news that some companies have hired your services, and this could be one way to offset a weaker M&A market. I would like to have more color on this pipeline. What is its dynamic? How long does it take? Because we know that a cost-supervised reorganization can take longer. Sometimes it's not even that, it's a first negotiation. What about recognition of fees? Do you have a success fee or is it a fee you recognize over time, perhaps monthly? If you could elaborate on that, we would appreciate it. Secondly, regarding your compensation ratio.
Although the year was a little more difficult, the result of the company improved and the ratio decreased. You have a partnership model that has been working for quite a while now, I'd like to understand how you intend to continue to develop partnership. Do you wanna do something different, stock option or something like that? What is the strategy for partner retention? Is it easier to keep your partners? Is it easier to hire them or is it a competitive market still? Thank you. Thank you, Rosman. Regarding your first question, we have invested a lot of time and done some hiring for debt contracting. We believe we have a great differential in this segment because obviously the large banks, mainstream banks, do not compete in this segment.
We compete with much smaller companies and boutiques that tend to be specialized and normally do not have the same franchise of M&A that we have, which is quite complementary to that activity. That has given us quite solid results. As you mentioned, there have been some announcements of debt restructuring of large clients that hired us, and we are very optimistic regarding that. In 2022, we did not have a relevant revenue coming from debt restructuring business. It accounts for less than 2% of the IB revenues, and we expect to grow this percentage to close to 20% between 2023 and 2024. This is something that is becoming more and more relevant for us. As for the dynamic, I believe it is slightly different dynamic. In our mergers and acquisitions business, we work almost exclusively with a success fee.
The retainer fee volume or monthly payment volume is not that relevant. In debt restructuring, we have a fixed remuneration percentage, which is more relevant because oftentimes the counterparties do not like that we have everything successfully restructured because that can generate some wrong incentives. We have a compensation which is more, let's call it gradual over time. Of course, it depends on success, but I should say that the rate of completion of deals is even greater than in traditional M&A. Sometimes it takes a lot longer, and we have a certain limit, a certain cap in terms of what you can receive in retainer. The rest is success fee. It is a compensation dynamics which is more stable than what we see in the investment banking business in 2023, 2024.
That should account for 20%, 20% coming from restructuring. There are some large deals that can bring a robust compensation. As for your second question regarding compensation ratio and growth of revenues, there is a percentage component vis-à-vis revenues, but it also has a nominal component considering the total bonus pool. We grew revenues, but our main business, investment banking, posted a revenue decrease of around 13%. Of course, this has an impact on compensation, and we thought that the level of provisioning that we had and the amount that we are distributing in total company in 2022 are all consistent with market situation and the maintenance of our team. We are happy with that. I guess that we are in a market which is a little more fragile in terms of people placement. I think everyone recognizes that.
Some foreign banks have had some layoffs and reduction in their personnel, and that favors this dynamic. Since the IPO, we approved a stock option plan, but we decided in 2022 not to activate this because we believe that our share price is not the right one, and this would not be good for the partnership nor for our shareholders. The 2022 compensation is basically cash, which is embedded in expenses with no dilution for shareholders. As for partnership management, it all remains the same. We have our stock options and our stock loans, and this continues underway. I believe that we are quite okay. We are rather satisfied with this. Given the market dynamic as a whole, we don't see a great risk of losing talents who are important to us.
The most relevant people are quite on board in terms of participation and alignment with our business plan. Excellent. Thank you very much. Thank you. Our next question comes from Pedro Leduc, Sell Side Analyst with Itaú BBA. Mr. Leduc, we'll enable your mic so you can proceed. Please go ahead. Mr. Pedro Leduc, you may proceed. Hello. Hi there. Now you can hear me. Great. Hello, congratulations on a very good delivery in a very challenging year. I'd like to know about the capital markets business. In the quarter, the revenue drops a little sequentially to BRL 20 million. It was BRL 25 million, there was effect of the carryover of some notes linked to inflation. Anything beyond that? Any additional provision? This business benefited from very low corporate NPLs and very strong appetite for loans, funds demanding a lot of securities.
In the turn of the year, we have an event that was quite emblematic, so we would like to understand from you, how are you feeling the buyers' appetite? What are the adjustments to be made in the market in terms of rates, terms? You're relevant to issuers, so how do you see the structuring piece adapting? Is this impacting your appetite to carry more or less securities in this more uncertain environment? I have many questions in one, but I guess you can see that I want to understand more about the capital market, what happened to it in Q4, and the dynamics for 2023. Okay, Leduc, thank you for the question and the comments.
Along last year, when this cycle of monetary tightening began and more towards the end of the year and beginning of 2023, we have seen a deterioration of the company's balance sheets, of companies in different sectors. This is very clear. Our interaction with large corps and even with smaller companies, this became very clear. The cost of debt has increased a lot, and there is a scenario of gradual deterioration, which in my view is not systemic. It is not something that is concerning looking forward, but it is definitely relevant. We also had this event of the Americanas fraud. Given the magnitude, given the surprise element, and given a probable component of wrongdoing and problems involved, that generates a big trauma. As for the management of our portfolio, we continue to be very disciplined. We constantly revisit our positions.
We do not have a concentration on any name. 77% of our portfolio has a clear collateral, and we're very satisfied with that. Our appetite to continue to retain loans continues high. Now, obviously, in an environment that requires a lot more discipline and caution. I'll turn the floor to Danilo. Pedro, thank you for the question. Talking about Q4 of 2022, I think you mentioned one of the points, 3 months of deflation that were obviously hurting. In Q4 of last year, if I look at it was quite a complex quarter because we had the elections. That got a lot in the way, particularly when there was so much noise and, of course, the volatility of the market after that event.
We had the FIFA World Cup that removed a lot of liquidity, and we had some micro-level events that ended up removing liquidity from the market. There was the change in the security distribution legislation that made many issuers hold back, so that was an impact. It wasn't really just us, but indirectly there was an impact in terms of the mark-to-market of securities that made retailers step on the brakes. You put all of these factors together, and that ended up reducing our revenue pace. If we look at our fee income, it continued to be good. Speaking about the outlook, these events mentioned coupled with the macroeconomic environment, not only in Brazil, but worldwide. All of that has impacted pricing and obviously has hurt local investors.
We had not only the Americanas event, but other events that really touched the pricing of debentures and bonds and has impacted pricing in the primary market for high-grade securities, the so-called high-grade securities. That, in a way, gets in the way. We cannot deny that this directly impacts issuance volume. On the other hand, it helps us have more rational credit spreads. These events end up rationalizing investors as well as issuers, so that they can prepare better priced deals with adjusted terms and with more profitability. Of course, our idea is not to maintain the same level of growth as last year. Our intent is to be more selective, to look for assets that will be able to generate more arbitrations. Having money available at this time makes a difference. Our balance sheet is still light and with high-quality assets.
With this, we can take advantage of this moment, but of course, it requires caution. As Ricardo mentioned, we have revisited all of our companies. As we do in all quarters, we have tried to price our assets accordingly so that they can always be marked to market correctly. Overall, this is it. As Ricardo mentioned, the 77% that we have today have real estate guarantee. If we consider all of those guarantees, that ratio increases to more than 90%. Oh, you asked about provisions. Obviously, when we grow these portfolios, also for legal reasons, there is an impact on provisions. Obviously, according to the pace of growth of the portfolio, we have to provision for the securities according to the rating.
Now, regarding delinquency and non-performing loans or having provision for that, we did not have that impact, and we expect not to have it in our securities. Thank you. If I may ask a second question. Marcelo is here. I don't know if this was the first quarter where Treasury sales and structuring, as you now call it, had a revenue greater than capital markets, so very good. I don't know if this was the first quarter, but it is very nice to have a continuous ramp-up along the year. Marcelo, perhaps you could explain what led to this revenue increase, BRL 20 million. We know there is some volatility, but perhaps you can give us more color on that. Talk about opportunities, products, clients. Thank you, Leduc, for the question.
I think that Q4 in the Treasury business shows the kind of work that we've been doing and it shows that we are delivering as promised. We said that the IPO was going to be a fundamental pillar for us to have a greater capital base, greater legal lending. With the IPO and with the upgrades that we had in mid last year, we joined the Double A league. We are a counterparty business, we were able to increase our counterparty limits with many relevant clients that have been with us either in capital markets or IB with previous relations in the Treasury, and clients that had little ability to have larger operations. This is the result of many operations linked to the capital market. This increase in volatility also played a role.
All linked to the Fed monetary policy and also due to the results of our election that brought along some volatility, we were able to capture that well. That's basically it. This is what we expect for this year. I think that in 2023, we're starting with a client base, which is a lot broader than in the beginning of last year. As much as we have this vision that perhaps the capital market will be a little weaker, we are a lot more prepared with CDIs derivatives contracts with these clients and with all the onboarding done so that we can be there when they come to market. Obviously, we'll be able to manage risk daily. Our expectation is quite good for this year. Also in keeping with what we had last year, and we're projecting even a slight growth.
There was a lot linked to the balance sheet issuances and volatility altogether. May I ask a third question? Of course, go ahead. My question directly to Ricardo. This year was perhaps a year of investing internally in BR Partners. We see personnel, administrative, salesforce, bankers out on the streets, and we look at personnel expenses and administrative expenses, there was a big increase in the full year. Now getting to 2023, can we understand that this investment cycle is complete? That you already have the teams as big as you would like for every avenue to be pursued? The scenario is a little more troubled. Is there room to recover? Perhaps recover is not the right word, but can we adjust if the top line does not come as we expect?
Undoubtedly, the scenario out there is a lot more volatile because of the interest rate cycle and the credit moment and a slowdown of IB. I would like to say that we continue with a very robust level of activities. If you look at our pipeline in the different businesses and how many people are engaged with clients, et cetera, it all remains at a very healthy level. On the other hand, I believe that we are in a moment of more risk, and we should see greater volatility of revenues and results in the coming quarters. I think it will be difficult to repeat that stability of top line and bottom line that we saw in recent quarters because in the past, we were in much more favorable markets. We are far from being in a bad market where nothing happens.
You put it well when you talked about our investment in infrastructure. We have a compensation ratio which is slightly lower because of where the revenue growth came from. We had revenue growing linked to our capital increase, not necessarily linked to people performance. When we manage the firm, we have to reflect on that. We are very disciplined regarding these criteria, and I believe that we're very well-structured. If we look throughout the firm, we went through some recycling due to people management. We exchanged some people. We hired some new people, managing our teams normally, with normalcy. In our opinion, we don't need great investments in any of the businesses, except to develop our business of wealth management.
We are finally close to getting to the model that we want to have to develop this organically by hiring teams and with a model that we believe will have synergy with our other activities. it's gonna be a winner and something that fits our pocket. it is possible that we'll see an increase in administrative and people expenses related to the development of this new business area. with the current business areas, I think that we are quite well-sized. Perhaps we can gain even a little more capacity if the market recovers and if we can have a slightly better top line. Excellent. Thank you very much, and may we all have a great year. Moving on, our next question is from Renan Manda, Sell-side Analyst with XP. Renan, we'll enable your mic. Go ahead. Hello. Good day, everyone.
Thank you for taking my question, and congrats on the results. I would like to explore the topic of issuances and structuring. You gave us a preview of what you're expecting for 2023, with a slightly lower issuance volumes, but perhaps focusing more on profitability. Looking at the issuances that should take place and be less affected, do you see any specific sectors or niches that should maintain the pace? This lower issuance volume should happen across the board, and how do you see this happening along 2023? Thank you. Good question. Candidly speaking, we have been changing a lot our pipeline. The market is more into CDI. We have more IPCA operations. We cannot talk about specific sectors. Some sectors are a benchmark, such as agribusiness. Other sectors need more, such as infrastructure, but these sectors will continue to be borrowers.
I think that putting a stamp on some sectors, well, that's hard to do in the beginning of the year because it may vary a lot, but it's up to the request of the investors. In the end of last year, the market was very much towards debentures, open funds. This year, given these current credit events. This market is still assessing what the next few months will be like. We have been more selective in that regard. Agribusiness, for example, it ends up having a different dynamics because it doesn't rely only on the local, the domestic economy. Some investors are turning their eyes to agribusiness and also infrastructure because there is need. There were several bidding processes and auctions in recent years. In some specific segments ended up contracting a lot, and they'll need funding. We can act on those sectors.
In real estate, that's where we have a good action. Companies need to roll out their debt and refinance, and that's where we're working, shortening the term a little bit as was provoked in the previous question and working in agreement with market demand. Trying to shorten duration and trying to have more guarantee in pricing the operations. There is a question here that arrived from an investor regarding our exposure in the agro sector. In this sector, we have been gaining more competitiveness. In 2022, 10% of our debt issuances were concentrated in agribusiness. Historically, we have increased our share in this sector, and undoubtedly in 2023, we will be paying more attention and working more closely with this industry for sure. We can move to the next question, please. We received the following question.
The portfolio grew BRL 170 million in the quarter, but Basel RWA remained pretty much flat. How to explain this movement? Just so we can be all on the same page, we have been using the bank's capital for practically two risk components. A component that has to do with the treasury business, which is more derivatives, and the credit business, which is our private securities portfolio and bridge loans. In the quarter in derivatives, we had a Basel capital use which was practically flat, and it shows that even having a quarter with a revenue of BRL 20 million, we did not consume additional capital. Why is that?
Because many operations, particularly in Q4 when we have a lot of derivatives, operations of clients, and they have a maturity towards the end of the year, we start having allocation for the new deals, so we recycle Basel. On the credit side, although we grew BRL 170 million, this growth was more in securities that have less capital allocation as in prior quarters. In prior quarters, we have been growing our bridge loans portfolio, which uses more capital. This growth in assets with a lower ratio, that's what explains the slight increase in capital allocation. We also received another written question. We have seen more and more deals of small and mid-sized companies where M&A boutiques have a strong penetration. Are you looking at this, or it does not make sense to look at a renowned boutique to expand this sector?
Not to mention synergy because BR Partners has access to large clients that are potential targets for the sale of smaller companies. We had a number of conversations. We are constantly looking and keeping our ears open. In BR Partners, we handle large deals, but we also handle smaller deals with large clients. I think we have a mix of deals that competes in different segments. Yes, it is interesting for us to perhaps have an acquisition or work with a boutique that works in this market of smaller deals.
This is a business of people, it's not that simple to manage this kind of acquisition because there must be an identity match between the teams, the culture of the firm, confidence in how the business will be run because it also involves our name and our reputation. We need to be careful. Yes, this is in our radar. Perhaps a partnership or the acquisition of a boutique firm that acts in a segment of slightly smaller deals. The Q&A session has ended. I would like to turn the floor to the company for their closing remarks. Again, I would like to thank all of you from sell-side and representatives of the buy side and individuals in our call.
The year of 2022 was indeed a very dynamic year with huge volatility in several ways, internationally, local monetary policy, the elections in Brazil, the change of administration. This was an important year for us. We had expanded our activities a lot, and we end 2022 very satisfied with the results we delivered. We were able to deliver improvements in all of our metrics despite a much less favorable environment than we had envisioned at the turn of 2021 to 2022. Now, starting 2023, we have a similar view. We continue with volatility, with important events such as the Americanas event impacting all credit markets and even the mergers market suffering a certain contraction as a result of this important event. We continue to be very confident in the performance of our firm for the coming quarters.
Again, I would like to thank all of you, and our investor relations department is always available if you have any further questions. The 2022 earnings video conference call of BR Partners is now closed. The investor relations department of the company is available to answer any further questions or doubts. Thank you very much to the participants, and have a great afternoon.